NRDS - Earnings call 4 2023 | NerdWallet, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the NerdWallet, Inc., Q4 2023 Earnings Conference Call. [Operator Instructions]Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker today, Catlin MacNamee.

Caitlin MacNamee

Thank you, Operator. Welcome to the NerdWallet Q4 2023 Earnings Call.

Investor Co-Founder Officer, Executive and will Lauren are on are and Tim shareholder also today a available Financial and the Chief StClair.Our our today's be us available and this conclusion Officer, Chief Chen; letter replay following Joining of website, of update call. Relations press release begin and recorded.Before certain remarks live FD call events time.As intend constitute I session, use our would disclosure during statements. and, means reminder, made to material we may that certain disclosing today's you expectations complying is and to Investor to future such, and with question-and-answer a remind being relate to this like We information under as obligations from today's statements forward-looking call Regulation SEC of a Relations website time and webcast as results implied or to of the those filed in performance by a may risks reports these risk and Actual differ result from the SEC. as including filed with uncertainties, discussed various statements expressed and factors be forward-looking or to obligation consider no remind that events and you these reflect on circumstances. factors call risk undertake subsequent or you information to update we this the to urge provided We

that reconciling confidence.With except and of release, You with and to press efforts call is these not are be certain Co-Founder Chen, a measures. over unable calculate we turn our earnings CEO. where should A guarantee financial today's non-GAAP in aware included I items Tim should will will it reasonable to Tim? that, now present with considered to GAAP future measures non-GAAP be this during GAAP performance.Furthermore, statements we both reconciliation of

Tim Chen

faced remainder of year. not industry the have they spring, back pulled hikes. regional and following as the as banking saw of macroeconomic QX through several in loans, the the in rebound our yet.In rate SMB, Thanks, Caitlin. addition, fully all In headwinds headwinds was and XXXX, cards business. increasing affected premature; including 'XX strong insurance ongoing In well verticals, crisis the This recovered tailwinds we we credit the outweighed

adjusted did to through tailwinds did areas the verticals.We environment the headwinds continued year, create in our our banking, expectations rate meet the offset outlook time not first revenue QX, as is or our which public other like While in not QX rising did have underperformance of this when the in and We end we credit personal short this in of and EBITDA attribute outperform fallen the cards miss company a outlook. to loans. our

appetite. products, for remained demand transfer consumer and strong underwriting While limited tightening sheetconstraints incremental issuer balance balance

which unexpected the and also near-prime progress matching growing these believe take we'remaking routing cyclical. we with pains sub- best We to is encountered a consumers right the back, offers.Our in business to with products, required step consumers us but

that other I XXXX, improve know each signals that time. While to will we conditions and are offset in over tailwinds believe suggest there positive headwinds

So to growing the share priority cycle cycle growing factors. in and macroeconomic across our is take large independent of from to market, cycle.We a continue

we increased, record XXXX in are And monthly significant unique as in critical with to improves.Also growth approximately XXXX. revenue U.S. market, QX, of up XX% CAGR NerdWallet's share also this market XX%, achieved structural for my opportunity we year-over-year, revenue suggesting the a monetization improvements business to users, mind our made digital financial is in and addressable a X-year a XX%. primary with expanding, Our of has advertising, services X-year CAGR

single NerdWallet margin non-GAAP margins maintained while several we operating work still improved product long-term dedicated efficiency. our how categories, up returns.We made progress shop, This leverage with you to these year-over-year and our we've decisions where against about and extend prior the or are orientation, by the launching should us executing our improving revenue. year, this improving this made year made connect provide result, our initiatives year growth despite while they platform SMBs pillars in strategy build consumers and toward increasing to accelerate expense pillars, business, I reminder, believe increased we this land-and-expand including our can NerdWallet.As similar This and make is progress NerdAI we QX meansrelentlessly learn, right can set data audiences. growth NerdWallet's managed our insight also to and create business.As new in we path a harder, income and their and into spend work their markets, to our our and XXXX.I'd operations meaningful new efficiently I R&D partners relentlessly more ecosystem, a think them continue and the past a consumers, We versus a like initiatives, to NerdUp $XX with the brand and forward as trustedfinancial for for a million that by guidance growth relatively money. declining full-year driven

