Q3 2022 NerdWallet Inc Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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Good day, and thank you for standing by and welcome to the nurse incorporated Q3, 2022 earnings call. At this time all participants are in listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during the session.
You will need to press star one one on your telephone you will then hear an automated message advising your hand is right it.
Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today Kaitlyn Mcnamee. Please go ahead.
Thank you Liz and welcome to the nerd, while at Q3 2022 earnings call. Joining us today are co founder and Chief Executive Officer, Tim Chen and Chief Financial Officer, Lauren St. Clair.
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 expressed or implied by these forward looking statements as a result of various risks and uncertainties, including the risk factors discussed in our annual report on Form 10-K for the year ended December 31, 2021, 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 Caitlin.
As we approach <unk>, while its first anniversary as a public company on Friday, I've been reflecting on the past year.
I think we can all agree it's been an interesting one in many ways. This year has played out differently from everyone's expectations with the current macroeconomic environment, creating uncertainty and challenges for consumers and businesses alike.
But in looking back at the past year I'm incredibly proud of the work we have done.
And a testament to nerd, while as trusted brand and our strong diversification, we have met or exceeded all the goals, we outlined for our financial performance despite headwinds in mortgages insurance and student loans.
All while making progress towards our vision of becoming a trusted financial ecosystem for consumers and small and midsize businesses.
In Q3, we continued executing against our three pillars of growth.
And then expand.
Vertical integration.
And registrations and data driven engagement.
Which ladder up to our financial ecosystem vision, a vision, where we will provide a single platform that consumers and smbs can rely on to learn about various financial topics sharper products connect their data and receive data driven nudges.
This will not only provide our users with more clarity and confidence around their finances, but also help grow and diversify our business to reoccurring engagement and revenue.
As a result of our work in Q3, we exceeded our revenue and adjusted EBITDA outlook driven by growth across credit cards banking personal loans and SMB verticals.
Our Q3 performance was predicated on building and extending <unk>, while its unique strengths.
With our reach and brand is key advantages are nerds spent Q3 driving critical initiatives and our three pillars of growth to provide consumers and smbs with clarity and confidence.
In particular this quarter, we saw further evidence of our distinct ability to land and expand.
Leveraging our trusted brand to cover new topics and play in new geographies.
We are seeing early signals that our exploratory vertical expansion efforts and topics like Medicare and crypto currency are gaining traction paving the way for new lines of business to match consumer demand.
We also continue to grow our international presence.
In Q3, we accelerated our Canada expansion with monthly unique users up 59% quarter over quarter as we executed our playbook.
Elsewhere in the business SMB delivered another quarter of outsized performance with triple digit year over year growth for the third quarter in a row.
The SMB team has invested in significant improvements to their personal loans.
Prequalification flow improving the loan application experience and enabling us to more efficiently monetize our growing traffic.
SMB is a successful example of vertical integration or our strategy of pairing <unk> massive top of funnel reached and trusted brand with best in class user experiences.
In July we began our latest vertical integration effort our acquisition of on the barrel head or OTB.
As we initiated integration efforts throughout the quarter, we saw Otv's primary contribution and our personal loans vertical in Q3.
We are in the process of integrating OTB into our user flows.
And on boarding new partners, we're seeing signs that our vertical integration strategy is working.
With conversion and pricing benefits when we attached there consumer flows to our organic traffic.
We also see the potential to pair the technology with our traffic across additional verticals to help more people in more ways.
I look forward to sharing more updates in the quarters to come.
Registering an engaging users will allow us to drive repeat visits collect data and provide users with unique insights and nudges.
This work is critical to our aspiration of creating a trusted financial ecosystem.
In Q3, we made more progress in our registration and data driven engagement efforts with registrations up more than 60% year over year in part due to product experimentations on registration modules.
Additionally, we continue to iterate on our nudges to drive engagement, providing our users with better matching and more relevant smart money moves and these efforts have resulted in improvements to our engagement metrics.
In Q3 registered user revenue grew more than 70% year over year.
These results and the opportunity our OTV integration will provide on our ability to re engaged and register more users are promising and indicate that our strategy has traction.
Now more than ever I am grateful for the principles that have shaped nerd, while its growth.
We are long term thinkers, but we're also nimble and able to adjust course, because we have invested accordingly.
