NASDAQ$NRDS

NerdWallet Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

NerdWallet reported strong fourth quarter 2024 results, exceeding expectations with significant revenue growth driven by insurance and banking, while also announcing a new Chief Financial Officer.

NerdWallet closed 2024 strong, with fourth quarter revenue reaching $183.8 million, a 37% increase year-over-year. This growth was primarily fueled by strong consumer and partner demand in the Insurance and Banking sectors. The company also announced the appointment of John H. Lee as Chief Financial Officer, effective March 17, 2025.

  • Fourth quarter 2024 revenue increased by 37% year-over-year to $183.8 million.
  • GAAP net income for Q4'24 was $38.6 million, or $0.51 per diluted share.
  • Adjusted EBITDA for Q4'24 was $30.8 million, up 5% year-over-year.
  • John H. Lee was appointed as the new Chief Financial Officer, effective March 17, 2025.

Headline financials

Total Revenue

$184M

Previous: $134M+37.5%
EPS (adj)

$0.51

Previous: -$0.03+1800.0%
Capital Expenditures

-$5M

Previous: -$9.4M+46.8%
Free Cash Flow

$50.5M

No prior period
Net Income

$38.6M

Previous: -$2.3M+1778.3%
Operating Income

$8.7M

Previous: $4.6M+89.1%
Gross Profit

$167M

Previous: $120M+39.4%
R&D Expense

$16.1M

Previous: $20.3M-20.7%

Revenue & EPS history

NerdWallet · Revenue · Quarterly

$184M

Q4 2024+37.5%vs Q4 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

For the first quarter of 2025, NerdWallet expects revenue between $187 million and $193 million, representing a 17% year-over-year increase at the midpoint. The company also provided full-year 2025 and 2026 guidance, anticipating continued growth in operating income and adjusted EBITDA.

Tailwinds

  • Q1 2025 revenue expected to be $187-$193 million, up 17% year-over-year at the midpoint.
  • FY 2025 GAAP operating income expected to be $21-$31 million.
  • FY 2025 non-GAAP operating income expected to be $50-$60 million.
  • FY 2025 adjusted EBITDA expected to be $106-$116 million.
  • FY 2026 targets include at least $60 million GAAP operating income, $80 million non-GAAP operating income, and $140 million adjusted EBITDA.

Headwinds

  • Q1 2025 GAAP operating loss expected to be $(12)-$(8) million.
  • Q1 2025 non-GAAP operating income (loss) expected to be $(3)-$0 million.
  • Q1 2025 adjusted EBITDA expected to be $10-$13 million.
  • Traffic headwinds in non-monetizing 'learn' topics are anticipated to worsen slightly in Q1 before eventual stabilization and return to growth by early 2026.
  • The company is unable to provide a quantitative reconciliation of forecasted GAAP net income (loss) to adjusted EBITDA due to unpredictable fluctuations in income taxes and other factors outside its control.

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 Q4 2024

Historical avgQ4 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

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