NerdWallet, Inc. Q4 FY2025 earnings call

• Tim Chen mentioned the quarter exceeded revenue and non-GAAP operating income guidance, with growth in performance marketing offsetting organic search declines. • John Lee detailed fourth quarter results exceeded guidance due to momentum in performance marketing, trailing 12 months adjusted free cash flow increased to $118 million, and Q4 share purchases of $51 million. • Discussed revenue drivers in consumer and SMB verticals, including insurance, lending, emerging verticals, and noted caution on banking outlook due to lower interest rates. • Announced change in financial reporting from Q1 2026, simplifying revenue reporting to consumer and SMB.

Fourth quarter revenue was $225 million, up 23% year-over-year. Non-GAAP operating income was $25 million, up 47% year-over-year. Full year revenue was $837 million, up 22% year-over-year. Non-GAAP operating income was $96 million at an 11% margin. Fourth quarter total revenue was driven by 28% growth in consumer verticals (insurance up 13%, lending up 141% with personal loans up 264%, emerging verticals up 57% driven by banking) and 12% decline in SMB vertical. Full year consumer verticals revenue grew 27% to $737 million, SMB vertical revenue decreased 9% to $100 million.

• First quarter revenue expected in range of $224 to $232 million, up 9% year-over-year at midpoint. • Non-GAAP operating income expected in range of $28 to $32 million. • Full year non-GAAP operating income expected between $95 and $110 million, with first and third quarters expected to be strongest, rest of year softer due to organic search headwinds and cooling banking growth.

Q: Michael Infante asked about LLM-based referral traffic being incremental and quantification of organic traffic headwinds impact on 26 profitability outlook.

A: Answered LLM referral traffic is incremental with higher conversion rates, and focused on NGOI and free cash flow rather than margin percentage targets.

Q: Jed Kelly asked about vertical integration and leveraging AI.

A: Discussed pairing brand and reach for stickier relationships, regulatory and institutional buy-in challenges in financial services with AI.

Q: Justin Patterson asked about AI leverage internally and vertical coverage opportunities.

A: Talked about AI use in internal operations and consumer-facing products, and nascent efforts in new wallet insurance experts.

Q: Justin Whitney asked about traffic sources and efficiencies.

A: Stated performance marketing working well with brand halo, data infrastructure, and vertical expertise, and focusing on internal cross merchandising for efficiencies