While the rate environment. Prior to this year mortgages was up and banking was not our commitment to diversification and investments in banking means that today with the situations split we were ready and able to meet consumer demand and our financial commitments.
Though we cannot predict the future we intend to focus on our long term goals and execute against our strategy.
For example, we are actively investing in improvements to our insurance marketplace ready.
Ready to capture market share when the industry rebounds.
And I feel confident in <unk> strong position as the macroeconomic environment evolves.
In a minute I'll pass it over to Loren Sinclair, our CFO to share more about how these results translate into our financial performance this past quarter.
But I want to reiterate that I am very proud of the work we've done and the way in wishing her wallet has risen to the occasion.
These attributes have helped us weather a number of storms in the past and they will continue to serve us well.
And all of this we strive and we will continue to strive to operate responsibly aligned with our mission driven consumer first ethos.
Yesterday, we published our first ever environmental social and governance report to highlight how we achieve our goals with integrity.
Today, we're focused on our business and financial performance in Q3, I encourage you to seek out the report for insight on our commitments approach and progress.
With that I'm going to hand, it over Lorne.
Thanks, Tim.
Nine months into a year that remains uncertain for consumers and small businesses. We are once again proud that our diversified portfolio has put us in a position of strength in the midst of a challenging macro environment.
We delivered Q3 revenue of $143 million.
Up 45% year over year and above the high end of our guidance.
Let's take a deeper look at the revenue performance during the quarter within each category.
Credit cards delivered Q3 revenue of $57 million.
Growing 59% year over year.
Our credit cards vertical has consistently performed throughout this year from product improvements and pricing recovery and in the third quarter, we reached record levels of transactions and revenue.
We believe we have returned to a pre COVID-19 normalized seasonal cadence for our credit card vertical.
And while the market feels healthy today, we're keeping our eyes on metrics such as unemployment to help inform where we believe the industry might trend in the near term.
Loans generated Q3 revenue of $28 million declining 12% year over year.
Our mortgage vertical continued to be pressured by the rising interest rate environment, but offsetting that decline was another quarter of strong growth in personal loans due to our improved user experience and the addition of our recent acquisition of OTB.
As of today, we anticipate that the impact from the rising interest rate environment will extend into 2023 and believe that the integration of our recent acquisition will set us up to take market share when the macro environment stabilizes.
Finally.
Other verticals finished Q3 with revenue of $57 million growing 87% year over year, delivering yet another quarter of triple digit growth in both SMB products and banking.
As Tim discussed we are encouraged by the enhancements we've made in SMB this year as well as our ability to leverage our strong top of funnel combined with fund erez efficient conversion engine for another quarter of strong performance.
Thank you grew over 250% year over year as we saw more consumer interest in the rising interest rate environment and more efficiently converted high intent consumers.
In fact, the growth we saw in banking more than offset the corresponding decline in mortgages.
Moving on to investments and profitability.
We earned $14 5 million of adjusted EBITDA at a 10% margin.
And 11 point decline versus the prior year as we ran our first Q3 National brand campaign.
We had GAAP net income of zero point $7 million.
Which includes a tax benefit of $9 9 million.
Primarily driven by a one time benefit resulting from the intangibles acquired during the acquisition of on the barrel head.
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 nurse for their many questions.
We provided trustworthy guidance to 19 million average monthly unique users in Q3 up 11% year over year.
We are now incorporating the impact of our acquisition of OTB combined with strength in many areas across word wallet, such as banking travel and SMB products.
We're still seeing the same headwinds as earlier in the year with pressure from mortgages and investing given the current macro environment.
On to our financial outlook.
As we prepare to close out the end of 2022, we expect that during the fourth quarter, we will deliver revenue in the range of $138 million to $141 million.
Which at the midpoint represents 40% growth year over year.
This also implies approximately 41% revenue growth for the full year 2022.
We expect the fourth quarter to include a higher contribution from our recent acquisition given the full quarter.
Bind with the continued ramp in integration discussed previously.
As a reminder, our ability to disclose the exact contribution of the acquisition on our business is and will continue to be limited.
We expect Q4 adjusted EBITDA in the range of 26 million to $28 million.
Or approximately 19% of revenue at the midpoint.
The majority of our brands spend occurred during the first three quarters of this year and we currently expect to have minimal brand spend in the fourth quarter. Our cadence we anticipate to continue in 2023.
