NerdWallet Reports Second Quarter 2024 Results
NerdWallet (Nasdaq: NRDS) reported its Q2 2024 results, highlighting a 5% YoY revenue increase to $150.6M. Key financials include a GAAP net loss of $9.4M or $0.12 per diluted share and a non-GAAP operating loss of $2.7M. Adjusted EBITDA was $14.3M. The company faced headwinds in organic search traffic but sees early recovery signs and remains optimistic about its long-term targets.
Revenue segments showed mixed results: Credit cards down 10% YoY, Loans down 6% YoY, SMB products up 10% YoY, and Emerging verticals up 25% YoY. Average Monthly Unique Users (MUUs) rose 7% YoY to 23M.
NerdWallet announced a restructuring plan effective August 1, 2024, to reduce operating expenses by cutting 15% of its workforce, expecting annualized cost savings of $30M despite a pre-tax restructuring charge estimated between $8M and $10M.
NerdWallet (Nasdaq: NRDS) ha riportato i suoi risultati per il Q2 2024, evidenziando un aumento del fatturato del 5% rispetto all'anno precedente a 150,6 milioni di dollari. Tra i dati finanziari chiave si segnalano una perdita netta secondo i principi contabili GAAP di 9,4 milioni di dollari, pari a 0,12 dollari per azione diluita, e una perdita operative non GAAP di 2,7 milioni di dollari. L'EBITDA rettificato è stato 14,3 milioni di dollari. L'azienda ha affrontato ostacoli nel traffico di ricerca organico, ma vede segnali precoci di recupero e rimane ottimista riguardo ai suoi obiettivi a lungo termine.
I segmenti di fatturato hanno mostrato risultati misti: le carte di credito sono diminuite del 10% rispetto all'anno precedente, i prestiti sono diminuiti del 6% rispetto all'anno precedente, i prodotti per le PMI sono aumentati del 10% rispetto all'anno precedente e i settori emergenti sono aumentati del 25% rispetto all'anno precedente. Gli utenti unici mensili medi (MUUs) sono aumentati del 7% rispetto all'anno precedente, raggiungendo 23 milioni.
NerdWallet ha annunciato un piano di ristrutturazione valido dal 1° agosto 2024, per ridurre le spese operative tagliando il 15% della sua forza lavoro, prevedendo risparmi annuali sui costi di 30 milioni di dollari nonostante un costo di ristrutturazione prima delle tasse stimato tra 8 e 10 milioni di dollari.
NerdWallet (Nasdaq: NRDS) reportó sus resultados del Q2 2024, destacando un aumento del 5% en los ingresos interanual a 150,6 millones de dólares. Las cifras financieras clave incluyen una pérdida neta GAAP de 9,4 millones de dólares o 0,12 dólares por acción diluida y una pérdida operativa no GAAP de 2,7 millones de dólares. El EBITDA ajustado fue de 14,3 millones de dólares. La compañía enfrentó dificultades en el tráfico de búsqueda orgánica, pero ve señales tempranas de recuperación y se mantiene optimista sobre sus objetivos a largo plazo.
Los segmentos de ingresos mostraron resultados mixtos: las tarjetas de crédito bajaron un 10% interanual, los préstamos bajaron un 6% interanual, los productos para PYMEs aumentaron un 10% interanual y los sectores emergentes aumentaron un 25% interanual. Los Usuarios Únicos Mensuales (MUUs) aumentaron un 7% interanual, alcanzando 23 millones.
NerdWallet anunció un plan de reestructuración que entrará en vigencia el 1 de agosto de 2024, para reducir los gastos operativos mediante el recorte del 15% de su plantilla, esperando ahorros anuales de costos de 30 millones de dólares a pesar de un cargo por reestructuración antes de impuestos estimado entre 8 y 10 millones de dólares.
