KeyBanc has increased its price target for NerdWallet (NRDS, Financial) from $14 to $15, maintaining an Overweight rating on the stock. The decision follows NerdWallet's impressive first-quarter performance, alongside a boost in the company's full-year profitability outlook.
The firm highlights stabilization in web traffic and a diversified business model as key contributors to healthy revenue growth. Additionally, KeyBanc sees the company's strengthening market presence becoming more evident as a result of these factors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Nerdwallet Inc (NRDS, Financial) is $15.33 with a high estimate of $19.00 and a low estimate of $11.00. The average target implies an upside of 81.25% from the current price of $8.46. More detailed estimate data can be found on the Nerdwallet Inc (NRDS) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Nerdwallet Inc's (NRDS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Nerdwallet Inc (NRDS, Financial) in one year is $15.64, suggesting a upside of 84.87% from the current price of $8.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Nerdwallet Inc (NRDS) Summary page.
NRDS Key Business Developments
Release Date: May 06, 2025
- Revenue: $209 million, up 29% year over year.
- Non-GAAP Operating Income: $9 million.
- Credit Cards Revenue: $38 million, declining 24% year over year.
- Loans Revenue: $24 million, growing 12% year over year.
- SMB Products Revenue: $29 million, declining 5% year over year.
- Insurance Revenue: $74 million, growing 246% year over year.
- Emerging Verticals Revenue: $44 million, growing 15% year over year.
- GAAP Operating Income: $0.7 million.
- Adjusted Free Cash Flow: $58 million over the last four quarters.
- Cash on Hand: $92 million at the end of the quarter.
- Q2 Revenue Guidance: $192 million to $200 million.
- Q2 Non-GAAP Operating Income Guidance: $14 million to $18 million.
- Full Year 2025 Non-GAAP Operating Income Guidance: $55 million to $66 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nerdwallet Inc (NRDS, Financial) reported a 29% year-over-year increase in revenue, reaching $209 million for Q1 2025.
- The company achieved $9 million in non-GAAP operating income, exceeding profitability guidance.
- Insurance revenue grew significantly by 246% year-over-year, reflecting strong market performance.
- The acquisition of Next Door Lending contributed to a 23% year-over-year increase in mortgage revenue.
- Nerdwallet Inc (NRDS) is seeing stability in AI-enhanced search modules, suggesting potential for growth in early 2026.
Negative Points
- Credit card revenue declined by 24% year-over-year, impacted by downward pressure in organic search.
- SMB products saw a 5% year-over-year revenue decline due to tight underwriting and trade policy uncertainty.
- The company expects MUUs to continue declining year-over-year in the near term.
- Non-GAAP operating income declined compared to Q1 2024 due to increased brand marketing investments.
- There is uncertainty regarding the impact of evolving trade policies and potential economic downturns on the business.
