NASDAQ$NRDS

NerdWallet Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

NerdWallet reported Q2 2023 results with revenue up 14% year-over-year.

NerdWallet's Q2 2023 revenue reached $143.3 million, a 14% increase year-over-year. The company reported a GAAP net loss of $10.7 million, or $0.14 loss per diluted share, and an adjusted EBITDA of $20.7 million.

  • Revenue was $143.3 million, up 14% year-over-year.
  • GAAP net loss was $10.7 million, resulting in a $0.14 loss per diluted share.
  • Adjusted EBITDA reached $20.7 million.
  • Average Monthly Unique Users (MUUs) totaled 22 million, a 9% increase year-over-year.

Headline financials

Total Revenue

$143M

Previous: $125M+14.5%
EPS (adj)

-$0.14

Previous: -$0.14+0.0%
Adjusted EBITDA

$20.7M

Previous: $12.7M+63.0%
Non-GAAP Operating Income

$500K

No prior period
Capital Expenditures

-$400K

Previous: -$2.9M+86.2%
Free Cash Flow

-$11.1M

Previous: -$12.2M+9.0%
Net Income

-$10.7M

Previous: -$9.3M-15.1%
Operating Income

-$4.2M

Previous: -$9M+53.3%
Gross Profit

$130M

Previous: $117M+11.3%
Cash & Equivalents

$67.1M

Previous: $126M-46.7%
Total Assets

$411M

Previous: $346M+18.7%
Stock-Based Comp

$11.3M

Previous: $9.7M+16.5%

Revenue & EPS history

NerdWallet · Revenue · Quarterly

$143M

Q2 2023+14.5%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

NerdWallet · $74.3M total across 2 segments · Q2 2023

  • Credit cards
    $51.2M-6.2%
  • Loans
    $23.1M-3.8%

Forward guidance

NerdWallet provided revenue guidance for Q3 2023 in the range of $142 - $147 million and adjusted EBITDA between $18 - $20 million. The company expects a 2023 annual Adjusted EBITDA margin of over 15% and a non-GAAP operating income margin of approximately 2%.

Tailwinds

  • Revenue is expected in the range of $142 - $147 million for Q3 2023.
  • Adjusted EBITDA is expected in the range of $18 - $20 million for Q3 2023.
  • Expect a 2023 annual Adjusted EBITDA margin of over 15%.
  • Expect a year-over-year increase of approximately three percentage points in annual Adjusted EBITDA margin.
  • Non-GAAP operating income margin of approximately 2% for full year 2023.

Headwinds

  • Variability is expected in quarterly margins.
  • GAAP operating loss margin of approximately (1%) for full year 2023.
  • 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.
  • Achieving forward looking statements are subject to risks, uncertainties and other factors that may cause actual results or outcomes to be materially different.

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 Q2 2023

Historical avgQ2 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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