The following is a summary of the NerdWallet Inc. (NRDS) Q1 2024 Earnings Call Transcript:
Financial Performance:
NerdWallet reported a Q1 revenue of $162 million, marking a 5% YoY decline.
Credit card and loan revenues declined YoY by 19% and 3% respectively, contributing $50 million and $21 million to the total revenue.
A 21% YoY growth was reported for the SMB products segment contributing $30 million to revenue.
Emerging verticals observed a 2% YoY decline and contributed $60 million.
Gross non-GAAP operating income for Q1 was roughly $11 million, marking a 7% margin, a four-point increase YoY.
GAAP operating income was reported at $3.7 million, and net income at $1.1 million.
Business Progress:
NerdWallet's brand campaign drove record highs in brand awareness while spending decreased 30% YoY.
Monthly Unique Users (MUUs) grew by 25% YoY with 29 million average monthly unique users in Q1.
International business grew by 31% YoY, outpacing US growth.
A significant increase in registered users was reported for Q1.
Launched and monetized new home services categories within a few weeks while also investing in nascent categories like Medicare, Social Security, and estate planning.
Plans for returning to double-digit growth by the second half of the year, led by SMB products and insurance, but it depends on potential interest rate fluctuations.
The company is investing in improving its market share in card originations and plans to deliver second-quarter revenue in the range of $147 million to $152 million, marking a 4% increase YoY.
Investments will continue in non-monetizing MUU content and in new markets to drive future growth.
More details: NerdWallet IR
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