Q1 2022 Nerdwallet Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the Marin Wallet incorporated Q1 2022 are in east.
At this time all participants are in a listen only mode. Later, we will conduct a question and answer session to ask a question. During the session you will need to press star one on your telephone.
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And the conference over to your house keeping.
Kathleen Mccabe head of Investor Relations. Thank you. Please go ahead.
Thank you operator, and welcome to the nurse call. It Q1 2022 earnings call.
Joining us today are co founder and Chief Executive Officer, Tim Chen and Chief Financial Officer, Lauren Thank Claire.
Our press release and shareholder letter are available on our Investor Relations website and a replay of this update will also be available following the conclusion of today's call.
We intend to use our investor relations website as a means of disclosing certain material information and complying with disclosure obligations under SEC regulation FD from time to time.
As a reminder, today's call is being webcast live and recorded.
Before we begin todays remarks, and question and answer session I would like to remind you that certain statements made during this call may relate to future events and expectations and as such constitute forward looking statements.
Actual results and performance may differ from those forward looking statements as a result of the of the risk factors discussed in our annual report on Form 10-K dated March 24 2022.
And in other reports filed or to be filed with the SEC.
We urge you to consider these risk factors and remind you that we undertake no obligation to update the information provided on this call to reflect subsequent events or circumstances.
You should be aware that these statements should not be considered a guarantee of future performance.
Furthermore, during this call we will present, both GAAP and non-GAAP financial measures.
A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release.
With that I will now turn it over to Tim Chen our co founder and CEO of Nerd wallet Tim.
Thanks, Kevin before we get into our Q1 results I wanted to take a few minutes to talk about where we're headed as a company and why we're confident the business. We've built will get us there.
Today consumers and Smbs are faced with a seemingly endless amount of financial challenges decisions and questions as well as an expanding number of financial products to choose from.
Money is only getting more complicated and consumers and smbs need someone they can turn to amtrust for well informed financial guidance.
That's what we're focused on delivering heading to avoid trustworthy and knowledgeable financial guidance across all of life's financial decisions.
Building Trust with consumers has always been core to our strategy and then informed a lot of decisions. We've made we've never lost sight of this long term focus because we believe that the trust, we built and will continue to build with consumers and Smbs is key to achieving our vision and it's also our single biggest differentiator.
Theater in the market.
Over the past several years, we've been steadily climbing towards becoming a financial ecosystem.
Place consumers and Smbs can connect their data received data driven nudges learn about various financial topics and shop for financial products, all with the peace of mind that the guidance. They are receiving is trustworthy and knowledgeable.
We started by helping consumers with their credit card decisions powered by our industry, leading editorial team and we've since expanded to other financial areas.
We're moving further up the mountain by finding opportunities to leverage our trusted brand to vertically integrate and areas that capture re occurring revenue.
And it's working our SMB business grew well in excess of 100% year over year in Q1 and is our fastest growing vertical.
Simultaneously, we have been focused on delivering more values to consumers and smbs through E mail push and in App notifications designed to engage and nudge them to make smart money moves.
In Q1, 2022, we continued to excel by investing in our brand registering a record number of users and providing timely financial guidance.
We made strategic investments in building, our awareness and reputation via brand marketing.
We believe continued investment in our brand serves as an accelerant across all areas of our business.
It helps us succeed quickly as we land and expand and vertically integrate it supports registration growth.
And it enhances the trustworthiness of our guidance.
One example of this is <unk>.
Our team has found that when we test communications under the <unk> name versus just fund era, we see a noticeable lift in conversions.
This example highlights the value of the trusted brand we've built.
Our unlock your dreams brand campaign, which we launched in December of last year helped us achieve all time high aided brand awareness and brand preference metrics. This campaign was also extremely effective in reaching our target audience consumers with choice with whom our brand awareness and preference metrics spiked even higher.
As a reminder, consumers a choice are extremely valuable because they are the group that is most likely to be in the market and eligible for financial products.
Historically, we've also seen our brand marketing investments support user registration in Q1 'twenty two was no exception.
We drove a record number of quarterly registrations to our platform. We believe our unlock your dreams brand campaign combined with a significant increase in the number of registration on ramps, we rolled out across our desktop and mobile experiences helped us achieve a 65% increase in registrations year over year.
As well as registered user revenue growth of over 80% year over year moves.
Moving forward, we will continue efforts to grow and retain this base of registered users by providing more relevant nudges and further contextualize ing registration on ramps throughout our site and App experience.
