NerdWallet (NRDS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $191.3 million, up 25% year-over-year, driven by strong insurance and SMB verticals, offsetting declines in credit cards and loans, and surpassing guidance despite organic search and lending headwinds.

• Insurance revenue grew 916% year-over-year, now 6x above 2021 pre-hard market levels, while SMB and emerging verticals showed resilience.

• Net income for Q3 2024 was $0.1 million, compared to a net loss of $0.5 million in Q3 2023.

• Strategic investments included the acquisition of Next Door Lending to expand mortgage offerings and vertical integration.

• Registered users surpassed 23 million, driven by improved shopping flows and new product launches like NerdWallet+ and Insurance Assistant.

Financial highlights

• Q3 2024 revenue: $191.3 million, up 25% year-over-year; nine months revenue: $503.8 million, up 8% year-over-year.

• Non-GAAP operating income: $22.9 million, up 138% year-over-year; margin improved to 12%.

• Adjusted EBITDA: $37.3 million, up 39% year-over-year; GAAP operating income: $6.6 million; net income: $0.1 million.

• Cash and cash equivalents at September 30, 2024: $71.7 million, down from $100.4 million at year-end 2023.

• Q3 average monthly unique users (MUUs): 22 million, down 7% year-over-year due to organic search headwinds.

Outlook and guidance

• Q4 2024 revenue expected between $164 million–$172 million, a 26% year-over-year increase at midpoint, but down 12% sequentially due to seasonality.

• Q4 non-GAAP operating income guidance: $8 million–$11 million; Q4 GAAP operating income (loss) expected between $(1)–$3 million; adjusted EBITDA $21.5–$24.5 million.

• Full-year 2024 non-GAAP operating income margin expected at 5.8%–6.2%; adjusted EBITDA margin at 14.75%–15%.

• Insurance expected to remain the primary growth driver in Q4; lending and credit cards to face continued tight conditions.

• Anticipates margin accretion in 2025 as revenue scales and cost discipline is maintained.