NerdWallet Reports Fourth Quarter and Full Year 2024 Results
NerdWallet (NRDS) reported strong Q4 2024 results with revenue reaching $183.8 million, up 37% year-over-year, and full-year 2024 revenue of $687.6 million. The company achieved GAAP net income of $38.6 million ($0.51 per diluted share) in Q4 and $30.4 million ($0.38 per diluted share) for the full year.
Insurance revenue saw exceptional growth, increasing 821% year-over-year to $72.0 million. However, credit cards revenue declined 19%, and loans revenue dropped 26% due to rising interest rates. Monthly Unique Users decreased 20% year-over-year to 19 million.
The company announced John H. Lee as new Chief Financial Officer, effective March 17, bringing experience from Divvy Homes, Blackstone, and TPG Capital.
NerdWallet (NRDS) ha riportato risultati solidi per il quarto trimestre del 2024, con ricavi che hanno raggiunto $183,8 milioni, in aumento del 37% rispetto all'anno precedente, e ricavi totali per il 2024 di $687,6 milioni. L'azienda ha ottenuto un utile netto GAAP di $38,6 milioni ($0,51 per azione diluita) nel Q4 e $30,4 milioni ($0,38 per azione diluita) per l'intero anno.
I ricavi assicurativi hanno registrato una crescita eccezionale, aumentando dell'821% rispetto all'anno precedente, arrivando a $72,0 milioni. Tuttavia, i ricavi delle carte di credito sono diminuiti del 19% e i ricavi dei prestiti sono scesi del 26% a causa dell'aumento dei tassi di interesse. Gli utenti unici mensili sono diminuiti del 20% rispetto all'anno precedente, scendendo a 19 milioni.
L'azienda ha annunciato John H. Lee come nuovo Chief Financial Officer, a partire dal 17 marzo, portando con sé esperienza da Divvy Homes, Blackstone e TPG Capital.
NerdWallet (NRDS) reportó resultados sólidos para el cuarto trimestre de 2024, con ingresos que alcanzaron $183.8 millones, un aumento del 37% interanual, y ingresos totales para 2024 de $687.6 millones. La empresa logró un ingreso neto GAAP de $38.6 millones ($0.51 por acción diluida) en el Q4 y $30.4 millones ($0.38 por acción diluida) para el año completo.
Los ingresos por seguros vieron un crecimiento excepcional, aumentando un 821% interanual hasta $72.0 millones. Sin embargo, los ingresos por tarjetas de crédito disminuyeron un 19%, y los ingresos por préstamos cayeron un 26% debido al aumento de las tasas de interés. Los usuarios únicos mensuales disminuyeron un 20% interanual, alcanzando los 19 millones.
La empresa anunció a John H. Lee como nuevo Director Financiero, a partir del 17 de marzo, aportando experiencia de Divvy Homes, Blackstone y TPG Capital.
NerdWallet (NRDS)는 2024년 4분기 실적을 발표하며 매출이 $183.8 백만에 도달하여 전년 대비 37% 증가하였고, 2024년 전체 매출은 $687.6 백만에 달했다고 보고했습니다. 회사는 4분기에 GAAP 순이익 $38.6 백만 ($0.51 주당 희석주식)과 전체 연도에 대해 $30.4 백만 ($0.38 주당 희석주식)을 기록했습니다.
보험 매출은 전년 대비 821% 증가하여 $72.0 백만에 도달하며 뛰어난 성장을 보였습니다. 그러나 신용카드 매출은 19% 감소하였고, 대출 매출은 금리 상승으로 인해 26% 하락했습니다. 월간 고유 사용자 수는 전년 대비 20% 감소하여 1900만 명에 이릅니다.
회사는 3월 17일부터 John H. Lee를 새로운 최고 재무 책임자로 임명하며, Divvy Homes, Blackstone 및 TPG Capital에서의 경험을 가져왔습니다.
NerdWallet (NRDS) a annoncé de solides résultats pour le quatrième trimestre de 2024, avec des revenus atteignant $183,8 millions, en hausse de 37% par rapport à l'année précédente, et des revenus annuels de $687,6 millions pour 2024. La société a réalisé un bénéfice net GAAP de 38,6 millions de dollars (0,51 $ par action diluée) au T4 et de 30,4 millions de dollars (0,38 $ par action diluée) pour l'année entière.
Les revenus d'assurance ont connu une croissance exceptionnelle, augmentant de 821% d'une année sur l'autre pour atteindre 72,0 millions de dollars. Cependant, les revenus des cartes de crédit ont diminué de 19%, et les revenus des prêts ont chuté de 26% en raison de la hausse des taux d'intérêt. Les utilisateurs uniques mensuels ont diminué de 20% d'une année sur l'autre, atteignant 19 millions.
La société a annoncé John H. Lee comme nouveau directeur financier, à compter du 17 mars, apportant son expérience de Divvy Homes, Blackstone et TPG Capital.