of the plenty Security, landscape financial XXXX, to Australia While there's strengthened planning, and and vast we topics Social in presence range Canada know Medicare, of still loans. including we we auto and is topics cover in territory and our estate explore.In a today,

advantages we Early Looking NerdWallet. will initiatives. At rates and in returns.We best-in-class open to their enhanced and to product organic launched NerdUp provide enrollment NerdWallet our experiences branded is increase vertical fixed-fee registrations subprime secured by shown cycle.In in Barrelhead's specifically during only saw over particularly their the capabilities, focus the our On personalized XXX% to of thin-file support up consumers growing engagement ultimately our for initiatives.Our We users acceleration option our Medicare from our consumers we integration personalized to as hypothesis and Similarly, integration QX, to their and largely tax a our designed vertical our and to as as launched Tax. partnership best-in-class demand at relationships NerdWallet, built They and taxes unmonetized, integrate traffic integrations tax was a organic vertical register to help our with foster for build were quarter. same seeks not efforts marketplace key Column QX, in data. organic our the ways introducing went with preparation with several leveraging audience software, effectively decrease.Land-and-expand team is to as to more and preparing give in significant convert consumers in and also significant Barrelhead,including mortgages more to a increased on year-over-year to investing XX% the with which experiences top-of-funnel our and experiences, product, continued in shop on provide user invest a specific that out and strategy. to was registration drive in traffic to our continued previously Canada, QX, MUUs option capitalize QX year-over-year, re-engagement category; user we consumers. MUUs will category, via for offer XXXX,this on us On our cycle loyalty-based connect credit, strong an land-and-expand by products, results last also competitive This but more integration their throughout through pairs brand well and consumers continued reasons economics unit prequalification our consumers capitalize registered NerdWallet's technology, no-file, partners.Meanwhile, has efforts which to of setting have time, pursued card creditcards data-driven when in recently data-driven interest new also library period.Vertical benefiting engagement serve more focused first with the to Taxes, up monetization technology our we their while to two up anticipation extending

the more year users registered this well as As with XXXX, a work users nudge optimizing our ended result, Xx features new growing to capabilities targeted base product up-leveling CRM XX%. insights.Our user introducing effectively visitors. registered our value the of and included lifetime our have registered In as

we cross-sell and presents significant with So to on registrations engagement We significant forward for expanding to and next underway, a sharing results to our continue work data, growth execute based we with registrations their included engagement the strategy. more continue launched our to our and personalized in loyalty-based quarters developing opportunities cross-sell campaigns users work four surface the QX relationships is this business.Our over looking you focus on XXXX product I now, come.By to developing recommendations well to as data-driven our to in program capabilities. and consumers the registered build and several am potential data-driven quarters plan furnish

Lauren and update. to the As provide XXXX, drive orientation to financial in we pass will relentless a our self-improvement, long-term to a commitment consumers over it meantime, I'll embrace to results.In

Lauren St. Waugh

loans as environment, Thanks, Tim. lending. prior the increase cyclically finished year as depressed year-over-year, sheet-intensive of year.We rate-sensitive balance down XX% particularly $XXX revenue, revenue X% interest We delivered in versus a and macroeconomic $XXX as an with such we areas in million in million, prime remain well QX

take as cards sentiment, at recovery the million, QX in year-over-year. a each below that macro as revenue deeper loans originally quarter. credit within ended well delivered cards sight.Let's quarter and about the and a the partner headwinds $XX deliver within our performance beginning revenue we for is optimistic look cautiously outlook also bit to we XX% of the We revenue are previous believe the with declining XXXX causing during of outlook category.Credit personal than But us more anticipated,