NerdWallet (Nasdaq: NRDS)는 2024년 2분기 결과를 발표하며 전년 대비 5%의 수익 증가로 1억 5천만 달러에 도달했다고 밝혔습니다. 주요 재무 지표로는 GAAP 기준 순손실이 940만 달러 또는 희석 주당 0.12달러였고, 비 GAAP 운영 손실은 270만 달러에 이릅니다. 조정 EBITDA는 1430만 달러였습니다. 회사는 유기적 검색 트래픽에서 어려움을 겪었지만 조기 회복 신호를 보이고 있으며 장기 목표에 대해 낙관적인 태도를 유지하고 있습니다.
수익 부문은 혼합된 결과를 보여주었습니다: 신용카드는 전년 대비 10% 감소, 대출은 전년 대비 6% 감소, 중소기업 제품은 전년 대비 10% 증가, 신흥 수직 분야는 전년 대비 25% 증가했습니다. 평균 월간 고유 사용자 수(MUU)는 전년 대비 7% 증가하여 2300만에 도달했습니다.
NerdWallet는 2024년 8월 1일부터 시행되는 구조조정 계획을 발표하며, 운영 비용을 줄이기 위해 직원 15% 감축을 예고하고 연간 비용 절감 효과를 3000만 달러로 예상하고 있습니다. 다만 재구성 전 세금 비용은 800만에서 1000만 달러로 추정되고 있습니다.
NerdWallet (Nasdaq: NRDS) a publié ses résultats pour le Q2 2024, mettant en avant une augmentation de 5% des revenus d'une année sur l'autre à 150,6 millions de dollars. Les éléments financiers clés incluent une perte nette GAAP de 9,4 millions de dollars ou 0,12 dollar par action diluée et une perte d'exploitation non GAAP de 2,7 millions de dollars. L'EBITDA ajusté était de 14,3 millions de dollars. La société a rencontré des obstacles dans le trafic de recherche organique, mais voit des signes précoces de reprise et reste optimiste quant à ses objectifs à long terme.
Les segments de revenus ont montré des résultats mixtes : les cartes de crédit ont diminué de 10% d'une année sur l'autre, les prêts ont diminué de 6% d'une année sur l'autre, les produits pour PME ont augmenté de 10% d'une année sur l'autre et les secteurs émergents ont augmenté de 25% d'une année sur l'autre. Le nombre moyen d'utilisateurs uniques mensuels (MUUs) a augmenté de 7% d'une année sur l'autre pour atteindre 23 millions.
NerdWallet a annoncé un plan de restructuration qui prendra effet le 1er août 2024, afin de réduire les coûts d'exploitation en réduisant le 15% de son personnel, prévoyant des économies annuelles de coûts de 30 millions de dollars malgré une charge de restructuration avant impôts estimée entre 8 millions et 10 millions de dollars.
NerdWallet (Nasdaq: NRDS) hat seine Ergebnisse für das Q2 2024 veröffentlicht und dabei ein Umsatzwachstum von 5% im Jahresvergleich auf 150,6 Millionen Dollar hervorgehoben. Zu den wichtigsten Finanzkennzahlen zählen ein GAAP-Nettoverlust von 9,4 Millionen Dollar oder 0,12 Dollar pro verwässerter Aktie sowie ein non-GAAP-Betriebsverlust von 2,7 Millionen Dollar. Das bereinigte EBITDA betrug 14,3 Millionen Dollar. Das Unternehmen hatte mit Schwierigkeiten im organischen Suchverkehr zu kämpfen, sieht jedoch frühe Anzeichen einer Erholung und bleibt optimistisch hinsichtlich seiner langfristigen Ziele.
Die Umsatzsegmente zeigten gemischte Ergebnisse: Kreditkarten sanken um 10% im Jahresvergleich, Darlehen sanken um 6% im Jahresvergleich, Produkte für kleine und mittlere Unternehmen stiegen um 10% im Jahresvergleich und aufstrebende Segmente stiegen um 25% im Jahresvergleich. Die durchschnittlichen monatlichen einzigartigen Nutzer (MUUs) stiegen um 7% im Jahresvergleich auf 23 Millionen.
NerdWallet gab einen Restrukturierungsplan bekannt, der am 1. August 2024 in Kraft tritt, um die Betriebskosten durch einen Abbau von 15% seiner Belegschaft zu senken, mit erwarteten jährlichen Einsparungen von 30 Millionen Dollar, trotz einer geschätzten Umstrukturierungsbelastung vor Steuern von 8 Millionen bis 10 Millionen Dollar.