NerdWallet (NRDS) berichtete über starke Ergebnisse für das vierte Quartal 2024, mit einem Umsatz von $183,8 Millionen, was einem Anstieg von 37% im Vergleich zum Vorjahr entspricht, und einem Gesamtumsatz für 2024 von $687,6 Millionen. Das Unternehmen erzielte im Q4 einen GAAP-Nettoertrag von $38,6 Millionen ($0,51 pro verwässerter Aktie) und für das gesamte Jahr $30,4 Millionen ($0,38 pro verwässerter Aktie).
Die Einnahmen aus Versicherungen verzeichneten ein außergewöhnliches Wachstum, das um 821% im Vergleich zum Vorjahr auf $72,0 Millionen anstieg. Die Einnahmen aus Kreditkarten sanken jedoch um 19%, und die Einnahmen aus Darlehen fielen um 26% aufgrund steigender Zinssätze. Die monatlich einzigartigen Nutzer gingen im Vergleich zum Vorjahr um 20% auf 19 Millionen zurück.
Das Unternehmen gab bekannt, dass John H. Lee am 17. März neuer Chief Financial Officer wird und Erfahrung von Divvy Homes, Blackstone und TPG Capital mitbringt.
- Revenue grew 37% YoY to $183.8M in Q4 2024
- Insurance revenue surged 821% YoY to $72.0M
- Q4 GAAP net income of $38.6M ($0.51 per diluted share)
- Full-year Adjusted EBITDA of $107.9M
- Credit cards revenue declined 19% YoY
- Loans revenue decreased 26% YoY
- SMB products revenue dropped 7% YoY
- Monthly Unique Users declined 20% YoY to 19M
- Traffic headwinds expected to worsen in Q1 2025
Insights
NerdWallet's Q4 2024 results reveal a company in strategic transition, with revenue growing 37% YoY to $183.8M despite significant headwinds in core segments. The standout story is the insurance vertical's extraordinary 821% YoY growth to $72.0M, representing nearly 40% of quarterly revenue. This dramatic shift in revenue mix demonstrates successful diversification but also creates new dependencies on insurance carrier budgets.
The appointment of John H. Lee as CFO, with his private equity background at Blackstone and TPG, signals a potential shift toward more sophisticated capital allocation and M&A strategies. This timing aligns with the company's vertical integration initiatives, as evidenced by the Next Door Lending acquisition, suggesting a move toward controlling more of the value chain rather than purely focusing on lead generation.
However, the 20% YoY decline in Monthly Unique Users to 19M represents a significant challenge to the company's traditional traffic-driven model. While management indicates this primarily affects non-monetizing content, the persistent organic search headwinds in the credit cards segment (-19% YoY) suggest broader vulnerability to platform dependency. The company's projection of continued traffic decline through Q1 2025 and recovery not expected until early 2026 indicates a lengthy adjustment period ahead.
The contrasting performance between segments reveals an evolving business model: while traditional consumer finance verticals face pressure from rising rates and traffic challenges, the insurance segment's explosive growth demonstrates successful expansion into higher-margin, less rate-sensitive revenue streams. This transformation, combined with improved profitability ($38.6M Q4 net income), suggests NerdWallet is effectively pivoting from a pure content platform to a more diversified financial services technology company.
Fourth Quarter Revenue of
FINANCIAL HIGHLIGHTS
-
Revenue of
$183.8 million $687.6 million -
GAAP income from operations of
$8.7 million $9.4 million -
GAAP net income of
$38.6 million $0.51 $30.4 million $0.38 -
Non-GAAP operating income of
$16.8 million $47.6 million -
Adjusted EBITDA of
$30.8 million $107.9 million
“We closed 2024 strong, exceeding our expectations and growing revenue to
The Company also announced the appointment of John H. Lee as Chief Financial Officer, effective March 17. In this position, Lee will oversee finance functions and lead strategic initiatives in support of the company’s vision and growth goals. Lee joins NerdWallet from Divvy Homes, where he served as Chief Financial Officer and Chief Operating Officer. Earlier in his career, Lee held roles at Blackstone, where he was a managing director in the private equity group, and TPG Capital.
“I am thrilled to welcome John to NerdWallet,” said Chen. “I believe his expertise and leadership will help us take the next step in our growth journey as we invest in new Vertical Integration and re-engagement strategies to help more people in more ways.”
“NerdWallet has built a trusted brand by empowering consumers with the tools and insights they need to make confident financial decisions,” said Lee. “I’m excited to join this incredible team at this pivotal time, and I look forward to helping drive sustainable growth, financial discipline, and long-term value for our users and shareholders.”
FOURTH QUARTER 2024 HIGHLIGHTS
-
Insurance revenue, previously included in Emerging verticals, of
$72.0 million 821% year-over-year, driven by strong growth in auto insurance products as carriers expanded budgets. -
Credit cards revenue of
$35.0 million 19% year-over-year, primarily due to continued headwinds in organic search traffic that have persisted for multiple quarters. -
SMB products revenue of
$25.5 million 7% year-over-year, primarily driven by a decrease in business loan originations. -
Loans revenue of
$17.6 million 26% year-over-year, primarily due to a decrease in personal loans and a rising rate environment, partially offset by an increase in mortgage loans as we incorporate our recent acquisition of Next Door Lending. -
Emerging verticals revenue of
$33.7 million 7% year-over-year, as growth in banking and other products was partially offset by a decrease in investing products. -
We had 19 million average Monthly Unique Users (MUUs), which was down
20% year-over-year; as anticipated, traffic headwinds worsened in Q4 in non-monetizing “learn” topics but largely did not affect our product marketplaces or other channels. We expect eventual stabilization and a return to growth by early 2026, but in the near term, we anticipate the year-over-year decline getting slightly worse in Q1.
