NRDS - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. Welcome to the NerdWallet, Inc. Q2 2024 Earnings 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, Caitlin MacNamee, Investor Relations. ahead. go Please

Caitlin MacNamee

Welcome operator. NerdWallet XXXX QX Thank to Call. Earnings you, the

Chief are Lauren Tim today us Executive St. Co-founder Officer, Joining Financial and Officer, Chief Chen; Clair. and

obligations Relations are press as will update a SEC Relations from certain intend available under of disclosing on Our to shareholder conclusion be a material letter means time the complying call. and our of of release also with Investor FD information website today's time. website following this use and replay Investor disclosure available Regulation and to We our

today's and reminder, a call As is being live recorded. webcast

the we constitute Before statements forward-looking like made and statements. performance and forward-looking expectations to from session, certain to or to call SEC. this to discussed I you remind and may events relate Actual expressed of information uncertainties, subsequent factors risk factors these results obligation we begin would by in various you the this remarks on differ or today's implied provided with the during risk reflect future or filed and statements may that filed including that such, remind those a as undertake reports We you consider as circumstances. events be these question-and-answer and no and risks update to result call urge to

financial I turn over our during CEO. aware reconciliation these are certain items A efforts Tim? is calculate Chen, earnings today's performance. Furthermore, reconciling now will be call, this Co-Founder unable where press it considered that, non-GAAP and measures. without confidence. With in release, reasonable future statements to Tim that and of we we non-GAAP included except to with to should both a You should not of guarantee be measures present GAAP GAAP will

Tim Chen

Thanks, Caitlin.

orientation. the several long-term frequently spoken NerdWallet's I've you Over to about past years,

headwinds tailwinds is will time. business and cyclical, other each over Our offset and

through a cycle tend a prolonged will series absence in started we yet an regional been business. In demand and interest rate decelerate of which through in banking for to as cuts the our hit and banking So pocket air of growing a we've of our period rates area The X macroeconomic have set QX, A cycles part ability lift our loans cycle. not a hikes. since our cycle, area pressuring of large done rate business waned, to a grow varied interest crisis, priority has conditions of accounts from one high we mean such consistently of diversification corresponding is products rate another a the but pandemic, to our market our uptick elevated delinquency consumer savings seen business. like to

credit rates loans delinquency We a and stabilize materialize rate cuts cards tailwind expect and then widely anticipated in improve. as when

mix Through XXX% revenue. to income fell which quarter revenue However, expectations is year-over-year factors. attribute we've subject we still quarter-over-quarter, in durability. insurance uptick while carriers We significant the diversification. and based growing X% period, saw a with back line is businesses this of operating year-over-year paid that transition grew X% non-GAAP ended verticals, to this this to our year-over-year. With headwinds due users, down quarter, demand monthly business, credit consumer of our goal the for in further same shown said, in grew online unique our marketing results drivers QX other our of and as and mandated, increased. Because not We it cycle highlight our the Entrance despite category as we our for benefit this higher came revenue our short a X legally

organic in we QX, in search First, headwinds saw unexpected traffic.

expectations conservative timing and full the early recovery magnitude a here, signs outlook bake in of our of seeing of in Although terms recovery. a we are

achieve while profitably of have of registered conditions traffic up cumulative the organic XX increasing allowing time. scale I us opened the improvements users. increase our as over we other in significant to business. base our year. made acquire loans users to macro nonregistered more registration lifetime registering These Moreover, consumers performance future large growth that long-term pay search of should channels traffic while targets lead marketing to reengage path to to contributed which a insurance as organic value have early signals continue we ability to Second, shared proactively March accelerate a million mid- ability registered recovery, traffic, with this users have to we indicating to users our registering have extended users feel percentage our and This to Xx to verticals, these should our these to in improvements QX. We've marketplaces

