Financial Performance - Revenue for the three months ended September 30, 2024, was $191.3 million, a 25% increase from $152.8 million in the same period of 2023[73]. - Income from operations increased by $2.6 million, or 64%, for the three months ended September 30, 2024, compared to the same period in 2023[76]. - Net income for the three months ended September 30, 2024, was $0.1 million, compared to a net loss of $0.5 million in the same period of 2023[73]. - Total revenue for the three months ended September 30, 2024, was $191.3 million, an increase of $38.5 million, or 25%, compared to $152.8 million for the same period in 2023; for the nine months, revenue was $503.8 million, up $38.1 million, or 8%[78]. - Non-GAAP operating income increased by $13.4 million, or 138%, for the three months ended September 30, 2024, compared to the same period in 2023[96]. - Adjusted EBITDA rose by $10.6 million, or 39%, for the three months ended September 30, 2024, compared to the same period in 2023[97]. User Metrics - Monthly Unique Users (MUUs) averaged 22 million for the three months ended September 30, 2024, down 7% from 25 million in the same period of 2023[63]. - The company expects fluctuations in MUUs based on economic conditions and consumer behavior trends[63]. Expenses and Costs - Total costs and expenses for the three months ended September 30, 2024, were $184.7 million, up from $148.8 million in the same period of 2023[73]. - Sales and marketing expenses increased by $27.5 million for the three months ended September 30, 2024, compared to the same period in 2023[76]. - Research and development expenses for the three months ended September 30, 2024, were $23.0 million, up from $20.7 million in the same period of 2023[73]. - Total costs and expenses rose by $35.9 million, or 24%, for the three months and by $36.4 million, or 8%, for the nine months ended September 30, 2024, compared to the same periods in 2023[83]. - Research and development expenses increased by $2.3 million, or 11%, for the three months and by $6.2 million, or 10%, for the nine months ended September 30, 2024, primarily due to a restructuring charge[85]. Restructuring and Workforce - The company incurred a pre-tax restructuring charge of $7.8 million, with expected annualized cost savings of approximately $30 million[60]. - The restructuring plan reduced the workforce by approximately 15% compared to the headcount as of December 31, 2023[60]. Revenue Breakdown - Credit card revenue decreased by $8.7 million, or 16%, for the three months ended September 30, 2024, and by $25.1 million, or 15%, for the nine months, primarily due to reduced marketing spending[79]. - Loans revenue fell by $9.1 million, or 28%, for the three months and by $11.1 million, or 14%, for the nine months ended September 30, 2024, largely due to a 49% decrease in personal loans revenue[80]. - SMB products revenue increased by $3.1 million, or 12%, for the three months and by $10.7 million, or 14%, for the nine months ended September 30, 2024, driven by growth in business credit cards and loan renewals[81]. - Emerging verticals revenue surged by $53.2 million, or 129%, for the three months and by $63.6 million, or 43%, for the nine months ended September 30, 2024, mainly due to a 916% increase in insurance products revenue[82]. Cash Flow and Financing - Net cash provided by operating activities increased by $19.4 million for the nine months ended September 30, 2024, compared to the same period in 2023[108]. - Cash and cash equivalents decreased to $71.7 million as of September 30, 2024, down from $100.4 million as of December 31, 2023[99]. - The company repurchased 5.8 million shares of Class A common stock for $72.2 million during the nine months ended September 30, 2024[103]. - Net cash used in financing activities increased by $46.5 million for the nine months ended September 30, 2024, primarily due to a $57.7 million increase in stock repurchases[110]. - The company had no outstanding balance on its Credit Agreement as of September 30, 2024, with an available borrowing amount of $123.7 million[104]. Tax and Accounting - The effective tax rate for the three months ended September 30, 2024, was 99.2%, compared to 110.9% for the same period in 2023, primarily due to a valuation allowance against net U.S. deferred tax assets[91]. - No material changes in critical accounting policies during the nine months ended September 30, 2024[112]. - No material changes from market risk disclosures in the Annual Report for the year ended December 31, 2023[114]. Market Risks - Market risk exposure primarily due to fluctuations in interest rates and foreign currency exchange rates[113].