As a result, our expected Q4, adjusted EBITDA margin will be much higher than the first three quarters of this year.
As we have discussed during each quarterly earnings we plan to deliver a year over year increase in our 2020 to annual adjusted EBITDA margin.
At the midpoint of our Q4 guidance our annual adjusted EBITDA margin would be approximately 12% of revenue a five point increase versus the prior year.
This is one more step on our journey to strategically invest in our long term vision and we expect to deliver continued annual adjusted EBITDA margin increases in 2023 and beyond.
We are optimistic about the opportunities ahead, our future growth and the strides we are making towards achieving our vision with that we're ready for questions operator.
At this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced please standby, while we compile the Q&A roster.
Our first question comes from the line of.
Justin Patterson.
With Keybanc capital market Justin Your line is now open.
Great. Thank you very much Lauren I was hoping you could unpack a little bit more some of the assumptions driving the Q4 guidance, obviously theres a lot of moving parts in the macro environment there.
Any more color would be appreciated.
Perhaps you both you and Ken.
Diving into your final call My annual EBITDA margin improvements in 2023 and beyond could you talk about just some of the drivers there we've gone through a lot of base level of investment that between marketing Tech stack at Mirage, We can now.
Faster and the cadence of margin expansion ahead. Thank you very much.
Sure Thanks, Justin I'll comment.
For your first question on guidance for Q4, and unpack that a little bit more I think Tim can add some color as well from a top line perspective, and then we'll both actually tackle. The 23 margin question I think Tim will talk a little bit more about our brand spend and how to think about that moving forward and I can talk about future margin leverage as well.
So if we kick off first with just a little bit more guidance on Q4.
We said our revenue guidance implies a midpoint growth rate of 40% year over year.
A lot of this is the same story that we've talked about over the last couple of quarters. We continue to expect strong performance across many of the verticals despite headwinds from areas such as mortgages investing student loans and insurance.
As a reminder, the outlook remains inclusive of our recent acquisition.
We will now have a full quarter of financials included with <unk> core business and we also expect that the integration will continue to ramp.
Maybe Tim give us a little bit more about some of the color you are seeing.
On the top line and then we can go back to margin, yes sure.
I guess as we think about the macro both for Q4 and looking into 2023.
For us the Big picture is that as I talk through the puts and takes us from the macro here.
We've managed to grow our business in both years, where there's been a really strong cycle versus yours, where the cycle has been really weak and if you step back and dissect why it comes down to one a high underlying growth rate as we land and expand and vertically integrated but then second also just the inverse correlation.
Between various parts of our business right and so diving into the macro I mean, you can really think of parts of our business is being pro cyclical.
Some parts of our business being counter cyclical in some parts not really being directly tied to the cycle. So the pro cyclical parts are like cards and personal loans in SMB.
We actually see some latent demand here given credit card loan balances are still below pre pandemic levels. If you look at federal reserve data rate.
Then counter cyclical parts of our business.
<unk> anything really that benefits from rate cuts. So as you think about mortgage refi auto refi student loan refi things like that.
Those are all pretty weak right now and then there are some parts of our business that are uncorrelated like insurance, it's legally mandated not as directly tied to the credit cycle.
And in some what this all means is that you're going to see various parts of our business growing and contracting through the cycle, but we think we can grow in a variety of climates and it's really something we've lived during the past three years, where the weather changed a lot, but we've managed a healthy three year growth rate. So that's how we're thinking a little further out.
Okay, and let's go back now to adjusted EBITDA margin. So as a reminder, the <unk>.
Midpoint of our Q4 guide implies an adjusted EBITDA margin of roughly 19%.
And as we've talked about in the past were not making as material of investments and brand this quarter.
And as a result, the margin in Q4 is expected to be much higher than the first three quarters of the year, which averaged roughly 9%.
And then as a result of the Q4 outlook, we expect that our full year adjusted EBITDA margin to be roughly 12%, which is a five point improvement over last year and consistent with the expectations that we have been setting all year long.
Now as we think about moving into 2023 and even beyond we extend that.
Margin and profitability is important to us and that we would expect margin improvement.
In three big areas, one and ill handover incentives comment more but we expect to hit a logical ceiling on our brand spend at that point it will become a fixed cost and we will get significant leverage there.
The second piece is increasing our registered users and overall engagement on the site is going to make all of our acquisition channel much more efficient.
