NerdWallet(NRDS) - 2024 Q3 - Quarterly Results

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]