NerdWallet Reports Fourth Quarter and Full Year 2024 Results

Fourth Quarter Revenue of $183.8 million, Up 37% Year-Over-Year

FINANCIAL HIGHLIGHTS

   -- Revenue of $183.8 million for Q4'24 and $687.6 million for full year 2024 
 
   -- GAAP income from operations of $8.7 million for Q4'24 and $9.4 million 
      for full year 2024 
 
   -- GAAP net income of $38.6 million or $0.51 income per diluted share for 
      Q4'24 and $30.4 million or $0.38 income per diluted share for full year 
      2024 
 
   -- Non-GAAP operating income of $16.8 million for Q4'24 and $47.6 million 
      for full year 2024 
 
   -- Adjusted EBITDA of $30.8 million for Q4'24 and $107.9 million for full 
      year 2024 
SAN FRANCISCO--(BUSINESS WIRE)--February 19, 2025-- 

NerdWallet, Inc. (Nasdaq: NRDS), which provides trustworthy financial guidance to consumers and small and mid-sized businesses (SMBs), today reported financial results for its fourth quarter ended December 31, 2024.

"We closed 2024 strong, exceeding our expectations and growing revenue to $183.8 million, up 37% year-over-year, driven by continued consumer and partner demand in Insurance and a solid performance in banking," said Tim Chen, Co-Founder and Chief Executive Officer of NerdWallet. "While a rising long-term rate environment created headwinds in our lending business, we remain focused on growing cycle-to-cycle and are making strategic investments to drive direct, engaged relationships with consumers to make progress toward our vision in 2025."

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 increased 821% year-over-year, driven by strong growth in auto 
      insurance products as carriers expanded budgets. 
 
   -- Credit cards revenue of $35.0 million decreased 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 was down 7% year-over-year, 
      primarily driven by a decrease in business loan originations. 
 
   -- Loans revenue of $17.6 million was down 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 was up 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 
                  Quarter Ended               Ended 
                 ---------------            --------- 
                  Dec                %                    % 
                  31,    Dec 31,   Change    Sep 30,    Change 
(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 
                 ---------------------------------------------------------------- 
                  Dec     Sep     Jun     Mar     Dec     Sep     Jun 
                  31,     30,     30,     31,     31,     30,     30,    Mar 31, 
(in millions)     2024    2024    2024    2024    2023    2023    2023     2023 
--------------   ------  ------  ------  ------  ------  ------  ------  -------- 
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 U.S., United Kingdom, Canada and Australia.

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