The high quality financial guidance developed by our content Nerds reinforce trust in our brand during yet another period of macroeconomic volatility and also served as the basis for some of our most successful nudges of the quarter.
Faced with new financial challenges consumers and Smbs turned to the nerds for guidance across a variety of timely topics, including the impact of interest rate hikes on credit cards mortgages bank accounts and personal loans, how does save guests.
At the pump and the return to travel and more.
We leveraged this relevant guidance to engage our users nudging them with personalized insights about smart money moves they could make during this volatile period.
Overall, we're very excited about our Q1 results with our track record of trust and our commitment to our long term vision Im confident nerve wallet is uniquely positioned to secure its place at the center of the massive financial services industry.
With that I'm going to hand, it over to Loren Sinclair, our CFO , who will discuss our Q1 results Lauren Thanks, Tim we are.
We're proud to have started 2022 with the strong first quarter.
Rising interest rates and headwinds in several vertical we delivered Q1 revenue of $129 million up 43% year over year and above the high end of our guidance.
Even in these uncertain times, our successful diversification efforts laid the groundwork for our nurse to execute and deliver great results.
We recognize that the year over year growth rate is partially driven by lapping the first quarter of 2021, which was recovering from COVID-19.
As we said last quarter, we will continue to look at our pre Covid revenue CAGR from 2019, which at roughly 30% is consistent with our historical growth.
Let's take a deeper look at the revenue performance within each category.
Credit cards delivered Q1 revenue of $45 million growing 97% year over year.
As a reminder, we experienced multiple quarters of credit cards recovery in 2021 from the lows of 2020, primarily through pricing gains.
Credit cards continues its strong growth due to the overall macroeconomic recovery the high intent nature of our audience and our deep alignment with partners to deliver quality matches.
Loans generated Q1 revenue of $34 million growing 6% year over year.
In particular personal loans grew significantly as we saw strong consumer demand and optimize our user experience to drive increased conversion.
Despite the extension of student loan forbearance.
Loans also grew as we continue to provide valuable content during the changing environment.
We are encouraged by our execution and year over year growth in the loans category. Although we are seeing increased headwinds in mortgages as interest rates rise.
Finally.
Other verticals delivered Q1 revenue of $50 million growing 43% year over year.
As Tim mentioned.
<unk> continues its impressive growth trajectory as we run our integration playbook and direct our strong organic traffic through fund areas efficient and reoccurring funnel.
Thinking also posted significant year over year growth benefiting from an increasing interest rate environment.
This growth was only partially offset by headwinds we faced in other areas such as investing which declined as a result of comping the moon stock phenomenon last year.
Moving on to investments and profitability.
Earned $8 9 million of adjusted EBITDA in Q1 at a 7% margin as we strategically invest in brand.
We had a GAAP net loss of $10 $5 million, which includes $3 9 million of expense related to the change in fair value of contingent consideration of our 2020 acquisition as we continue to see strong performance.
Please refer to today's earnings press release for a full reconciliation of our GAAP to non-GAAP measures.
Consumers continue to turn to the nerds for their money question.
We provided trustworthy guidance to 22 million average monthly unique users in Q1 down 3% year over year.
We see strong engagement across many of our verticals such as SMB products and credit cards.
But as mentioned on our previous earnings call the year over year decrease in <unk> was impacted by lapping the abnormally high user engagement and are investing vertical in Q1 of 'twenty one as a result of the mean stock phenomenon.
Onto our financial outlook.
Q1 positions us incredibly well for the rest of the year and in the second quarter, we expect revenue in the range of $118 million to $121 million, which at the midpoint represents 30% growth year over year.
As mentioned last quarter, our plan is to provide quarterly guidance.
We expect the remainder of 2022 to return to our historical pre COVID-19 seasonal cadence and believe that our diversification efforts will help us weather any individual vertical headwinds.
Yes.
We also expect Q2 adjusted EBITDA in the range of 8 million to $10 million.
Even with our goal to drive modest year over year accretion and our annual adjusted EBITDA margin.
We are still able to invest significantly in our trusted brand.
We've seen great results since our first national campaign in Q1 of 'twenty.
In 2021, we continue to test and learn and while this year will be no different the timing of our campaigns will vary.
We expect to run brand campaigns during the first three quarters of 2022 and as such we anticipate margins. During these three quarters to be roughly similar.
We will remain disciplined in how we allocate capital.
Our tenants for capital allocation include organic investments that provide long term sustainable growth.
