Core Viewpoint - NerdWallet (NASDAQ: NRDS) was previously rated as a "Buy" due to its founder-led structure and growth in monthly unique users (MUUs) [1] Company Summary - The company is experiencing growth in its monthly unique users, indicating a positive trend in user engagement and potential revenue generation [1]

Group 1 - The stock markets are experiencing a skittish mood, prompting a strategy to rotate portfolios into undervalued small-cap rebound stocks [1] - Gary Alexander has extensive experience in covering technology companies and advising seed-round startups, contributing to insights on industry trends [1] Group 2 - The article emphasizes the importance of focusing on small-cap stocks as a potential investment strategy during market downturns [1]

Financial Data and Key Metrics Changes - In Q4 2024, NerdWallet reported revenue of $184 million, a 37% year-over-year increase, and delivered $17 million in non-GAAP operating income [7][24] - Full year revenue reached $688 million, reflecting a 15% increase compared to the previous year [24] - Non-GAAP operating income margin remained similar to Q4 of the prior year despite increased brand investment [36] Business Line Data and Key Metrics Changes - Insurance revenue grew to $72 million in Q4, an increase of 821% year-over-year, driven by strong consumer and partner demand [33] - Banking products saw a 5% year-over-year growth, while credit card revenue declined by 19% year-over-year to $35 million [25][26] - Personal loans revenue decreased by 51% year-over-year, while mortgage revenue grew primarily due to the acquisition of Next Door Lending [9][27] Market Data and Key Metrics Changes - The SMB products segment generated $26 million in Q4, down 7% year-over-year, reflecting pressure from elevated rates and tight underwriting [30] - Emerging verticals, which include banking and investing, delivered $34 million in revenue for Q4, growing 7% year-over-year [34] - The overall lending environment remains cyclically depressed, impacting growth expectations across various segments [24][30] Company Strategy and Development Direction - The company is shifting focus from Monthly Unique Users (MUUs) to driving engaged relationships with consumers and SMBs, emphasizing quality over quantity [11][12] - Vertical Integration and Registrations & Data-Driven Reengagement are identified as key growth pillars for the company [70][72] - The company plans to continue investing in brand awareness, including a national campaign launched during the Super Bowl [15][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to year-over-year growth in personal loans and expects revenue growth to be maintained throughout 2025 despite tough comparisons [44][46] - The company anticipates a challenging lending environment but remains committed to disciplined spending and strategic investments [48][49] - Management highlighted the importance of adapting to changes in the competitive landscape, particularly with the rise of AI and digital marketing [81][82] Other Important Information - Lauren StClair, the CFO, will be stepping down in March and will be succeeded by John Lee [21][22] - The company has grown its cumulative registered user base to 25 million in 2024 [20] Q&A Session Summary Question: Growth in Insurance Segment - Management noted that the growth in the insurance segment is driven by improved traffic flows and a growing market, with confidence in sustainable demand [56][58] Question: Q1 Margin Guidance - The Q1 guidance indicates a potential loss to breakeven, primarily due to increased brand spending and a larger mix of performance marketing [62][63] Question: Shift in Traffic Strategy - The decision to focus on quality relationships over MUUs was driven by a correlation between MUUs and revenue, leading to a strategic shift in internal goals [68][72] Question: Competitive Market Share - Management emphasized that partners evaluate based on customer lifetime value, and deeper engagement is becoming more valued than just top-of-funnel share [92][93] Question: Personal Loans Performance - Management acknowledged a focus on personal loans has been reestablished, with expectations for improvement in Q1 following a significant decline in Q4 [100] Question: Vertical Integration Opportunities - Management indicated that vertical integration opportunities exist in areas where financial guidance is beneficial, suggesting a broad approach to integration [104] Question: Brand Spend Efficiency - Management is focused on improving brand spend efficiency, particularly in sports marketing, while striving for better returns on investment [106]

Core Viewpoint - NerdWallet, Inc. reported quarterly earnings of $0.01 per share, matching the Zacks Consensus Estimate, and showing improvement from a loss of $0.03 per share a year ago [1] - The company posted revenues of $183.8 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 8.70% and up from $133.7 million year-over-year [2] Financial Performance - The company has surpassed consensus revenue estimates four times over the last four quarters [2] - NerdWallet's shares have increased approximately 5.1% since the beginning of the year, outperforming the S&P 500's gain of 4.2% [3] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] - Current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $189.52 million, and for the current fiscal year, it is $0.36 on revenues of $756.88 million [7] Industry Context - The Financial - Miscellaneous Services industry, to which NerdWallet belongs, is currently ranked in the top 21% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact NerdWallet's stock performance [5][6]