And then the third piece, which is not as large, but it's probably worth calling out that we're not expecting to have that step up in expenses as a result of becoming a public company. So you see that step up in areas like G&A and then also in some of our stock based compensation. So I wouldn't expect that same step up as we think about <unk>.
Next year and further into the future.
We do expect brand spend to grow next year, but really not to the extent that we grew our brand spend in 2022.
So yes like Lauren mentioned as of this year, we think we've found a good cadence with spending in the first three quarters and with Q4 being a lower quarter of spend there and we think we're getting right to like the long term cadence in aggregate spend level. So we're going to continue to iterate on our campaigns and test into the best channels and get more and more efficient.
So we're going to scale. These investments efficiently over time, we think they make the most sense, but feeling more closer to a steady state now.
Very helpful. Thank you Bob.
Please standby for our next question.
The next question comes from Ralph <unk> with William Blair. Your line is open.
Hi, good afternoon. Thanks for taking the question first one for Tim just in terms of some of the product enhancements that you called out I think making.
The prequalification flow a little bit easier.
Also product improvements that you called out.
Our ability or currently more.
More effectively monetizing traffic, maybe kind of talk to some of the enhancements you made there and so the opportunity to really drive that forward.
In 2023.
The opportunity and impact on the business and then just on brand spend I'll touch on the last question just curious.
How.
Have you been with the brand spend how have the campaigns campaigns performed versus expectations. So any color on that would be great. Thank you.
Yes, thanks for the question so.
I guess just at a very high level I always point back to page two of our shareholder letter for a visual as the scaffolding from which we think about our product development.
Really around landing expanding vertical integration and increasing engagement. So specifically, we called out improvements to the Prequalification flows I mean that really comes down to.
Asking the customer are the right questions to really better match them to the right solutions.
Just getting more efficient at getting them to create matched quickly so.
So.
In terms of.
That opportunity that probably exists across pretty much any vertical where there is risk based pricing, whether it's <unk> or insurance.
Investing pretty broadly there.
So yes, the impact to the business is.
As you know.
Pretty meaningful I mean, driving conversion improves the customer experience that improves revenue and conversion. So it's a virtuous cycle and we love the effects of that.
In terms of brand spend.
<unk>, we continue to have record levels of brand awareness, we think Thats a result of the brand campaigns and we're very happy with the results there.
As with anything where you're doing it for the first time in the third quarter of the year Youre going to learn things.
About how to optimize both channels and the messaging and so that's definitely something we're iterating on and hope to be even more effective next time around.
Great. Thanks.
Please standby for the next question.
The next question comes from Youssef Squali with true Security you Seth Your line is now open.
Great. Thank you for taking the questions I have two one.
Lauren can you maybe just quantify mortgage revenues for us as a percentage of the loans business in Q3, and what it was last year.
Just to kind of get a sense of how important mortgage now is.
To the business.
I assume it's a lot lower but it would be great to quantify and then.
Either you or Tim as you look at 2023, thanks for the color on the margin, but on the top line can you maybe just help us think through the base case that you are working on under four Youre budgeting process.
A lot.
Yeah first off so I'll take mortgage and Tim jump in so what we said is when you think about mortgage last year and how quickly it was growing.
And how the interest rate environment with making it very favorable for folks to continue.
Thank you to refinance we said that mortgage was growing credibly quickly and it was the largest part of that loans category.
Given the headwinds given the rising interest rate environment that is no longer the largest in in the loans category, we have not quantified exactly how large that is but.
Through the growth rates, you can see that that has declined pretty considerably.
But offsetting that as we've talked about is growth in personal loans, which we feel good about.
And then in terms of revenue for next year again.
No we have not provided any sort of forward looking guidance on revenue for 'twenty three what we can say, though 1.2 is that you can see from our Q4 guide that we are still feeling good theres certainly some tailwind there are still some headwinds in the business today, but we're confident in our ability to execute no matter the Mac.
CRO environment, our situation because of the diversification that we've had and then Tim if theres anything else you want to add in terms of revenue and how we're thinking about it.
I'd, probably just provide a little more color too.
Traditionally Q4 is a seasonally weaker quarter for us. So that's probably one point of context and then the other one I would think about is just the most.