As well as evaluating inorganic growth opportunities as they arise.
Accelerating our mission and vision, while leveraging our brand strength.
Between our continued organic growth.
Progress towards our product vision and our successful vertical integration through acquisition. We are proud of our strong start to 2022 and remain confident in the journey ahead.
Operator, we're now ready for questions.
Thank you and participants as a reminder to ask a question you will need to press star one on your telephone to majority of question from Citibank.
Standby, while we compile the Q&A roster.
Our first question comes from the line of Youssef Squali from <unk> Securities. Please ask your line's open.
Hey, guys. This is Robert Zeller on for Youssef, Thanks for taking the question.
On the on the all time brand awareness are you guys taking share or are you guys taking market share right now.
You can answer that.
If so from Hugh.
And then secondly, just on the back half of the year, if you could remind us what the growth rates look like for the quarters in 2019 I'm not sure.
We have it or it's out there but just.
Just curious on the puts and takes for each vertical in the back half of the year. As you mentioned that we may return to historical norms.
Similar to pre Covid.
Hey, Rob I'll take the first part of that question.
We really think about our brand awareness on an absolute basis.
We have ambitions to continue to March up over time in terms of share I really think we're taking share from.
Constituents like agents brokers and advisors asking your family members or friends for help or just not doing the research and making uninformed decisions in terms of digital competition, that's actually a much smaller piece of the competitive landscape for us and so we feel really good that we are continuing on a green.
Trajectory, there and filling this void of being a trustworthy and knowledgeable source for financial information.
Robert I'll take the second part and then Tim and I can talk about some of the vertical dynamics that we're seeing today and sort of expectations as we move forward, but we did say that we expect 2022 to be more in line with our pre COVID-19 seasonality in which we usually see flat to sort of a slight decrease.
Revenue from Q1 to Q2, followed by an increase into Q3, and then again a decrease in absolute revenue into Q4.
And then in terms of some of the vertical dynamics I can kick it off to him and then you can add some obviously, we're seeing really really strong growth and recovery in credit cards.
As we've talked about personal loans, our SMB products is also doing incredibly well and a rising interest rate environment tends to help things like high yield savings accounts. So we see banking.
And so we would expect.
Similar type things and then Tim you know some of the headwinds we've talked about obviously rising interest rates impacts refi.
Other callouts that you would make and also just the challenging market out there for insurances, you may have heard from others.
Carriers are struggling with profitability.
Resetting pricing right now.
Got it makes sense all right. Thank you congrats on the good quarter.
Yes.
Our next question, we have matched Zhang from Bank of America, Matt. Your line is open yes, hi.
Kind of related to that last point that goes into kind of understanding some of these metrics on how to.
Understand them versus the swings that have happened during COVID-19 mean stocks from Hawaii.
You look at the monthly unique user numbers I know it was very elevated last Q1 and thats why its down on a year over year basis.
One is could you give us some more metrics so that we could kind of characterize the difference of what the swing is in so we can look at that number in a more meaningful sense.
For example, what was Q4 'twenty.
How off with that versus Q4, 'twenty, one and where do you think is a normalized growth level for unique users.
Yeah, So maybe I'll comment on a couple of things I mean first we feel really good about our diversification efforts like we talked about and so we expect there to be puts and takes from macro factors and again, we believe that diversification will continue to help insulate us.
As it refers to <unk> growth as we talked about Q1, I mean, you used were down 3%. This was expected we called this out in the previous earnings call and this is mostly related to sort.
Sort of Comping, a much tougher period from Q1 of 'twenty, one with the mean stock phenomenon.
We do expect though to see our typical seasonal cadence return as we talked about with revenue. We would expect the same thing with our monthly unique users as well and so if you look at our Q4 to Q1 performance, we see our typical seasonal step up this.
This year the quarter over quarter growth, which was 22% and moving forward, we expect to see that typical seasonality and a return to growth overall, we have not broken out monthly unique users.
By individual vertical or revenue categories, because there is cross shopping and it's not very easy to do.
We still would have expected users to grow in the quarter.
We have excluded some of the impacts from last years investing phenomenon.
Great. Thank you.
Yeah.
Our next question, we have Justin Patterson from Keybanc, Justin Your line is open.
Great. Thank you very much.
I just want to ask a question about registered users versus non registered users how should we think about the returns between those two groups and then it sounds like there is brand investments staying elevated over the course of the year that sounds like its adding some good conversion. So how should we think about just that potential to grow registered users over the course of the year Andrew.