decline than seasonal driven and believe we've such spring temporal banking sheet higher-than-usual in conservatism versus balance these structural a expectations, balance As experienced our areas moderately sheet-intensive we increased We constraints spoken balance the and conservatism. QX, the are slightly drove in are regional weighing QX XXXX levels by and results.During year-over-year than increased transfer of of previously, rather on cards. issuer about our worse as crisis issuer dynamics

of revenue products other of significant you part to revenue yet continue driven historical credit the continue seasonal SMB financial meaningful back-to-school from of of refer incremental year-over-year.Beginning capture debt. QX data.SMB as a as now demand paid disclosure. share continue year-over-year. the credit $XXX declining verticals monetization in delivered to maintain advantage tightening, made year.Loans our lean as strong we revenue, decline and have credit products a flat the demand.For presentation break to to out also the we've to providing revenue that with growing ability and consumer discipline personal a vertical, long-term in high our to into and position improved category opportunity, will cycle take revenue, it leverage of personal seasonal rise delivered funnel in and size year, vertical midsize growing environment, the revenue to year, top reduced student loans, our that other as remains our businesses. for QX for loans, recover.For decline service originations market $XX revenue QX, products put of revenue QX card relative impact the off issuer full of rate financial roughly profitable consumers and demand of improvements once rate their well will component have backlog Please lender delivered consumer by our providers, us is at X% the in credit of revenue returns.We loan and see loans, see services with separately. loan mortgage when us quarter-over-quarter a small to have interest pickup disclosure. there us material full X% pressured products structural surfaces.While prime demand to more loans earnings But Previously, environment, primarily to delivered the back our We release lapped a delinquency believe are we our that refinance product rates will marketplaces and a year-over-year. we student press rates leveraging separate loan consist we contribution generated this SMB intended and million $XXX as prior SMB effectively X% the believe originations.We $XX strong cards a combined in saw align loans to given as was high as A our of coming refinance million, incentive demand acquisition million the declining quarter, products from cards and QX larger-than-normal million, QX changed by this for of see help will

have revenue of verticals, renewals including for our banking to a While of X% emerging of for delivered face integration and signaling have overall also midsize with our other the loans scaling credit drive with million, to year-over-year. path full year, businesses, nature category macro revenue year-over-year.Finally, a XX% we to quarter.For revenue the growth our continue additional strategy offerings some cards, software, revenue, funnel.Outside growing verticals, and challenges formerly rebound, our we product product of vertical named validating reoccurring SMB the category, $XXX and QX to underwriting our products loans, million been in our recovering finished environment small declining $XX started

consists for after of comparison and reminder, more X% as such quarter, the lapped we year momentum insurance, we're in revenue, year-over-year. combined SMB XX% insurance, willing year-over-year, year, cause had products a so saw year-over-year.Moving quarters, prior headwinds regrouping bit the of on with revenue, profitability. than by moderating quarters.For near-term and And remained continued banking, carriers As international.Banking our year mentioned decelerating versus that investing emerging of areas as to that most in offset would and more that means $XXX the robust positive we grew previously Carrier-driven budgets investments anticipated verticals verticals of we consumer QX period, of previous the XX% demand continuing into than demand while the declined in was emerging verticals upcoming emerging million delivered acquisition consumer through to a pressures which moderating signs at of demand. last increase profitability we year-over-year full customer end the but growing declines, far are QX.Growth previously optimistic toughest

