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 ...

Financial Data and Key Metrics Changes - In Q2 2024, the company reported revenue of $151 million, representing a 5% year-over-year increase despite a challenging lending environment [13][14] - The company experienced a non-GAAP operating loss of $2.7 million and a GAAP operating loss of $9.6 million, missing previous guidance [19][20] - Monthly unique users increased by 7% year-over-year, reaching 23 million [20] Business Line Data and Key Metrics Changes - Credit card revenue declined by 10% year-over-year to $46 million, attributed to conservatism in balance sheet-intensive areas [14] - Loans revenue decreased by 6% year-over-year to $22 million, with personal loans down 17% year-over-year [15] - Insurance revenue surged by 196% year-over-year, significantly offsetting declines in other areas [18] Market Data and Key Metrics Changes - The company noted a deceleration in the banking market, impacting consumer demand for high-interest savings accounts [5] - The insurance market showed strong recovery, with increasing demand from both consumers and partners [18] - The Canadian market saw a 20% year-over-year growth in monthly unique users, driven by a recent rate cut by the Bank of Canada [9] Company Strategy and Development Direction - The company is focusing on vertical integration and enhancing consumer experiences through initiatives like NerdWallet+ [8][9] - Strategic decisions were made to reduce costs, resulting in approximately $30 million in annualized savings [8] - The company is expanding internationally, launching its first credit card product overview in Australia [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, anticipating a recovery in the lending environment and continued strength in insurance [13][22] - The company is baking in conservatism regarding organic search traffic recovery, which has impacted near-term margins [24] - Management expects Q3 revenue to be in the range of $172 million to $180 million, reflecting a 15% year-over-year increase at the midpoint [22] Other Important Information - The company has increased its cumulative registration base to 22 million users, emphasizing the long-term value of registered users [12] - The company is investing in brand advertising while maintaining a disciplined approach to capital allocation [19][39] Q&A Session Summary Question: Search traffic commentary and organic traffic recovery - Management noted that organic traffic has stabilized and is showing signs of improvement following a major algorithm update [28] Question: Cost savings and their impact on income statement - Management indicated that the $30 million in annualized savings would offset some impacts from search and banking declines [32] Question: Impact of AI overviews on traffic - Management reported no significant impact from AI overviews, with Google gaining market share recently [37] Question: Delinquency trends and future outlook - Management acknowledged that delinquency rates are starting to decline, which could improve the lending environment in the future [42] Question: NerdWallet+ membership rewards and future plans - Management confirmed that the membership offers rewards for smart financial decisions and plans to expand this functionality across more products [44] Question: Paid marketing strategy and site integrity - Management emphasized that improvements in personalization have led to better conversion rates, allowing for increased paid marketing without compromising site integrity [48]

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 ...

hapabapa 1D 50 1M GM YTD 17 5Y 10Y In al NRDS Stock Performance (Seeking Alpha) Let's address the central question by assessing our findings on the stock. The best way to describe NerdWallet is to think of a high-quality, high-volume financial blog that writes about various financial topics and consequently links readers to their desired products. As things stand, NerdWallet has an integrated platform that streams customers via educational content, converts its traetion into revenue by linking. its users to ...

However, in 2024 the company hasn't done as well as the stock is down roughly 10%, well below the S&P 500. Despite the lackluster results so far in 2024, I'm still a believer in NerdWallet and think the stock will continue to reward patient long-term investors. Let's dig in the company's most quarter to review the financials and discuss updates within the company. Before I discuss the current quarter, I'd like to reiterate why I think NerdWallet is a good long-term investment opportunity by looking at some ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from to Commission file number 001-40994 NerdWallet, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorpora ...

Financial Performance - Revenue for Q1 2024 was $161.9 million, a decrease of 5% year-over-year[1] - GAAP net income was $1.1 million, or $0.01 per diluted share, down 34% from the previous year[5] - Adjusted EBITDA for Q1 2024 was $25.5 million, up 22% from the previous year[5] - Non-GAAP operating income rose by 176% year-over-year to $10.6 million[7] - The company reported a net income of $1.1 million for Q1 2024, a decrease of 34% from $1.7 million in Q1 2023[23] - The operating income margin for Q1 2024 was 2%, compared to a loss margin of 0% in Q1 2023[23] - The adjusted EBITDA margin for Q1 2024 was 16%, up from 12% in Q1 2023[23] User Metrics - Monthly Unique Users (MUUs) reached 29 million, representing a 25% increase year-over-year[6] Revenue Breakdown - Credit card revenue decreased by 19% year-over-year to $50.0 million, attributed to reduced marketing spending by financial partners[6] - SMB products revenue increased by 21% year-over-year to $30.4 million, driven by growth in business credit cards and banking products[6] - Emerging verticals revenue was $60.1 million, down 2% year-over-year, with growth in investing and insurance products partially offsetting declines in banking[6] Future Projections - The company expects a return to revenue growth in Q2 2024, despite current headwinds in the lending environment[3] - Revenue for Q2 2024 is projected to be between $147 million and $152 million, reflecting a 4% year-over-year increase at the midpoint[31] - Adjusted EBITDA for Q2 2024 is expected to range from $16.5 million to $19.5 million[31] - The company anticipates a non-GAAP operating income (loss) in the range of $(1.5) million to $1.5 million for Q2 2024[31] Strategic Focus - The company highlighted the importance of maintaining and expanding relationships with existing financial services partners as part of its growth strategy[35] - The company expects 2024 annual GAAP operating income margin to be in the range of 3-4.5% and non-GAAP operating income margin to be in the range of 6.5-8%[26]

hapabapa Elevator Pitch I have a Buy rating awarded to NerdWallet, Inc. (NASDAQ:NRDS) shares. In my previous August 24, 2023 write-up, I touched on NRDS' potential M&As (Mergers & Acquisitions) and margin expansion levers. My attention turns to NerdWallet's long-term financial goals and the company's capital allocation approach in the latest update. My latest article suggests that the market is undervaluing NerdWallet's stock in view of its recently released long-term financial goals. NRDS is now trading at ...