NerdWallet (NRDS) 3 May 232023 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the NerdWallet Q1 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please

hand over Head to would Investor now speaker conference to like ahead. MacNamee, I your the today, Please go Relations. of Caitlin

QX you, XXXX Thank to Welcome the earnings operator. call. NerdWallet

Joining Tim and Officer, Chief Chief StClair. Chen; Lauren us are Officer, today and Executive Co-Founder Financial

following are release replay will update of letter our the of Relations' call. available available today's conclusion press Our shareholder Web Investor this also on and site, a be and

as FD use a information to Investor our certain disclosure Web site of intend material means We and obligations Relations' disclosing under from with complying SEC Regulation time-to-time.

reminder, webcast live a and call As is today's recorded. being

Before reports certain as events and those as we these would that statements I made Actual session, such, constitute during forward-looking factors by call risks and result statements you and various expectations, forward-looking no may and and in this and We these SEC. with to subsequent the of to from remind begin future or differ the today's statements. performance consider urge this events may we update question-and-answer provided risk to expressed information you like to uncertainties, risk be obligation that reflect undertake results implied the factors remind call a on filed discussed filed to or you remarks relate circumstances. including to or

release. statements be A call, today's a to considered measures. press these not measures GAAP guarantee performance. should non-GAAP that present will included we this non-GAAP aware both Furthermore, of in future be during should GAAP earnings You reconciliation is financial of and

CEO to Tim of it I that, NerdWallet. our Chen, over With Co-Founder now turn and Tim? will

effects guidance adjusted uncertainty at of rising strong year the here exceeded and QX, our growth volatility range continued NerdWallet, our second from to EBITDA. first forbearance interest the on to regional started bank order high In loan revenue guidance we macroeconomic student failures. and at We reported Caitlin. around despite rates off Thanks, from end

Given our reiterate few I'd to building for like a the climate, and take today durable business shareholders. moments value current to and to approach creating economic NerdWallet's consumers

value, taken credit or has our headwinds. cycle. we've for brand trust, this the trusted raise in this relentless approach shareholders. Historically, diversify and while established product cycle, verticals throughout long-term time, a to To which lowered prioritizing is in commitment and means self shared across even consumer improve aligned experiences with volatility facing turn our continuing continuously us the our the This ourselves, bar Over consumers one-stop as our improvement our has our a to view. shop,

of period and In payback, our maintain But will this payoff, both like heightened areas areas immediate in with banking visibility this flexible to investments in a these right-size uncertainty, we stay brand we invest environment. lower long-term in we future with will loans macro and Practically, orientation. marketing. means like

XXXX. For be instance, more expect to similar was cadence will it last to with in year, than to we investment less opportunistic. profitability now still expect to flexibility we full a year run our The us brand be give though improved campaigns

offset do That driven savings said, in environment the like for accounts. are by the environment. consumer interest we banking underlying certain given part ability currently banking, saw despite in execute yield over our high due loans. demand against in verticals The to XXX% diversification to seeking believe volatility results high QX across We are our simultaneously pressures verticals. correlation some and impacting growth being with earning earning We we by our rising achieved We were our inverse strategy. a in year-over-year over to rate under attractive products in testament macro others, across growth and verticals partner

So other. we each offsetting somewhat see these verticals as

share. are improvements some this slowdown, and take well helping quarter recent industry product market our performed us despite Insurance to

strong SMB year This credit to deceleration progressive also the growth cards. Though with coincides credit partner in prime to started some with consumers. of have due also we tightening growth in tightening. extend seen We

volatility, While for we strong anticipate level us cyclical cycle-over-cycle maintaining pressures in individual while verticals, execution and our growth. company lower diversification position

discipline money. will connect in long-term and growth about our continue expand, pillars; vision. make guidance, continue we and their around can and make a QX, financial decisions execute becoming registrations invest Not three vertical to towards where demand to expenses integration platform for meet improve vision only trusted but land to progress data learn, we financial making a As serve trusted current data-driven we decisions profitability, our and to efficiently single engagement. ecosystem In our consumer or and of also SMBs to shop, consumers their

and new Through topics they brand and prime pillar, new markets verticals on near In into and guidance depth to serve are we increasing meeting our acquisition our where partnerships new our QX, with channels. calculator prime engage trusted new we expand of Security land sub the Social our consumers across consumers and well our as consumers. build focused expand breadth more audiences. and leverage financial tools developed and by to and like as We

social extended demand in trending consumer current we home including reach for to brand on Additionally, topics, our the tax and season, buying channels new platforms and climate. investing, meet