Investment and Product Development - The company is actively investing in new product offerings and technologies, with plans to increase these investments in the future, despite inherent risks and no guarantee of realizing anticipated benefits [91]. - The launch of the NerdUp credit card in 2023 aims to help consumers build credit, although it is not expected to generate significant direct profitability from interchange fees [109]. - The anticipated launch of NerdWallet+ in 2024 is designed to reward consumers for making healthy financial decisions, but it is also not expected to generate significant profits [109]. - The company is investing significant resources in developing new tools and services, including mortgage and other financial products, but faces risks related to demand prediction and potential defects in technology [117]. Competition and Market Risks - The company faces significant competition from online marketplaces and traditional financial institutions, which may have more capital and resources [111]. - The company is exposed to macroeconomic uncertainties, such as inflation, which may adversely affect its business and results of operations [91]. - Changes in the loan markets, including increased interest rates and economic slowdowns, may negatively impact the company's business and financial condition [132]. - The company anticipates that future interest rate increases will reduce demand for loan products and the supply of credit available, affecting its loans and SMB product verticals [132]. Operational Dependencies and Challenges - The company relies heavily on relationships with financial services partners, and any adverse changes in their financial strength or marketing strategies could negatively impact the business [93]. - The company's financial performance is dependent on successfully referring users to financial services partners, who are not restricted from offering products outside the platform [91]. - The company’s operations are primarily dependent on the U.S. market, making it vulnerable to economic downturns affecting the U.S. economy [123]. - The company tracks operational metrics that may be subject to inaccuracies, which could harm its reputation and financial condition [128]. Regulatory and Compliance Risks - The company is subject to various financial regulations across multiple countries, which may lead to increased operational costs and potential liabilities [133]. - Compliance with evolving data privacy laws, such as the CCPA and UK GDPR, may impose significant costs and operational challenges on the company [140][142]. - The recent acquisition of NDL in October 2024 introduces additional risks related to compliance with federal and state regulations governing mortgage brokerage operations [112]. - The integration of NDL's operations into the broader platform presents execution challenges, particularly in maintaining compliance with evolving regulations [112]. Financial Performance and Condition - Revenue for the year ended December 31, 2024, was $687.6 million, representing a 14.7% increase from $599.4 million in 2023 [345]. - Net income for 2024 was $30.4 million, a significant recovery from a net loss of $11.8 million in 2023 [347]. - Total liabilities increased from $51.7 million in 2023 to $73.4 million in 2024, a rise of about 42% [342]. - The accumulated deficit widened from $116.5 million in 2023 to $166.5 million in 2024, an increase of about 43% [342]. Employee and Management Risks - The company faces intense competition for qualified personnel, which may hinder its ability to attract and retain skilled employees necessary for growth [149]. - The loss of key executives or inability to attract new management could disrupt the company's operations and growth objectives [147][148]. - The transition to a remote-first company may lead to reduced employee morale and increased cybersecurity risks, potentially adversely affecting business operations [151]. Stockholder and Market Considerations - The dual class structure of the company's common stock concentrates voting control with its Co-Founder and CEO, limiting other stockholders' influence on corporate matters [180]. - The company does not expect to pay any cash dividends for the foreseeable future, as it intends to retain future earnings to fund business development and growth [191]. - The company's stock price may decline if existing stockholders sell substantial amounts of Class A common stock in the public market [201]. - Provisions in the company’s corporate charter may make acquisitions more difficult, potentially limiting stockholder benefits [205]. Cash Flow and Liquidity - Cash and cash equivalents decreased from $100.4 million in 2023 to $66.3 million in 2024, a decline of approximately 34% [342]. - Cash provided by operating activities was $71.8 million in 2024, slightly down from $72.1 million in 2023 [352]. - The company reported a net cash decrease of $34.1 million in 2024, contrasting with a net increase of $16.5 million in 2023 [352]. - The company expects future borrowings on its line of credit to be subject to changes in interest rates, which could impact financial condition and results of operations [331]. Marketing and Revenue Generation - The company generates revenue primarily through fees from financial services partners, with revenue recognized upon matching consumers with partners [380]. - The company's total sales and marketing expenses for the year ended December 31, 2024, amounted to $470.6 million, an increase of 17.2% from $401.5 million in 2023 [386]. - Performance marketing expenses rose to $297.4 million in 2024, up 43.9% from $206.5 million in 2023 [386]. - Advertising expenses totaled $370.3 million in 2024, compared to $294.7 million in 2023, reflecting a year-over-year increase of 25.6% [386].