SUMMARY FINANCIAL RESULTS
|
|
Quarter Ended |
|
% Change |
|
Quarter Ended |
|
% Change |
||||||||||
|
|
Dec 31, |
|
Dec 31, |
|
|
Sep 30, |
|
||||||||||
(in millions, except per share amounts) |
|
|
2024 |
|
|
|
2023 |
|
|
YoY |
|
|
2024 |
|
|
QoQ |
||
Revenue |
|
$ |
183.8 |
|
$ |
133.7 |
|
|
37 |
% |
|
$ |
191.3 |
|
(4 |
%) |
||
Insurance(1) |
|
|
72.0 |
|
|
|
7.8 |
|
|
821 |
% |
|
|
68.7 |
|
|
5 |
% |
Credit cards(2) |
|
|
35.0 |
|
|
|
43.2 |
|
|
(19 |
%) |
|
|
45.3 |
|
|
(23 |
%) |
SMB products(3) |
|
|
25.5 |
|
|
|
27.6 |
|
|
(7 |
%) |
|
|
27.8 |
|
|
(8 |
%) |
Loans(4) |
|
|
17.6 |
|
|
|
23.6 |
|
|
(26 |
%) |
|
|
23.8 |
|
|
(26 |
%) |
Emerging verticals(5) |
|
|
33.7 |
|
|
|
31.5 |
|
|
7 |
% |
|
|
25.7 |
|
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income from operations |
|
$ |
8.7 |
|
|
$ |
4.6 |
|
|
89 |
% |
|
$ |
6.6 |
|
|
32 |
% |
Net income (loss) |
|
$ |
38.6 |
|
|
$ |
(2.3 |
) |
|
NM |
|
$ |
0.1 |
|
|
NM |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.52 |
|
|
$ |
(0.03 |
) |
|
NM |
|
$ |
0.00 |
|
|
NM |
||
Diluted |
|
$ |
0.51 |
|
|
$ |
(0.03 |
) |
|
NM |
|
$ |
0.00 |
|
|
NM |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP financial measures(6) |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP operating income |
|
$ |
16.8 |
|
|
$ |
12.6 |
|
|
35 |
% |
|
$ |
22.9 |
|
|
(26 |
%) |
Adjusted EBITDA |
|
$ |
30.8 |
|
|
$ |
29.3 |
|
|
5 |
% |
|
$ |
37.3 |
|
|
(18 |
%) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
|
$ |
66.3 |
|
|
$ |
100.4 |
|
|
(34 |
%) |
|
$ |
71.7 |
|
|
(8 |
%) |
Average Monthly Unique Users(7) |
|
|
19 |
|
|
|
24 |
|
|
(20 |
%) |
|
|
22 |
|
|
(12 |
%) |
______________ |
||
(1) |
|
Insurance revenue consists of revenue from consumer insurance products, including auto, life and pet insurance. |
(2) |
|
Credit cards revenue consists of revenue from consumer credit cards. |
(3) |
|
SMB products revenue includes revenue from loans, credit cards and other financial products and services intended for small and mid-sized businesses. |
(4) |
|
Loans revenue includes revenue from personal loans, mortgages, student loans and auto loans. |
(5) |
|
Emerging verticals revenue includes revenue from other product sources, including banking, investing and international. |
(6) |
|
Non-GAAP operating income (loss) and adjusted EBITDA are non-GAAP measures. See “Non-GAAP Financial Measures” for more information. |
(7) |
|
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. |
Effective with the fourth quarter of 2024, we present Insurance revenue (previously included in Emerging verticals) as a separate revenue product category. The following table provides our historical revenue by product category:
|
|
Quarter Ended |
||||||||||||||||||||||||||||||
(in millions) |
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
||||||||||||||||
Insurance |
|
$ |
72.0 |
|
$ |
68.7 |
|
$ |
29.5 |
|
$ |
21.4 |
|
$ |
7.8 |
|
$ |
6.8 |
|
$ |
9.9 |
|
$ |
20.5 |
||||||||
Credit cards |
|
|
35.0 |
|
|
|
45.3 |
|
|
|
46.1 |
|
|
|
50.0 |
|
|
|
43.2 |
|
|
|
54.0 |
|
|
|
51.2 |
|
|
|
61.3 |
|
SMB products |
|
|
25.5 |
|
|
|
27.8 |
|
|
|
26.1 |
|
|
|
30.4 |
|
|
|
27.6 |
|
|
|
24.7 |
|
|
|
23.7 |
|
|
|
25.2 |
|
Loans |
|
|
17.6 |
|
|
|
23.8 |
|
|
|
21.7 |
|
|
|
21.4 |
|
|
|
23.6 |
|
|
|
32.9 |
|
|
|
23.1 |
|
|
|
22.0 |
|
Emerging verticals |
|
|
33.7 |
|
|
|
25.7 |
|
|
|
27.2 |
|
|
|
38.7 |
|
|
|
31.5 |
|
|
|
34.4 |
|
|
|
35.4 |
|
|
|
40.6 |
|
Total revenue |
|
$ |
183.8 |
|
|
$ |
191.3 |
|
|
$ |
150.6 |
|
|
$ |
161.9 |
|
|
$ |
133.7 |
|
|
$ |
152.8 |
|
|
$ |
143.3 |
|
|
$ |
169.6 |
|
QUARTERLY CONFERENCE CALL
A conference call to discuss NerdWallet’s fourth quarter 2024 financial results will be webcast live today, February 19, 2025 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 website at https://investors.nerdwallet.com.
