NerdWallet(US:NRDS)2024-10-29 20:45Financial 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].