On October 26, 2023, Nerdwallet Inc (NRDS, Financial) released its Q3 2023 earnings report, highlighting a 7% increase in revenue year-over-year, reaching $152.8 million. Despite the increase in revenue, the company reported a GAAP net loss of $0.5 million and a $0.01 loss per diluted share. The company's Adjusted EBITDA stood at $26.7 million.
Performance and Challenges
Nerdwallet Inc (NRDS, Financial) reported growth in revenue and user base, with monthly unique users up 22% year-over-year. The company's CEO, Tim Chen, attributed this growth to the company's trusted brand and growing audience. However, the company faced challenges in some of its verticals, such as Credit Cards, which saw a 6% decrease in revenue year-over-year due to reduced marketing spending by financial services partners.
Financial Highlights
The company's Loans revenue was up 16% year-over-year, primarily due to growth in personal loans. Other verticals revenue, which includes revenue from other product sources such as SMB products, banking, insurance, investing, and NerdWallet UK, was up 16% year-over-year. The company's cash and cash equivalents stood at $86.6 million.
Analysis and Future Outlook
Nerdwallet Inc (NRDS, Financial) has shown resilience amidst the challenging macroeconomic environment. The company's growth in revenue and user base indicates its strong market position and the effectiveness of its strategies. Looking ahead, the company expects to drive meaningful operating leverage when the macro environment recovers.
Share Repurchase Plan
The company's Board of Directors has approved a new share repurchase authorization of $30 million to purchase the company's Class A common stock. The new repurchase plan is intended to make opportunistic repurchases of NerdWallet’s Class A common stock to reduce its outstanding share count.
About Nerdwallet Inc (NRDS, Financial)
NerdWallet (Nasdaq: NRDS) is a platform that provides financial guidance to consumers and small and mid-sized businesses (SMBs). The company's mission is to provide clarity for all of life’s financial decisions. NerdWallet is available for consumers in the U.S., United Kingdom, Canada, and Australia.
Explore the complete 8-K earnings release (here) from Nerdwallet Inc for further details.