ABOUT NERDWALLET
NerdWallet (Nasdaq: NRDS) is on a mission to provide clarity for all of life’s financial decisions. As a personal finance website and app, NerdWallet provides consumers with trustworthy and knowledgeable financial information so they can make smart money moves. From finding the best credit card to buying a house, NerdWallet is there to help consumers make financial decisions with confidence. Consumers have free access to our expert content and comparison shopping marketplaces, plus a data-driven app, which helps them stay on top of their finances and save time and money, giving them the freedom to do more. NerdWallet is available for consumers in the
“NerdWallet” is a trademark of NerdWallet, Inc. All rights reserved. Other names and trademarks used herein may be trademarks of their respective owners.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited |
||||||||||||||||||||||
|
|
Three Months Ended
|
|
% Change |
|
Year Ended
|
|
% Change |
||||||||||||||
(in millions, except per share amounts) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
||||
Revenue |
|
$ |
183.8 |
|
|
$ |
133.7 |
|
|
37 |
% |
|
$ |
687.6 |
|
|
$ |
599.4 |
|
|
15 |
% |
Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue |
|
|
16.7 |
|
|
|
13.8 |
|
|
20 |
% |
|
|
63.5 |
|
|
|
54.0 |
|
|
17 |
% |
Research and development |
|
|
16.1 |
|
|
|
20.3 |
|
|
(20 |
%) |
|
|
82.5 |
|
|
|
80.5 |
|
|
3 |
% |
Sales and marketing |
|
|
128.5 |
|
|
|
80.4 |
|
|
60 |
% |
|
|
470.6 |
|
|
|
401.5 |
|
|
17 |
% |
General and administrative |
|
|
13.8 |
|
|
|
14.6 |
|
|
(6 |
%) |
|
|
61.6 |
|
|
|
59.8 |
|
|
3 |
% |
Total costs and expenses |
|
|
175.1 |
|
|
|
129.1 |
|
|
36 |
% |
|
|
678.2 |
|
|
|
595.8 |
|
|
14 |
% |
Income From Operations |
|
|
8.7 |
|
|
|
4.6 |
|
|
89 |
% |
|
|
9.4 |
|
|
|
3.6 |
|
|
161 |
% |
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
|
|
0.6 |
|
|
|
0.9 |
|
|
(36 |
%) |
|
|
4.8 |
|
|
|
3.6 |
|
|
33 |
% |
Interest expense |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
(1 |
%) |
|
|
(0.7 |
) |
|
|
(0.8 |
) |
|
(8 |
%) |
Other losses, net |
|
|
(8.4 |
) |
|
|
— |
|
|
NM |
|
|
(8.5 |
) |
|
|
(0.1 |
) |
|
NM |
||
Total other income (expense), net |
|
|
(8.0 |
) |
|
|
0.7 |
|
|
NM |
|
|
(4.4 |
) |
|
|
2.7 |
|
|
NM |
||
Income before income taxes |
|
|
0.7 |
|
|
|
5.3 |
|
|
(87 |
%) |
|
|
5.0 |
|
|
|
6.3 |
|
|
(21 |
%) |
Income tax provision (benefit) |
|
|
(37.9 |
) |
|
|
7.6 |
|
|
NM |
|
|
(25.4 |
) |
|
|
18.1 |
|
|
NM |
|
|
Net Income (Loss) |
|
$ |
38.6 |
|
|
$ |
(2.3 |
) |
|
NM |
|
$ |
30.4 |
|
|
$ |
(11.8 |
) |
|
NM |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income (Loss) Per Share Attributable to Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
$ |
0.52 |
|
|
$ |
(0.03 |
) |
|
NM |
|
$ |
0.40 |
|
|
$ |
(0.15 |
) |
|
NM |
||
Diluted |
|
$ |
0.51 |
|
|
$ |
(0.03 |
) |
|
NM |
|
$ |
0.38 |
|
|
$ |
(0.15 |
) |
|
NM |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average Shares Used in Computing Net Income (Loss) Per Share Attributable to Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
73.7 |
|
|
|
76.5 |
|
|
|
|
|
76.5 |
|
|
|
76.7 |
|
|
|
||
Diluted |
|
|
75.6 |
|
|
|
76.5 |
|
|
|
|
|
78.9 |
|
|
|
76.7 |
|
|
|
||
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited |
||||||||
(in millions) |
|
December 31,
|
|
December 31,
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
66.3 |
|
$ |
100.4 |
||
Accounts receivable—net |
|
|
102.2 |
|
|
|
75.5 |
|
Prepaid expenses and other current assets |
|
|
28.2 |
|
|
|
22.5 |
|
Total current assets |