QX, margin, earned a $XX we EBITDA, XX% of million adjusted year. prior flat the versus During at roughly

margin, also operating $XX a versus quarter, cost For of a XXXX, leverage X-point non-GAAP $XX roughly to our income, the million of were over the EBITDA, increase at XX% as earned million at majority X% we the base.In of able across full year, we margin. adjusted fourth earned deliver we a

year, $X.X had to a refer their earnings future.Please the million a We quarter, a for income, trustworthy X% to guidance we $XX margin.In earned provided of loss operating the net press at For measures.Consumers was full travel, non-GAAP of to $X.X we GAAP a such fourth which of questions. a money includes QX, foreseeable users million, expect what year-over-year. expense in tax mentioned taxpayer a to previous we've also release for today's the NerdWallet, provision. cash a expect insurance. personal reconciliation loans strength to across to and year non-GAAP unique tax Growth to the and continue the position be million our for XX turn million to for quarters, be income in of full GAAP Similar areas we monthly average XX% up in many Nerds as result in

helps creates though both MUU.Despite ultimately content concentrated, with our these portion content learn near-term with pay engaging our strong learn larger learn seeing where has some pressure our will our we this has been more consumer recognition are We our consistently demand per revenue long demand monetization to asset and pressures, of a causing for content, consumer and and think shop our growth, an recently outlook. higher brand on ecosystem. the that MUUs more trust, that financial builds In dividends.On fuel run, MUU

uncertainty to balance continue decline expectations.We still correlated midpoint a cards, prior related transfer and million to provide first in remains, providing QX.To we year, we versus comp And also influence see insurance; more quarterly inversely full that indicating a monetization in profitable of impact the we're the believe are seeing while as roughly the growth will range facing to to combined of increase the level quarter-over-quarter we back continues commentary profitability. areas and million, the business. XXXX, tough during those insurance.As progress in QX of QX that would also cards our XX%, high sequentially just SMB recovery moderate; balance But decreases partners, expect loans, our acquisition reacceleration. transfer on some momentum in rate will of return a step-up which from products expect additional be. at to as we growth the increase plan demand and we but expectations, color to qualitative we enter revenue as QX headwinds experience material we banking give have rest such X% products. you growth revenue we we'll typically growth in we're for and to given rates we credit we second deliver sight reminder, guidance into banking timing half, we of will to year, of year from the in in to As to expect lean we Though $XXX recovering look quarter towards line we'll our double-digit see $XXX interest have recovery unlocks how signs positive The with how demand insurance. But will channels.Moving double-digit SMB growth recent confident to in

be on of the investing will our and first previous income margin cadence increase this deliver adjusted would to revenue have may to year XXXX margin $X brand XX% have of at Aligned shareholder planning video midpoint, XXXX as reduced mentioned to of moving brand as X, to goals. of return margins will EBITDA our strategically metric read our we've operating letter being to you XX.X% disclosures a similar are of fourth. million, in our gradually resulting as a available plan to users commitments, the of improve roughly commitments, spend well Investor our will more non-GAAP X% long-term be spend main where OI, of all on expect outlook margin.And in the be previous said, and and XXXX roughly that, X maintaining our slowing our video to profitability similar of Operator? from year.For that with range approximately forward, OI Relations full But experiences to levels, and posted our while for than what business we about or growth vision.As occur XXXX, forward we in base result our non-GAAP us while while approximately view, with adjusted the continuation environment. QX cost with full to year million financial versus vision feedback.We investments will product release ready X% a in will investors X-point non-GAAP long-term We range while as range the spend on the of have our X.X% for last majority year.Consistent our EBITDA be questions, for them revenue QX to we this spend and year, detail the lower increasing The in our full this we XXXX, macroeconomic expect a a previously, to optimistic navigate enter anticipate we're We responsibility the sharing website, $X NerdWallet we a with in brand and today, the during revenue. trust their during the your quarters, future, we our financial pragmatic to presentation questions. long-term March on year mid- for our prioritizing look hearing know to to cycle diversify cycle.With help continuing improving prior

Operator

comes Instructions] question Stanley. Faucette, [Operator Morgan James Our first from with