Macro sensitive areas or business that you could probably think about credit cards and personal loans. So I'll provide a little bit more color. There in terms of how we're thinking about it there's kind of two factors driving this one is credit quality and one is demand pull through rate. So in terms of credit quality, we've seen we've been seeing some <unk>.
Active tightening in the riskier parts as partner portfolios.
And that's been going on for a while now so there has been some deterioration in credit quality metrics, but we're still at really healthy levels relative to pre pandemic and then in terms of demand.
We do expect to see some latent tailwind at some point.
Maybe going into 'twenty three so if you look at the trajectory of revolving credit card balances.
Going up and are not yet back to pre pandemic levels.
By the way it consolidated credit card debt is the number one source of personal loan demand. So all of that kind of presents a backdrop.
Future strength potentially in both cards and personal loans into 'twenty three so from what we see right now feeling good about the trends that are taking in a bit of conservatism in our outlook just given macro uncertainty.
Okay.
That's helpful. Thank you both.
Please standby for the next question.
The next question comes from Jed, Kelly with Oppenheimer and co Gen.
Okay, great great. Thanks, Thanks for taking my question.
Just going back Jim.
Tim Tim you mentioned more users and driving more integration down the funnel can you talk about where you are on unlike sort of your larger issues issuers appetite to have.
More integration are you guys do more integration for quality Qual, Kate qualification sorry.
And then my second question you did mentioned insurance I know, it's a smaller vertical part.
We've seen the insured tech industry have a pretty tough tough year.
Has your appetite for strategic acquisitions in that sector.
Yeah. Thanks for the question.
So.
Yes in terms of the appetite from issuers and partners for more integrations I mean, I'd say generally speaking, it's it's a win win rate I mean, it's.
It's a better user experience there is higher conversion rates theres fewer declines.
And maybe even save a bit in terms of.
The underwriting costs, so those tend to be ongoing conversations.
And just a really a prioritization question for us so definitely excited to pursue more of that going forward.
Many different verticals, including cards.
And then in terms of insurance.
It's a really hard market out there.
We mentioned last quarter that sometimes tough macro presents opportunities so.
Ben.
We're going to evaluate in terms of whether it's right for long term product vision.
Yes, nothing that we can't comment beyond that.
As just an insurance just following up I know I know you want a good customer experience the customer experience for insurance is that.
Still really tricky just with issuers. If you go onto other sites. They call you and it's not the best consumer experience.
Right, yes, so we care deeply about that and that's definitely top of mind in terms of.
Thinking about the long term.
The long term strategy and brand at <unk>. So it's a big part of the consideration.
Thank you.
Okay.
Please standby for the next question.
The next question comes from Ross Sandler with Barclays Ross Your line is open.
Hey, guys question on the other revenue line look really strong accelerating in the quarter.
Can can you talk about what's driving that I think you mentioned consumers looking for higher deposit rates and S&P both being strong.
Anything any additional color on what's going on there and then got to ask.
Standard question on performance marketing.
So little bit more deleverage in the quarter then.
Normal trend line so.
Is there a like a different approach around performance marketing as you try to get more registered users or is it just.
Mix dynamic where.
Deposits or something like that.
Different CAC LTV.
Profile than mortgage.
What's driving the deleverage there thanks a lot.
I'll take the first question yes.
Other revenue is very strong.
Certainly driven by high yield savings accounts one of them.
<unk> for that is the <unk>.
Interest rates pick up.
And then also strengthened SMB I guess, if I heard it a little bit of color to that.
Banking is a vertical grew 250% year over year in the quarter.
And that more than offset the declines that we saw in mortgages.
It really highlights the inverse correlation between those businesses.
In terms of where banking can go we're in an environment, we really havent experienced in 15 years. So candidly, we don't know right, we see cost of capital going up for financial institutions and as a result, the value of gathering deposits is also going up now we think we are delivering a lot of value to both depositors.
Banks right now and if rates remain elevated we would expect this to continue.
I guess another way of looking at that as in hindsight. The zero rate environment was really masking the potential for this part of the business.
And then yes in terms of small small business right Lake.
We're not going to grow triple digits forever.
There's just so much opportunity in SMB to expand in the new financial products and services.
And definitely there is the dynamic of registering small businesses and seeing.
Repeat and reoccurring engagement with them over time, which we've talked about in the past so our loan quotes are getting stronger.
New origination growth has been great recently as well.
And that sets us up for more renewal growth in future periods.