|
|
196.7 |
|
|
|
198.4 |
|
Property, equipment and software—net |
|
|
43.0 |
|
|
|
52.6 |
|
Goodwill |
|
|
112.4 |
|
|
|
111.5 |
|
Intangible assets—net |
|
|
33.3 |
|
|
|
46.9 |
|
Deferred tax asset—noncurrent |
|
|
45.6 |
|
|
|
— |
|
Right-of-use assets |
|
|
5.3 |
|
|
|
7.2 |
|
Other assets |
|
|
1.3 |
|
|
|
2.0 |
|
Total Assets |
|
$ |
437.6 |
|
|
$ |
418.6 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
8.9 |
|
|
$ |
1.7 |
|
Accrued expenses and other current liabilities |
|
|
51.2 |
|
|
|
35.6 |
|
Total current liabilities |
|
|
60.1 |
|
|
|
37.3 |
|
Other liabilities—noncurrent |
|
|
13.3 |
|
|
|
14.4 |
|
Total liabilities |
|
|
73.4 |
|
|
|
51.7 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity |
|
|
364.2 |
|
|
|
366.9 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
437.6 |
|
|
$ |
418.6 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited |
||||||||
|
|
Year Ended
|
||||||
(in millions) |
|
|
2024 |
|
|
|
2023 |
|
Operating Activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
30.4 |
|
|
$ |
(11.8 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
48.4 |
|
|
|
48.2 |
|
Stock-based compensation |
|
|
37.7 |
|
|
|
38.8 |
|
Deferred taxes |
|
|
(46.1 |
) |
|
|
(0.5 |
) |
Non-cash lease costs |
|
|
2.2 |
|
|
|
2.8 |
|
Other losses, net |
|
|
8.6 |
|
|
|
2.9 |
|
Changes in operating assets and liabilities, net of business combination: |
|
|
|
|
||||
Accounts receivable |
|
|
(27.0 |
) |
|
|
10.7 |
|
Prepaid expenses and other assets |
|
|
(1.8 |
) |
|
|
(4.4 |
) |
Mortgage loans held for sale |
|
|
2.1 |
|
|
|
— |
|
Accounts payable |
|
|
6.6 |
|
|
|
(1.8 |
) |
Accrued expenses and other current liabilities |
|
|
12.5 |
|
|
|
(2.4 |
) |
Payment of contingent consideration |
|
|
— |
|
|
|
(14.0 |
) |
Operating lease liabilities |
|
|
(3.4 |
) |
|
|
(3.1 |
) |
Other liabilities |
|
|
1.6 |
|
|
|
6.7 |
|
Net cash provided by operating activities |
|
|
71.8 |
|
|
|
72.1 |
|
Investing Activities: |
|
|
|
|
||||
Purchase of investment |
|
|
(8.1 |
) |
|
|
— |
|
Capitalized software development costs |
|
|
(20.7 |
) |
|
|
(28.8 |
) |
Purchase of property and equipment |
|
|
(0.6 |
) |
|
|
(0.7 |
) |
Business combination, net of cash acquired |
|
|
(0.3 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(29.7 |
) |
|
|
(29.5 |
) |
Financing Activities: |
|
|
|
|
||||
Payment of contingent consideration |
|
|
— |
|
|
|
(16.9 |
) |
Net repayment on warehouse line of credit |
|
|
(2.0 |
) |
|
|
— |
|
Proceeds from line of credit |
|
|
— |
|
|
|
7.5 |
|
Payments on line of credit |
|
|
— |
|
|
|
(7.5 |
) |
Payment of debt issuance costs |
|
|
— |
|
|
|
(1.4 |
) |
Proceeds from exercise of stock options |
|
|
6.3 |
|
|
|
10.2 |
|
Issuance of Class A common stock under Employee Stock Purchase Plan |
|
|
1.4 |
|
|
|
3.0 |
|
Tax payments related to net-share settlements on restricted stock units |
|
|
(2.1 |
) |
|
|
(1.1 |
) |
Repurchase of Class A common stock |
|
|
(80.1 |
) |
|
|
(20.0 |
) |
Net cash used in financing activities |
|
|
(76.5 |
) |
|
|
(26.2 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
0.3 |
|
|
|
0.1 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
(34.1 |
) |
|
|
16.5 |
|
Cash and Cash Equivalents: |
|
|
|
|
||||
Beginning of period |
|
|
100.4 |
|
|
|
83.9 |
|
End of period |
|
$ |
66.3 |
|
|
$ |
100.4 |
|
NON-GAAP FINANCIAL MEASURES
We use non-GAAP operating income (loss), adjusted EBITDA and free cash flow in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our Board of Directors concerning our financial performance.