NerdWallet's QX OTB. match Our On the in vertical in experiences we integration and efforts integrated consumer as which reach brand continued best-in-class further or Barrelhead we with

expand the interest vertical leverage position has to the and within we our learnings land orientation, to that leveraging rebounds. continue efforts. by expertise or cycle when challenged focused, the OTB relentless succeed drove opportunities primarily Meanwhile, we integration from loans keeping team our and business vertical see our been to In been loans rates. OTB long-term has and improvements, Our underwriting with tightening, integration rising

our enhance to service past organic and grow in growth. expanding the our to of concierge we long-term SMB year, Over top sustainable funnel for our digital playbook business diversifying invested our

ecosystem. integration, and that engagement, are trusted vertical our and we're a consumer experiences of Beyond achieving which crucial registrations building for both data-driven drive optimizing to vision financial

to experiences. year-over-year our increase driven our in XX% registered personalize user saw ongoing user part in we This a our base, quarter, efforts by

also tools. in efficiently solid of proud and pay run. volatile retention we drove to financial consumers drive improvements relentless user what including our economic accomplished because outcomes nudges, our improvements delivering business will even long more there's NerdWallet in SMBs across drove we has invest will ahead, registered am We We QX, experience, verticals climate. the relentless user are I we better with investments uncertainty know challenged, in insights believe and a but for QX. higher quality this results In currently off in while in that and

about to in I'll hand that, to more With our share QX. performance Lauren StClair, NerdWallet's CFO, financial it over

Thanks, Tim.

year-over-year of again saw and revenue that meaningful we pressures once within We at our high our million, verticals QX up execution of delivered our business, have provided While there diversification may $XXX end guidance. be the some us near-term macro tailwinds. and XX% of certain growth

million category. let's within QX $XX Now a take look cards revenue XX% the during deeper of each Credit the quarter delivered year-over-year. at revenue growing performance

had holiday credit cards Awards, our typically combined well good we Our season, of with QX see strength out to our start the vertical Best-Of a the campaign. year, coming on capitalizing that as brand as

to partners. with deliver We order as confident we feel approach consistent high has We this to a card consumers of near the tightening see underwriting began This and targeted started in continue also the to conservatism growth to to extending said cautious as more our well, matches typically that of a second with saw in issuers as prime of prime products the we our failures quarter, Though last quality impacts sub caution. XXXX regional second environment. expect ability what half deceleration partner to bank continuation year.

Loans generated QX year-over-year. of revenue million declining XX% $XX

pressures. we rate interest in Our still what the the lapping the further mortgage benefit while was during of as vertical quarter credit loans, saw another XXXX. quarter seeing of heightened of acquisition a strong environment, the And relatively shown has pressured macro still the environment by first current OTB personal period are we're tightening

partners, a consumer result, with from lower we've rise. growth seen As our interest rates as decelerating demand combined

will to loan to investments challenged within our in disciplined making levers We technologies. but be key committed continue in remain verticals, growth

when us macro immediately take revenue they these the investments not recovers. set environment While may will to outsized market drive up share gains,

finished growth, demand strength in verticals interest rate by environment. driven rising we partner with had XX% QX quarter Banking row in revenue a growing of million as its third consumer and the of saw year-over-year XXX% other Finally, $XX year-over-year. over

row, But as slow as For mortgages. growth decline we quarter believe Tim enter we in the the we wanes, normalized as environment. saw banking growth in a that that should our banking year-over-year in mentioned earning currently the a and corresponding in second previously, consumer interest anticipate over twice was more nearly we're vertical

supported insurance. beginning industry vertical the of with year-over-year, primarily insurance normalize, by another XXX% had revenue strong to Our growth driven by auto quarter over macro

on profitability concerns now we recent However, industry may growth. pressure believe put that

quarter, as first occur. decelerate Our discussed SMB saw expected had revenue vertical we to in the growth we previously

our continued we rising at While tightening rates, for and of credit businesses on the still year-over-year, boxes growing pressure impact combined interest small growth loan rate demand. XX% with seeing are medium

So compared growth to opportunity tailwinds has the strategy SMB in and be our We at last vertical more we benefit levels years expect the long-term to muted remaining. integration rates near-term believe that year. of of

Moving on to investments and profitability.