Hi, thank.
Thank you.
Yes.
I'll take that one.
Registered users at five times.
Lifetime revenue of a non registered user so there are far more engaged.
We do enter registering a lot of users organically as they learn or shop or manage their financial products on those wallet and so we don't break that out into more of an organic versus inorganic acquisition, it's largely organic.
So the flywheel for us is really turning on more on ramps.
Into registration so that didnt happen throughout our site for various reasons it can happen through more personalized shopping experiences in our marketplaces.
It could happen through.
Convenience features such as budgeting and cash flow net worth credit score et cetera, and then the other part of the flywheel is really reengagement. So as we get smarter and smarter about using first party data to really be helpful and letting people know when they can make it smart money move that drives that reengagement. So.
More to come on that in the coming quarters, and I can comment a little bit more on the brand spend Justin.
As we said in our prepared remarks.
In Q1 of <unk> was the first quarter that we spent on a national television brand campaign.
And then in 2021, we also leaned in both in Q1 and Q2 and so in 2022. This year, we want to also test and learn our way into brand into Q3, and so the expectation is that we will be spending brand all three of those quarters and as a result, we would expect that the margin profiles from an adjusted EBITDA perspective.
<unk> to look fairly similar between those those three quarters and while I haven't been and I'll just remind everyone. What we've also said about we focus on the full year adjusted EBITDA margin there can be variability between quarters.
But that we do expect modest accretion from 2021 to 2022 from adjusted EBITDA perspective.
Great. Thank you.
Our next question, we have Ross Sandler from Barclays Ross Your line is open.
Just as a follow up on that last question.
You guys have talked historically about how credit Karma did a nice job of like getting folks back into their app.
Them to engage with some of these smart notifications, so sounds like youre doing a little bit of that today.
But not fully kind of embraced a rolled out. So can you guys talk about how large the <unk>.
Body in fees or the login audience relative to that 22 million.
Total Mou number and then look for users that are in the off getting some of these.
What is engagement with them versus kind of garden variety normal user.
First question just a couple of housekeeping questions performance marketing as a percent of revenue was up a little bit I know that was part of the plan, but how do you see that trending.
Relative to revenue in the rest of 'twenty two and then can you remind us how big mortgages as a percent of that loan segment. Thanks a lot.
Okay, Yeah, I'll take the first part of that.
So yes, the our long term product vision is definitely focused around that rate. The more we learn about our users the better we can help them with smart money moves.
So today out of the $22 million and we use a subset are registered we haven't broken that out it is outgrowing. The overall mission and in terms of nudges I mean, some of them can be quite simple like for example, since rates started rising we're nudging users who save more money last month and this month to move.
Extra cash into a high yield savings account and given our credibility with.
Being really great about that kind of advice, it's meaningful to people also with gas prices skyrocketing, we're nudging users with tips on how to save money at the pump there happened to be a lot of fantastic gas credit cards, but there's also other ways to save money that don't involve getting new financial products right. So we're really taking a consumer oriented.
Understood just being helpful great.
Great I'll take the last two parts of your question. There. So first on performance marketing before I jump in I'll, just remind everyone that our shareholder letter includes a breakdown of all of our sales and marketing spend and how we think about those areas of investment for us.
And specifically for performance marketing, we really see this as a variable cost that we can quickly dial up or dial back as needed as we talked about we've seen really nice recovery in pricing. We've also seen some really nice improvements in conversion and those two things allow us to invest more in things like performance.
Marketing and so you can see a little bit of increase there.
Benefiting from the pricing and like I said conversion improvements.
And then the third question in terms of mortgages, we don't provide the vertical level breakdowns, but what we did say is that mortgages remains the largest vertical in loan category. Despite the rising rates and the majority of that revenue is coming currently from purchase versus refi.
Operator, I think we'll take the next question.
Yes, and for our next question, we have Ralph <unk> from William Blair Ralph Your line is open.
Hi, Good afternoon. Thanks for taking my question on the credit card sounds like you still have some opportunities on pricing growth, perhaps coming out of pricing concessions in the market.
Co, but can you maybe sort of talk about your opportunity to still drive price within credit cards, and I know you don't guide to specific.
Product level revenue drivers, but just sort of how we should think about credit card growth in general for this year and then I'll have a follow up.
Sure so pricing in cards is already above pre pandemic levels. So we are in uncharted territory, but that being said we've spent most of our history and uncharted credit card pricing territory, because our pricing tends to go up over time.