Non-GAAP operating income (loss): We define non-GAAP operating income (loss) as income (loss) from operations adjusted to exclude depreciation and amortization, and further exclude (1) impairment of right-of-use asset, (2) losses (gains) on disposals of assets, (3) change in fair value of contingent consideration related to earnouts, (4) deferred compensation related to earnouts, (5) acquisition-related costs, and (6) restructuring charges. We also reduce income from operations, or increase loss from operations, for capitalized internally developed software costs.
Adjusted EBITDA: We define adjusted EBITDA as net income (loss) from continuing operations adjusted to exclude depreciation and amortization, interest income (expense), net, other gains (losses), net, and provision (benefit) for income taxes, and further exclude (1) impairment of right-of-use asset, (2) losses (gains) on disposals of assets, (3) change in fair value of contingent consideration related to earnouts, (4) deferred compensation related to earnouts, (5) stock-based compensation, (6) acquisition-related costs, and (7) restructuring charges.
The above items are excluded from our non-GAAP operating income (loss) and adjusted EBITDA measures because these items are non-cash in nature, or because the amounts are not driven by core operating results and renders comparisons with prior periods less meaningful. We deduct capitalized internally developed software costs in our non-GAAP operating income (loss) measure to reflect the cash impact of personnel costs incurred within the time period.
We believe that non-GAAP operating income (loss) and adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results and in comparing operating results across periods. Moreover, non-GAAP operating income (loss) and adjusted EBITDA are key measurements used by our management internally to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, the use of these non-GAAP measures have certain limitations because they do not reflect all items of income and expense that affect our operations. Non-GAAP operating income (loss) and adjusted EBITDA have limitations as financial measures, should be considered as supplemental in nature, and are not meant as substitutes for the related financial information prepared in accordance with GAAP. These limitations include the following:
- Non-GAAP operating income (loss) and adjusted EBITDA exclude certain recurring, non-cash charges, such as amortization of software, depreciation of property and equipment, amortization of intangible assets, impairment of right-of-use asset, and (losses) gains on disposals of assets. Although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and non-GAAP operating income (loss) and adjusted EBITDA do not reflect all cash requirements for such replacements or for new capital expenditure requirements;
- Non-GAAP operating income (loss) and adjusted EBITDA exclude acquisition-related costs, including acquisition-related retention compensation under compensatory retention agreements with certain key employees, acquisition-related transaction expenses, contingent consideration fair value adjustments related to earnouts, and deferred compensation related to earnouts;
- Non-GAAP operating income (loss) and adjusted EBITDA exclude restructuring charges primarily consisting of severance payments, stock-based compensation, employee benefits, and related expenses for impacted employees, as well as contract termination costs, associated with our Restructuring Plan;
- Adjusted EBITDA excludes stock-based compensation, including for acquisition-related inducement awards, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy; and
- Adjusted EBITDA does not reflect interest income (expense) and other gains (losses), net, which include unrealized and realized gains and losses on foreign currency exchange, as well as certain nonrecurring gains (losses).
Free cash flow: We define free cash flow as net cash provided by operating activities less capitalized software development costs and purchases of property and equipment. Free cash flow is a key measurement used by our management internally to evaluate our business performance and overall liquidity. We believe that free cash flow provides useful information for investors and others for determining the amount of cash available for investment in our business, strategic opportunities, repurchasing stock, strengthening our financial position and other purposes, as well as evaluating our historical and prospective liquidity. A limitation of the utility of free cash flow as a measure of financial performance and liquidity is that free cash flow does not represent the total increase or decrease in our cash balance for the period.
In addition, non-GAAP operating income (loss), adjusted EBITDA and free cash flow as we define them may not be comparable to similarly titled measures used by other companies. Because of these limitations, you should consider non-GAAP operating income (loss), adjusted EBITDA and free cash flow alongside other financial performance measures, including income (loss) from operations, net income (loss), cash flows from operating activities and our other GAAP results.