- 5% YoY revenue increase to $150.6M.
- Non-GAAP operating loss of $2.7M.
- Adjusted EBITDA of $14.3M.
- Emerging verticals revenue up 25% YoY.
- Average Monthly Unique Users up 7% YoY to 23M.
- Cash and cash equivalents increased 70% YoY to $113.8M.
- SMB products revenue up 10% YoY.
- GAAP net loss of $9.4M or $0.12 per diluted share.
- Credit cards revenue down 10% YoY.
- Loans revenue down 6% YoY.
- Restructuring plan includes a pre-tax charge of $8M to $10M.
Insights
NerdWallet's Q2 2024 results present a mixed picture. While revenue grew
The company's core segments showed varying performance:
- Credit cards revenue declined
10% due to reduced marketing spend by partners. - Loans revenue fell
6% , primarily in personal loans. - SMB products grew
10% , driven by business credit cards and loan renewals. - Emerging verticals saw strong growth of
25% , mainly from insurance products.
The announced restructuring plan, which will reduce the workforce by
Investors should closely monitor NerdWallet's ability to navigate the current economic environment, particularly in credit and lending markets. The company's focus on efficiency and strategic priorities like vertical integration and paid memberships could be important for future growth and profitability.
NerdWallet's Q2 results reflect broader market trends in the fintech and financial services sectors. The
However, the
The
The restructuring plan, while potentially disruptive in the short term, may position NerdWallet to better capitalize on market opportunities as economic conditions evolve. Investors should watch for signs of recovery in the banking and lending sectors, as well as NerdWallet's ability to maintain user growth and engagement during this transition period.
NerdWallet's Q2 results highlight the growing importance of technology in the financial guidance sector. The company's ability to attract 23 million average Monthly Unique Users demonstrates the effectiveness of its digital platform in engaging consumers seeking financial information.
However, the mention of "unexpected headwinds in organic search traffic" is concerning. This suggests potential challenges in NerdWallet's search engine optimization (SEO) strategies or changes in search engine algorithms. Given the company's reliance on organic traffic for user acquisition, addressing these issues should be a top priority.
The focus on vertical integration and paid membership offerings indicates a strategic shift towards more direct monetization of NerdWallet's user base. This could potentially reduce dependence on partner revenue and improve margins, but successful execution will require robust technology infrastructure and data analytics capabilities.
Investors should monitor NerdWallet's ability to leverage technology for:
- Improving user acquisition and retention strategies
- Enhancing personalization of financial guidance
- Developing innovative paid membership features
- Optimizing operational efficiency through automation
The success of these initiatives will be important in differentiating NerdWallet in an increasingly competitive fintech landscape and driving long-term growth.
Revenue of
FINANCIAL HIGHLIGHTS
-
Revenue of
$150.6 million -
GAAP loss from operations of
$9.6 million -
GAAP net loss of
or$9.4 million loss per diluted share$0.12 -
Non-GAAP operating loss of
$2.7 million -
Adjusted EBITDA of
$14.3 million
“This quarter we met our topline expectations, delivering revenue of
SECOND 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 June 30, 2024.
-
Credit cards revenue of
decreased$46.1 million 10% 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. -
Loans revenue of
was down$21.7 million 6% year-over-year, primarily due to a decrease in personal loans as we lap a difficult comparison period and continue to work through a tight underwriting environment while improving our near-prime matching and partner coverage, partially offset by growth in student loans and mortgages. -
SMB products revenue of
was up$26.1 million 10% year-over-year, primarily driven by revenue growth in business credit cards and loan renewals, partially offset by a decrease in business loan originations. -
Emerging verticals revenue, previously named Other verticals, of
was up$56.7 million 25% year-over-year, as significant growth in insurance products was partially offset by a decrease in banking products. -
We had 23 million average Monthly Unique Users (MUUs), which was up
7% year-over-year. We saw strong engagement in areas such as travel products, investing and insurance.
