NerdWalletNASDAQ: NRDS

Shares of NerdWallet have soared after the company posted much better than expected Q3 results. Revenue growth accelerated sharply to 25% y/y, driven by an uptick in consumers shopping around for new insurance plans. Still, we have to watch out for softer traffic trends, which the company expects to get worse heading into Q4.

NerdWallet, Inc. (NASDAQ:NRDS ) Q3 2024 Earnings Conference Call October 29, 2024 4:30 PM ET Company Participants Caitlin MacNamee - Head of Investor Relations Tim Chen - Chief Executive Officer Lauren StClair - Chief Financial Officer Conference Call Participants Michael Infante - Morgan Stanley Justin Patterson - KeyBanc Capital Markets Inc. Peter Christiansen - Citigroup Inc. Ralph Schackart - William Blair & Company Jed Kelly - Oppenheimer & Co. Operator Thank you for standing by, and welcome to NerdWallet, Inc.'s Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.

NerdWallet, Inc. (NRDS) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.03. This compares to loss of $0.01 per share a year ago.

NerdWallet, a founder-led business, is at an inflection point with revenue growth and profit margins expected to rise significantly. Despite traffic declines in 3Q, NerdWallet is gaining market share and traffic significantly recovered so far in October. Long-term street estimates are far too low, and the company is starting to significantly buyback stock.

SAN FRANCISCO--(BUSINESS WIRE)--NerdWallet Announces Conference Call to Review 2024 Third Quarter Financial Results.

After more than a 10% YTD slide, I'm giving NerdWallet a buy rating as it implements a new headcount restructuring intended to boost its margins. The company is experiencing strong user growth and expects revenue to re-accelerate, with Q3 guidance indicating a 15% y/y increase. NRDS stock trades at an attractive

NerdWallet stock has declined abruptly following its earnings-per-share miss and a broad-based slump in high-beta assets. The company plans to cut its workforce to improve its bottom line, with a potential restructuring charge of $8-10 million. A decline in loan revenue and credit card exposure might linger due to rising credit risk and falling economic indicators.

NerdWallet, Inc. shares dropped 31.5% after Q2 results, driven by restructuring and a decline in monthly unique users. Despite mixed financial performance, the company's revenue grew 5.1% and most profitability metrics improved year over year. Management's cost-cutting measures and strong Q3 guidance make NerdWallet a potential value buy with no debt and ample cash reserves.

NerdWallet Inc.'s stock has surged by over 40% year-over-year but remains below its IPO price. The company's vertically integrated model will likely sustain its secular growth trajectory. Strong support from NerdWallet's Fundera and Barrelhead acquisitions has bolstered the firm's growth multiplier.