NerdWallet (NASDAQ:NRDS) Issues Quarterly Earnings Results

NerdWallet (NASDAQ:NRDS) posted its quarterly earnings data on Wednesday. The company reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.02, FiscalAI reports. The firm had revenue of $225.40 million for the quarter, compared to analysts’ expectations of $211.37 million. NerdWallet had a net margin of 9.22% and a return on equity of 9.27%.

Here are the key takeaways from NerdWallet’s conference call:

• NerdWallet beat guidance with Q4 revenue of $225M (+23% YoY) and non-GAAP operating income of $25M (+47% YoY); full-year revenue was $837M (+22%) with NGOI of $96M (over 100% YoY).
• Management said persistent organic search declines driven by AI/LLMs pressured SMB and credit card revenue, with SMB down 12% and credit cards down 24% in Q4.
• Performance marketing, direct and non-search referral growth more than offset organic losses, highlighted by lending revenue up 141% YoY and personal loans up 264% YoY.
• Q1 guidance is $224M–$232M revenue (≈+9% YoY midpoint) and NGOI $28M–$32M, with full-year NGOI expected $95M–$110M while management cautions banking momentum may cool if rates decline.
• Capital allocation progress includes $51M of Q4 share repurchases, $118M trailing twelve-month adjusted free cash flow and a $98M year-end cash balance, with continued focus on opportunistic buybacks and bolt-on M&A.

NerdWallet Trading Up 7.9%

NerdWallet stock traded up $0.76 during mid-day trading on Wednesday, hitting $10.32. 1,969,138 shares of the company’s stock were exchanged, compared to its average volume of 942,791. The stock has a market cap of $750.37 million, a P/E ratio of 10.75 and a beta of 1.43. The stock has a 50 day moving average of $12.31 and a two-hundred day moving average of $12.09. NerdWallet has a 1-year low of $7.55 and a 1-year high of $16.24.

Analysts Set New Price Targets

NRDS has been the topic of a number of research analyst reports. Barclays lifted their price target on NerdWallet from $14.00 to $17.00 and gave the company an “overweight” rating in a report on Friday, November 7th. Morgan Stanley lifted their target price on NerdWallet from $12.00 to $14.00 and gave the company an “equal weight” rating in a research note on Monday, November 10th. Truist Financial increased their price target on shares of NerdWallet from $17.00 to $19.00 and gave the stock a “buy” rating in a research report on Monday, November 10th. KeyCorp raised their price target on shares of NerdWallet from $15.00 to $16.00 and gave the stock an “overweight” rating in a report on Friday, November 7th. Finally, Zacks Research lowered shares of NerdWallet from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 9th. Three analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $15.40.

NerdWallet declared that its Board of Directors has approved a stock buyback program on Tuesday, December 16th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, insider Samuel Yount sold 15,945 shares of the stock in a transaction that occurred on Tuesday, December 2nd. The stock was sold at an average price of $16.04, for a total value of $255,757.80. Following the completion of the sale, the insider directly owned 358,116 shares of the company’s stock, valued at approximately $5,744,180.64. This represents a 4.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 45.93% of the company’s stock.

Institutional Trading of NerdWallet

A number of hedge funds have recently bought and sold shares of the stock. Invesco Ltd. increased its holdings in shares of NerdWallet by 27.7% during the 4th quarter. Invesco Ltd. now owns 103,226 shares of the company’s stock worth $1,399,000 after purchasing an additional 22,406 shares during the period. Mackenzie Financial Corp bought a new stake in shares of NerdWallet in the fourth quarter valued at about $310,000. XTX Topco Ltd grew its position in NerdWallet by 141.3% during the fourth quarter. XTX Topco Ltd now owns 74,784 shares of the company’s stock worth $1,013,000 after buying an additional 43,794 shares in the last quarter. Numerai GP LLC bought a new position in NerdWallet during the fourth quarter valued at about $423,000. Finally, Millennium Management LLC increased its stake in NerdWallet by 1,231.3% during the fourth quarter. Millennium Management LLC now owns 538,421 shares of the company’s stock valued at $7,296,000 after acquiring an additional 497,978 shares during the period. 38.81% of the stock is owned by institutional investors.

About NerdWallet

NerdWallet (NASDAQ: NRDS) is a personal finance company that offers independent guidance and comparison tools to help consumers make informed financial decisions. Through its website and mobile application, NerdWallet provides a wide range of content, including articles, calculators and reviews covering credit cards, mortgages, personal loans, banking products, investing, insurance and taxes. The platform aggregates partner offers to enable side-by-side comparisons, while editorially maintaining objectivity to support users in identifying the products that best suit their individual needs.

Founded in 2009 by Tim Chen and Jacob Gibson, NerdWallet is headquartered in San Francisco and serves consumers primarily in the United States, with additional localized offerings in Canada and the United Kingdom.