NerdWallet (NRDS) 2 Aug 232023 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the NerdWallet Inc. Q2 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. advised conference be being Please Instructions] that is today's recorded. [Operator the now to like would conference to MacNamee. I Caitlin hand over today, your speaker ahead. go Please

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

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

and as be We Our website, website available from Investor means conclusion today's shareholder call. following to certain and Investor and this use material Relations of release to time obligations complying are available the replay press our of disclosing with update intend time. our FD on under a letter Relations a will also information Regulation SEC of disclosure

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

certain future and begin statements factors these may result be and of and Before today's or statements results implied and would events question-and-answer or filed during the remarks performance like this Actual by filed and forward-looking risks relate including statements. I from constitute call as you expressed such, to with may to SEC. we session, as a those made in reports expectations that to uncertainties, forward-looking the differ various discussed remind risk

to obligation this subsequent you and risk these we undertake circumstances. provided that or events no you factors call urge to We information consider the reflect update remind on to

performance. of should be You aware that not be future these a guarantee should considered statements

items reconciliation of release, non-GAAP with reconciling are this present press non-GAAP efforts without we to to will both measures. we GAAP Furthermore, unable calculate A call, is and today's where during included GAAP measures confidence. except earnings in certain reasonable financial

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

financial supply our market all operate is clarity and for grow decisions. cycle. to SMBs the cycle and the is financial our share Nerd's to larger consumers guidance of NerdWallet’s trusted to to of mission Caitlin. market services We with most Thanks, strategy within provide life's this

our the outweigh profits by quarterly the than and our to the affinity doing expect we'll long-term maximize for sharing Today, brand context run a run. year. Achieving this users vision through in short-term in second to the short success, we headwinds half at in right tailwinds, of to least tailwinds cyclical headwinds requires rather of solely results this be long build operating

if way. macro headwinds the in remember But and you to I ask to a independent thing other one a and factors, growing and could in taking each are over offset that we is sustainable share market these today large durable, time, external those tailwinds of in come years and

addressable primary XX% CAGR with highs in all-time And financial advertising digital this brand share three-year and robust a US and XX%. of by market driven CAGR funnel expanding of services with gains top Our also aided market, awareness. is the of has three-year growing increased in NerdWallet XXXX approximately

In QX, with consumer resonance in in SMBs loans verticals and consumers inflation. severe our headwinds insurance profitability across driven brands by and cyclical help carrier challenges mitigate

providing provide credit in we consumer significant of the attribute financial we achieved factors. and SMB. market share of our cards, track our including and travel, verticals, we've year-over-year EBITDA to investing, growing and a most trusted continue those those spite experiencing questions, result, for seen to headwinds, consumers' of in engagement guidance Across growth home, As We record all adjusted financial revenue trusted guidance.

information. recognized has the At financial same many the consumers find team time, ways new our

smart been podcast, X.X We of money which far downloaded the times our so growing this audience year. over million are has

like YouTube TikTok, Instagram platforms emerging also are and developing and content technologies. embracing We for

where give ecosystem our our SMBs way consumers our money. a consumers vision, and share late trained financial consumer single will can to we content launched our In a chatbot with Increasing their new fuel of about platform engage beta learn, make trusted on Herbalife NERD mind QX, long-term AI, decisions and guidance. a a shop, or to a

In made our and registration vertical growth three progress and integration, and data-driven expand, land pillars: meaningful across QX, we engagement.

our In expansion addition across verticals reach serve brand in to and the quarter, leveraged verticals more emerging we our to traffic we've further strong and seen consumers. this

of In experiences over Canada, we and launched a new MUUs year-over-year. number XXX% consumer grew