SUMMARY FINANCIAL RESULTS |
|||||||||||||||||
|
|
Quarter Ended |
|
% Change |
|
Quarter Ended |
|
% Change |
|||||||||
|
|
Jun 30, |
|
Jun 30, |
|
|
Mar 31, |
|
|||||||||
(in millions, except per share amounts) |
|
2024 |
|
2023 |
|
YoY |
|
2024 |
|
QoQ |
|||||||
Revenue |
|
$ |
150.6 |
|
|
$ |
143.3 |
|
|
5 |
% |
|
$ |
161.9 |
|
(7 |
%) |
Credit cards(1) |
|
|
46.1 |
|
|
|
51.2 |
|
|
(10 |
%) |
|
|
50.0 |
|
(8 |
%) |
Loans(2) |
|
|
21.7 |
|
|
|
23.1 |
|
|
(6 |
%) |
|
|
21.4 |
|
1 |
% |
SMB products(3) |
|
|
26.1 |
|
|
|
23.7 |
|
|
10 |
% |
|
|
30.4 |
|
(14 |
%) |
Emerging verticals(4) |
|
|
56.7 |
|
|
|
45.3 |
|
|
25 |
% |
|
|
60.1 |
|
(6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Income (loss) from operations |
|
$ |
(9.6 |
) |
|
$ |
(4.2 |
) |
|
129 |
% |
|
$ |
3.7 |
|
NM |
|
Net income (loss) |
|
$ |
(9.4 |
) |
|
$ |
(10.7 |
) |
|
(12 |
%) |
|
$ |
1.1 |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
(0.12 |
) |
|
$ |
(0.14 |
) |
|
(14 |
%) |
|
$ |
0.01 |
|
NM |
|
Diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.14 |
) |
|
(14 |
%) |
|
$ |
0.01 |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-GAAP financial measures(5) |
|
|
|
|
|
|
|
|
|
|
|||||||
Non-GAAP operating income (loss) |
|
$ |
(2.7 |
) |
|
$ |
0.5 |
|
|
NM |
|
|
$ |
10.6 |
|
NM |
|
Adjusted EBITDA |
|
$ |
14.3 |
|
|
$ |
20.7 |
|
|
(31 |
%) |
|
$ |
25.5 |
|
(44 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents |
|
$ |
113.8 |
|
|
$ |
67.1 |
|
|
70 |
% |
|
$ |
110.9 |
|
3 |
% |
Average Monthly Unique Users(6) |
|
|
23 |
|
|
|
22 |
|
|
7 |
% |
|
|
29 |
|
(20 |
%) |
______________ |
||
(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. |
|
(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 (loss) 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. |
QUARTERLY CONFERENCE CALL
A conference call to discuss NerdWallet’s second quarter 2024 financial results will be webcast live today, July 31, 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 website at https://investors.nerdwallet.com.
RESTRUCTURING PLAN
On July 30, 2024, NerdWallet, Inc. (NerdWallet or the Company) committed to a restructuring plan, effective August 1, 2024, intended to reduce the Company’s operating expenses and better position the Company to execute its long-term strategic initiatives (the Restructuring Plan). The Restructuring Plan will reduce the size of the Company’s workforce by approximately
The Company expects to incur a total estimated pre-tax restructuring charge of approximately
The charges that the Company expects to incur and the savings the Company expects to realize are subject to several assumptions, including, but not limited to, compliance with legal requirements in various jurisdictions, the impact of the workforce reduction on our business results of operations, and future investment opportunities. Actual results may differ materially from the estimates disclosed above.