X items During QX, versus We we income was primarily earned quarter. includes $X.X the million, tax $X.X last point at had net million EBITDA year. tax discrete XX% adjusted result the increase that GAAP benefit which margin, of a income a of a $XX.X million of during

tax qX to expenses benefit to full refer more the of be tax our We GAAP our earnings significant for measures. expect reconciliation full year release will today's Please by than press offset for a XXXX. that non-GAAP

similar unique QX strength investing for Growth our banking of across mortgages, guidance We We're and result acquisition recent seen as of of combined Consumers Nerds some turn year-over-year has monthly stabilization travel. and such a continue to X% trustworthy areas headwinds with average to many provided of in given though impact still the from NerdWallet their in market questions. seeing users OTB, the year-over-year. conditions. to million investing was XX money

continue growth. quarter, growth last that revenue mentioned we MAU to outpace expect we will As

Onto financial our outlook.

of we broader of macro environment and for XXXX, and for forward commentary As know full services. qualitative verticals providing plan quarterly continue look guidance, also for year provide remains the uncertainty many our to that we to expectations. we'll We financial the remainder

second quarter, XX% in year-over-year. to $XXX revenue which the midpoint at represents we to growth the $XXX expect deliver of the million, For range million

in to see as growth from as comps well strong expect slightly We banking easier mortgages. continued

to QX driven digit year, However, QX from by cards and decline is our seasonal single this credit primarily low significant pressure insurance. more in typical

component from partners will the in decline. cards are We currently that proactive conservatism our largest revenue we credit being anticipate seeing quarter-over-quarter the of our result

in a We be first time back we continue putting have that of of they And in of ramping position strength caution. to the past the of to seen up. see one relative quality when us turn partners we our value the during consumers, this tend to

recent our improvements will gain market as Insurance healthy help reemerging anticipate profitability revenue. is product carrier grow expected the in still levels, insurance we decline quarter-over-quarter to at year-over-year that share. But us constraints cause

help For expect the we delivered our challenges reiterate revenue believe full will remain qX. I'll we to year, we lower macroeconomic and that what us weather growth than XXXX diversification levels in that

of expect range year. or at prior $XX a XX% Moving the adjusted to increase midpoint, point $XX in profitability, million the QX versus to revenue we EBITDA of million, X approximately

of flexibility our to face model. we growth of organic decline well the as ability the deliver benefit to significant Our rate as revenue a to continue the business of showcases expect year-over-year be improvement in our margin what traffic,

versus run to of spend year. last Though macro second light to environment. during and We campaigns are uncertain proactively planning brand of third the the still in year expect we quarters reduce the large scale

banking also pressures. how reducing we are short our back we've order macro versus approach while XXXX, weather previously other to on performance with investment of aligned and We lever, described marketing the regional in QX this the spend pulling

QX. Given be of similar last relative compared we margins cadence our year lower brand during first quarterly EBITDA the three to still to expect the year, to adjusted quarters

to we annual are a margin We our in year. EBITDA another also plan increase for deliver year-over-year reconfirming adjusted that yet

in investment remain will more agile as we and all We uncertain opportunities disciplined evaluating environment. weather this

metrics That and because business, keeping concentration regional be and are on has banks, banking credit said, effect recent fintechs. The being could second national rate order not partner based on that Internet and is had first Regarding news crisis order impacts a tightening. banking some own our close relationships. broader of banks our the impact large a material eye weighted we towards revenue to continued our on hikes their of

our give eventually more adjusted in term, goal exceed investment a margin levers feels are long-term while remaining the order focused control, marketing, By we deliver ourselves bit flexibility, while diversification now right should investments that on dedicated near-term to including can uncertainty now, in a to we've to and pulling short we to rates. what we EBITDA as built. While back the on XXXX bit our on higher back such profitability brand get leaning

