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Jun 30, 2024
NerdWallet Q2 2024 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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%.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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