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 |
|
Six Months Ended
|
|
% Change |
||||||||||||||
(in millions, except per share amounts) |
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
||||||||||||
Revenue |
|
$ |
150.6 |
|
|
$ |
143.3 |
|
|
5 |
% |
|
$ |
312.5 |
|
|
$ |
312.9 |
|
|
0 |
% |
Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue |
|
|
14.9 |
|
|
|
13.1 |
|
|
14 |
% |
|
|
29.1 |
|
|
|
26.9 |
|
|
8 |
% |
Research and development |
|
|
22.7 |
|
|
|
20.0 |
|
|
13 |
% |
|
|
43.4 |
|
|
|
39.5 |
|
|
10 |
% |
Sales and marketing |
|
|
106.1 |
|
|
|
98.8 |
|
|
7 |
% |
|
|
214.0 |
|
|
|
220.5 |
|
|
(3 |
%) |
General and administrative |
|
|
16.5 |
|
|
|
15.6 |
|
|
6 |
% |
|
|
31.9 |
|
|
|
31.0 |
|
|
3 |
% |
Total costs and expenses |
|
|
160.2 |
|
|
|
147.5 |
|
|
9 |
% |
|
|
318.4 |
|
|
|
317.9 |
|
|
0 |
% |
Loss From Operations |
|
|
(9.6 |
) |
|
|
(4.2 |
) |
|
129 |
% |
|
|
(5.9 |
) |
|
|
(5.0 |
) |
|
17 |
% |
Other income, net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
|
|
1.5 |
|
|
|
0.8 |
|
|
98 |
% |
|
|
2.9 |
|
|
|
1.8 |
|
|
61 |
% |
Interest expense |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
13 |
% |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
4 |
% |
Other losses, net |
|
|
— |
|
|
|
— |
|
|
NM |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
16 |
% |
Total other income, net |
|
|
1.3 |
|
|
|
0.6 |
|
|
112 |
% |
|
|
2.4 |
|
|
|
1.3 |
|
|
82 |
% |
Loss before income taxes |
|
|
(8.3 |
) |
|
|
(3.6 |
) |
|
132 |
% |
|
|
(3.5 |
) |
|
|
(3.7 |
) |
|
(6 |
%) |
Income tax provision |
|
|
1.1 |
|
|
|
7.1 |
|
|
(84 |
%) |
|
|
4.8 |
|
|
|
5.3 |
|
|
(9 |
%) |
Net Loss |
|
$ |
(9.4 |
) |
|
$ |
(10.7 |
) |
|
(12 |
%) |
|
$ |
(8.3 |
) |
|
$ |
(9.0 |
) |
|
(8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Loss Per Share Attributable to Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
$ |
(0.12 |
) |
|
$ |
(0.14 |
) |
|
(14 |
%) |
|
$ |
(0.11 |
) |
|
$ |
(0.12 |
) |
|
(8 |
%) |
Diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.14 |
) |
|
(14 |
%) |
|
$ |
(0.11 |
) |
|
$ |
(0.12 |
) |
|
(8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average Shares Used in Computing Net Loss Per Share Attributable to Common Stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
77.9 |
|
|
|
76.8 |
|
|
|
|
|
77.5 |
|
|
|
76.3 |
|
|
|
||
Diluted |
|
|
77.9 |
|
|
|
76.8 |
|
|
|
|
|
77.5 |
|
|
|
76.3 |
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited |
||||||
(in millions) |
|
June 30,
|
|
December 31,
|
||
Assets |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
113.8 |
|
$ |
100.4 |
Accounts receivable—net |
|
|
93.7 |
|
|
75.5 |
Prepaid expenses and other current assets |
|
|
22.5 |
|
|
22.5 |
Total current assets |
|
|
230.0 |
|
|
198.4 |
Property, equipment and software—net |
|
|
48.9 |
|
|
52.6 |
Goodwill |
|
|
111.5 |
|
|
111.5 |
Intangible assets—net |
|
|
40.0 |
|
|
46.9 |
Right-of-use assets |
|
|
6.0 |
|
|
7.2 |
Other assets |
|
|
9.8 |
|
|
2.0 |
Total Assets |
|
$ |
446.2 |
|
$ |
418.6 |
Liabilities and Stockholders’ Equity |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable |
|
$ |
10.1 |
|
$ |
1.7 |
Accrued expenses and other current liabilities |
|
|
43.8 |
|