of As far Bank, though banking recent been that Valley as items our point been remain we have have in our customer a and relationships, will Silicon a corporate SEC to few I filings. disclosed

in where equivalents cash funds diversification expand And own also to custody First, our both well allows our million $XXX of needed. the market our verticals, across as we'll in remains is we which stated of diversification look end, place, for credit, filing We of invested And quarter QX us as line to and XX-K continue only our but institutions. cash that appropriate. in financial capital of that important access in money not in corporate second, multiple the our believe as on operations. roughly majority as to

dedicated in for funnel, remain success. this with critical our top a consumers Directors stock want to $XX allocation no philosophy. as to as business announced investing today you is grow organic with to our to capital update our as our authorized repurchase our We million registration expiration and also long-term opportunities better of date. engagement Board We that provide to of deliver I plan an well

or We deploying repurchase be will capital our acquisitions stock. opportunistic also in either for of

the take We these able uncertain deploy is capital time proud should macroeconomic and and our to determining approach we to to situations. when us continue continue during commitments, appropriate during we that data-driven idiosyncratic that of expect believe pragmatic any financial to three between for even them options, face. to We balance times on allocation deliver capital you and the a we're to feel

our during We believe and for to life's tailwinds of growth our responsibility economic for with questions with also come. decisions, provide financial know to to help their a will that traffic, we to times, have organic provide consumers that combined challenging financial them mission years all navigate strong us clarity

that, ready With we're for questions. Operator?

will Instructions]. time, you. we conduct a [Operator Thank question-and-answer session. this At

Our first line Stanley. question Faucette James Morgan today of from comes from the

open. is line Your

a first an Thank you if from much and happening all the impact thing macro is very the much. of environment, how reduced here reduced Thanks like get clearly different a of guess with partners, I seeing pricing, are to outlook what that of trying are? trying demand components for business, way your accounts and are your versus seeing questions what's for some -- the to the cetera, that kind the manage that et you're think on just about detail. you just overall of to and we you the from handle

Yes, I'll take that one.

I'll actually. partner So MAU strong on off on -- consumer brand awareness, record well, robust. trends. the the are side Things seeing start side We're

XXXX. already partner half throughout side, the On had been second tightening the of lenders

the going terms in up QX, was tighter So tightening. we step and in saw into tight. across both board, bank That already a in the the failures environment underwriting. pretty pretty pricing of regional that After much was March,

in going more leading for related credit to harder lot increasing caution. a capital that we up is step concerns So to is think That's by come tightening be deterioration. is to seeing here banks, a the which by we're driven of don't to really

things February. to regulators in creating harder increase in There's by, so just come more is with future. earnings. There's around the in a are Both where lending round capital to exposure. terms they May what we to And reduced are of of all environment deploying the of like concerns And economy. this to cautious regional than being broader recent does large capital bank capital estate and regards banks caution about in also had it's bank expecting real banks regional commercial requirements were an

There's where kind pricing and a you're underwriting range outcomes. a wide affected bit. possible so And that's of seeing both of

a could could talk could tightening. worse look right? to say, the long X% banking forward, to incremental is we're we stay we time. things that a for more weak lenders, for snapback. persist longer As if that if you We see than XXXX, see regional largely reach expected it's Then issues expected, going exiting create unemployment If

variety but I'd to flexibility say the navigate facing overall, we're headwinds, of a So have scenarios. wide

ask that. I I Tim, it. Got to And want you. then, appreciate

of really been forward et thinking in changing technology, always to deal cetera. markets and with You've terms how

in awareness as ChatGPT, potential both NerdWallet cetera, and about and how of the things think risk try benefit you inform With to like with that consumers et as or as work rise you to well do how your partners? financial both

Yes.

talked right? we might to it the are we first time, So a search two access our evolve, AI like innovations capabilities. I'd nothing think personalized lot they engines? better better, will And So a and used areas be say we do its financial it make guidance, search evolve extend of how little about is last engines this we consumer about materially bit generative how in democratizing the enable and will products different. second how to terms then think the search how make