These auto our also US cross-pollinate vertical For content, in goals not only expand our a launched building with registration out overall progress estate recent made we've driver consumers, security planning wins Medicare, we objectives an strategic to other verticals, traffic, contribute our they our to and social loans, and registrations. and emerging of top grow marketplace. land

and integration Alchemy continued to reach brand achieved with OTB focus loans with integrated where team, is primarily we pairing our these experiences. integration on loans NerdWallet's The identify voice consumer technology instead. QX, on a credit Vertical best-in-class when the customer transfer by better personal bundling OTB's cards In able be would by refers a barrelhead to card the to consumers our experience is cross-sell. served a leverage to credit

direct we can the has effective that owners qualify consumers be may better that have with SMB groundwork personal for or products experiences explore to provide business doing In alternative can outcomes. business they not we wouldn't while for team our this, may improved testing believe Meanwhile, monetization. product. more traditional considered begun for our laying loans them that who loans They

and to bringing other NerdWallet shopping our improving these funnels. forward experiences We learnings look relentlessly cross-sell to

motivated This our our turn with they register consumer to money also grow that consumers questions. we us their all to NerdWallet build share, allow are mind will percentage relationships and return we NerdWallet ensure As engage to for and of users.

a the again and consumer we of that registered return QX, In At give in experiences our year-over-year us to increase reason XX% again. drove we enhanced cumulative users to a time, have invested our in same number users.

in our allowing We help app financial search better to time. categorization functionality additional their and launched track users over

improvements As this to a we driven our engagement. result user have of work,

Lauren In a this provide StClair into CFO, financial insight performance past more will our moment, our quarter.

strategy by quarter. the am and focus our executing brought energized am our Nerds current particularly on While proud climate, of I especially have the given results, velocity this our I to

our advantage new our new customers competitive to trust our find leveraging improve relentlessly and business. reach are to consumer in and ways to serve delight We consumers to

Lauren. pass With I'll to it that, over

last should our trending We're proud quarter, seen guidance. outlooks Tim. revenue tough and was QX quality achieved of in of lending be lending high previously $XXX that delivering near-prime XX% end first. sub that credit than quarter we above Since and better the this and to the a we've million, Thanks, year-over-year and feared unemployment the of and insurance seem up face environment, improve of

the uncertainty deposit spend base still impacts revisions from are pandemic. the the of sheet balance their possible of as rate banks lending. driven excess conservatism to a of stickiness the last taking their The consumers is approach Basel III by and around hikes, conservative This savings upcoming

within a take $XX each revenue Credit QX we'll performance revenue of the category. during the at declining Now, quarter cards million, X% year-over-year. delivered deeper look

by As quarter-over-quarter and we during a decline. vertical, the that mentioned QX credit last cards tightening quarter, we're headwinds to consumer-related in partner typical to products increased facing led prime extending our seasonal than larger

confidence the while sheet-intensive we transfer persist than Partner sheet. healthy, year, believe with financial should relatively the behavior expanding tailwinds seen balance during their as the second strength we when quarter. believe still Consumer in in that half in partners in cards Though we've balance the demand remains indicates, the our was this. trends matches that market. see current is issuers of throughout challenges offsetting And such consistent we and more regain are balance areas, taking we share will card

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

this from time Our on to periods now year. is mortgage comp vertical, declining throughout faces easier of starting the still while market slightly expect basis continue we as XXXX, year-over-year a to significant rest headwinds the which

back at loans, with the match partners. a as acquisition better rate QX of we our accelerating the progress On demand of we and OTV growth our integrating saw consumer during able to were personal

last to Just mentioned quarter. reiterate we what

environment We are investments recovers. making share up committed when take loans set the in key technologies to market to to us macro

rate $XX Finally, to year-over-year. slow. combined finished growing XX% revenue year's interest as above increases XXX% growth previous last softening high other consumer of versus QX verticals to quarters of begin we while still demand, compare with with year-over-year, growth, as decelerated levels, Banking signs million,

been believe banking and should bit we growth quarter, in a last mentioned consumer as over-earning to As moderate, slow we've interest starts vertical our further.

growth inflationary gain SMB underwriting as revenue in still growth revenue quarter seeing to grew allowed share environment. impact recent product we XX% year-over-year improvements conservative had persistent for us XX% Our with despite our insurance challenging a year-over-year a vertical are strong headwinds SMBs of as rates.