|
35.6 |
Total current liabilities |
|
|
53.9 |
|
|
37.3 |
Other liabilities—noncurrent |
|
|
12.9 |
|
|
14.4 |
Total liabilities |
|
|
66.8 |
|
|
51.7 |
Commitments and contingencies |
|
|
|
|
||
Stockholders’ equity |
|
|
379.4 |
|
|
366.9 |
Total Liabilities and Stockholders’ Equity |
|
$ |
446.2 |
|
$ |
418.6 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited |
||||||||
|
|
Six Months Ended
|
||||||
(in millions) |
|
2024 |
|
2023 |
||||
Operating Activities: |
|
|
|
|
||||
Net loss |
|
$ |
(8.3 |
) |
|
$ |
(9.0 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
24.1 |
|
|
|
23.9 |
|
Stock-based compensation |
|
|
19.0 |
|
|
|
19.9 |
|
Deferred taxes |
|
|
(0.2 |
) |
|
|
(0.3 |
) |
Non-cash lease costs |
|
|
1.1 |
|
|
|
1.4 |
|
Other, net |
|
|
0.3 |
|
|
|
1.2 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(18.4 |
) |
|
|
(6.4 |
) |
Prepaid expenses and other assets |
|
|
0.2 |
|
|
|
(3.2 |
) |
Accounts payable |
|
|
8.0 |
|
|
|
(1.9 |
) |
Accrued expenses and other current liabilities |
|
|
8.3 |
|
|
|
(4.6 |
) |
Payment of contingent consideration |
|
|
— |
|
|
|
(14.0 |
) |
Operating lease liabilities |
|
|
(1.7 |
) |
|
|
(1.5 |
) |
Other liabilities |
|
|
0.5 |
|
|
|
0.9 |
|
Net cash provided by operating activities |
|
|
32.9 |
|
|
|
6.4 |
|
Investing Activities: |
|
|
|
|
||||
Purchase of investment |
|
|
(8.1 |
) |
|
|
— |
|
Capitalized software development costs |
|
|
(10.8 |
) |
|
|
(14.9 |
) |
Purchase of property and equipment |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
Net cash used in investing activities |
|
|
(19.2 |
) |
|
|
(15.3 |
) |
Financing Activities: |
|
|
|
|
||||
Payment of contingent consideration |
|
|
— |
|
|
|
(16.9 |
) |
Proceeds from line of credit |
|
|
— |
|
|
|
7.5 |
|
Payments on line of credit |
|
|
— |
|
|
|
(7.5 |
) |
Proceeds from exercise of stock options |
|
|
2.1 |
|
|
|
8.8 |
|
Issuance of Class A common stock under Employee Stock Purchase Plan |
|
|
— |
|
|
|
1.9 |
|
Repurchase of Class A common stock |
|
|
(1.1 |
) |
|
|
(1.3 |
) |
Tax payments related to net-share settlements on restricted stock units |
|
|
(1.4 |
) |
|
|
(0.5 |
) |
Net cash used in financing activities |
|
|
(0.4 |
) |
|
|
(8.0 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
0.1 |
|
|
|
0.1 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
13.4 |
|
|
|
(16.8 |
) |
Cash and Cash Equivalents: |
|
|
|
|
||||
Beginning of period |
|
|
100.4 |
|
|
|
83.9 |
|
End of period |
|
$ |
113.8 |
|
|
$ |
67.1 |
|
NON-GAAP FINANCIAL MEASURES
We use non-GAAP operating income (loss) and adjusted EBITDA 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, and (5) acquisition-related costs. 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, 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, and (6) acquisition-related costs.
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;
- 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).
In addition, non-GAAP operating income (loss) and adjusted EBITDA 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) and adjusted EBITDA alongside other financial performance measures, including income (loss) from operations, net income (loss) and our other GAAP results.