We compensate for these limitations by reconciling non-GAAP operating income (loss) to income (loss) from operations, adjusted EBITDA to net income (loss) and free cash flow to net cash provided by operating activities the most directly comparable GAAP financial measures, as follows:
|
|
Three Months Ended
|
|
% Change |
|
Year Ended
|
|
% Change |
||||||||||||||
(in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
||||
Income from operations |
|
$ |
8.7 |
|
|
$ |
4.6 |
|
|
89 |
% |
|
$ |
9.4 |
|
|
$ |
3.6 |
|
|
161 |
% |
Depreciation and amortization |
|
|
11.4 |
|
|
|
12.2 |
|
|
(6 |
%) |
|
|
48.4 |
|
|
|
48.2 |
|
|
0 |
% |
Acquisition-related retention |
|
|
0.9 |
|
|
|
1.3 |
|
|
(33 |
%) |
|
|
4.2 |
|
|
|
5.3 |
|
|
(21 |
%) |
Impairment of right-of-use asset |
|
|
— |
|
|
|
1.4 |
|
|
(100 |
%) |
|
|
— |
|
|
|
1.4 |
|
|
(100 |
%) |
Loss on disposal of assets |
|
|
— |
|
|
|
0.2 |
|
|
(99 |
%) |
|
|
— |
|
|
|
0.2 |
|
|
(90 |
%) |
Acquisition-related expenses |
|
|
— |
|
|
|
0.1 |
|
|
NM |
|
|
0.6 |
|
|
|
0.1 |
|
|
292 |
% |
|
Restructuring |
|
|
1.2 |
|
|
|
— |
|
|
NM |
|
|
9.0 |
|
|
|
— |
|
|
NM |
||
Capitalized internally developed software costs |
|
|
(5.4 |
) |
|
|
(7.2 |
) |
|
(26 |
%) |
|
|
(24.0 |
) |
|
|
(32.4 |
) |
|
(26 |
%) |
Non-GAAP operating income |
|
$ |
16.8 |
|
|
$ |
12.6 |
|
|
35 |
% |
|
$ |
47.6 |
|
|
$ |
26.4 |
|
|
80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income margin |
|
|
5 |
% |
|
|
3 |
% |
|
|
|
|
1 |
% |
|
|
1 |
% |
|
|
||
Non-GAAP operating income margin1 |
|
|
9 |
% |
|
|
9 |
% |
|
|
|
|
7 |
% |
|
|
4 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
|
$ |
38.6 |
|
|
$ |
(2.3 |
) |
|
NM |
|
$ |
30.4 |
|
|
$ |
(11.8 |
) |
|
NM |
||
Depreciation and amortization |
|
|
11.4 |
|
|
|
12.2 |
|
|
(6 |
%) |
|
|
48.4 |
|
|
|
48.2 |
|
|
0 |
% |
Stock-based compensation |
|
|
8.6 |
|
|
|
9.5 |
|
|
(10 |
%) |
|
|
36.3 |
|
|
|
38.8 |
|
|
(7 |
%) |
Acquisition-related retention |
|
|
0.9 |
|
|
|
1.3 |
|
|
(33 |
%) |
|
|
4.2 |
|
|
|
5.3 |
|
|
(21 |
%) |
Impairment of right-of-use asset |
|
|
— |
|
|
|
1.4 |
|
|
(100 |
%) |
|
|
— |
|
|
|
1.4 |
|
|
(100 |
%) |
Loss on disposal of assets |
|
|
— |
|
|
|
0.2 |
|
|
(99 |
%) |
|
|
— |
|
|
|
0.2 |
|
|
(90 |
%) |
Acquisition-related expenses |
|
|
— |
|
|
|
0.1 |
|
|
NM |
|
|
0.6 |
|
|
|
0.1 |
|
|
292 |
% |
|
Restructuring |
|
|
1.2 |
|
|
|
— |
|
|
NM |
|
|
9.0 |
|
|
|
— |
|
|
NM |
||
Interest income, net |
|
|
(0.4 |
) |
|
|
(0.7 |
) |
|
(44 |
%) |
|
|
(4.1 |
) |
|
|
(2.8 |
) |
|
44 |
% |
Other losses, net |
|
|
8.4 |
|
|
|
— |
|
|
NM |
|
|
8.5 |
|
|
|
0.1 |
|
|
NM |
||
Income tax provision (benefit) |
|
|
(37.9 |
) |
|
|
7.6 |
|
|
NM |
|
|
(25.4 |
) |
|
|
18.1 |
|
|
NM |
||
Adjusted EBITDA |
|
$ |
30.8 |
|
|
$ |
29.3 |
|
|
5 |
% |
|
$ |
107.9 |
|
|
$ |
97.6 |
|
|
10 |
% |
Stock-based compensation |
|
|
(8.6 |
) |
|
|
(9.5 |
) |
|
(10 |
%) |
|
|
(36.3 |
) |
|
|
(38.8 |
) |
|
(7 |
%) |
Capitalized internally developed software costs |
|
|
(5.4 |
) |
|
|
(7.2 |
) |
|
(26 |
%) |
|
|
(24.0 |
) |
|
|
(32.4 |
) |
|
(26 |
%) |
Non-GAAP operating income |
|
$ |
16.8 |
|
|
$ |
12.6 |
|
|
35 |
% |
|
$ |
47.6 |
|
|
$ |
26.4 |
|
|
80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) margin |
|
|
21 |
% |
|
|
(2 |
%) |
|
|
|
|
4 |
% |
|
|
(2 |
%) |
|
|
||
Adjusted EBITDA margin2 |
|
|
17 |
% |
|
|
22 |
% |
|
|
|
|
16 |
% |
|
|
16 |
% |
|
|
||
______________ |
||
(1) |
|
Represents non-GAAP operating income (loss) as a percentage of revenue. |
(2) |
|
Represents adjusted EBITDA as a percentage of revenue. |
|
|
Year Ended
|
|
% Change |
|||||||
(in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
||
Net cash provided by operating activities |
|
$ |
71.8 |
|
|
$ |
72.1 |
|
|
0 |
% |
Capitalized software development costs |
|
|
(20.7 |
) |
|
|
(28.8 |
) |
|
(28 |
%) |
Purchase of property and equipment |
|
|
(0.6 |
) |
|
|
(0.7 |
) |
|
(15 |
%) |
Free cash flow |
|
$ |
50.5 |
|
|
$ |
42.6 |
|
|
19 |
% |
FINANCIAL OUTLOOK
We are providing guidance for the first quarter of 2025:
-
Revenue is expected in the range of
$187 -$193 million 17% year-over-year at the midpoint -
GAAP operating loss is expected in the range of
$(12) -$(8) million -
Non-GAAP operating income (loss) is expected in the range of
$(3) -$0 million -
Adjusted EBITDA is expected in the range of
$10 -$13 million
We expect 2025 annual GAAP operating income in the range of
We are also replacing our previously shared 2026 margin percentage target with a margin dollar target. We expect to deliver at least
NerdWallet has not provided a quantitative reconciliation of forecasted GAAP net income (loss) to forecasted adjusted EBITDA within this communication because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to, income taxes which are directly impacted by unpredictable fluctuations in the market price of the Company’s capital stock. These items, which could materially affect the computation of forward-looking GAAP net income (loss), are inherently uncertain and depend on various factors, many of which are outside of NerdWallet’s control.