We have base. portions of strategic our made to reduce decisions cost

making contained reality. initiative to this vertical through continued new shop behavior yesterday, will financial for increased to to goodbye products our a as expect a ecosystem. better financial our completed filing. in would from and for Previously, force, credit strategic is X-K provides healthy access to no-brainer a annualized them never experiences card long-term but more like down achieving in to to shared behind like in improved and As result, to to bringing transition. The help million is initiatives. participating as geographies financial integration lead our of it significant for and our is also important reduction consumer audiences. easy, approximately driver key financial we objective In addition pillars. take which a Saying is institutions. in offering we in our of continued make expand I've SMBs moment to vision see QX, follow we efficiency we yesterday's products we push first statement focus this rates cost expansion us members our core efficiency each to vision. Earlier from efforts strategic this this on international in we're on I savings. consumers to to certain reiterate our year, sentiments investing and trusted most our launched This my primary and the product improving in to NerdWallet dedicated as early this we extending relentlessly nerds allow and directly in We invest $XX on supporting its a more overview as a our well membership rewards days, our paid QX, made a progress will reach double and diversification, launched NerdWallet+, categories Australia. which business. In in that across our us Land brand by

cut Smart growing year-over-year. Meanwhile, MUUs in to traffic invest Bank building in U.S., we in with drive we consistently site, notably by the the capitalizing Our mortgages, as page continue YouTube and key strong X like audiences, account ended Canada of our start investing the year, including to also ranking XX% team on categories of expand more than have follower recent podcasts. continues of rate Money but the Since TikTok, Apple's QX podcast podcast. Canada's top to off to on and doubled we most our our

financial the process. increase provide we to same of shoppers with brand while team our to replace to personalized also directing vertical integration matching tool direct off will to NerdWallet, invested technology extend SMB, loyalty. In loan convenient loan likelihood scaling and more third-party outcomes, offer could our RIA processing offering As experiences shopping hypothesis train goal equity At advisers better personal QX, saving significant drive shoppers home traffic overall the with new digital AI-enhanced that also a planning we've expanded to to our loan service look more the NerdWallet brokering who introduced new Coach, their consumers qualify to cross-sell with an human-assisted continued registering AI NerdWallet loans significantly a time experience. In time, in for we models our of offering.

our to further of the our plans future. in auto a based we route shoppers recently machine that continue on optimize introduced their also use insurance marketplace with We the to model best expansion experience needs, learning to in

lifetime more discussed, shopping to to have to they As to value I cumulative users is our We to million there QX, quarter Xx our of upside personalized this us come nonregistered directly, we shared to easier as in know long-term growth our for push We visitors. XX users. reengage base offer registering are back NerdWallet considerable users. Registered registration attribute experiences. to and increased

made to offers with registered users reengage personalized they've targeted Additionally, more progress we once cross-sell ability significant on our with have us.

QX, We direct high-yield a also made launched our paid members NerdWallet+. In NerdWallet+ progress first opening we up with banking in providing offer, initiative, and membership our setting deposit. after new reward savings $XXX account

personalized offers We "Ask financial guidance. Nerd,”" a also more members “NerdWallet+ introduced which

of necessary Lauren? a Lauren, ways them, were nerves the and to this focus we Before not our part quarter I in and hard we their it business needs as headwinds the yesterday. including navigated step the had to to our work rightsize and we over I on for rather business, decisions want Nerds thank meet align hand past a those of unfortunately sustainable pursue areas but to reflection long-term growth. consumers as These with to

Lauren St. Waugh

the Thanks, Tim. revenue We up guidance delivering range, $XXX year-over-year. revenue our within X% of quarter QX million, ended

quarter a lending areas that remain results revenue of We such second signs seeing recovery. in depressed a believe growth as in While showcase our slowdown cyclically we are and environment, in banking. our continued to return

We expect strength maintain continued improves as insurance. this and as to environment growth the lending see path in we

balance to issuer XX% believe we as than in and million, Tim traffic. QX remain revenue weighed our each seasonal generated a We as healthy. Loans QX quarter still during delivered to QX are search continue Let's year-over-year our cards temporal see underwriting the revenue look appetite eventual conservatism $XX We structural, an that of they are will million, dynamics broader saw of declining year-over-year. on $XX results. as but facing a we decline in take believe We're mentioned, the returns X% cards. QX, transfer recovery organic sheet-intensive these areas consumer year-over-year. balance quarter-over-quarter And from such we cadence metrics pressures sensitive declining within facing performance Credit at deeper category. of revenue while rather also

start tougher vertical sequential personal versus we Our loans did comparisons lap growth to moderate though levels we XX% see deceleration QX XXXX, quarter-over-quarter. from as year-over-year declined improvement a

