NerdWallet(NRDS) - 2023 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2023, the company reported revenue of $143.3 million, a 14$125.2 million in the same period of 2022[67]. - The net loss for the three months ended June 30, 2023, was $10.7 million, a 16$9.3 million in the same period of 2022[69]. - Adjusted EBITDA increased by $8.0 million for the three months ended June 30, 2023, and by$20.0 million for the six months ended June 30, 2023, compared to the same periods in 2022[87]. - The effective tax provision was $7.1 million for the three months ended June 30, 2023, compared to$0.2 million for the same period in 2022[83]. - The company reported net cash provided by operating activities of $6.4 million for the six months ended June 30, 2023, a significant increase of$20.8 million compared to a net cash used of $14.4 million in the same period of 2022[98][99]. User Metrics - The company had 22 million and 23 million average Monthly Unique Users (MUUs) for the three and six months ended June 30, 2023, representing a 9$22.4 million, or 48%, for the three months ended June 30, 2023, driven by significant growth in banking and insurance revenues[73]. - Credit card revenue decreased by $3.4 million, or 6$0.9 million, or 4%, for the three months ended June 30, 2023, with a notable decline in mortgages revenue by 33%[72]. Expenses - Total costs and expenses for the three months ended June 30, 2023, were $147.5 million, up from$134.2 million in the same period of 2022[67]. - Cost of revenue increased by $4.9 million, or 61$11.0 million, or 69%, for the six months ended June 30, 2023, compared to the same periods in 2022[75]. - Research and development expenses decreased by $0.1 million for the three months ended June 30, 2023, but increased by$2.0 million, or 5%, for the six months ended June 30, 2023, compared to the same periods in 2022[76]. - Sales and marketing expenses increased by $10.0 million, or 11$35.6 million, or 19%, for the six months ended June 30, 2023, compared to the same periods in 2022[78]. - General and administrative expenses increased by $0.3 million, or 1$2.6 million, or 10%, for the six months ended June 30, 2023, compared to the same periods in 2022[79]. Cash and Liquidity - As of June 30, 2023, the company had cash and cash equivalents of $67.1 million, down from$83.9 million as of December 31, 2022[89]. - The company expects its current cash and cash equivalents, along with future cash flow from operations, to meet liquidity requirements for at least twelve months from the date of the filing[95]. - The company had no outstanding balance on its $100 million credit facility as of June 30, 2023, with$98.5 million available to borrow[96]. - The company expects to increase personnel and related expenses and make significant investments to grow its business, which may impact liquidity and cash flows[93]. Acquisitions and Investments - The company completed the acquisition of On the Barrelhead, Inc. on July 11, 2022, enhancing its data-driven product recommendations[56]. - The company paid $32.6 million for the 2022 performance period related to contingent consideration, consisting of$30.9 million for Fundera and the remainder for deferred compensation related to earnouts[92]. - The net cash used in investing activities was $15.3 million for the six months ended June 30, 2023, a slight decrease from$15.9 million in the same period of 2022[98][100]. - Future capital requirements may vary and the company may seek additional financing through equity or debt if necessary[97]. Market Risks and Compliance - The company is exposed to market risks primarily due to fluctuations in interest rates and foreign currency exchange rates[104]. - The company remains compliant with all covenants of its credit facility as of June 30, 2023[96]. - There were no material changes in critical accounting policies during the six months ended June 30, 2023[103].