Financial Performance - Revenue for Q3 2024 was $191.3 million, representing a 25% increase year-over-year[1] - Non-GAAP operating income reached $22.9 million, up 138% from the previous year[6] - Adjusted EBITDA for the quarter was $37.3 million, a 39% increase year-over-year[6] - The net income for the third quarter of 2024 was $0.1 million, compared to a net loss of $0.5 million in the same quarter last year[21] - Non-GAAP operating income for the fourth quarter of 2024 is projected to be between $8 million and $11 million[23] - The company reported a non-GAAP operating income margin of 12% for the third quarter of 2024, up from 6% in the same quarter last year[21] - The forecasted GAAP operating income margin for the full year 2024 is expected to be between 0% and 0.5%[25] - The company anticipates an adjusted EBITDA margin for 2024 to be in the range of 14.75%-15%[23] Revenue Breakdown - Credit card revenue decreased by 16% year-over-year to $45.3 million, primarily due to organic search traffic pressures[4] - Loans revenue fell 28% year-over-year to $23.8 million, impacted by a high interest rate environment[4] - SMB products revenue increased by 12% year-over-year to $27.8 million, driven by growth in business credit cards and loan renewals[4] - Emerging verticals revenue surged 129% year-over-year to $94.4 million, largely due to strong growth in insurance products[4] Cash Flow and Assets - Net cash provided by operating activities increased to $61.9 million from $42.5 million, a growth of 45.5%[17] - Total current assets decreased to $193.7 million from $198.4 million, a decline of 0.35%[15] - Cash and cash equivalents decreased to $71.7 million from $100.4 million, a decline of 28.6%[15] - Cash and cash equivalents at the end of the period decreased to $71.7 million from $86.6 million, a decline of 17.5%[17] - Capitalized software development costs for the nine months ended September 2024 were $15.9 million, down from $19.6 million in 2023[17] Stockholder Actions - A new share repurchase authorization of up to $25 million for Class A common stock was approved by the Board of Directors[9] - The company repurchased Class A common stock amounting to $69.8 million during the period[17] Acquisitions and Future Outlook - The company announced the acquisition of Next Door Lending, a mortgage brokerage, to enhance its financial ecosystem[2] - The company expects fourth quarter 2024 revenue to be in the range of $164-$172 million, which is a 26% year-over-year increase at the midpoint[23] - The company is unable to provide a quantitative reconciliation of forecasted GAAP net income to forecasted adjusted EBITDA due to uncertainties in certain reconciling items[24] Other Financial Metrics - Average Monthly Unique Users (MUUs) decreased by 7% year-over-year to 22 million[4] - Total liabilities increased to $80.0 million from $51.7 million, a rise of 54.5%[15] - Stockholders' equity decreased to $322.4 million from $366.9 million, a decline of 12.1%[15] - Depreciation and amortization expenses for the third quarter of 2024 were $12.9 million, a 7% increase from $12.1 million in the previous year[21]

Company Overview - NerdWallet is a founder-led consumer internet business that provides free financial advice and education to its readers [1] - The company generates revenue through affiliate relationships with financial products companies, including credit cards, banks, brokerage firms, and insurance carriers [1] Business Model - The business model relies on affiliate marketing, where NerdWallet earns commissions by promoting financial products [1]

With the S&P 500 continuing to cling near all-time highs, it's a great time for investors to diversify their portfolios into more beaten-down, value-oriented names: those whose stocks depend more on executing turnaround targets rather than momentum in the broader markets. With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industr ...

d 1 all hapabapa Today's article revisits our stance on NerdWallet, Inc. (NASDAQ:NRDS), a FinTech company that provides financial product comparison tools and their intermediation. We previously covered the stock in June, assigning a bullish rating. However, material events have occurred since then, prompting us to revisit NerdWallet's stock. NerdWallet released its second-quarter earnings report on July 31, revealing a revenue beat of around $670,000 and an earnings-per-share miss of seven cents. The marke ...

Erikona/iStock via Getty Images The last few days have been brutal for shareholders of NerdWallet, Inc. (NASDAQ:NRDS). The company reported financial results for the second quarter of its 2024 fiscal year on July 31st. And from the close of business on July 30th to the present moment, shares are down a whopping 31.5%. This comes despite management exceeding forecasts on the top line (though falling short on the bottom line). And it seems to be driven by a mixture of factors, including a big corporate restru ...