And we're seeing this as a great proof point for vertical integration.
Great and let me comment on the performance marketing so.
So first taking a step back just as a reminder, 70% of our traffic comes through organic channels.
Which has allowed us over time to diversify into other channels such as performance marketing that we believe are incremental and just opens up top of funnel more for us.
And as we also have talked about in the past we've think of performance marketing is a variable expense that we can dial up or pull back as needed in Q3, we were able to lean into certain verticals, where we saw benefits in conversion and pricing and we will continue to do that in a disciplined way.
Another callout I would make though is while it certainly wasn't the key benefit our thesis of the acquisition one of the shorter term impacts.
Adding the expertise of the OTV team to our organization has been their success and diversified traffic channels that we've had yet to scaling and so youll see some of that impact in our sales and marketing expense in the near term, but we maintain the same philosophy regarding our performance marketing expansion as we always have.
As we strive to be an quarter profitable.
Tier I think to your point there Ross, we do think our performance marketing really as a means to an end of course, we'll be disciplined in the use of it but really the long term benefit is getting more folks in the doors that we can help register and collect more important first party data, which will then give us the ability to nudge consumers to make smart lending.
Those at the right time for them.
Okay.
Okay.
Standby for the next question.
The next question comes from James Faucette with Morgan Stanley . Your line is live.
Thank you thanks for all the detail on question and.
Time today.
Obviously, it's been a very dynamic environment and you guys have managed through that really well I'm wondering though with how much movement, we're seeing different parts.
Products in your business.
If your visibility into next year and what your partners are planning is changing at all is it shorten up isn't lengthen.
Just wondering like what that opportunity to plan and it looks like for the time being.
Okay.
Yes, I'll take that one.
I would really say it doesn't feel that different from prior.
Years.
I think we are always in active discussions with for example lending partners in terms of underwriting like are they in the process of tightening near prime or are they super ambitious and aggressive with prime and Super Prime So those conversations are ongoing.
We definitely keep an eye on that but nothing really has changed in our outlook there.
In the past quarter.
Got it got it and then.
Yes.
<unk>.
When you think about once again planning assumptions et cetera.
How are you taking into account or what's your sense as to what you need to do both in terms of being prepared for changes in the competitive environment as well as.
Other factors like the impact of student loan forgiveness for the end of the moratorium there just any more color on your planning assumptions around kind of the environment itself would be helpful, especially as it relates to potential competition in these other exogenous factors.
Alright.
I would say broadly speaking.
<unk>.
We try to run our.
Long term playbook, so just as an example, right.
<unk> is in a pretty weak spot right now, but we're investing in marketplaces that we think are going to be very important during a rebound same with certain parts of.
Mortgage like refi, we think that market comes back eventually we think we have a lot of progress to make in terms of making the product more compelling for consumers. There. So we're investing now.
It's kind of an all weather type approach just focus on the long run.
And so I haven't seen any big changes in terms of competitive dynamics or anything like that but yes.
Yes, just focused on the long run.
And I'll just add again, we are here for the long term, we're going to continue running our playbook and again, we feel really good.
Going into next year, even despite the many uncertainties given the diversification that we have and as Tim has talked about lots of puts and takes and so we think we're really well positioned to continue to execute on our strategy regardless of what next year brings us.
Thanks, Tim Thanks, a lot I appreciate it.
At this time I would like to turn it back to the CEO , Kevin Chen for closing remarks.
Thanks, all for the questions today, and as always I want to give a huge shout out to our nerds, whose hard work and dedication make all of these results possible.
<unk> of our <unk> and our unfair advantages we continue to do what we say, we'll do and most cases more and I still see a lot of opportunities ahead.
In particular, it's clear that our diversification efforts.
Continue to pay dividends, allowing us to adjust course, depending on macro factors to meet our goals, while still executing our larger strategy. As a result, our revenue growth is intact diversified and can be resilient even in an uncertain economy. This enables us to continue investing efficiently and what matters and I'm, particularly looking forward.
Sharing updates towards our progress of becoming a trusted financial ecosystem in the quarters to come and with that we'll be back next quarter with a look at both Q4 and the full year. Thanks, again and have a great rest of your day.
Thank you for your participation in today's conference. This does look at both Q4 and the full year.
The conference will begin shortly to raise Johan during Q&A you can dial one one.
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