NerdWallet (NRDS) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was $599.4M, up 11% YoY, while GAAP net loss was $11.8M; management cited credit-cycle headwinds and efficiency improvements aimed at margin leverage as growth returns.

• Q4 revenue was $133.7M, down 6% YoY; results missed the revenue and Adjusted EBITDA outlook for the quarter.

Financial highlights

• FY2023 GAAP operating income was $3.6M versus a $19.0M operating loss in 2022; GAAP net loss was $11.8M, or $0.15 per diluted share, versus $10.2M, or $0.14 per diluted share.

• FY2023 non-GAAP operating income was $26.4M versus a $1.0M loss; Adjusted EBITDA was $97.6M versus $67.1M in 2022.

• Q4 GAAP operating income was $4.6M versus $7.9M YoY; GAAP net loss was $2.3M, or $0.03 per diluted share, versus net income of $8.9M, or $0.12 per diluted share.

• Q4 non-GAAP operating income was $12.6M versus $13.7M YoY; Adjusted EBITDA was $29.3M versus $31.0M.

Outlook and guidance

• Q1 2024 revenue guidance: $155M–$160M, with a 7% YoY decline at the midpoint; GAAP operating income $0M–$3M, non-GAAP operating income $5M–$8M, and Adjusted EBITDA $21M–$24M.

• FY2024 margin guidance: GAAP operating income 3%–4.5%, non-GAAP operating income 6.5%–8%, and Adjusted EBITDA 18%–19.5%.

• Forecasted GAAP net income-to-Adjusted EBITDA reconciliation was not quantified because certain reconciling items, including income taxes, could not be estimated with confidence.