NerdWallet Inc (NASDAQ:NRDS) Q2 2024 Results Conference Call July 31, 2024 4:30 PM ET Company Participants Caitlin MacNamee - Investor Relations Officer Tim Chen - Co-founder, Chairman & CEO Lauren Waugh - Chief Financial Officer Conference Call Participants Ralph Schackart - William Blair Justin Patterson - KeyBanc Michael Infante - Morgan Stanley Jed Kelly - Oppenheimer & Co Pete Christiansen - Citi Operator Good day, and thank you for standing by. Welcome to the NerdWallet Inc Q2 2024 Earnings Call. At t ...

Revenue Performance - Revenue for the three months ended June 30, 2024, was $150.6 million, an increase of 5.4% compared to $143.3 million for the same period in 2023[64]. - Total revenue for the three months ended June 30, 2024, increased by $7.3 million, or 5%, to $150.6 million compared to the same period in 2023, while revenue for the six months remained relatively flat with a decrease of $0.4 million[69]. User Metrics - Monthly Unique Users (MUUs) averaged 23 million and 26 million for the three and six months ended June 30, 2024, representing growth of 7% and 16% year-over-year, respectively[56]. Expenses and Losses - Loss from operations increased by $5.4 million, or 129%, for the three months ended June 30, 2024, primarily due to a $12.7 million increase in operating expenses[67]. - Total costs and expenses for the three months ended June 30, 2024, were $160.2 million, up from $147.5 million in the same period of 2023[64]. - Research and development expenses for the three months ended June 30, 2024, were $22.7 million, compared to $20.0 million for the same period in 2023[64]. - Sales and marketing expenses increased to $106.1 million for the three months ended June 30, 2024, from $98.8 million in the same period of 2023[64]. - Total costs and expenses increased by $12.7 million, or 9%, for the three months ended June 30, 2024, and remained flat for the six months with a slight increase of $0.5 million[73]. - Research and development expenses increased by $2.7 million, or 13%, for the three months and by $3.9 million, or 10%, reflecting higher personnel-related costs[75]. - Sales and marketing expenses increased by $7.3 million, or 7%, for the three months but decreased by $6.5 million, or 3%, for the six months, influenced by changes in brand and performance marketing[77]. Net Loss and Income Tax - Net loss decreased by $1.3 million, or 12%, for the three months ended June 30, 2024, compared to the same period in 2023, driven by a decrease in income tax provision[68]. - The company recorded income tax provisions of $1.1 million and $4.8 million for the three and six months ended June 30, 2024, respectively, with an effective tax rate of (13.7%) for the three months[80]. Restructuring and Cost Savings - The company expects to incur a pre-tax restructuring charge of approximately $8 million to $10 million in 2024, with anticipated annualized cost savings of about $30 million[53]. - The restructuring plan will reduce the workforce by approximately 15% compared to the headcount as of December 31, 2023[53]. Revenue by Segment - Credit card revenue decreased by $5.1 million, or 10%, for the three months ended June 30, 2024, and by $16.4 million, or 15%, for the six months, primarily due to reduced marketing spending[70]. - Loans revenue decreased by $1.4 million, or 6%, for the three months and by $2.0 million, or 5%, for the six months, with a notable 17% decrease in personal loans revenue[71]. - SMB products revenue increased by $2.4 million, or 10%, for the three months and by $7.6 million, or 16%, for the six months, driven by growth in business credit cards and loan renewals[72]. - Emerging verticals revenue rose by $11.4 million, or 25%, for the three months and by $10.4 million, or 10%, primarily due to a 196% increase in insurance products revenue[72]. Cash Flow and Financial Position - Cash and cash equivalents increased to $113.8 million as of June 30, 2024, up from $100.4 million at December 31, 2023[86]. - Net cash provided by operating activities increased by $26.5 million in the first half of 2024 compared to the same period in 2023, driven by a decrease in net cash outflow from changes in operating assets and liabilities[94]. - The company had no outstanding balance on its $125 million credit facility as of June 30, 2024, with $123.7 million available to borrow[91]. - The company repurchased 0.1 million shares of Class A common stock for $1.1 million during the first half of 2024 as part of its share repurchase plans[89]. - Non-GAAP operating income increased by $3.6 million, or 82%, for the first half of 2024 compared to the same period in 2023, despite a $0.9 million increase in loss from operations[84]. - Net cash used in investing activities increased by $3.9 million in the first half of 2024, primarily due to an $8.1 million investment purchase[95]. - The company expects to fund operations and capital expenditures primarily with cash flows from operations, supplemented by cash on hand if needed[88]. - The company remains in compliance with all covenants under its credit agreement as of June 30, 2024[91]. Market Risks - The company is exposed to market risks primarily due to fluctuations in interest rates and foreign currency exchange rates[100]. - There were no material changes in market risk disclosures compared to the Annual Report for the year ended December 31, 2023[100]. Adjusted Metrics - Non-GAAP operating loss for Q2 2024 was $2.7 million, compared to an operating income of $0.5 million in Q2 2023, primarily due to a $5.4 million increase in loss from operations[84]. - Adjusted EBITDA decreased by $6.4 million, or 31%, for Q2 2024 compared to Q2 2023, mainly due to a $6.0 million decrease in income tax provision and a $1.0 million decrease in stock-based compensation[85]. - Other income, net increased by $0.7 million, or 112%, for the three months and by $1.1 million, or 82%, primarily due to higher interest income[78].

