Revenue of $161.9 million, Down 5% Year-Over-Year
FINANCIAL HIGHLIGHTS
- Revenue of $161.9 million
- GAAP income from operations of $3.7 million
- GAAP net income of $1.1 million or $0.01 income per diluted share
- Non-GAAP operating income of $10.6 million
- Adjusted EBITDA of $25.5 million
NerdWallet, Inc. (NASDAQ:NRDS), which provides trustworthy financial guidance to consumers and small and mid-sized businesses (SMBs), today reported financial results for its first quarter ended March 31, 2024.
"I'm proud of our Q1 results—we exceeded guidance across adjusted EBITDA and non-GAAP operating income, while hitting another record quarter for monthly unique users and growing our registered user base to over 20 million," said Tim Chen, Co-Founder and CEO of NerdWallet. "Elevated delinquency rates and high interest rates are contributing to a tough lending environment, despite seemingly positive economic indicators. We believe these are normal cyclical dynamics, so we are focused on the long term to grow from cycle to cycle."
"While our Q1 revenue declined 5% year-over-year as we faced a tight lending environment, the diversification of our business helped to offset some of these continued headwinds, and we expect a return to revenue growth in Q2," said Lauren StClair, CFO of NerdWallet. "Our growing consumer mind share, with strong traffic and brand signals, give us confidence that as macroeconomic conditions recover, our ability to meet consumer needs will strengthen our long-term positioning."
FIRST QUARTER 2024 HIGHLIGHTS
As previously announced, effective with the fourth quarter of 2023, we present SMB products (previously included in Other verticals) as a separate revenue product category. Additionally, our historical Other verticals product category, exclusive of SMB products, is renamed Emerging verticals. Comparative amounts have been reclassified to conform to the presentation for the three months ended March 31, 2024.
- Credit cards revenue of $50.0 million decreased 19% year-over-year, primarily due to reduced marketing spending by our financial services partners amidst a combination of continued cautious underwriting and heightened balance sheet conservatism following the 2023 regional banking crisis.
- Loans revenue of $21.4 million was down 3% year-over-year, primarily due to decreases in mortgages, as a result of higher interest rates, and in student loans, partially offset by growth in personal loans.
- SMB products revenue of $30.4 million was up 21% year-over-year, primarily driven by revenue growth in products such as business credit cards and banking.
- Emerging verticals revenue, previously named Other verticals, of $60.1 million was down 2% year-over-year, as a decrease in banking products was partially offset by growth in investing and insurance products.
- We had 29 million average Monthly Unique Users (MUUs), which was up 25% year-over-year. We saw strong engagement in areas such as investing, travel products, taxes and insurance.
SUMMARY FINANCIAL RESULTS
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Quarter Ended |
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% Change |
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Quarter Ended |
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% Change |
|||||||||
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|
Mar 31, |
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Mar 31, |
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Dec 31, |
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(in millions, except per share amounts) |
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2024 |
|
2023 |
|
YoY |
|
2023 |
|
QoQ |
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Revenue |
|
$ |
161.9 |
|
$ |
169.6 |
|
|
(5 |
%) |
|
$ |
133.7 |
|
|
21 |
% |
Credit cards(1) |
|
|
50.0 |
|
|
61.3 |
|
|
(19 |
%) |
|
|
43.2 |
|
|
15 |
% |
Loans(2) |
|
|
21.4 |
|
|
22.0 |
|
|
(3 |
%) |
|
|
23.6 |
|
|
(9 |
%) |
SMB products(3) |
|
|
30.4 |
|
|
25.2 |
|
|
21 |
% |
|
|
27.6 |
|
|
10 |
% |
Emerging verticals(4) |
|
|
60.1 |
|
|
61.1 |
|
|
(2 |
%) |
|
|
39.3 |
|
|
53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Income (loss) from operations |
|
$ |
3.7 |
|
$ |
(0.8 |
) |
|
NM |
|
|
$ |
4.6 |
|
|
(19 |
%) |
Net income (loss) |
|
$ |
1.1 |
|
$ |
1.7 |
|
|
(34 |
%) |
|
$ |
(2.3 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.01 |
|
$ |
0.02 |
|
|
(50 |
%) |
|
$ |
(0.03 |
) |
|
NM |
|
Diluted |
|
$ |
0.01 |
|
$ |
0.02 |
|
|
(50 |
%) |
|
$ |
(0.03 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
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Non-GAAP financial measures(5) |
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|
|
|
|
|
|
|
|
|
|||||||
Non-GAAP operating income |
|
$ |
10.6 |
|
$ |
3.8 |
|
|
176 |
% |
|
$ |
12.6 |
|
|
(15 |
%) |
Adjusted EBITDA |
|
$ |
25.5 |
|
$ |
20.9 |
|
|
22 |
% |
|
$ |
29.3 |
|
|
(13 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents |
|
$ |
110.9 |
|
$ |
100.8 |
|
|
10 |
% |
|
$ |
100.4 |
|
|
10 |
% |
Average Monthly Unique Users(6) |
|
|
29 |
|
|
23 |
|
|
25 |
% |
|
|
24 |
|
|
21 |
% |
______________ |
||
(1) |
Credit cards revenue consists of revenue from consumer credit cards. |
|
(2) |
Loans revenue includes revenue from personal loans, mortgages, student loans and auto loans. |
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(3) |
SMB products revenue includes revenue from loans, credit cards and other financial products and services intended for small and mid-sized businesses. |
|
(4) |
Emerging verticals revenue includes revenue from other product sources, including banking, insurance, investing and international. |
|
(5) |
Non-GAAP operating income and adjusted EBITDA are non-GAAP measures. See "Non-GAAP Financial Measures" for more information. |
|
(6) |
We define a Monthly Unique User as a unique user with at least one session in a given month as determined by unique device identifiers. |
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QUARTERLY CONFERENCE CALL
A conference call to discuss NerdWallet's first quarter 2024 financial results will be webcast live today, April 25, 2024 at 1:30 PM Pacific Time (PT). The live webcast is open to the public and will be available on NerdWallet's investor relations website at https://investors.nerdwallet.com. Following completion of the call, a recorded replay of the webcast will be available on NerdWallet's investor relations website.
SHAREHOLDER LETTER
A shareholder letter providing additional information and analysis can be found at NerdWallet's investor relations websit