NerdWallet(NRDS) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2024, was $191.3 million, a 25$152.8 million in the same period of 2023[73]. - Income from operations increased by $2.6 million, or 64$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$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$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$2.3 million, or 11%, for the three months and by $6.2 million, or 10$7.8 million, with expected annualized cost savings of approximately $30 million[60]. - The restructuring plan reduced the workforce by approximately 15$8.7 million, or 16%, for the three months ended September 30, 2024, and by $25.1 million, or 15$9.1 million, or 28%, for the three months and by $11.1 million, or 14$3.1 million, or 12%, for the three months and by $10.7 million, or 14$53.2 million, or 129%, for the three months and by $63.6 million, or 43$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].