their cards in years, loans, strength consumers equity as prime we credit driven pressure was the recover for in as X personal and consumers a expect in homes. over debt, tight card we at fully delivered still both access organic we demand persisted, consisting mentioned tighter of that growing end incentive have in to loan student environment. take are loans the believe do financial traffic services products high lending $XX further and elevated and that rates underwriting As intended amount early kept of for primarily We to originations a mortgages small as and see the of loans. some year-over-year starting believe increasing saw in the of search reduced first to declines to midsized consumer SMB We was equity last products, products despite there loans loan growth QX it the challenges. combined XX% by have type. Partially in and offsetting position credit an while pullback refinance of delinquency of other of in previously, advantage began remaining levels as revenue record is of mortgages we remain the that in standards revenue and was of a home increasing and backlog rates in year-over-year. SMB particularly services. improvement rates and growth quarter with from underwriting the loans, million, QX QX elevated personal in of demand year, signs not businesses

over So the more a as we loans banking. as midsized runway SMB have environment. subcategories to such continue profile in lending businesses expect a in near for face growth SMB substantial term in we for product both growth credit robust quarter await and run, offerings well believe as small with areas in and diversified We the as diversifying though scaling long the we cards our growth drive tougher to a

category, named our $XX year-over-year. product other QX Finally, growing finished verticals emerging formerly with verticals million, XX% our of revenue revenue

XXX% grew more the emerging emerging verticals after as regrouping areas verticals. areas in in reminder, of than revenue, of investing such products and insurance, international. Insurance a banking, year-over-year consist pressured revenue QX, other offsetting SMB As

remains We believe from saw the that consumer XX% end inflation are this demand we Partially seeing assuming during quarter. year-over-year partners demand consistently the both consumers offsetting market decelerating growth improving will thinking and as continue and improve, stable. to declined

the strength saw year. in from As demand is the margin decline in a primarily of is and beginning with in a contributing we softness this off QX, overall strong in investing sequential market mentioned we The slowdown decline as combined driven stock was to at the we organic QX pressure came in by QX. banking

to investments profitability. on Moving and

delivering During only the to QX, profitability revenue primarily invest we moderately amount decline year-over-year be organic in with accretion, of our in in long expectations operating we a The headwinds levels year, brand cyclical accretion. We even our in shorter driven by during Compared traffic, spend banking. brand the benefit minimal where lower search we had combined advertising quarters, range. data QX a the to versus last prior we frames. $X.X loss and and the will was margin missed million steeper-than-expected margin which saw will spent at QX decline believe of continuing term, non-GAAP in brand declines, a we driven despite through on versus time troughs guidance

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

portion content, of consumer demand previously, was organic focused softening though our seasonal consumer taxes. pressure in seeing past mentioned few revenue investing became where on in larger concentrated decline we QX, for been Versus the saw interest content demand we a strong As quarters, per banking, causing learn MUU. amplified and our have our by consumer normal we

business, well stronger been primarily in content. And seasonal we than certain the half. while the interest an subsided, last events had in the stock typical our Bitcoin of will lapping of that by we continue traffic begin growth interest believe we As QX high during as second strength. in now that year demand example of a as see to our high We have rates of investing learn idiosyncratic some bolstered levels those market the areas experienced

quarter, annual financial full expect we ability short growth revenue rate NerdWallet sight growth can to through outlook. X-year to still what we the showcasing growth for believe revenue our have the As outpace drive a result, line increasing consumer see deliver we demand we brand. On but term, the Similar MUU believe we in year a that growth. to double-digit to to last discussed our of accelerating of levels compounded

We will commentary and of with full for continue mix providing expectations. qualitative quarterly quantitative guidance a year along

of is To We quarter-over-quarter QX, third the from our sequential revenue versus QX we strength a million at see revenue in insurance. which primary midpoint to year. of typically expect The to growth driver million, which from color overall to $XXX more in we increase deliver to expected revenue expect you happen the year. this our increase prior range come to in quarter give XX% expectations, revenue would $XXX QX on

growth continue driver While to we our be to and across we credit both though expect more drive to second revenue, in of revenue as lending the no as SMB softness facing large double-digit confident loans, cards SMB a growth macro we await conditions lending expect in half, consistent a remain given we ability recent in longer improvements. loans tight

profitability. to Moving

operating to QX $XX of non-GAAP expect We income the range million. $XX million in

million restructuring to quarter. expect recognized the charges We $XX million $X have to in third of