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

Moving to investments profitability. on and

provision. tax of be million includes last remainder to $XX.X GAAP the tax earned EBITDA we $XX.X a quarter, last a in net year. QX, margin. point a versus position expect of During XX% X to at which a we what million, the adjusted for million expense we We year. $X.X had income a increase loss mentioned of Similar

year-over-year. well in result refer as release our to of Please provided a today's areas their in was guidance impact of trustworthy to measures. travel monthly GAAP as to for and banking, acquisition unique nerds to earnings a of questions. million users full X% the QX, Growth many turn XX strength press across to as the many non-GAAP up We continue Consumers our such for of insurance average NerdWallet, OTB. reconciliation

to for both recover. mortgages macro has similar still environment headwinds We're purchase year-over-year from seeing as the yet and refinance

learn our growth shop Given with we combined MUU and that outpace now consumer for content, growth demand should current revenue revenue expect during QX. pressure, consistent

our financial to outlook. On

and XXXX, plan to and environment full We look our provide verticals qualitative for expectations. for a commentary to the also challenging year expect many continue providing of forward we we recent headwinds quarterly of remainder guidance macro persist. in we'll to As remain

million, third range million quarter, X% midpoint versus of year. the revenue deliver the which $XXX the we prior at to to expect grow in would $XXX For

albeit minimal near-term expect loans banking easier slowing our macro from verticals well in slightly to in the with see comps changes We continued, as outlook. as growth expected

expected muted digits high of year, we're still to this latest digest will several seeing. we to the year-over-year during more the increase second seasonal decline half the the typical for as conservatism is from QX partner believe industry given quarters be issues. Insurance profitability QX single take will to it Our

lower consumer quality last seem strong year. the to all delivered We partners and demand And relatively we levels our value the still consumers, the will an face remain extremely continue year the demand relative revenue the a comparison across products. of of second consumer remainder will putting deposit in underwriting strength. of that half board, growth and a we tougher healthy expectation to fundamentals see bit for prime was in especially was in what a This when QX position while than from of led us looser

to Moving profitability.

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

in the Our improvement to significant benefit revenue our organic flexibility the of our model. delivering traffic dedication deceleration year-over-year as margin showcases face the business of well of as

running still the another campaign last reduced have are we a year. so to during quarter, third expect spend We large-scale period versus brand of

previously we're seeing Aligned will we've performance with marketing lever, positive described profitable momentum approach lean where how growth. to we verticals deliver our into our to

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

that We EBITDA points plan incremental over now annual XXXX margin in year are deliver X XX%, resulting adjusted also our versus XXXX. increase be that margin should margin reconfirming a for full EBITDA of yet expect adjusted in to another year-over-year roughly we and year

metric a moment release disclosure earnings take to letter discuss want to that today. new we shareholder our press provided the also and within I

disclosing period. We the compensation costs, or now and less software EBITDA adjusted stock-based during non-GAAP developed income were which are operating capitalized internally

well progress make to as will adjusted report in of EBITDA levels We OI profitability towards and on both. as both continue improved non-GAAP

expect efficiency business internally compensation. getting of hold for are both X% believe annualized non-GAAP those in margin as we as you, a per additional that closer as We investments. a for We the disclosed for shareholders ourselves accountable single-digit newly included our year well fellow the to as XXXX. stock-based XXXX part the mature and believe deliver to OI doing full run the mid rate well with And margin approximately for employee expenses of metric are we

experiences remain that financial commitments destination reinforces for uncertain mission us challenging decisions grow relentless questions economic dedication financial our even to consumers consumer-first times clarity of on all and Delivering We the during financial conditions, key believe model. during and help navigate cycles. business credit our to life's resilience for a across provide of our to their will

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

Thank with [Operator from first you. comes Justin Our KeyBanc. of the Instructions] Patterson question line question. Please your with proceed

of just you. revenue target. a fitting behind for the just you assumption a given these afternoon. great what's over the just digit next year, the the Is parts you think I'd mid-single That a letter, the to then there about change headwinds about bit ended I curious, in little a achieve advertisers moving good confidence it sounds hear just how Tim, progression the you stick progress you, all that that to little chatbot any the Lauren, passing just Thank that consumers and Nerd engage of with AI target? and wanted did Great. in to non-GAAP with more that how where And in Thank I'm year? love environment, operating bit like giving NerdWallet could next time? into talk chatbot macro margin. beta.