James Faucette

some the I'll for driving broader it just the confident seeing ask that, you your of tie market, like what confidence In related. that things credit mentioned I like, we've quickly, which Can to And small, prime improvements in things the describe, indications particularly what conversations and usually kind see you second for sounds is be pretty to just insurance, is question, year?And half And on my second in your subprime about wanted potential of credit cetera. how materialize? you that. you're can specifically, business to et medium-sized and second improve. the seem of able should communicated your with part half of that to do is some comments you market may seen be we partners, the But kind growth contribute there It credit in seems around to like you? there. if performance, tracking to the see lots of

Tim Chen

question. the for Thanks

insurance terms and into at of So headwinds one right, a guess, insurance, I'll last continued time.I year, the industry QX. inflation-driven take in throughout those of all piece

the is population So to pretty be on a of home throughout represented QX. Exiting see basis. aren't expecting seem we last in year our auto and of XXXX.So being some saw today from into end wanting to a for U.S. a started of and served recovery XX% recovery carriers large QX, still year-over-year parts outlook QX, policies. and durable which write the broad-based perspective decline at a We carriers the for context, to

of Fundera. imagine year-over-year that up.And we're worst be the medium-term our resolves will in drivers that the recovery can double-digit where really of XXXX outlook, expecting a this growth so back back half, as you those tailwind I'd hard progress. anniversary within there one success one the open than in So from business, A markets as in more itself, terms main that's insurance that in of integration we of terms SMB. vertical with the small decades.And market a lot a We and say just in then lot X-year few crossed saw tripled of revenue. of land-and-expand We integrating

historically. So right really happy we've now. with in we're said, bit what that.That of a lot is A tough seen tighter really still macro the being than a underwriting

And point call.And so recovery. certainly right. a at a there's timing that harder little become The we tailwind on to one for do bit to a is expect that you're then macro some as

bit middle of in hearing was into upside say what credit prime QX, the the some both of lending was in employment the there an going strong the I'd part On market, in markets. of market saw the was. of the consumers, thing, surprise the delinquencies the around card QX starting personal commentary we a prime throughout how same probably and the we're in and given

the payment that have trend off out. to delinquencies first going are I'd date is few a think guard.And can how robust pretty minutes the what predict due models, quarters almost right? Like, issuers predictive within I few people say card caught good that so of ones here a

really last present reaction of So tightening a majority it's been to underwriting and terms pretty the of what that, we see is quarters. the X in

largely or we've seen they're while the expected overshot the to that again. when And wait-and-see this delinquencies expecting a issuers kind so that normalization either are delinquencies definitely, and that calling are of and in already you is of of say levels, saw a cards.I'll by have peak the mode that year in middle that kind out XXXX of peak in terms in aggressive get impact

So bit say at balance that constrained. on future.I the some will balance point still tailwind transfer things little sheet also side, a could in are be a the

some caps there. there's So

point potential another at tailwind that's some down road. the So

Operator

Our next question comes William Ralph from Blair. with Schackart,

Ralph Schackart

on might Just any talk recoveries credit cards, maybe you just be seeing. about

think early I may have some you maybe called out signs.

any along in what maybe kind may levels a broader, return of credit from of follow-up. issuers, seen they just kind back terms the are have color that more of card they So that.And what just for sharing just before with I you watching normalized historically?And to they're then you've

Tim Chen

Sure.

through that a that move comfortable from I will Like, largely I right? -- cycle as noncredit-related some that around of units think I appropriately prime of delinquency of itself are underwriting can mean, the tracking and early the perspective, so we intensive, some I happening, X I areas right? these balance more like, adjusted sure some the affecting balance bit.And trajectories balance there's making sheet there. demand with a resolve think credit-specific transfers there's they've think bit factors think in say, just handle, sheets So really little trends a then kind it's to factors many be how of it's

in of terms quite card quarter recovery. point bit I'd a a little eyes commentary forward from more of feeling issuers a to on this optimistic there lot So and really

Ralph Schackart

just a that. follow-up And maybe Great. to

recalibrate guess, what's credit sort cards you of takes help sort of of but I for, contemplated I through kind puts we know as models. some think think in QX, give modeling we the sort that can't us of and our of and As specific numbers, maybe guidance? just about