reductions compensation. inclusive expense income $XX operating stock-based of should assumes approximately a savings actions these as outlook of in million cost Our result non-GAAP annualized deliver expected

expectations. to second we during running less we half are brand on the expect rightsized campaigns invest investment, it to headwinds margins, lowering brand than half but facing of near-term we As our long-term while in second current investment engagement search for traffic to did will the still our support putting be organic our relates XXXX, are we returns. The pressure

by X/X driven partially in the been in OI OI in approximately the range cost our and decrease revenue of we've non-GAAP Roughly the and 'XX adjusted outlook. some our remainder and from have previous seeing midpoint our to miss signs early of of margin revenue. XX.XX% recovery, full of of we're growth We non-GAAP the made. we're EBITDA in QX, the coming year as marketing, the offset guidance margin some these through versus expect to revenue, challenges is X% portion margin now a versus driven the XX.XX% past, X.XX% reductions We by baking pressure expectations by conservatism to mix while is of XXXX our we see revenue of of paid larger

we've As the a manner and spend in remain and the disciplined of a paid as within the we'll we means paid to the traffic larger past, continue our be which view paid back monetizing marketing to spend future. end, in marketing mentioned an quarter in we in aim a to component with expect to

even depressed our We in as rate in that second remaining lending growth we that you long our targets our years. We recovery and we on sensitive But verticals, we interest our and we run. the medium- accretion our are believe experience of a time. With Operator? long-term we're We margin areas paid take within of levels, to many a to work quarter, ready directly to our our with portion can profitability long-term and connect the believe business, support of vision will towards control, and cyclically see the and reengage proud way we users for the the questions. with us well missed seriously. to sharper in things back growth half an that over cycle path revenue Nerds organic the the future is that, we both there expected the to this outlook despite revenue very and focus over prime marketing-driven we that issued improving on for rallied around we cycle-to-cycle deliver as back operating of are March, have still commitments way in expect puts

Operator

[Operator Instructions].

Ralph Our William Blair. comes first with Schackart from question

Ralph Schackart

of Just wanted said in to think the you traffic and touch had as on on organic traffic the organic call, remarks as I some the had prepared search commentary returned. well that

to please. sense has much the since of then a Just organic how get returned traffic have want of quarter? And a I that follow-up,

Tim Chen

that. Yes, I'll take

created said, traffic. we and like yes, a meaningful on to QX, extent, during our and major lesser our algorithm update So [indiscernible] headwinds

it's Generally as lot working of characterize think standard, felt haywire went a a observers industry So user like we getting well last stabilized and I'd we a best and saying intent quarter. it started search the and matches little by is surfaces that answers. And better. when bit speaking, it things

say, you're a small let's example, for So loan. searching business for

I a shop brand to ideally, choices, think, new relevant You trust. leveraging want comparison

inevitable, to doesn't worked so business website, engines back they help a incentives So small is, think these loan And does get it can so strong government more showcasing see loans, if you for because of bank doesn't ads. small search it's some want commercial get that explaining neither are a that nor we search local website is out right? who happy it customers helpful it there coming kinks right. regional keep sell what grants they see business to do nonprofit a

tailwind costs, out So going appropriate, we've but annualized if volatility, get about in better. given forward. million that a would we some turn being which said, into feels taken things in And this extra baked recent $XX conservatism

long of in our is past long and matching run, high-quality of to period followed period tends win-win. content a a by tells this testing experience really so that intent be the us like And normalization. user And a

definitely the guidance, took midpoint a your to we we QX is want mean, our capital. of show how stewards $X.X hit I million not versus which on as of up prior So NGOI

X However, things relative worse users, to saw, headwinds past registering have a progress insulated from made I the really years of the a highlight building we those magnitude the outcome. it us brand think we've over in in does the

with particular experiences registered making user And vertical business in our our NerdWallet+, so deepen channel and relationship direct any further forward, the looking users. behind will from investments diversify integration we're like our and

Ralph Schackart

That's really helpful.

the Just savings. a cost follow-up on

called million think out I you annually. about $XX

how with Just much statement expect maybe you annualized reinvesting about versus this curious to savings of do us. opportunities the flow income to through

Tim Chen

I'd annual guess it characterize NGOI. we I Yes. took guidance for like down as

that offsetting of roughly the So impact I mean in about. well as talked it's we the from search some falloff banking as

Lauren St. Waugh

all some think but we have have, that a of I'll we the to will and terms change about capital in way, the continue long investing do same disciplined that how the discipline And doesn't it that despite of we of add think we Yes. just in investing savings for we'll how term. our still about

Operator

Our KeyBanc. from comes with next question Justin Patterson

Justin Patterson

Or on then during any that overviews up Ralph's following any rolled just product? out Could that follow-up. another as guess initial AI from thing you And search one got period. question. I see I've the headwinds learnings around that?

Tim Chen

much not Yes, impact. an of

this think X share. anything, I we in ways, Google's right? So Well, if about when think first is

are recent shift seen in If month-over-month. Google visits some there from alternative so reported is And their market June. a actually search that fell increased ChatGPT month-over-month where in we share And share people analysts anything, gaining start Google's signs terms XX% share actually sell-side Google that in web recently platforms months, of search. haven't

So lot that are Google has overviews into a so think AI embedded right? from kind I of of interesting, you And search mentioned results. this the perspective, their

reason not got consider separate Android of up when as in and they've special app for answer, Chrome. there's have Apple. relationship great open embedded you Google with so maybe It's that -- to a an AI especially that And they a is Search

that's of don't seeing think and an much now. we impact, So likely right have it we're not to

Justin Patterson

as just back I we paid then not just thinking toward marketing. about shift prairie forward? wanted like just to near that the And a marketing mix like more a marketing going a be kind with something it. higher something come piece should is to Should more around is you're longer bigger paid be of this closing term? Or this business the over for Got of

Lauren St. Waugh

take I'll this Justin, one.

reinvest traffic, performance we XX% still organic over organic we've brand through and challenges our and recent the of more channels traffic some allowed us of see called search that's out to despite channels. comes acquisition marketing. in that in like So

how in marketing, performance we in-quarter operate disciplined aiming OI adding and on dollars. a incremental be not approach We do profitable changed. Our non-GAAP so though to way, has

keep more where or take that in continue returns. folks QX, at saw look in opportunity bit as the a and on due a as leaned up see strength as We areas as dial we to and and where depending we the to such conservatism register you'll it to And back, our a means marketing verticals can share. In also we it our opportunities you to mind marketing can engagement down to we also to to with more insurance, part in an in pretty seeing can heavily. in we we we're We remind more add us pull do variable initiatives. lever and a the OI increased everyone expect us of invest expense, as as order. performance partners, view in which end as to flexible incremental non-GAAP see spend future, a positive And registration performance dollars, see getting we short

Tim Chen

too, Yes. does in rate. is conversion in channels what has in opens improvements way. a And up our for personalization tag improving right? our Like I'd insurance vertical it on, led improvements, example, that bigger to paid probably

getting incremental, and competitive -- more as better We're So we that basically is at becoming therefore, well. there we're consumers this and serving right? think paid

Operator

Morgan with Infante And our from Stanley. Michael question comes next

Michael Infante

partner to some of to to improve, I some delinquency we're still card the cards starting tracking the the credit arguably generally. least seeing commentary obviously, the the on up and of of on terms and loans that side, just lenders losses. and on close looks some it second with, I wanted verticals, But just the in you very stress Tim, issuers think derivative follow like peak is at there

from sort just in thinking how up So XQ beyond? sets about perspective curious you you're for and a backdrop that of how

Tim Chen

Yes.

Since delinquencies as So then and alongside cases. crisis gone then and context, has right? plateaued banking I spot QX up way the in think of then, are in peaked yes. some that's on, the some just down Credit revenue and the on card right? they've regional 'XX

So As players again, still that I'd means are unusual their so post transfer SVB, lot. appetite still has And out bit tightened for see, to 'XX the a be call constrained right? However, trending a requirements bigger your is customer, then the QX regulatory credit also, sheet be since caps better on that and balance balance to balance underwriting typical constrained. It's transfer example, worst-case seem such FICO the of acquiring to than as high scenarios. seems ratio some borrowers card easing,

budgets So but we're fully our day the sure increasing declining think what which we're to delinquencies budgets, is call seeing still to really timing. And indicators. hard yes, shrinking is day just in start seeing conversations, back. budgets improve, beats not we're I good and the are But thing leading certainly to

Michael Infante

of payouts on the credit a opening the looks card That's was reward I helpful. Xx for And rewards the then and debit. looking like out roughly questions NerdWallet+ membership. sort of of at of I some for my follow-up, just had couple is A it

bounty read another in product. that's card was there just terms there I the is opening a versus curious, paid for being or any So the maybe credit pricing up of

And the do out have over of roll sort play of this the the out some intend of on that you of full platform? we rewards you that medium term, solutions sort sort as breadth functionality to of across

Tim Chen

Yes.

data-driven the and this, pillar about right? engagement. is Our registration third way So think growth to

So membership a great for rewards with a that your NerdWallet+ deal think you smart paid being is consumers. it's money. we And for gives

products they $XX exclusive members financial can charging tools. back now, smarter to up deals fee $XXX, and earn or rewards for of and an we're annual right yes, making better on decisions whether through So about finances their

correlation give between some bringing those there's think So directly, our maybe about as rates a sure, rewards, on an the some users what in are to But be us area terms of probably back vision. like of -- we to and is some we to products. we'll more of yes, this achieve those going long-term users can more what investing where

Operator

& And with Kelly from Jed comes our Co. next Oppenheimer question

Jed Kelly

an insurance in marketing of up It sounds being is investing paid by cycle. some like the driven

So can you was maintaining one can take cycle cost you your of it advantage it integrity. reduction, then or about this while broad-based? just product talk up site on just to targeted the how And fully was

Tim Chen

Sure.

quick But product people years newer on few reminder to for for this market yes, a So been investing has improvements along the yes, been way. those in going insurance the now. story, a we've hard

which mentioned I do has the ability earlier, in was but a conversion biggest bigger one up this personalization our to improving way. turn improvements, to which channels led So in paid opened has

we've think we been share. perspective, for So gaining

in market. Our QX revenue quarter was hard peak the before XXXX insurance nearly Xx our

that's a than without some much pretty think this, bunch terms we're we're seeing. back, doing leads terms the site So in times. compromising there. We lapping others improvement market in of to coming easy of like our your comps what really selling are larger a point, integrity yes, cycle-to-cycle And of

yes, -- the where So just that's And right we forward, I the long-term too. on momentum note insurance, think of is coming think mean a from. And move. some quick that's I Medicare is tiny looking where the market grow a And substantial think this market. insurance we still big we opportunity. as an remains have in picture, recovers. room housing big to Also area homeowners we're that's

do of lot a to beyond things autos. So

Lauren St. Waugh

$XX right, area whether I the question, I cost And was got you particular business. question in Yes. of think Jed. to reductions, want second million was the was that in make part sure the just the the one that of It

Jed Kelly

based? was being that that certain to Was targeted product broad segment a Yes. or

Lauren St. Waugh

No, that broad-based. was more

Jed Kelly

last medium-term assumed outlook March? the reduction that gave was And you in your

Lauren St. Waugh

No.

me now. maybe guidance help little I'll right just would a bit. -- Let that Maybe over go

the of start cadence then with on I'll let So for year. little bit QX, what first, give for and to rest color expect the of me the a

XX% was So for million midpoint to be $XXX year-over-year. at revenue, which growing guide would million, $XXX the QX the

deliver some to we year, the material expect now we're we'll as our larger half no base deliver second are a more to help to during reduce in for perspective, actions like OI, we've the credit that expecting margin this $XX a confident brand pressures. versus insurance to return year. From $XX of as the the changes for something of continue ability of offset to assumes we've context, of organic normal which margin lower drive partner profitability in recent half loans. Overall, on organic points in traffic which X of And our as seasonality we're search QX to our to and And well driven like QX double-digit been investment so than the guided we're facing. this QX. able more that accretion million, our and to implies during expected despite based we're areas revenue that consistent cost happy the a non-GAAP recent behavior cards challenges million guide, means And second revenue growth traffic this continues to QX year. prior rates guidance be scale year, growth search

want just to vision, to but QX, the For set to Though and reduce us up us will we're pressures OI causing search continuing near-term X.XX% to full expectations. actions non-GAAP XX.XX% to the our we expect to the recent margin are to color long-term guiding X% invest traffic XX.XX% we little cadence. on be and margin. I'll our not while I a year, adjusted experiencing efficient margin deliver of are EBITDA in organic give -- approximately the cost to

years revenue half that we prior guidance for year. I conservative QX, sequential year is seasonality during So the back piece to outlook we're campaign seasonal pulling revenue revenue brand during That throughout we dollars third talked as of invest And also mentioned brand QX. QX from span in just the more continue expected in we're to decline a versus things. that margin fourth our assumes a year-over-year about few to October. We've the second while on or quarter, full expect is baking normal our one, a the more into organic

