NASDAQ$NRDS

NerdWallet Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a 5% year-over-year revenue increase, but fell short of non-GAAP operating income guidance due to unexpected headwinds in organic search traffic.

NerdWallet reported Q2 2024 revenue of $150.6 million, a 5% increase year-over-year. The company experienced a GAAP net loss of $9.4 million, or $0.12 loss per diluted share. They are seeing early signs of recovery and continue to believe they have a path to achieving their mid- and long-term targets.

  • Revenue reached $150.6 million, a 5% increase year-over-year.
  • GAAP loss from operations was $9.6 million.
  • GAAP net loss amounted to $9.4 million, or $0.12 loss per diluted share.
  • Adjusted EBITDA was $14.3 million.

Headline financials

Total Revenue

$151M

Previous: $143M+5.1%
EPS

-$0.12

Previous: -$0.14+14.3%
Adjusted EBITDA

$14.3M

Previous: $20.7M-30.9%
Adjusted EBITDA Margin

10.0%

No prior period
Non-GAAP Operating Margin

-2.0%

No prior period
Capital Expenditures

-$300K

Previous: -$400K+25.0%
Free Cash Flow

-$9.7M

Previous: -$11.1M+12.6%
Net Income

-$9.4M

Previous: -$10.7M+12.1%
Operating Income

-$9.6M

Previous: -$4.2M-128.6%
Gross Profit

$136M

Previous: $130M+4.2%
Cash & Equivalents

$114M

Previous: $67.1M+69.6%
Total Assets

$446M

Previous: $411M+8.7%
R&D Expense

$22.7M

No prior period
Stock-Based Comp

$10.3M

Previous: $11.3M-8.8%

Revenue & EPS history

NerdWallet · Revenue · Quarterly

$151M

Q2 2024+5.1%vs Q2 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

NerdWallet · $86.9M total across 2 segments · Q3 2023

  • Credit cards
    $54M-5.9%
  • Loans
    $32.9M+15.8%

Forward guidance

NerdWallet provided guidance for the third quarter of 2024, with revenue expected in the range of $172-$180 million, up 15% year-over-year at the midpoint. They anticipate GAAP operating income (loss) to be in the range of $(1)-$5 million, non-GAAP operating income in the range of $17-$21 million, and adjusted EBITDA in the range of $30.5-$34.5 million.

Tailwinds

  • Revenue is expected to increase by 15% year-over-year at the midpoint.
  • 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.
  • Annual GAAP operating income (loss) margin in the range of (0.5%)-1.1%.
  • Annual adjusted EBITDA margin in the range of 14.75%-15.75%.

Headwinds

  • GAAP operating income (loss) is expected in the range of $(1)-$5 million.
  • The company committed to a restructuring plan, effective August 1, 2024, intended to reduce the Company’s operating expenses.
  • The Restructuring Plan will reduce the size of the Company’s workforce by approximately 15% of its full-time employees as compared to its headcount as of December 31, 2023.
  • The Company expects to incur a total estimated pre-tax restructuring charge of approximately $8 million to $10 million in connection with the Restructuring Plan.
  • The charges that the Company expects to incur and the savings the Company expects to realize are subject to several assumptions.

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 2024

Historical avgQ2 2024

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro