NerdWallet Q2 revenue up 24% but misses estimates
Overview
NerdWallet Q2 revenue rises 24% yr/yr but misses analyst expectations, per LSEG data
Adjusted EBITDA for Q2 beats estimates
Insurance revenue up 86% yr/yr, driven by growth in auto insurance
Outlook
NerdWallet expects Q3 revenue between $189 mln and $197 mln
Company forecasts Q3 GAAP operating income of $17 mln to $21 mln
NerdWallet sees full-year adjusted EBITDA between $120 mln and $128 mln
Company increases full-year GAAP operating income forecast to $38 mln-$48 mln
Result Drivers
INSURANCE GROWTH - Insurance revenue surged 86% year-over-year, driven by strong growth in auto insurance products as carriers expanded budgets
CREDIT CARD DECLINE - Credit card revenue fell 25% year-over-year, impacted by persistent headwinds in organic search traffic
LOANS INCREASE - Loans revenue rose 27% year-over-year, boosted by growth in personal and mortgage loans, including integration of Next Door Lending acquisition
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $186.90 mln | $195.30 mln (6 Analysts) |
Q2 Net Income |
| $8.20 mln |
|
Q2 Adjusted EBITDA | Beat | $33.60 mln | $32.10 mln (6 Analysts) |
Q2 Pretax Profit |
| $11.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for NerdWallet Inc is $15.50, about 28.6% above its August 6 closing price of $11.07
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nBw3QjQGma
