NerdWallet (NRDS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 37% year over year to $184 million, with full-year revenue up 15% to $688 million.

• Insurance vertical revenue surged 821% year over year in Q4, becoming the largest segment.

• Banking products grew 5% year over year, offsetting declines in other areas.

• Personal loans revenue declined 51% year over year, but early Q1 trends indicate a return to growth.

• Appointment of John H. Lee as CFO, effective March 17, 2025.

Financial highlights

• Q4 non-GAAP operating income was $17 million; Adjusted EBITDA reached $31 million.

• GAAP operating income for Q4 was $8.7 million; net income was $38.6 million, including a $37.9 million income tax benefit.

• Q4 insurance revenue was $72 million, up 821% year over year; full-year insurance revenue was $192 million, up 326%.

• Free cash flow for 2024 was $50.5 million, up 19% year over year; year-end cash and cash equivalents were $66.3 million.

• Q4 net income margin was 21%; adjusted EBITDA margin was 17%.

Outlook and guidance

• Q1 2025 revenue expected between $187–$193 million, a 17% year-over-year increase at the midpoint.

• Q1 non-GAAP operating results expected to range from a $3 million loss to break even, reflecting increased brand spend.

• Full-year 2025 non-GAAP operating income expected at $50–$60 million; at least $80 million targeted for 2026.

• 2025 adjusted EBITDA expected at $106–$116 million; 2026 target is $140 million.

• Revenue growth in 2025 will depend on recovery in the lending environment; insurance expected to remain a key driver.