Thanks, take first Justin. part I'll the here.

our operating that of organic continue show adjusted type to EBITDA macro the we're what we given as So margin as accretion in. our result can leverage we margins well we income disclosed that I'll newly remind non-GAAP a in metric, operating confident of both as of traffic, regardless have feel just everyone, environment

As our quarters, about in more we see we're you as this as variable up marketing product needed. we're of as as being we efficient reduced to We've some or that can spend, on of and spend. use with then cost lever you've our and and over can really like headcount year, back nice marketing of proactively the couple leverage performance also areas pull seen engineering. see a and in brand show sales about We've R&D, disciplined investments incredibly continuing talked past our the

our And talked about in we bit then little G&A. a

step As of in of up any see sort you the up a and we result becoming to further. company, expect public a step cost those don't

and to can been we we've into you and showing things expect the over we move see the happen those so And New same all of as the well. Year into short-term that leverage quarters, couple how as last

and the In on how around levels us addition, we've talked more compensation stock-based prepared seeing basis. a remarks mature head per bit in reach little we're a

that a from And with perspective. non-GAAP so margin accretion will OI also help

Yes. And macro XXXX AI. dive I the into can speak to picture I a big bit before

value management banks records on there's has generally appetite hikes track dynamic, the her continue sheet about finalizing, regulatory reach half, post-SVB so and consumer you grow floor, increase the of remarks, a banks demand of means happening lending deposits, we as our consumer that the are and a things the a hit in have metric as kind franchisee. just we lending, bit during prime where near-prime lending to lagging So every a slighter. speaking, in our be first but brand balance side, probably risk in manage through say in the traffic We Like bit as better a bit work awareness, more sheets. brand the rules and trending affinity found their seem are coming, over feared. was might a quarter, and at to what last outlook unemployment There MUU, conservatism consumers few rate I'd than deposits what excess of balance be brand changed Lauren their and is like previously right? so credit default But mentioned the

areas sub-prime like and growing relative of to being subdued in transfer will credit Don's second recovery you've XXXX facing show of is And this probably half you're loans a that second a last personal year. say, cards, seeing And recovery sequentially, up are half in got versus, as near headwinds follow whereas prime. [ph] the there

in those rate exiting as back-end. and off if could materially expecting more that we right? a high soft and in and above revenue below fight longer of it XXXX in next XXXX, normalized say cards, are step-down a were few the we Fed look because people than was needs loans to year, now probably the years on insurance, recoveries into and recovery inflation possible In rates a to a another there's And we lead XXXX, more that period our dramatic to growth order say landing so anyway, I'd scenario, few look scenarios back

got So we And our pushing scenario. think on efficient. in either internally We've we're being plan. game

remain here. financial giving excited it. around is content, AI, we a our of it's NerdWallet way by engage the new with terms guidance free feel and trained chatbot consumers on our yeah, with play to possibilities a In to NerdAI

on personal things pages. to or iterated as a product be lot next article an is on summarize can like we overtime It's live like help things and of navigate to finance It and our now these this have to the article. see Beta excited features, do all hypotheses online. you relevant

our One moment for question. next

of Squali comes question Youssef question. next proceed Our your the Truist. with from Please line from

Thanks on the Robert taking so like was was. guys ad Yeah, is of spend, for video, was down on based Zeller Thanks. new brand curious, Youssef. spend This on on different performance taking questions. that channels, is it And for channel why looks I'm are increment? in like our just guidance Hi. your this up estimates. or my off year-over-year, short-form you

take I that. can Yeah,

just a see well provide out And So areas, and three investment organic, which as the shareholder marketing spend. Q, brand. big of as marketing and in you we percentage a as the sales the in we reminder, letter do as our between split call can performance breakdown our