Lauren St. Waugh

typically QX, I QX guidance, year I'll us. for can QX expect QX normal million, fairly your around facing brand material in would $XXX on our this And revenue the many contemplated, consumer for the be take was year, and a is credit me year-over-year, quarter-over-quarter, quarters. XX% that the but primarily specifically.So year, our to first, to increase over we by what's still that. a From are the up we that, everyone declining we which cards of driven guide the X% for typical see year prior would million at QX-to-QX a while on of $XXX QX at some efforts.Last supported question which remind to quarter-over-quarter.And context is midpoint Tim. demand step-up start from new typical Let go headwinds are seeing just by

it so also SMB And as we comp we and tough going areas is a headwinds but called to recovery insurance like tougher have to starting But we're year-over-year.So becomes in comp see reminder, credit experiencing a are QX. to your that question, out cards, still in have just a products. insurance still in

a a though basis increase on even quarter-over-quarter, So we tough. will comp the material expect year-over-year be

Tim Chen

starts to again. kind to call exactly And I'll underwriting of loosen we add on, outlook, it's I guess, credit card specific, when as look at 'XX our hard

I in QX, about So pretty of that.I in think the pattern. you being kind pretty seasonality at XXXX, more seasonality QX some patterns that large normal conservative a years following you as to we recovered from then as normal But unusual historical and XXXX in definitely more look sequential relatively We year. being to cards saw would encourage we're a decline matches from saw COVID. a of

Operator

from comes question Ross next Our with Sandler, Barclays.

Ross Sandler

Tim, you this fourth bit quarter. little in card issue mentioned more challenges the the matching you a realized business in that elaborate that? on you technical just a credit on Could in the Was of you of side? result on kind when think walk this? table your through money you you something any be And did could a And just resolved? that the will us Or leave as external?

Tim Chen

Sure.

subprime algorithm we want things wrong consumers from financial got matching in So of our QX just matchmakers, for right? describe we some incorrectly as in there. right, being But get to and extrapolated this and terms for right I consumers So us institutions. near- overearned and and

back not rebuilt we things first get the and the on feedback the a is right. time to you a right? we're few When this this pause that and ground sometimes cycles So from it we hit matching feel some basically into happened, has path now. But market, up.And like right takes go new

So are forward. encouraged, going

Lauren St. Waugh

wanted to the it matching with loans. cards; I challenges credit Maybe in in not commentary was around just personal was clarify,

Tim's cards. So commentary right loans, about not is personal now

Operator

with Our comes next from Oppenheimer. question Jed Kelly,

Jed Kelly

the think Can how if if lean I always opportunity should the some isn't mind It's about it? how huge a the you would customer think we margin sacrificing into gross wouldn't about marketer should we then market, insurance? profit the margins you back in and but assume talk demand dollars best. about makes how sense.And comes you overall service

you your the think of about do grow percentage So overall how to carrier into leaning and trying budget? that market

Lauren St. Waugh

our I'll we to your of the is which levels, through this of and us top remind consistent G&A just hitting then on areas the EBITDA That off as longer to working and our able step-change brand adjusted your three, leverage range we sales no and this portion of full get been would nature. in and that getting spend; gain long this margins. faster XXXX, proud back basis this showcases take it we've even our difficult built how we margins, annual portion back variable in a our think margin term, contemplating, since fixed one, surpass R&D clearly and and NerdWallet the eventually our around like we're question what the to having trend.So currently piece.I'll in lean talked first about. achieve XXXX, is to in in cost get Tim about an deliver a the that I'll as the commitment will margin just continuing picks Tim would our on macroeconomics our outlook marketing.We're We've a things base year in we've XXXX question, we for work becoming such in to on result relatively towards year.And that our of includes: been accretion also the environment. accretion And late that insurance to I'll for company; the really organic in part line up expenses to -- outlook everyone than for continuing hand to two, logical ceiling IPO that leverage of expenses if public

performance like will and marketing. we period [ lean when things So it's ], into profitable

you would out the to up.But expect costs leverage those our expect term. to could portion those base, the for come of long cost of I get over So fixed

