On July 31, 2024, Nerdwallet Inc (NRDS, Financial) released its 8-K filing for the second quarter of 2024. Nerdwallet Inc, a company that provides consumer-driven advice about personal finance through its platform, reported a revenue of $150.6 million, surpassing the analyst estimate of $150.11 million. However, the company posted a GAAP net loss of $9.4 million or $0.12 loss per diluted share, missing the estimated earnings per share of -$0.05.
Performance and Challenges
Nerdwallet Inc (NRDS, Financial) reported a 5% year-over-year increase in revenue, reaching $150.6 million. Despite this growth, the company faced significant challenges, including a GAAP loss from operations of $9.6 million and a non-GAAP operating loss of $2.7 million. The company attributed these challenges to unexpected headwinds in organic search traffic and a deceleration in the banking sector.
“This quarter we met our topline expectations, delivering revenue of $150.6 million, up five percent year-over-year, even as we hit an air pocket as banking decelerated, but we fell short of our guidance for non-GAAP operating income due to unexpected headwinds in organic search traffic,” said Tim Chen, Co-Founder and Chief Executive Officer of NerdWallet.
Financial Achievements
Despite the operational challenges, Nerdwallet Inc (NRDS, Financial) achieved an adjusted EBITDA of $14.3 million. The company also reported a 7% year-over-year increase in average Monthly Unique Users (MUUs), reaching 23 million. This growth in user engagement is crucial for the company's long-term strategy of expanding its platform and increasing its market share in the interactive media industry.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Revenue | $150.6 million | $143.3 million | 5% |
| GAAP Net Loss | $(9.4) million | $(10.7) million | (12%) |
| Adjusted EBITDA | $14.3 million | $20.7 million | (31%) |
| Average MUUs | 23 million | 22 million | 7% |
Income Statement Highlights
For the quarter ended June 30, 2024, Nerdwallet Inc (NRDS, Financial) reported a total revenue of $150.6 million, a 5% increase from $143.3 million in the same period last year. The company's cost of revenue increased by 14% to $14.9 million, while research and development expenses rose by 13% to $22.7 million. Sales and marketing expenses also saw a 7% increase, reaching $106.1 million.
Balance Sheet and Cash Flow
As of June 30, 2024, Nerdwallet Inc (NRDS, Financial) reported cash and cash equivalents of $113.8 million, a 70% increase from $67.1 million in the previous year. The company's total assets stood at $446.2 million, with total liabilities of $66.8 million. Net cash provided by operating activities was $32.9 million for the six months ended June 30, 2024, compared to $6.4 million in the same period last year.
Restructuring Plan
On July 30, 2024, Nerdwallet Inc (NRDS, Financial) announced a restructuring plan aimed at reducing operating expenses and better positioning the company for long-term strategic initiatives. The plan includes a workforce reduction of approximately 15% of its full-time employees, with an expected annualized cost savings of approximately $30 million.
For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Nerdwallet Inc for further details.