So there. see in you can those

as adjusting investing that we brand and we're campaigns, the As reducing based spend, still macro to on in and we well, flexible that. last in we've seeing, being the that while area. mentioned We're are be things are large-scale conditions on call nimble proactive like

differently. We pullback as dial costs see marketing, really as this or variable we needed. Performance it can about up think slightly we that

either returns easily pullback behavior changing, areas continue in and of as because seeing areas well. demand in partner in we and to the lean seeing returns, we're our we'll where so changing not can nice And where we're consumer

do you can that. expect So us to

to a end a marketing, an to it almost performance site, well. on registered folks see them as get then them it it's mention and I'll move we makes make out or us back to to as the thing we proactively get means reach for way other The and nudge when when It's to reengage come new And to sense. with things. them a smart them can time money

but we registrations. getting means again, a to by So costs, an see more it see also it variable end as

despite bit just record Look, awareness record and half pulling add. I think with mean, can back registrations, to in it's a I growth brand Yeah. see I in first cumulative the XX% along exciting MUUs, on brand. Yeah.

I year brand campaigns, first right? means XXXX learned ensuing to our that year. we we on and think things. to full we of this, trades going for can new is where our buck each smarter bang get a and And hopefully, spending we're we're our about relatively some And bigger get spend.

So keep down yeah, info. making on as more we'll get and adjustments we up

And to responsible related or Okay. development be software Thanks. the ask on the disclosure what chatbot And building or through interesting. very if just I of if partnership Thanks. free was if a know. increasing one AI, I more costs clarify thinking what the and that that operating can the expectations to forward. for impact let you if in-house the breakout over or me wrong, thought that I'm of feel year NII. from And guys into tied next that's operating want AI going the I cost just non-GAAP if to income, it out are is if so? will about that's non-GAAP all is

third I parties. we're say OpenAI. leveraging I'd mean, Yes,

The side really own That's behind our training it's thing. really a so secret variable a is sauce big operating content. the on And basis. this not expense

to not And from great a get the but perspective, costs. more huge as can site our So effectively. on I yes, really impact things a well on as again, summarize content people -- -- it think consumer

relates AI. we very it OI that I can And to than comment on looking but we're different non-GAAP initiatives days, other it the AI still doing. this don't see see question we're early as at Yes. we

term And like while so in we're continuing areas long to efficient invest the R&D. more for getting

to other treat initiatives. again, so And we similar AI

to investments. this No, reason the all your way we quarter. around clarity our the providing compensation of disclose past, or things disclose as not to about our has well. question need or stock-based want in it's as metric disclosed talked how business, metric as really well doing about Again, non-GAAP around aligning capitalized investors the was and OI? non-GAAP internally true software, that's our we of cash the so new why as OI the And whether cost think part we operate that for of non-cash. they're And Tim

we felt the something disclosure so that And us shareholders should accountable hold that increased was for.

Okay. Thank you.

next question. our moment One for

next Our Morgan of line with James Please Stanley. the from proceed question. your question Faucette, comes

Michael while of sort if decompose taking Lauren, It's is Thanks everyone. help how both question. be Infante sort of understand mix of matches, and us you are of lower, sort Hi, of volume I'm pricing could the to matches Tim, our for between just trying curious lead pricing for evolving versus decelerating? James. might migrating volume

Yes.