A reconciliation of forecasted GAAP operating loss to forecasted non-GAAP operating income (loss) for forecasted first quarter 2025, and of forecasted GAAP operating income to forecasted non-GAAP operating income for forecasted full year 2025 and 2026, is as follows:
|
|
Forecasted First Quarter 2025 |
|
Forecasted Full Year 2025 |
|
Forecasted Full Year 2026 |
(in millions) |
|
Operating Income (Loss) |
|
Operating Income |
|
Operating Income |
GAAP |
|
|
|
|
|
|
Estimated adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
12 - 13 |
|
47 - 51 |
|
42 - 46 |
Acquisition-related retention |
|
1 |
|
2 |
|
— |
Capitalized internally developed software costs |
|
(5) |
|
(20) - (24) |
|
(22) - (26) |
Non-GAAP |
|
|
|
|
|
|
______________
For more information regarding the non-GAAP financial measures discussed in this communication, please see “Non-GAAP Financial Measures” above.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements about us and our industry that involve significant risks and uncertainties. Except for statements of historical facts, all statements contained in this press release are forward-looking, including, but not limited to, the statements in the section titled “Financial Outlook.” These statements often contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or similar terms, including their negatives. These forward-looking statements include, but are not limited to, statements regarding:
- the impact of macroeconomic developments, including inflation, interest rates, credit market conditions and overall economic uncertainty on our business, operating results, financial condition and stock price;
- our expectations regarding our future financial and operational performance, including total revenue, cost of revenue, non-GAAP operating income (loss), adjusted EBITDA, free cash flow and MUUs;
- our ability to grow traffic and user engagement on our platform;
- expected returns on marketing investments and brand campaigns;
- consumer demand for the products on our platform;
- our ability to increase user registrations and improve repeat usage rates;
- conversion of consumers into matches with financial services partners;
- expansion within existing and new verticals;
- geographic expansion;
- maintaining and expanding relationships with financial services partners and identifying new financial services partners;
- developing efficient and scalable technical capabilities to provide personalized guidance and engage users;
- enhancing our brand awareness and consumer trust;
- producing high quality, engaging consumer resources;
- adapting to the evolving financial interests of consumers;
- competing effectively in existing and new markets;
- maintaining the security and availability of our platform;
- protecting and enhancing our intellectual property portfolio;
- attracting and retaining highly skilled, diverse talent;
- complying with laws and regulations that currently apply or may apply in the future to our business;
- the adequacy of our cash, cash equivalents, and investments to meet liquidity needs;
- managing growth, scaling infrastructure and preserving our corporate culture;
- identifying, executing, and integrating acquisitions successfully; and
- achieving expected synergies, accretive value and other benefits from completed acquisitions;
These forward-looking statements should not be relied upon as predictions or guarantees of future events. They are based on our current expectations, estimates, and projections regarding future events and trends that may affect our business, financial condition and operating results. However, these expectations are subject to various risks, uncertainties , and assumptions, including those described in filings we make with the SEC from time to time.
Our industry is highly competitive and rapidly evolving, and new risks and uncertainties may arise that we cannot predict. As a result, actual results, events, or circumstances may differ materially from those reflected in our forward-looking statements.
The forward-looking statements made in this press release speak only as of the date hereof. We undertake no obligation to update any such statements made in this press release to reflect subsequent events, new information, unexpected developments, except as required by law. These statements also do not account for potential impacts from future acquisitions, mergers, dispositions, joint ventures, or investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219350342/en/
Investor Relations:
Caitlin MacNamee
ir@nerdwallet.com
Media Relations:
Maitri Jani
press@nerdwallet.com
Source: NerdWallet, Inc.
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