You'll remember our first transaction in credit cards had a $60 CPA in that same SKU still exists today and has many many multiples of that so we believe that pricing has similar dynamics to basically all internet marketing pricing right, which is that it tends to go up over time and the factors driving that include things like improving.
Lifetime values at our partners and inflation rate.
But we also believe that noble is increasingly also being seen as more than just the direct response channel for our partners given our trust with consumers you really care about being on her wallet beyond just the value of that transaction.
And so it's not just pricing I think in terms of unit growth, we still have headroom as well to grow across the credit card funnel from everything from top of funnel market share to re engaging with our growing base of registered users and increasing conversion rates in the marketplace as Warren alluded to.
Great. That's helpful. Maybe just one for Loren Loren just wanted to clarify what I thought I heard it sounds like EBITDA margins Q1 to Q3 sort of similar level of about 22 margins, perhaps sort of expand or there is some leverage on a year over year basis is that a is that correct.
Yes, that's correct you heard that correct.
Okay, great. Thank you Bob.
Mhm.
Our next question, we have Jed Kelly from open Hymer, Chad Your line is open.
Hey, great. Thanks for taking my question.
You're continuing to see nice growth in credit cards, and you talked about how your pricing is improving can you just talk about how some of your pre qualification tools.
Thank you provide your partners are benefiting you relative to some of your competitors.
Yeah.
Yes, Jed I'll take that one so.
I think the Prequalification tools applies not just the cards, but to any loan base vertical where there is risk based pricing. So every year, we increasingly are making.
Matches through Apis, and Theyre getting increasingly personalized so that really helps our partners too.
No exactly what they're getting and that tends to do things like help our partners really refine and understanding of the quality of people where we are.
Passing through and that does tend to drive pricing up overtime.
And then just on one of your prior comments.
You mentioned, how in your loans category that mortgages is still the highest among the highest percentage of revenue just as we see more and more of your you have more people or more consumers start to spend on credit cards.
Assume they are eventually going to need.
Finance their credit cards, right with a personal loan.
Can you talk about some of them like how you are positioning.
Are we likely see in the back half that will.
Probably see consumers start to take out more personal loans for credit card refinancing and other tools.
Yes, so we're not anticipating anything yes.
And any.
Really out of ordinary trends there.
There continues to be.
Pretty healthy consumer on the both the cards and loan side.
On the mortgage side, Youre, probably seeing a bigger mix on the refi side towards cash out refinancing a lot of people, maybe using that as a product too.
Actually pay off their credit cards or finance and other ways. So it's not just about.
Interest rates going down and refinancing.
<unk>, so theres a lot of interplay between all of these different areas.
Thank you.
Yeah.
For our next question, we have James deposits from Morgan Stanley James Your line is open.
Thank you just following up on that point around credit cards, and kind of the evolution within the mortgage space et cetera.
How does that or how is that impacting generally pricing and have you seen any changes in.
Your partners.
Credit profiles that they are looking for et cetera, I'm, just wondering how kind of a changing environment, maybe impacting what your partners are looking for right now.
Yes, so we're definitely seeing a little bit more conservatism on the mortgage side, our partners or just being a little more consciousness quality as they kind of wait and see what happens.
We are seeing relative strength in areas like cards, and personal loans and small business lending and so it's a bit of a mixed bag.
And when you think about like the.
I think it's understandable on the mortgage side, particularly that people will be a little bit more conservative, but it doesn't sound like that thats spilling over to other parts of of what you can offer and then to your to the registered users.
Are there things good.
Or are you looking to accelerate.
Lean into and how does that change.
How do you evaluate the efficacy of <unk>.
Brand development engagement et cetera, especially if you've got a little bit of a different mix of.
<unk> of product.
Yes.
That's a really interesting question.
Now that a lot of the tailwind that we're seeing now were headwinds during the pandemic. So there is quite a bit of.
Offsetting headwinds in tailwind that happen at different points of the cycle. So internally we were taking.
Taking a long term view frankly I mean for example, we're investing now in mortgages. We think we can take share over the next cycle in both purchase and refi with some product improvements and more personalization in our marketplace. So even though there is headwinds there now we want to be ready.
And yes, we're also landing we continue to land and expand.
We're having a ton of success with that within different sub verticals of small business and as well as in the U K and Canada. So the short term macro environment creates headwinds in tailwind, but it doesn't really affect our longer term strategy.
