Forget Nerdy Stock -- This Learning Company Has Far More Potential
Nerdy (NYSE: NRDY) disappointed a lot of investors after it went public by merging with a special purpose acquisition company (SPAC) in September 2021. The online tutoring marketplace's stock opened at $10.96 on the first day. It closed at its all-time high of $12.28 the following day, but now trades at less than $3.
Nerdy's core platform is Varsity Tutors, a freelance marketplace which connects private tutors to students for online classes. It also hosts live K-12, professional, and adult learning classes in thousands of subjects.
The company's revenue only rose 15% in 2020 as the closures of schools and testing centers during the pandemic lockdowns curbed its growth. Its revenue grew 35% in 2021 as the pandemic's worst point passed, but rose a mere 16% in 2022 as it transitioned from a la carte classes to an unlimited subscription-based model. Analysts expect its revenue to rise 18% to $193 million this year as its business stabilizes.
Source Fool.com