We compensate for these limitations by reconciling non-GAAP operating income (loss) to loss from operations, and adjusted EBITDA to net loss, the most directly comparable respective GAAP financial measures, as follows:
|
|
Three Months Ended
|
|
% Change |
|
Six Months Ended
|
|
% Change |
||||||||||||||
(in millions) |
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
||||||||||||
Loss from operations |
|
$ |
(9.6 |
) |
|
$ |
(4.2 |
) |
|
129 |
% |
|
$ |
(5.9 |
) |
|
$ |
(5.0 |
) |
|
17 |
% |
Depreciation and amortization |
|
|
12.2 |
|
|
|
12.2 |
|
|
1 |
% |
|
|
24.1 |
|
|
|
23.9 |
|
|
1 |
% |
Acquisition-related retention |
|
|
1.3 |
|
|
|
1.4 |
|
|
(11 |
%) |
|
|
2.5 |
|
|
|
2.8 |
|
|
(11 |
%) |
Acquisition-related expenses |
|
|
0.1 |
|
|
|
— |
|
|
NM |
|
|
|
0.1 |
|
|
|
— |
|
|
NM |
|
Capitalized internally developed software costs |
|
|
(6.7 |
) |
|
|
(8.9 |
) |
|
(24 |
%) |
|
|
(12.9 |
) |
|
|
(17.4 |
) |
|
(26 |
%) |
Non-GAAP operating income (loss) |
|
$ |
(2.7 |
) |
|
$ |
0.5 |
|
|
NM |
|
|
$ |
7.9 |
|
|
$ |
4.3 |
|
|
82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating loss margin |
|
|
(6 |
%) |
|
|
(3 |
%) |
|
|
|
|
(2 |
%) |
|
|
(2 |
%) |
|
|
||
Non-GAAP operating income (loss) margin1 |
|
|
(2 |
%) |
|
|
0 |
% |
|
|
|
|
3 |
% |
|
|
1 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss |
|
$ |
(9.4 |
) |
|
$ |
(10.7 |
) |
|
(12 |
%) |
|
$ |
(8.3 |
) |
|
$ |
(9.0 |
) |
|
(8 |
%) |
Depreciation and amortization |
|
|
12.2 |
|
|
|
12.2 |
|
|
1 |
% |
|
|
24.1 |
|
|
|
23.9 |
|
|
1 |
% |
Stock-based compensation |
|
|
10.3 |
|
|
|
11.3 |
|
|
(9 |
%) |
|
|
19.0 |
|
|
|
19.9 |
|
|
(4 |
%) |
Acquisition-related retention |
|
|
1.3 |
|
|
|
1.4 |
|
|
(11 |
%) |
|
|
2.5 |
|
|
|
2.8 |
|
|
(11 |
%) |
Acquisition-related expenses |
|
|
0.1 |
|
|
|
— |
|
|
NM |
|
|
|
0.1 |
|
|
|
— |
|
|
NM |
|
Interest income, net |
|
|
(1.3 |
) |
|
|
(0.6 |
) |
|
122 |
% |
|
|
(2.5 |
) |
|
|
(1.4 |
) |
|
76 |
% |
Other losses, net |
|
|
— |
|
|
|
— |
|
|
NM |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
16 |
% |
Income tax provision |
|
|
1.1 |
|
|
|
7.1 |
|
|
(84 |
%) |
|
|
4.8 |
|
|
|
5.3 |
|
|
(9 |
%) |
Adjusted EBITDA |
|
$ |
14.3 |
|
|
$ |
20.7 |
|
|
(31 |
%) |
|
$ |
39.8 |
|
|
$ |
41.6 |
|
|
(4 |
%) |
Stock-based compensation |
|
|
(10.3 |
) |
|
|
(11.3 |
) |
|
(9 |
%) |
|
|
(19.0 |
) |
|
|
(19.9 |
) |
|
(4 |
%) |
Capitalized internally developed software costs |
|
|
(6.7 |
) |
|
|
(8.9 |
) |
|
(24 |
%) |
|
|
(12.9 |
) |
|
|
(17.4 |
) |
|
(26 |
%) |
Non-GAAP operating income (loss) |
|
$ |
(2.7 |
) |
|
$ |
0.5 |
|
|
NM |
|
|
$ |
7.9 |
|
|
$ |
4.3 |
|
|
82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss margin |
|
|
(6 |
%) |
|
|
(7 |
%) |
|
|
|
|
(3 |
%) |
|
|
(3 |
%) |
|
|
||
Adjusted EBITDA margin2 |
|
|
10 |
% |
|
|
14 |
% |
|
|
|
|
13 |
% |
|
|
13 |
% |
|
|
______________ |
||
(1) |
Represents non-GAAP operating income (loss) as a percentage of revenue. |
|
(2) |
Represents adjusted EBITDA as a percentage of revenue. |
FINANCIAL OUTLOOK
We are providing guidance for the third quarter of 2024:
-
Revenue is expected in the range of
, up$172 -$180 million 15% year-over-year at the midpoint -
GAAP operating income (loss) is expected in the range of
$(1) -$5 million -
Non-GAAP operating income is expected in the range of
$17 -$21 million -
Adjusted EBITDA is expected in the range of
$30.5 -$34.5 million
We expect a 2024 annual GAAP operating income (loss) margin in the range of (
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 operating income (loss) margin to forecasted non-GAAP operating income margin for forecasted full year 2024, and forecasted operating income (loss) to forecasted non-GAAP operating income for forecasted third quarter 2024 is as follows:
|
|
Forecasted
|
|
Forecasted
|
(in millions) |
|
Operating Income
|
|
Operating Income
|
GAAP |
|
(0.5)- |
|
|
Estimated adjustments for: |
|
|
|
|
Depreciation and amortization |
|
7.25 |
|
12 |
Acquisition-related retention |
