Nerdy, Inc. (NRDY), the parent company of Varsity Tutors for Schools (“VTS”), has partnered with Johnson County Schools to offer free access to the Varsity Tutors for Schools platform to all district students. This collaboration, extending through June 2030, highlights Nerdy’s dedication to transforming education through technology.
The Varsity Tutors for Schools platform provides a comprehensive suite of educational resources, including 24/7 On-Demand Chat Tutoring, Essay Reviews, Live Enrichment Classes, and Personalized Learning Plans. This diverse offering caters to the diverse needs of students, whether they need help with homework or are preparing for college entrance exams. The platform also features unique value-added elements such as celebrity-led classes and college readiness resources, setting Varsity Tutors apart from its competitors.
VTS, a leading provider of tutoring services, leverages its platform to offer institutions high-dosage tutoring and online learning solutions. The platform provides academic resources and tools with three simple models for high-dosage tutoring administration. More than 500 school districts across the United States utilize the VTS platform to supplement classroom learning and effectively bridge learning gaps.
The free access provided to Johnson County Schools underscores Nerdy’s innovative approach to expanding its user base while providing crucial educational support. This zero-cost model for the district could open doors to similar agreements nationwide. Nerdy’s mission to revolutionize learning through technology has driven the development of its live online learning platform, providing seamless access to over 3,000 subjects. This platform features enhanced online technologies and a network of capable tutors offering a range of instruction formats, including small group classes, large format group classes, adaptive self-study, and one-on-one instruction.
During the second quarter of 2024, Nerdy’s access-based subscription revenue business models generated significant operational leverage, surpassing expenditures in various sectors and enabling the ongoing expansion of Varsity Tutors for Schools. The Institutional segment generated $11.1 million in revenue during the second quarter, representing a 33% year-over-year growth and accounting for 21% of total revenue. Varsity Tutors for Schools secured 56 contracts, resulting in $4 million in bookings, showcasing a strategic emphasis on expanding access to the platform. Nerdy is also actively hiring and onboarding sales personnel to optimize performance during the back-to-school buying season and capitalize on the long-term market potential within the Institutional segment.
Nerdy’s current financial position boasts no debt and $69.8 million in cash on hand, signifying sufficient liquidity to fund operations and pursue growth initiatives. While Nerdy’s shares have underperformed the Zacks Schools industry, with a 69.6% year-to-date (YTD) decline compared to the industry’s 1.7% decline, the company’s recent convergence of the Consumer and Institutional platforms, coupled with a focus on core value propositions in the Consumer business and the expansion of the Varsity Tutors for Schools go-to-market teams, positions Nerdy for a return to profitable growth as it exits the year.