So underlying I'd dynamics to me this to similar in as having right? value franchise matches volumes. and core But say, match XXXX, characterize the around really is

So to right? is -- really What's balance transfer, intensive some in the want on they mentioned that's more especially back sheet balance that lending how that much actually areas in now like areas. are those are financial right? right happening you healthy, do quite pulling institutions

interest with that's of deposit and happening stickiness all And Imagine the for stuff other given right rate can changes. you're that hikes be X% subsidizing kind now regulatory and a a year consideration that or really interest more.

bit think past to just We that's we conservatism. a similar so think and cycles. very temporal, And it's it's of

there. account for Understood. going of back the over on that's ultimately guys are several of to the and savings Maybe sort How sort as what just thinking high-yield the we mean sort other near get some medium-term tailwinds understand half particular, quarters. rev the in of to growth normalization obviously, last verticals, you about

banking, the it's specific part on it category, verticals other just for of doubled in a and reminder call, Well, than QX. our everyone to Great. more

-- rates to deceleration. see starting we're are, we'd little rates to though go. normal back if than a few we revert Like on a environment, we higher where currently. in stay to they back yes, banking. probably expect lower a a The probably saw are zero of But bit So where to see if new years macro a where really go levels ago. depends rate we we

pickup in mortgages But we'd business our also expect sets that conversely, this. a

big engage. a So example, pillars the our than, of note And a bit audience growth of personal for register loan really to I'd banking, shines, different hay with shoppers. sun that is is want make picture, we while one and this

So it's a to expand a great opportunity register and reach. our broader audience

Thanks, Tim.

for our question. moment One next

Our next with comes your Jed Please proceed line question the from Kelly of Oppenheimer. question. with

Great.

verticals you're your to working want where on what's talk you relationships One, strength allowing the going more you out Just competitors. what on in driving about it your both the looks sort that's of Thanks. those two then on like pretty called just insurance, talk share loans. there? to gains Can relative personal But are on And headwinds self-explanatory. in growth with for you obviously, carrier is drive allowing you segments. consumers to your underwriting that's about

I'll time. out Yes, take those of one

talk the broader I'll of that but drive So factors in quality two we've And loans, factors demand yes, second, our market industry. got broader then and trends pull credit terms underlying in through. about a the are personal share

proving X% expecting factoring close in And to underwriting pretty of couple exiting quality, So lenders unemployment side. expected on Things a four, reminder, of lenders of credit we're haven't to that's tracking quarters them the were roughly been their that say and of tightening, we've XXXX, conservative. be. X-plus quarters. seen in they're major into But lot surprises the are credit finding and I'd there as quality a a past where terms

trough a loosening causing are up of bit that's Those think levels. I pretty there. still

because rising a consolidating And tailwind pretty in think balances. demand some debt. on we're personal side, driven the there And demand seeing credit card then card there's loan tailwinds demand mostly good is of people terms long-term credit I by

of OTP back terms on and technology looking matching right double in integrating there, It's to we've our think questions more iterating for people personal from asking on by end. the marketplace share from better market to then there. managed a the technology last quarter, comprehensive and loans mentioned everything match the I rate we our people

So helping on gain a serve that's also better little consumers definitely of the us the but funnel. top bit

carriers in it's terms profitability XX% I in money writing states half The though the new terms rough. even headwinds. now losing we're up year-over-year, in And then of yes, insurance, policies. there's probably carrier mean, of are right

So there. a of really visibility there's lot

past causes think the I what chance to a is ultimately carriers coming getting and inflation reset this down then pricing.

about think there relative a market experience. we despite share, more that's And personalized being In we the talked quarter and really of gains a excited hard continue driving really this think marketplace I investing are last share terms there about market. to

it? a of Got given at then you're it. about how the of position your acquisition you're from just results, follow-up, And a environment that when now competitors strength operating obviously you a view should look and lot How facing times. we thinking smaller right are and tough

growth. And just be Yes. capital few More organic allocation inorganic think pricing returning we right? everything from to broadly got to care and relative lot investing value. in speaking, We capital about growth, a opportunistic. as about having a We outlets, right? It's

there's And acquisitions. of so of potential in a yes, unsurprisingly, definitely terms activity it's lot out -- there

margin about a of for what to can as sense trying we're makes be hard So, disciplined good and pretty execute. and have where we we a think ton

you. Thank

from Please from of question. your Blair. question next William Schackart the Our comes Ralph with line proceed

taking questions. Thanks the for please. Two, Good I if afternoon. could,

opportunity I XX% maybe First, and continue factors on to the that year-over-year the strong, -- registered think, that drive users and of to some going forward? had your users driving growth are where you top registered

for guess, or or of shaping forward? is your kind AI I opportunity know the going I chatbot, Thank but of, how it's in more broadly, view platform informing Tim, early, to you. back broadly sort more its secondly, the super that Gen -- And impact on Nordea going terms of

