NerdWallet, Inc. Class A ((NRDS)) has held its Q1 earnings call. Read on for the main highlights of the call.
NerdWallet’s recent earnings call painted a largely positive picture, highlighting strong revenue growth, particularly driven by the Insurance segment and a rebound in personal loans. However, the company acknowledged ongoing challenges in the credit card and SMB product segments, with expectations for MUU growth to stabilize in the future.
Revenue Growth
NerdWallet reported a significant 29% year-over-year increase in revenue, reaching $209 million for the first quarter of 2025. This impressive growth underscores the company’s successful strategies and market positioning.
Insurance Segment Performance
The Insurance segment was a standout performer, delivering $74 million in revenue, which marks a 246% year-over-year growth. This surge reflects strong market demand and effective improvements in the shopping experience for consumers.
Emerging Verticals and Banking
Emerging verticals, primarily driven by banking, experienced a 15% year-over-year growth. This growth is attributed to a robust partner appetite as consumers increasingly seek low-risk options.
Return to Growth in Personal Loans
The personal loans segment saw a notable return to growth after a 51% decline in the previous quarter. This turnaround was driven by improved funnel personalization and an expanded lender panel.
Non-GAAP Operating Income
NerdWallet achieved $9 million in non-GAAP operating income, surpassing its profitability guidance, which highlights the company’s operational efficiency and financial health.
Credit Cards Revenue Decline
Despite overall positive results, the credit card segment faced challenges, with revenue declining by 24% year-over-year. This decline was primarily due to downward pressure in organic search.
SMB Products Revenue Decline
The SMB products segment experienced a 5% year-over-year revenue decline, attributed to tight underwriting and trade policy uncertainty, which continue to pose challenges.
Challenges with MUU Growth
Monthly Unique Users (MUUs) continued to decline year-over-year, although there was a 7% increase from the previous quarter’s levels. The company is focusing on strategies to stabilize and eventually grow MUUs.
Forward-Looking Guidance
Looking ahead, NerdWallet provided guidance for the second quarter, expecting revenue between $192 million and $200 million, with non-GAAP operating income projected to range from $14 million to $18 million. For the full year, non-GAAP operating income is anticipated to be between $55 million and $66 million. Despite macroeconomic challenges, the company remains optimistic about returning to MUU growth by early 2026 and is committed to enhancing its core business and operational efficiency.
In summary, NerdWallet’s earnings call reflected a positive sentiment with strong revenue growth, particularly in the Insurance and personal loans segments. While challenges persist in certain areas, the company remains focused on strategic growth and operational improvements, with optimistic guidance for the future.