NERDWALLET Reports 11% Year-Over-Year Revenue Growth in Latest Quarter
Segments of revenue
NERDWALLET's revenue for the year ended December 31, 2023, was $599.4 million, compared to $538.9 million in 2022. The revenue can be broken down as follows:
- Credit cards: $209.7 million
- Loans: $101.6 million
- SMB products: $101.2 million
- Emerging verticals: $186.9 million
NERDWALLET experienced a strong year-over-year revenue growth of 11% in the latest quarter. This growth was primarily driven by the significant increase in revenue from the Emerging verticals segment, which saw a 46% growth compared to the previous year. The company's SMB products segment also performed well, with an 11% increase in revenue. NERDWALLET's management attributes the growth to their ability to capitalize on higher consumer intent through improved user experiences and their strong alignment with financial services partners.
Despite the overall revenue growth, NERDWALLET experienced a decrease in revenue from the Loans segment, which declined by 7% compared to the previous year. This decline can be attributed to reduced marketing spending by financial services partners during the remainder of 2023, as a result of cautious underwriting and heightened balance sheet concerns.
It is worth noting that NERDWALLET generated a net loss of $11.8 million for 2023, which increased by 16% compared to the previous year. This increase in net loss may be a result of various factors, such as increased costs and expenses or changes in the fair value of contingent consideration related to earnouts.
NERDWALLET's latest quarter performance showed strong revenue growth of 11%, driven by the Emerging verticals and SMB products segments. However, the company faced challenges with a decline in revenue from the Loans segment. Despite the revenue growth, NERDWALLET reported a net loss of $11.8 million, indicating potential areas of improvement in managing costs and expenses. Overall, NERDWALLET's ability to capitalize on consumer intent and maintain strong partnerships with financial services providers positions them well for future growth opportunities.