Got it got it and does it but does it impact the <unk>.
The relative performance of your spend at all or is that not really like it.
That's too hard to discern at least right now.
For the most part no I mean, I would say of course on the performance marketing side, there's a bit of you kind of follow where the heaters.
In any given.
Period throughout the cycle, but it doesn't really affect our R&D, where our brand budgets those those tend to be much longer term oriented.
That's awesome. Thanks for all the color Tim.
Yes.
Next question you asked Pete Christiansen from Citi. Your line is open.
Thank you good evening, thanks for the question.
Tim Lauren great Great stats on the brand awareness and the registration side.
Was curious though.
It seems like the match rate seems to be improving quite a bit here.
Does that help drive.
Improved pricing at some point being able to show your partners that you can convert higher or that conversions are improving on on a regular basis and then.
As a quick follow up how should we think about the registered user in terms of how many times. They access the platform on a per year basis have you seen any.
<unk> among registered users there as well thank you.
Yes, thanks for the question so.
On the <unk> question.
Certainly it's a win win for everyone in the ecosystem when metric goes up both for the consumer small business and for the lender I mean, you can imagine the.
The lender.
<unk> has to run credit approvals, which cost money and take time in some cases like in mortgages that requires humans to get on the phone right. So.
Certainly they want improved personalization and matching.
It's a win for them and then for the consumer.
Not great getting rejected or wasting your time on the phone with the broker of some sort and so.
Our continued improvements in match rates do result in higher pricing as a result of making those dynamics better for everyone.
And in terms of our registered user engagement.
We continue to invest heavily in that for us driving that up over time really comes from more nudges and smarter nudges and so we haven't given any specific metrics, but that's a pretty broad based.
Focus for a lot of our product organization and content organization right now.
Thank you.
Operator, I think we'll take one more question.
Yes for our final question, we have had some quality from Susie Lisa.
Your line is open.
That's great. Thank you very much and apologies if my questions were already asked.
But.
Tim maybe can you just double click on the loan growth maybe you can just speak to.
How much of any.
The headwinds that you've seen in the quarter, maybe kind of related to pure macro right.
<unk> raise versus maybe.
Some incremental change in the competitive landscape.
Nonetheless, a three to six months and then can you maybe just talk about the marketing efficiency you guys continue to do really well.
And more traffic maybe.
Kind of break out the organic.
Traffic versus not and just overall, how you guys are doing on your marketing efficiency metrics. Thank you.
Sure I'll take the first part.
Maybe Laurent you can take the marketing efficiency part.
Yes and loans.
Actually I think we're taking share across the board despite it.
Any rough macro environment in certain areas. So student loans student loan forbearance was extended which is great for consumers and providing much needed relief that is definitely dampening refi demand and despite that we're seeing student loan growth year over year.
And we think we have share gains there on the mortgage side.
Similar story, we think we're gaining share.
There is the purchase component, which is the bulk of what we do.
That's actually hanging in there refi is.
<unk> as a result of the macro environment.
But we think we're actually weathering pretty well relative to the broader market and so we think that's more macro than competition driven.
Great and I'll take the marketing efficiency so.
I'll highlight both brand and performance marketing since I think you Miss those youssef, but for brand we feel really good we're continuing to lean in.
As an investment for the longer term. So we really expect a full payoff to be over the next 18 to 24 months, but what we saw in Q1, we're really proud of the record awareness that we saw we also see increasing user registration, which we think is a combination of our product efforts as well as increased brand awareness.
In terms of performance marketing, we really do see this as a variable cost and what we saw in Q1 with really strong pricing and also some improvements in conversion, we have been able to lean in a little bit more on performance marketing and so we're feeling good about that as well.
That's helpful. Thanks, Tim Thanks Lorne.
There are no further questions at this time.
Hand, it back over to Keith and Mcnamee for closing remarks.
Alright. Thank you for all the great questions today as always a big thank you to the nurse for another great quarter. There is a lot to be proud of we exceeded our revenue and adjusted EBITDA expectations. We achieved a record number of quarterly Registration's, our brand awareness and brand preference metrics both.
At all time highs and we saw even bigger gains among our target audience, which are the consumers who are most likely to be in market and eligible for financial products and all of this progress moves us closer to becoming a financial ecosystem and helps us achieve our vision of a world where everyone makes financial decisions with confidence so thanks for joining us.
And enjoy the rest of your day.
Ladies and gentlemen, this concludes today's conference call. Thank you all for participating you may now disconnect.
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