NerdWallet shares surge 21% as Q4 earnings, revenue top estimates

Published 19/02/2025, 22:22
NerdWallet shares surge 21% as Q4 earnings, revenue top estimates

SAN FRANCISCO - NerdWallet, Inc. (NASDAQ:NRDS) reported fourth quarter earnings that significantly exceeded analyst expectations, sending shares soaring over 21% in after-hours trading on Wednesday.

The personal finance company posted adjusted earnings per share of $0.51, handily beating the consensus estimate of $0.07. Revenue for the quarter came in at $183.8 million, up 37% YoY and surpassing analyst projections of $168.33 million.

"We closed 2024 strong, exceeding our expectations and growing revenue to $183.8 million, up 37% year-over-year, driven by continued consumer and partner demand in Insurance and a solid performance in banking," said Tim Chen, Co-Founder and CEO of NerdWallet.

Insurance revenue was a standout, skyrocketing 821% YoY to $72 million as carriers expanded budgets. However, credit cards revenue declined 19% to $35 million due to ongoing headwinds in organic search traffic.

The company’s average Monthly Unique Users fell 20% YoY to 19 million, with traffic challenges worsening in Q4 for non-monetizing topics. NerdWallet expects this decline to slightly worsen in Q1 before stabilizing and returning to growth by early 2026.

For Q1 2025, NerdWallet forecasts revenue between $187-$193 million, representing 17% YoY growth at the midpoint. The company also expects adjusted EBITDA of $10-$13 million for the quarter.

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