NERDWALLET, INC. Q1 FY2025 earnings call

• Growth pillars: Land & Expand involved investing in travel rewards category, launching TravelNerd newsletter and Smart Travel podcast. Vertical integration included progress integrating Next Door Lending and launching NerdWallet Mortgage Expert experience. Registration and data-driven engagement had over 26 million registered users and 2x year-over-year growth in CRM channel.
• CEO Tim Chen discussed revenue growth, operational efficiency, AI impact on traffic stabilizing, vertical integration progress, and focus on quality of relationships over MUUs.
• CFO John Lee spoke to financial results, revised full-year non-GAAP operating income guidance, and focus on sustainable growth and free cash flow generation.

In Q1, NerdWallet's revenue was $209 million, up 29% YOY. Credit cards had Q1 revenue of $38 million, down 24% YOY. Loans generated $24 million, up 12% YOY, driven by personal loans growth and Next Door Lending acquisition. SMB products had $29 million in revenue, down 5% YOY due to tight underwriting and trade policy. Insurance saw $74 million in revenue, up 246% YOY, with strength in end markets. Emerging verticals finished Q1 with $44 million in revenue, up 15% YOY, primarily driven by banking.

• Q2 revenue expected to be in the range of $192 million to $200 million, midpoint up 30% YOY.
• Q2 non-GAAP operating income expected in the range of $14 million to $18 million.
• Full-year 2025 non-GAAP operating income revised to approximately $55 million to $66 million.

• Potential material impact from tariffs with minimal first-order effects currently, but risks of sustained inflation, material unemployment spike, or business confidence decline leading to consumer and financial institution risk-off mode.
• Lower visibility into trade policy implications on partners and second-order effects.

Q: On AI-enhanced search modules and traffic stability, what's driving more stability?

A: AI overviews and rank stabilization; after challenging quarters, stability is seen with expectation of lapping in 2026.

Q: How far along is Next Door Lending integration?

A: Integration is going well, driving bulk of mortgage growth with 2x upfront unit economics and opportunity for future refi earnings.

Q: Outlook for Insurance vertical?

A: Insurance revenue grew 246% YOY, trend to normalize, with auto being disproportionately strong and opportunities in home and other areas.

Q: MUU return to growth?

A: Near-term MUU expected to decline, but improved search stability suggests return to growth in early 2026 if sustained.

Q: Organic growth in loan business ex Next Door Lending?

A: NDL added about 1 point of growth in Q1; without NDL, loan business would have grown modestly.