NerdWallet (NRDS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $151 million, up 5% year-over-year, driven by growth in emerging verticals and SMB products, offset by declines in credit cards and loans.

• Net loss for Q2 2024 was $9.4 million, an improvement from $10.7 million in Q2 2023, with non-GAAP operating loss at $2.7 million and adjusted EBITDA at $14.3 million.

• Monthly unique users averaged 23 million in Q2, up 7% year-over-year, though down sequentially from Q1.

• Announced a restructuring plan to reduce workforce by 15%, targeting $30 million in annualized cost savings and $8–$10 million in pre-tax charges, mostly in Q3 2024.

• Strategic focus remains on user registration, vertical integration, and expanding direct consumer engagement.

Financial highlights

• Q2 2024 revenue: $151 million, up 5% year-over-year; adjusted EBITDA: $14.3 million; non-GAAP operating loss: $2.7 million.

• GAAP operating loss: $9.6 million; net loss: $9.4 million, including $1.1 million income tax provision.

• Cash and cash equivalents as of June 30, 2024: $113.8 million, up from $100.4 million at year-end 2023.

• Net cash provided by operating activities for the first half of 2024: $32.9 million.

• Q2 2024 net loss margin: (6%); adjusted EBITDA margin: 10%; non-GAAP operating loss margin: (2%).

Outlook and guidance

• Q3 2024 revenue expected between $172 million–$180 million, midpoint implies 15% year-over-year growth.

• Q3 non-GAAP operating income guidance: $17 million–$21 million; adjusted EBITDA guidance: $30.5–$34.5 million.

• Full-year 2024 non-GAAP OI margin expected at 5.75%–7% of revenue; adjusted EBITDA margin at 14.75%–15.75%.

• $8 million–$10 million in restructuring charges expected in Q3.

• Management believes current liquidity and access to credit facility are sufficient for ongoing requirements for at least the next twelve months.