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NerdWallet(NRDS) - 2025 Q1 - Quarterly Results
NRDSNerdWallet(NRDS)2025-05-06 20:07

Revenue Performance - Revenue for Q1 2025 was 209.2million,representinga29209.2 million, representing a 29% increase year-over-year[1] - Insurance revenue reached 74.0 million, up 246% year-over-year, driven by strong growth in auto insurance products[6] - Credit card revenue decreased by 24% year-over-year to 38.0million,primarilyduetoongoingchallengesinorganicsearchtraffic[6]−SMBproductsrevenuewas38.0 million, primarily due to ongoing challenges in organic search traffic[6] - SMB products revenue was 28.9 million, down 5% year-over-year, mainly due to a decline in business loan originations[6] - Loans revenue increased by 12% year-over-year to 24.0million,supportedbygrowthinmortgageloansfromtheacquisitionofNextDoorLending[6]IncomeandProfitability−Non−GAAPoperatingincomewas24.0 million, supported by growth in mortgage loans from the acquisition of Next Door Lending[6] Income and Profitability - Non-GAAP operating income was 9.3 million, a decrease of 12% compared to the previous year[7] - Adjusted EBITDA for the quarter was 21.1million,down1721.1 million, down 17% year-over-year[7] - GAAP net income was 0.2 million, an 86% decrease from the previous year[5] - The adjusted EBITDA margin for Q1 2025 was 10%, down from 16% in Q1 2024[26] Cash Flow and Financial Position - Cash and cash equivalents at the end of the quarter were 92.2million,down1792.2 million, down 17% from the previous quarter[7] - Adjusted free cash flow for the twelve months ended March 31, 2025, was 57.6 million, compared to 48.5millionforthetwelvemonthsendedDecember31,2024[28]−Thecompanyreportednetcashprovidedbyoperatingactivitiesof48.5 million for the twelve months ended December 31, 2024[28] - The company reported net cash provided by operating activities of 75.8 million for the twelve months ended March 31, 2025, an increase from 71.8millionforthetwelvemonthsendedDecember31,2024[28]FutureOutlook−ThecompanyexpectsrevenueforQ22025tobeintherangeof71.8 million for the twelve months ended December 31, 2024[28] Future Outlook - The company expects revenue for Q2 2025 to be in the range of 192-200million,representinga30200 million, representing a 30% year-over-year increase at the midpoint[32] - The forecasted GAAP operating income for the full year 2025 is projected to be between 25-38million,withnon−GAAPoperatingincomeexpectedtorangefrom38 million, with non-GAAP operating income expected to range from 55-$66 million[29] - The company plans to increase its investment in strategic opportunities and stock repurchases, supported by its adjusted free cash flow[23] Strategic Focus and Challenges - The company remains focused on long-term growth through operational efficiency and investments in vertical integration and user engagement[3] - The company anticipates challenges in maintaining user engagement and expanding its market presence due to competitive pressures and macroeconomic factors[37] - 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[30]