NerdWallet, Inc. Class A ( (NRDS) ) has realeased its Q3 earnings. Here is a breakdown of the information NerdWallet, Inc. Class A presented to its investors.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
NerdWallet, Inc. is a personal finance company that provides financial guidance to consumers and small to mid-sized businesses across several countries, operating primarily in the financial services sector. Known for its trustworthy resources and comparison shopping tools, it empowers users to make informed financial decisions.
In its third-quarter 2024 earnings report, NerdWallet announced a revenue increase of 25% year-over-year, reaching $191.3 million. The company also reported a GAAP net income of $0.1 million and non-GAAP operating income of $22.9 million, alongside an adjusted EBITDA of $37.3 million. The quarter was marked by strategic moves, including the acquisition of Next Door Lending to bolster its offerings in the mortgage space.
Key financial metrics revealed a mixed performance across different revenue streams. While revenue from credit cards and loans declined due to challenging market conditions, the SMB products segment grew by 12% year-over-year. The most significant growth was seen in Emerging Verticals, which soared by 129% thanks to robust insurance product sales. The company, however, faced a 7% decline in average monthly unique users, attributed to reduced organic search traffic.
The company also announced a leadership change with the planned resignation of its CFO, Lauren StClair, by March 2025. Additionally, a new share repurchase authorization was approved, allowing for the acquisition of up to $25 million in Class A common stock, reflecting confidence in its financial position.
Looking ahead, NerdWallet anticipates continued revenue growth and operational efficiencies. The company projects a revenue range of $164-$172 million for the fourth quarter of 2024 and expects to maintain a positive adjusted EBITDA margin, signaling cautious optimism in navigating future market conditions.