|
|
|
1 |
Restructuring |
|
1.2 |
|
8-10 |
Capitalized internally developed software costs |
|
(3.25)-( |
|
(5) |
Non-GAAP |
|
5.75 |
|
|
______________ |
||
(1) |
Operating income (loss) margin represents forecasted operating income (loss) as a percentage of forecasted revenue. Non-GAAP operating income margin represents forecasted non-GAAP operating income as a percentage of forecasted revenue. |
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 substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, the statements in the section titled “Financial Outlook.” In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:
- the effect of macroeconomic developments, including but not limited to, inflation, high interest rates, tightening credit markets and general macroeconomic uncertainty on our business results of operations, financial condition and stock price;
- our expectations regarding our future financial and operating performance, including total revenue, cost of revenue, non-GAAP operating income (loss), adjusted EBITDA, and MUUs;
- our ability to grow traffic and engagement on our platform;
- our expected returns on marketing investments and brand campaigns;
- our expectations about consumer demand for the products on our platform;
- our ability to convert users into registered users and improve repeat user rates;
- our ability to convert consumers into matches with financial services partners;
- our ability to grow within existing and new verticals;
- our ability to expand geographically;
- our ability to maintain and expand our relationships with our existing financial services partners and to identify new financial services partners;
- our ability to build efficient and scalable technical capabilities to deliver personalized guidance and nudge users;
- our ability to maintain and enhance our brand awareness and consumer trust;
- our ability to generate high quality, engaging consumer resources;
- our ability to adapt to the evolving financial interests of consumers;
- our ability to compete with existing and new competitors in existing and new market verticals;
- our ability to maintain the security and availability of our platform;
- our ability to maintain, protect and enhance our intellectual property;
- our ability to identify, attract and retain highly skilled, diverse personnel;
- our ability to stay in compliance with laws and regulations that currently apply or become applicable to our business;
- the sufficiency of our cash, cash equivalents, and investments to meet our liquidity needs;
- our ability to effectively manage our growth and expand our infrastructure and maintain our corporate culture;
- our ability to successfully identify, manage, and integrate any existing and potential acquisitions;
- our ability to achieve expected synergies, accretive value and other benefits from completed acquisitions; and
- the effect and scope of our workforce reduction, the amount and timing of related charges thereto, our ability to realize the expected cost savings and the expectations regarding the impact of said reduction on our business results of operations and future investment opportunities.
You should not rely on forward-looking statements as predictions or guarantees of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. These forward-looking statements are subject to risks, uncertainties and other factors that may cause actual results or outcomes to be materially different from any future results expressed or implied by these forward-looking statements, including those factors described in filings we make with the SEC from time to time.
The forward-looking statements made in this press release speak only as of the date hereof. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731378837/en/
Investor Relations:
Caitlin MacNamee
ir@nerdwallet.com
Media Relations:
Sara Colvin
press@nerdwallet.com
Source: NerdWallet, Inc.
FAQ
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