Tim Chen

certainly I'd -- have what always we -- Jud. It's thinking we're little we tack I there, think right? on relative got a investments March, about recent internally, more sometimes Yes, with like the save do maybe now we But in efficiency money that And about later. aggressive to bit invest talked Yes. it's this to action. than

Operator

Instructions]. [Operator

Christiansen Pete with from Citi. next comes Our question

Peter Christiansen

and at a look like of your traffic pattern doesn't look into June, least some competitively. seems you're as so losing peers, share, it you if you it traffic like get similar at there's May Tim,

in have any fatigue, traffic? you've time. sure that sites right impacting see your these guess to whether coming consumers environment hear matches, And faced opinion we're to tight in this not not your now, for I'm if the Maybe you on given there's credit organic do of that I been meaning curious hey, So they're some I'm making the issue that past. category

Tim Chen

Yes. loans. example Thanks that for the mean, searching of don't small I major mentioned that for think as like I the question. -- I don't business driver. we obviously, about think we the

I are in bit think things little of results now. the right a haywire search some that

of that are So trends consumer us. be impact healthy. in I pretty an general, bit to on has seem think -- But a

Peter Christiansen

your Fed to sense be pent-up And do or I for there's but demand any some that decisions. in pivot given talk there making there, about Any consumers think financial that as potential move it you any here waiting catalyst given. just prepared remarks, demand would was pent-up helpful. a on know

Tim Chen

say would so. I Yes,

Personal tough So if think debt. is the that refinancing personal #X use use loans loans pretty loans lending are But the as personal for for So obviously the now, is case rates, rates yes, example, I is us. delinquency credit But tight. high to is card about thing higher a an environment. right? year-over-year with other underwriting right it's down

kind So you versus something maybe of on credit XX% interest like personal XX% averaging like see spread now XX%, a card a rates right loan. of

principal personal is required likely expense, this a more payments attractive, So interest their folks then are take on and a situation to flow, credit in but lot have with not you interest for stick refinancing the to loan. that consumers of payments right? So cash for makes then card monthly mathematically optimizing what are remember interest-only

rates tailwind are that then So sensitive are things that as like I as think like obviously, drive come very will things mortgage And well. down. a rate refi factors

Peter Christiansen

one me. Last for helpful. That's

On the some hopefully, trend you should normalization. quickly restructuring, what and up tide can see you we of flex just back that give your turn the to ability as of and kind broad us a areas sense

Lauren St. Waugh

more. and any Yes. to add then want if thoughts you Tim, some I'll give

and So going about the and to restructuring we're NerdWallet+, more business. that things And we that. efficient took, of as products Tim in our we talked to just invest like mentioned, through with reengaging was areas broad-based, how the but we're continue users approach be data-driven like constantly we operate. in looking to

quickly we'll we over lending continue how the have those. we're seeing areas like to marketing eases talked the that in So lean and at really returns tailwinds there, also lean the short behind look to expectation areas will pieces. We've good to And about long we very when reinvest as in is like those performance can we'll can in there, term, also and insurance especially that the to term. environment we know mid- in continue

Tim Chen

of than I only thing support I'd add the to think needed terms in additional investments more I core as in up, think And back areas. areas rather incremental our is we it growth scale investment of right,

Operator

you. I'm Chen would at this questions Tim closing it showing time. turn no back Thank to like I further remarks. and management now to for

Tim Chen

right. questions. All for Thanks all your

on Before we always end I'll thanks cycles, but the and reiterate side, the releveless on long-term years, other past emerged growth improvement. call, XX a weathered has our stronger that the focus of NerdWallet throughout number we've to

you vision to focus I and our decisions, tough achieve progress feel forward some quarter. made next have capabilities recently we look consumers and we our sharing for business. to the I with again While the that strongly

Operator

today's conference participating. call. This for Thank you concludes

You may now disconnect.

NerdWallet (NRDS) 31 Jul 242024 Q2 Earnings call transcript