Revenue Performance - Revenue of $150.6 million, up 5% year-over-year[1][2] - Credit cards revenue decreased 10% year-over-year to $46.1 million[2] - Loans revenue decreased 6% year-over-year to $21.7 million[2] - SMB products revenue increased 10% year-over-year to $26.1 million[2] - Emerging verticals revenue increased 25% year-over-year to $56.7 million[2] - Q2 2024 revenue guidance is expected to be in the range of $172-$180 million, up 15% year-over-year at the midpoint[21] Profitability and Losses - GAAP net loss of $9.4 million or $0.12 loss per diluted share[1] - Adjusted EBITDA of $14.3 million, down 31% year-over-year[1][3] - Net loss improved to $8.3 million in June 2024 from $9.0 million in June 2023[16] - Q2 2024 net loss was $(9.4) million, a 12% improvement compared to Q2 2023[19] - Q2 2024 adjusted EBITDA was $14.3 million, a 31% decrease compared to Q2 2023[19] - Q2 2024 non-GAAP operating income (loss) was $(2.7) million, compared to $0.5 million in Q2 2023[19] User Metrics - Average Monthly Unique Users (MUUs) increased 7% year-over-year to 23 million[2] Restructuring and Cost Savings - Restructuring plan to reduce workforce by 15%, expecting $30 million in annualized cost savings[6][7] - Pre-tax restructuring charge estimated at $8 million to $10 million, primarily in Q3 2024[7] Financial Position and Cash Flow - Cash and cash equivalents increased to $113.8 million in June 2024 from $100.4 million in December 2023[14] - Accounts receivable increased to $93.7 million in June 2024 from $75.5 million in December 2023[14] - Total current assets rose to $230.0 million in June 2024 from $198.4 million in December 2023[14] - Net cash provided by operating activities was $32.9 million in June 2024 compared to $6.4 million in June 2023[16] - Capitalized software development costs were $10.8 million in June 2024, down from $14.9 million in June 2023[16] - Stock-based compensation was $19.0 million in June 2024, slightly down from $19.9 million in June 2023[16] - Depreciation and amortization expenses were $24.1 million in June 2024, up from $23.9 million in June 2023[16] - Total liabilities increased to $66.8 million in June 2024 from $51.7 million in December 2023[14] - Stockholders' equity grew to $379.4 million in June 2024 from $366.9 million in December 2023[14] Guidance and Future Expectations - Q2 2024 GAAP operating income (loss) is expected to be in the range of $(1)-$5 million[21] - Q2 2024 non-GAAP operating income is expected to be in the range of $17-$21 million[21] - Q2 2024 adjusted EBITDA is expected to be in the range of $30.5-$34.5 million[21] - 2024 annual GAAP operating income (loss) margin is expected to be in the range of (0.5%)-1.1%[21] - 2024 annual non-GAAP operating income margin is expected to be in the range of 5.75%-7%[21] - 2024 annual adjusted EBITDA margin is expected to be in the range of 14.75%-15.75%[21]

Media Contacts: NerdWallet: [email protected] ELFI: Mary Seward, SouthEast Bank Marketing Manager ([email protected]) "We are honored to be recognized for our parent-focused refinancing product, since it proves that our commitment to personal service and outstanding products is paying dividends for our customers," said John Ferramosca, Senior Vice President and Head of Business Development at ELFI. About NerdWallet NerdWallet's Annual Awards Feature Education Loan Finance as One of the Top Student Loan Refi ...