Yes. Thanks question. for the

are register users. really say giving into which land and just users, surface getting recovering existing by top area drivers a our expand. is larger verticals the On to in I'd verticals the We're registered more deeply, our around and which more us success

example, really for like small Medicare, building there. board we're areas and social business, So, out security, things people on getting

And is shopping. the would I driver there, second say,

results, personalized for really get there's more our experiences, registrations. shopping register with more more to we and good As that's a users get also driving reason personalized to

and we're So, there. iterating getting more aggressively just organized

principles. always investable the On Gen access need are lot to guidance. expensive, managing go I solved? that's you to of first I'd the a would problems we Typically, financial AI, need us expense. to justify AUM consumer a are the back to opportunities democratize to human for that very biggest can like think What be great

And company we productive. of should So, mean, function I how more mass thinking in make just out about that every That us. AI there, not generative every at more market, obviously, to probably be opportunities, using right? be do other to Derby applies terms

behind going You're if part two to that figuring not get in out. just years three left you're or

are big those we're kind areas lot like two a about. So, thinking of

Great. Thanks.

question of Please the Pete Citi. next with your from question. comes Our Christiansen line with proceed

Thank Thank there the or guys. you your could you. share are was And which I budgets, between versus wondering seeing partners' any was pretty seeing spending larger the still growth. community if of groups? tell could banks, drive if about banks, on I MAU That's job believe talk health afternoon. some the the wondering, us, aggressively are differences the of players? like particularly side, on loan at the impressive. some -- to you're of you and those you. Nice Good Hi, health you least two of smaller between I differences if

towards US In out broader of that money really banks. I'll go our six in center parts credit Many call we loans. so by the and are I lending them of would revenue cards indexed most heavily well, card of -- cards, issuers. then different the

or terms the loans. towards at money other center personal seeing we're non-bank fintechs then in the verticals, So banks. index definitely you and of might lenders mortgage effect more and And

probably of characterize can it. less So how there, obvious an I impact

was down into I then That's and you side. on improve And personal at just saying least least you your loan fair. could comment that bit issuance that dig that little not I a curious was or here it perhaps we comment the we're at interesting, you. from go what further? confidence gives thought the earlier vertical at think bottom Thank just if can

Right.

of talk seeing incremental like spike middle So seemed It quarter, personal every ever impending loans. unemployment. seem XXXX, to it was this the stabilized. internally, in we're more have tightening -- sequential Things in of since growth

that out And little bit, balance I the don't access their sheet has a be a cases lend so, personal too. to changed capital like and of feel from lending in seems bit. to some Even improving some they that own more there, tune their little partners recently

sense general bit are again. a are and that just things look people starting a there stabilizing to it's So for volume

I'm helpful. That's for sorry, one just me. more

around you driver Just loan, student of a some activity curious news been And of you've heightened been the think your if out any recently? do that's traffic? that's seen

Right.

a not gives visibility taking into by all smaller the high putting administration policy the or the this for outcome which legal the And Supreme and expecting in so student play, in of from loans, really subset forecasting predicting followed in change level, waiting account we're activities really XXXX. current changes, of So the been perspective, all out right? so At of us political of much the forgiveness, we're frequent and Biden proposals. forgiveness to pretty litigation ruling Court timing applicable low in the a outcome terms this initiatives a for -- just several there's of borrowers. So, point,

much. helpful. Okay. very you That's Thank

Yes.

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everyone. Thanks, right. All

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