NASDAQ$NRDS

NerdWallet Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported solid financial results in Q1 2023, with revenue up 31% year-over-year.

NerdWallet reported a strong start to 2023 with revenue of $169.6 million, up 31% year-over-year. The company focused on executing against its growth pillars, expanding financial guidance, and investing in consumer experiences. Despite anticipating macro pressures, NerdWallet continues to operate with efficiency and aims to deliver long-term value.

  • Revenue of $169.6 million, up 31% year-over-year.
  • GAAP net income of $1.7 million and $0.02 income per diluted share.
  • Adjusted EBITDA of $20.9 million.
  • Board of Directors approved a share repurchase plan with $20 million authorization.

Headline financials

Total Revenue

$170M

Previous: $129M+31.4%
EPS (adj)

$0.02

Previous: -$0.16+112.5%
Capital Expenditures

-$300K

Previous: -$1.9M+84.2%
Free Cash Flow

$1.4M

Previous: -$12.4M+111.3%
Net Income

$1.7M

Previous: -$10.5M+116.2%
Operating Income

-$800K

Previous: -$9.1M+91.2%
Gross Profit

$156M

Previous: $121M+28.3%
Cash & Equivalents

$101M

Previous: $162M-37.6%
Total Assets

$452M

Previous: $376M+20.2%
Stock-Based Comp

$8.6M

Previous: $6.5M+32.3%

Revenue & EPS history

NerdWallet · Revenue · Quarterly

$170M

Q1 2023+31.4%vs Q1 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

NerdWallet · $83.3M total across 2 segments · Q1 2023

  • Credit cards
    $61.3M+35.6%
  • Loans
    $22M-35.9%

Forward guidance

NerdWallet provided guidance for the second quarter of 2023 with revenue expected in the range of $134 - $141 million and Adjusted EBITDA expected in the range of $17 - $19 million.

Tailwinds

  • Focused on delivering profitability to ensure investment flexibility.
  • Driving sustainable growth across credit cycles.
  • Expect year-over-year increase in 2023 annual Adjusted EBITDA margin.
  • Revenue is expected in the range of $134 - $141 million, 10% year-over-year growth rate at midpoint
  • Adjusted EBITDA is expected in the range of $17 - $19 million

Headwinds

  • Near-term macro headwinds in areas such as credit cards and insurance may pressure revenue growth compared to Q1 2023 levels.
  • Variability in quarterly margins is expected.
  • Unable to calculate certain reconciling items with confidence.
  • Income taxes are directly impacted by unpredictable fluctuations in the market price of the Company’s capital stock.
  • Depreciation and amortization expense from acquisitions are uncertain.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+6.0%

Avg return

Earnings day

+4.1%

Avg return

5 days after

+4.8%

Avg return

30 days after

55%

12 / 22 earnings

Positive

+43.5%

Q3 2023

Best reaction

-28.6%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-22.8%-26.8%
Q4 2025+7.5%+11.2%-3.1%
Q3 2025-2.0%+1.5%+26.7%
Q1 2025+29.2%+40.1%+31.8%
Q4 2024-18.6%-25.0%-34.8%
Q3 2024+30.1%+25.3%+22.9%
Q2 2024-27.8%-31.8%-18.4%
Q1 2024-6.3%-8.6%-0.2%
Q4 2023+4.1%+8.0%-2.4%
Q3 2023+43.5%+65.6%+70.7%
Q2 2023-8.1%-10.1%-13.9%
Q1 2023-28.6%-33.6%-29.5%
Q4 2022+27.3%+24.0%+18.9%
Q3 2021+27.7%+26.0%+20.1%
Q3 2022+27.7%+26.0%+20.1%
Q2 2021+11.2%+12.9%+10.7%
Q2 2022+6.3%+9.3%+9.9%
Q1 2022-1.0%-20.8%+17.3%
Q1 2021-1.0%-20.8%+17.3%
Q4 2019-2.2%+3.3%-23.7%
Q4 2020-2.2%+3.3%-23.7%
Q4 2021+13.1%+6.3%+16.8%
Q3 2020
Q2 2020
Q1 2020

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