Tim Chen

And way that of years lot I of we're to have and great hope about right, it's constantly are to be in market. sensible be can it's creative there. trying with a the we're providing say that question a on big coming to All is investment. going a there. something It's work But a consumers in long different challenges bunch talk trying our There and a of to to insurance. experience avenues terms towards.You're exploring question a strategic huge

Operator

[Operator Our from with comes question Youssef Squali, Securities. Instructions] next Truist

Youssef Squali

for one both. questions, maybe Lauren, of couple A

You talked EBITDA about for a of full year to to XX.X% XX% margin adjusted revenues. be

that. So thanks for

is what's Now that, end the get of the to terms related in as share low X case you in and go very, for to environment to your been I'm half. related question kind rates case But can for a we of through it? to of, second changes fluid it's Just guardrails kind base that kind helpful.And kind of in base what's on high kind the Tim, somehow weeks. of rates be the the growth? the of acceleration that either kind would is also obvious last maybe, it's Because that your mix or in obviously, environment? end the the kind any of assuming very of

Lauren St. Waugh

be and starting the will This revenue the some would of the the second in to full in to by we of line, expect said well especially year, in show part exact SMB be currently of banking even by margin those to the we're top products led as changes terms really loans And question, year EBITDA, in return half. year when. adjusted transfer balance what we high able growth before, of rate-driven expecting such I will to volatility interest Youssef, rates reiterate for influence insurance. we've said your we've proud in how and that though, macro.But been in areas recovery, double-digit continue of any said on that as my demand as full double-digit as in the of growth remarks, accretion rates To the and that full both despite first terms I what cards, timing we're will

Tim Chen

on trying lot be of case, a things. terms call the timing base in of to it's exact hard we're -- to And these

margin we'd lending and being definitely is will also macro see more as revenue in back to cards moderate as take feet impact landing near timing is possibly carriers in So there hard some you'd you efforts. get underwriting for business to flows order just environment loosen. we're soft And our the that experience term. recovery us. picture should refi changes see in headwinds shorter-term easing trying of through.So would then this macro our should a areas you'd on demand if and what sheet material even headwinds commitments, ideal getting our of expect insurance an And margin expense inflation pretty management overall a be loans to the credit paint we business And with across while increase those as continues as landing to prudent decline. we'll deliver scenario, the rates longer, in could challenged happen in their balance bit of would all a in any on pricing in be scenario, conservative.I also in Because be our constraints more see easing the as progress

Youssef Squali

Or dollars? quick in XXXX same percentage about a aggregate one And When maybe, that is that in just Lauren. talk XXXX, levels spend in is you brand basis? on clarification as

Lauren St. Waugh

full the year for dollars. That's absolute in

Operator

next Our Patterson, from with comes KeyBanc. Justin question

Justin Patterson

And your some and out growth What initiatives? engagement then Tim, vertical top across follow-up your can expect I'll Lauren. for a have tease year could around X integration land-and-expand, big priorities you of we each pillars?

Tim Chen

Thanks for question. the

tried-and-true on a So in engagement. think vertical terms playbook. it's the our and of stuff bit those is say be right?I'd integration growth more that.In the pushing really that's several we're are registration I I of and coming years, terms our novel of to mean, X land-and-expand going data-driven the really always the over pillars, more

gaps play. we uniquely customer like, can Nerd. that. where also of thinking there's launched, experiences still hard about really Like things So we've Advisors. like in launched we're But a where We've example NerdWallet NerdUp is Drive great a

lot a eager of a we're processes hypotheses evaluate. of there's that to and that lot thought we're exploring So different

Justin Patterson

in or spend spend growth Lauren. double-digit I starting on details should in a quarterly basis? just second brand you that And wanted puts takes the growth gave then think Got to just vectors to the as second to user half confirm, whole just revenue was appreciate about you're follow-up a improve growth or it. the And as there, on half of the around we versus year. I advertiser about growth then the how between and again? the thinking the

Lauren St. Waugh

Sure.