EXHIBIT 99.1 NERDWALLET REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS Fourth Quarter Revenue of $183.8 million, Up 37% Year-Over-Year FINANCIAL HIGHLIGHTS SAN FRANCISCO, CA—February 19, 2025—NerdWallet, Inc. (Nasdaq: NRDS), which provides trustworthy financial guidance to consumers and small and mid-sized businesses (SMBs), today reported financial results for its fourth quarter ended December 31, 2024. "We closed 2024 strong, exceeding our expectations and growing revenue to $183.8 million, up 37% year ...

Core Viewpoint - NerdWallet (NASDAQ: NRDS) underperformed the broader market in 2024, leading to a reassessment of previous bullish sentiments, yet the outlook for 2025 remains positive due to revenue growth [1]. Group 1: Company Performance - The company experienced revenue growth, which supports a bullish outlook for 2025 despite the underperformance in 2024 [1].

Group 1 - The Q3 earnings season is showing significant upside surprises despite concerns about a consumer slowdown in the U.S. [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and advising startups, contributing to insights on industry trends [2]

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $191 million, representing a 25% year-over-year increase, exceeding revenue guidance [22][37] - Non-GAAP operating income was $23 million, up $13 million year-over-year, with a non-GAAP operating income margin of approximately 12% [9][32] - GAAP operating income was $6.6 million, with a net income of $0.1 million, which included $7.8 million in restructuring expenses [34] Business Line Data and Key Metrics Changes - Insurance revenue grew 916% year-over-year, significantly contributing to overall revenue growth [31] - SMB products generated $28 million in revenue, growing 12% year-over-year, driven by renewals despite challenges in SMB loan originations [28] - Credit card revenue declined 16% year-over-year to $45 million, attributed to underwriting constraints and organic traffic pressures [7][23] - Loans revenue decreased by 28% year-over-year to $24 million, with personal loans down 49% year-over-year [25] Market Data and Key Metrics Changes - Monthly Unique Users (MUUs) decreased by 7% year-over-year to 22 million, primarily due to challenges in organic traffic [35] - The company anticipates a full quarter of impact from search headwinds in Q4, leading to further MUU deceleration [8][52] - Emerging verticals revenue grew 129% year-over-year, driven by banking, insurance, and investing [30] Company Strategy and Development Direction - The company is focusing on vertical integration, highlighted by the acquisition of Next Door Lending to enhance mortgage services [10][16] - Strategic areas of investment include improving shopping experiences and building deeper consumer relationships [12][17] - The company aims to leverage its brand to enhance user experiences and drive growth in various financial services [19][59] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds in organic search and a challenging lending environment but expressed confidence in long-term growth prospects [5][37] - The company expects Q4 revenue in the range of $164 million to $172 million, indicating a 26% year-over-year growth at the midpoint [37][38] - Management remains optimistic about the insurance vertical's strength continuing into 2025, driven by share gains and market dynamics [56][57] Other Important Information - The company repurchased 5.8 million shares at an average price of $12.29 per share during Q3 [45] - Lauren StClair, the CFO, will be leaving the company in March 2025, with plans for an orderly transition [20] Q&A Session Summary Question: Follow-up on organic traffic and initiatives - Management discussed the challenges in organic search visibility and the impact of AI on traffic dynamics, emphasizing ongoing improvements in user experience [48][50][52] Question: Insurance growth sustainability - Management confirmed expectations for continued strength in insurance revenue into Q4 and the first half of 2025, driven by market conditions and share gains [56][57] Question: Performance marketing strategy - Management reiterated a disciplined approach to performance marketing, focusing on profitability and user registration [61][63] Question: Strength in non-auto insurance - Management indicated that while auto insurance remains the primary driver, there are ongoing investments in home and life insurance to diversify offerings [66][67] Question: Trends in banking and lending - Management noted tight underwriting conditions in credit cards and a decline in banking revenue, but expressed optimism about future recovery as market conditions improve [71][72]

NerdWallet, Inc. (NRDS) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.03. This compares to loss of $0.01 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced a loss of $0.12, delivering a surprise of -100%. Over the last four quarters, the company has surpassed consensus ...