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 ...

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 ...

NerdWallet Inc. (NASDAQ:NRDS) Q1 2024 Earnings Conference Call April 25, 2024 4:30 PM ET Company Participants Caitlin MacNamee - Head-Investor Relations Tim Chen - Chief Executive Officer Lauren StClair - Chief Financial Officer Conference Call Participants Justin Patterson - KeyBanc Ralph Schackart - William Blair James Faucette - Morgan Stanley Jed Kelly - Oppenheimer & Co. Peter Christiansen - Citi Operator Good day and thank you for standing by. Welcome to the NerdWallet Inc Q1 2024 Earnings Conference ...

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]