So the both. two from best will blend together taking the

[ph] is pretty AI the factual be for require things marketplaces simple, we'll to think highly in apps that is I like questions. to hard improve beat going think and I And really to for asked search specialized to questions and going a looking for see personalization where frequently scope loan. pricing, real-time then continue

how experience. we're consumer standpoint, a us about really our user help from So excited is AI what improve will products

justify of you I a advisor's to quarter, hundreds have mentioned financial investable dollars as need in thousands last assets time. So of that

house lot in really marketplace more AI can our data us a trained access views people. our help So democratize data, and on first our for party

great that, That's appreciate Tim. color. I

question. your for you Thank

Oppenheimer comes Our & Jed from from next Kelly question Co., Incorporated.

Your open. line is

my taking for Thanks Great. question.

would I imagine less on environment should competition. of in we should marketing this sort underwriting, tighter think we touch there'd your you how how with work? marketing see can where margin Just performance be

then your impacted some like competitors. the you actually how on So talk saw just go think on just about We margins company you're acquired. performance Can than insurance, see marketing recently of insurance? get your an you seems would insurance up? about And we outlook less

Just Thank for you. the can you that segment? outlook talk about

Jed. I'll start your answer Tim I'll hand with your to Thanks, performance insurance. around question and then question marketing, off it around to

on or I'll performance just allowed channels, remind into marketing And through marketing. for we a XX% So as of we really can actually And performance up, new channels. a return. an that performance to everyone, think pull time, depending to our create and moves. as proactively diversify us seamless make part and think as has we as over performance marketing, traffic connecting can back step needed start this means we expense about comes nudge users dial such as our party our as initiatives. more of take variable end organic we registration back first a to And able marketing about more to money and data, we're also smart registration engagement experiences And

QX, in, dial to continue we're time, same saw in And as pace investing of users needed. we're growing that lean channels. in continue through able able the So also as back our order, At short opportunities. see we in we'll to XXXX you these and to

sort I think stories really two of Jed. there's so And here,

one, back areas, the pull or that demand, consumer that the as see can well. competition lean us But less good we're to help different returns we'll on absolutely continue think dynamics we I where we will yes, see potentially determine in getting. partners as returns. we other first And we in see with also as

we'll we're that marketing. the that we disciplined net-net, we think And And performance how about to make our be getting we'll continue sure in expect. so returns

Yes.

grow as bit we a when helps least in related. out In at insurance, it well, right? really able was about. when normalize, are quarter our over marketplace insurance performance due of little we consumers, industry that auto questions we're the to for talked XXX% insurance, personalization, new our to us two In in driven terms products marketing increase improve the So that but by we also It this to year-over-year. starting revenue

of Going the some into resurfaced. carriers concerns QX, from yes, profitability

it's creating So some headwinds. short-term

through guidance into how out going And revenue with QX, headwind. our and visibility cards so long we better the as these market. that on so from continuing we is called really quarter-over-quarter issues user and declines capitalize experience last. to to have along in headwinds these is revenue we're expecting can QX in that focused We return What great don't invest we're work carriers to this

buyback. attractive implementing balancing just Got then it. you. come as stock talk potential valuations repurchases the versus a you M&A, given just up, follow about share you're Can if down? how you're And Thank

Yes. Thanks, Jed.

conditions. value believe NerdWallet to factor that price for that investments, includes in remind and flexibility decide We decision And optionality long-term both can deploy as allocators, to a now in M&A, we just of giving take the approach put during right as the organic just pragmatic we We've any capital any everyone today. right the we're well now be to that capital authorization to decisions allocation place for that shareholders the always same repurchase. is the M&A share best ourselves in the between So opportunistic we'll us capital provides that mentioned able with comes opportunities we're for evaluating shareholders. the to and I'll levers creation. make we as returning key make. and past choice And internal that allocation, that is also it And when

you. Thank

Thank you your question. for

with from of Our next question the Patterson KeyBanc Capital Markets. Justin comes line

line Your now. is

Two, Thanks. if I can. Great.

share margin stronger levels place about as expands investment normalize? Tim, to to to follow think and continue about coming should how you. then guardrails Thank ensure the that, in that we for to this EBITDA of you up And period gaining for of the this think how First a market year? conditions out do right are Lauren, when