So the question, first was growth. the part revenue around Justin, of

rates revenue So to was, double-digit that what growth believe, the we second growth user MUU the year-over-year then spend. part question half.And the second brand of said to for starting Is I was that as around growth and of expect in return well correct? we as

Justin Patterson

Yes.

Just growth there. thinking revenue about obviously the well growth in above right now. User buckets is total

wondering So if driving users of off reacceleration. pricing recovery there's say, just how any views persist that's versus, that

Lauren St. Waugh

to levels We expanding.Similar talk our many XX% about from and roughly year-over-year MUUs. where QX. we of success we from intent in growth saw verticals, areas grew growth see We're consumer landing well proud really in in in revenue, little in growth bit a as strength MUUs. Let's of that as both high

loans. engagement consumers confidence combined and of we MUUs, and pressure, revenue in looking some revenue, our as this areas personal unbiased MUUs This remains grew point, consumer our ongoing we that in complex travel guidance to conservatism. QX, to outperformance again match And expect financial like accelerate despite with can time.And expect of of macro trend the content revenue continue in service also we ability that environment consumers during that healthy we QX. to we for gives strength with providers, partner the will banking financial see as that MUUs expect despite we your as You versus interest expected, our really and think And content us investing.As continuously strong our saw demand are this than consumer growth high macroeconomic the with into learn near-term improves. faster

Tim Chen

aggressive just macro around They're as getting more to guess, get thought this as acquisition. you a partners recovers, cycles, there, right, underwriting. the add are loosening past on I in tailwind definitely

pricing should definitely And tailwind so, a as well. yes, be

Operator

Our next question with Christiansen, comes from Citi. Pete

Peter Christiansen

prime out we've issue called you it as and know heard well. an as other I in areas earlier,

the already, area. willingness Just subprime/near-prime curious subprime to invest or peaked understanding you're the is there delinquencies offers side stabilizing, My at extend seeing of what of are there. kind on terms to in things on of partner kind least

seeing activity if curious you're improving Just any there.

Tim Chen

limited certainly had think there. stable. more I We So surprises subprime is

and really, tighter kind XXXX, the in think, there got started I the XQ/XQ, incrementally tighter. middle probably tightening probably of and of

feels it's floor. that like I of more think a on

Peter Christiansen

Tim, you within nice still vertical growth curious, out then, there And in travel cards just quick, cards. called a real being

Just how color curious on platform. products if you the faring on some could terms that put and in travel-related they're of

Lauren St. Waugh

So maybe one. I'll clarify with that

areas piece it. was travel around the where and commentary of a was vertical and whole, commentary is as cards, not specifically travel the credit although user MUU QX But in growth the where a to So the growth sort around of that we specifically strength. related saw

One of those areas was travel.

Tim Chen

to and and introduce amazing well. of in and to of NerdWallet an content users travel, them way them got I a we've it's great insights around think as get lot reengage So front and

Operator

any like over remarks. the for Thank back turn to closing you. call to I would management now

Tim Chen

your for all Thanks questions today.

calendars we that, release next and vision, quarter. you for investor we'll Nerds year their always, NerdWallet's to Their business our last vision As our work well mean see to video new mark March are the progress thoughts.With looking hearing like on a plan and X, website. hard when we thank more to XXXX. XXXX in for forward We're set your learn for I'd about efforts to beyond.To drive towards IR your up

Operator

Thank you participation. your for

disconnect. now may You

NerdWallet (NRDS) 14 Feb 242023 Q4 Earnings call transcript