Yes, the Justin. question, thanks for

think necessarily well term the In venture in basis, core right? any terms level, longer payback, company investments versus got short-term quite irons in of number We're These investing essential investment those absolutely investing a brand that bounces the for that funds on an and from operating investments we've more investments between in optimize investments operations. ongoing We're are don't marketing. say fire. So ventures. it's right all in-quarter of I venture I'd

that's business EBITDA that areas that us in of flexible leverage. have many a to the And your business. investing operating we ton margins, of And allowed be invest on in Yes. adjusted in. has we're able we're really we're also the And proud opportunistically to on question what

the we relative last we to uncertain in slightly we times. to year also on brand, spend this will but said And more short through so we some that pull continue that We'll back term, of prudent partner we in lean our very use said, returns. back performance short And order demand demand we pull in we marketing. see see be when as or changing. we'll we can also But consumer go great as expect in when to of

long lot going term, return talked a business though, much couple the our just I'll that levers have. that leverage that we Over we've are and a levels. of our has about to surpass everyone, the remind how eventually again, expectations on the to XXXX we're And and

over brand hit ceiling that spend one, logical a our time, true in fixed so we cost. a So believe and becomes we

The users overall more all around make engagement effective. registered of second site acquisition and is our our on that and will channels the how

then talked up step cost areas the result in expenses have R&D more said over becoming a a company. we leverage maturing to recently we've to gain base. And a as as time. result like And our of of expect don't about change public also We that in continuing

Thank you.

you for your Thank question.

Securities. comes Squali Youssef - from question next Truist Our

is Your open. line

Thank afternoon, you Good guys. much. Great. very

So questions. maybe a couple of

think things the with I hadn't you that that in kind demand linearity backdrop demand, of the you trend turned felt to the can And SVB kind the of of early throughout or April tightening else? maybe little now seen around catalyst just you you? more terms Was of there how rates, quarter? you For was obviously, starters, on rising for when talking anything was of then about. kind of maybe it did reported I QX, a mid you're color February and think back provide

take I'll catalyst for of a Short so was major yes. SVB step that tightening. that up in answer Yes, one. is some a

think perceived partners saw definitely really I internal their priorities. that be at to reevaluating point what I some

timeline you tightening outlined, end yes, And up right. of so March hence, sounds in step real the

that Lauren. gauge you've a follow versus kind QX, wondering into us quick up versus then Within your for bit maybe continues Okay. and that for unpack little credits just can And to a maybe in that that loan help of expectation XX% if assuming growth growth April, I obviously others. you outlined was

Yes, more sure. a little I'll give color. bit

prepared did seasonality. to you So of quarter-over-quarter, And and as of out digit things top line see for we're of QX this low see normal a that my single QX, can that from one in the deceleration QX, that's remarks part in call is to we areas. a anticipating couple I the our in tend guide, decline outsized

So one first I'll is out credit call cards.

growth seeing and pricing. slower tougher partner bit model. as which of expected of recovery a We're from rest tightening of the the XXXX we So comps result pricing a expect more now both for conservatism, and impact of we risk to

again. And as area is insurance. we second growth. arising The still the call I'll expect out are But Tim mentioned, carrier issues profitability

expect think to and That banking. about territory, about do continues a we rest We unchartered But bit to expect as of going overall. that in think we changes slowing. do getting little start business And perform. given so but But slightly category. growth, to pressure loans things will easier, we the better we we put the we're material that don't across don't QX expect much we then given the more comps start lastly, that's expect to And talked change to year. that

Great, both. you, that's helpful. Thank

your Thank for question. you

Our Sandler Ross with Barclays. next question comes from

is Your line open.

Great.

just [ph] up follow question the to mix a asked. Just

So and like north at deposit this it first are million banking XX seems quarter. point the in of revenues

offset growing see going even the insurance credit to to you're and strongly, enough it's declines so that XQ. that's though into in card And not large very

out think indicator of talked down, card banking if just now. like you willingness in for I And to put like credit from new dynamic case, freaking different So day? guess deposit it two partners, up? would but the their the acquire big to a kind a about I we're card start see issuer you the or consumers customers, are said, still what unemployment as demand when to every one, weakness that's questions. credit where as not or or second, take to turn it your slow then One, would why money seems about

just So And be start what for conditions credit early or you I going of credit road, then got up. signals turn is the up be down to guys? like would loosening it card could like sometime to one follow that

Yes.

Okay.

So in in terms of territory. uncharted we're banking,

Until for year, XX dirt So banks. capital we're been of really, pretty cost last cheap years the old. has

So to in a X% depositors. paying you're account, point, savings for if to a your going of yes, you're lot XXXX, lose

again, rates, prior expect more even So we there'd a be valuable right? little banks. territory there. years it come in to if prior we'd that, back I'd just world uncharted if in we'd zero reversion relative into like deposits more refi, offsetting go But a If we're healthy levels. -- ongoing of like a a So business guess stays things rates bit, pickup at to in big expect as that I say also to become

how that So lens apply trying to to future. looking we're at the

hard weakness, partners would credit question be second away they a seeing are is on the On of lot business excited think I normally we're forecast, we really to right? think to from this underwrite. just walking card skittishness So what

regulations we on things some of unsure to banking what's going think it the ratios as scarcity like being go forward. being capital by of is I happen driven with capital or

also that possible It's possible see it's snapback. think I we a drag longer. we bit things on So a that see

think we how of dynamics. kind are those those So about

about, have 'XX, there right a guided you come going that the do kind you any feel it, of me. feel it reduction cost that's awareness to that's into these going now to like organic That's that the in reduction things NerdWallet? heightened on given then to fray the Got later need And brand actually on helpful. and performance on up sustain the impact talked you margins proactive Thanks traffic, that's so is year? marketing for do around And that lot. just this to sufficient like is going enough like marketing you other or for side, then

Yes.

in of quite reduction just everyone, So brand of on brand. spending investment, bit still terms remind a I'll the in sort we're

and we that awareness good that from in all level get so area. the signals And about spend feel in investment, we positive our the other

are spending. it, while we reducing we are So still

-- we so amount the And that's think investment. right of appropriate

flexibility. is levers do those throughout to And despite of maintain feel the line. we on help do margins, we uncertainty In some feel the have our there year, disposal like the terms of we like all at sort of to top the

call are planned out we've inevitable, also always I'd and cycles accordingly. Yes.

for powder it means can think And it's that are opportunistic. maintaining disciplined so things really good. when dry we meant us, always be also I staying

we you look back, agility that see if you'll So of lot have our costs. a on

back Second marketing half adjusted scale pandemic. in investments period rough EBITDA a drive really post example, XX% we're to our margin of able 'XX, for and

pretty overall to be So, adapt we to yes, these feeling that should able conditions. good

you. Thank

question. Thank you for your

Blair. William Our next Ralph with Schackart question is from

line open. Your is

the on wanted you've QX, just outlook Maybe lower for wanting now back Ross' had mind what reduced comments on growth help to to XXXX? of you extension put Great, Thank side be up, lower kind macro also to invest the Would repeating that XXXX. follow I some you Lauren, just guess I talked stronger think environment and macro during to certain you XXXX better about But the you when projects you about of the expenses, offset to I still are question then and in I scaled you. growth some for a just also lean on turns. Tim, sort and/or line? thanks. bigger think downturn and in projects on said certainly the And talked have than eventually ask, top to than being of waiting there maybe for about I -- macro guess some

venture we short scaled The projects. term haven't has our answer area pulled back so of back a Yes, is brand we longer really payoff. any on on

short-term us gives a lot of it flexibility. So

So need. haven't felt that

Yes.

revenue mentioned, we're of our the In ability execute. confident to diversification, our we're full of because guidance. But providing so year growth, I in not as terms XXXX

the as year qualitatively And adjusted year. about we to we are that so is EBITDA prior some about. improving We uncertainty feel XXXX a despite though of think the say we good committed or XXXX full for to still full margins basis year talked on our did we that relative

Okay. you. Thank

Thank you for question. your

Christiansen Pete with from Citi. next is Our question

open. is line Your

rejected does being for their for I'm tightening, a providers afternoon. attrition the before, rate, lower Thanks curious, level translates standards, MUU that manifest you're the banks of of attrition? question. into are a rate for into if factor guess but in Good way degree guess. of seeing that on I'm not when when I match all? tightening or this they're you've people one any at If is sure I front experienced potential for, that that tightness part products bounty applying are

answer short the so levels growing of really are everything Yes, record is healthy, are trends positive. no. we're awareness, Yes, seeing from brand those MAUs

trading have remains previously need margin, terms we're real. down set, consumer talking option another the product or financing might in that about to is who of whether be would On but for for qualified group SMB, and of their one some people

that give us, it's most for important time. option us they at for So to can get best that the in point possible just people

So what on. that's really focused we're

also I'll and just Yes, add.

users about think come talked they learn for we they're Tim especially to to shop during our product. a site to of of educate reasons. the coming though There's number to a coming lot themselves, that site, come folks financial for and As to times. about uncertain

now our some on dynamics of seeing And terms site. the in to our or not consumer traffic that so right trends we're with of demand partners,

both you up. clearing Thank that for

about rates one. you guess Just pricing think But some I terms can it in less? stable down dynamics that year, relatively mix, I I revenue Is you of last which growth talk MUU some throughout or to qualitatively but declining, and see the rate outpace like overall or -- year Lauren, overall, match ASPs aside the in growth at one pricing? match of from of sense. you the should the expect least makes commented guess,

to a expected benefits quarter is although and throughout continue revenue, MAUs but lesser What we Yes, that so pricing last we to and than pricing, still go are grow slower to as said remind then as the growing, improvements I'll conversion see of move also we maybe them year. everyone. we back this just extent

as talked of that some in our tightening about still our that, of healthy conversion And the dynamics seeing demand also things pricing of And remain consumer with and that rates and as healthy. traffic site and will some potentially we're talked we anticipate well. impact some about the just Tim to like remains so partners. We do

appreciate Okay. Thanks that I it. for up. clearing

you. Thank

comes from Stanley. James question from Faucette next Morgan Our

is Your open. line

growth? Hi. want year. and that show rest the up just a commentary quick I make around to expect I makes comment saw and able you second basis in -- thought heard the to you those sure improvement And in targeting just Thanks follow first that you you know a quarter that in targeting ask I make in for things follow-up on for year-over-year prepared a remarks were but something to revenue you correctly? growth revenue understood of on the Can I I the the half you It that's just the question. each EBITDA half. than the I of maybe quarter. second did repeated that be sure growth, qualitative you understood less were maybe 'XX. in the

Yes, sure.

me Let the with revenue start piece.

quarterly what we we said a of accretion revenue So a bit for show XXXX. of last in is adjusted around growth we is expect to relative And this full year. yes, adjusted as decelerate relative said margin that that color EBITDA, gave XXXX the we what well then And little terms also bit QX to little to more we expected to of the variability. to year year as of for EBITDA

we expect expect pull So and QX. a margins brand and we QX, still spend bit, in continue but QX, to to the QX brand, lower be to those on although said EBITDA on than back adjusted little we in spending therefore,

still -- on that even year, I'm say, you're take make a tough in that the of quarter, objectives? on it. planning you're now we managing deceleration expecting And should then that, sure of expenses be in you instead what you guessing though to second from first of still the second able though year? and hit half that kind the the your little Got we just grow to expect does EBITDA that to half to Or from is just that saw

Yes.

So full on we year haven't guided revenue. the to

we past. As had now visibility have do we've Tim than mentioned, lower the in

really are can focusing that we on So control. we areas

we'll the investment level to manage term as term, for the in And so right long of invest but the for continue well. also short

Great. that Thanks for really clarification, helpful.

absolutely. Yes,

to like to would your back for I Thank questions. you for now it remarks. very turn closing much management

Great. Well, thanks all.

to our thank for Before Nerds wrap quarter. up, work this we hard I want their

While near our opportunities financial in our positioning of are NerdWallet certain to SMBs, and flexible will move remain vision Thank to to macroeconomic our and being a the term, business, we grow conditions consumers find ecosystem. serve trusted you. inevitable closer

program. conclude conference. in participation This your Thank does you for today's the

You may now disconnect.