Q4 2022 NerdWallet Inc Earnings Call
Yeah.
Good day and thank you for standing by welcome to Nerd Wallet, Inc. Q4, 2022 earnings call. At this time all participants are in a listen only mode. After the speaker presentation there'll be a question and answer session to ask a question. During this session you will need to press star one one on your telephone.
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Please be advised that today's conference is being recorded I would now.
Like to hand, the conference over to Caitlin Mcnamee head of IR. Please go ahead.
Thank you operator, and welcome to the <unk> Q4, 2022 earnings call.
Joining us today are co founder and Chief Executive Officer, Tim Chen and Chief Financial Officer Lorne Sinclair.
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 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.
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.
Caitlin <unk>, while at our 2023 plans are well underway.
We started the year on the right foot ready to capitalize on new opportunities grow our business and help more people in more ways and this is thanks to the hard work <unk> put in throughout the last year.
That spirit today, I'm proud to share a strong finish to 2022 as we exceeded our revenue and adjusted EBITDA guidance in Q4.
We achieved this in the face of continued tightening in underwriting across lower credit bands during the quarter.
Some of our resilience is driven by the fact that our revenue skews towards consumers with prime credit, but it is also a testament to our investment in building a brand that is trusted across a diverse set of consumer and SMB verticals.
Our brands appeal across multiple verticals has an important follow on benefit.
It becomes easy for us to land and expand into more verticals and many of those verticals are inversely correlated to each other allowing us to grow even during challenging environments.
For example, the rising rate environment has created a tailwind in our banking vertical offsetting headwinds in mortgage refinancing.
Whereas during the COVID-19 pandemic, we saw a massive increase in unemployment or over a very short timeframe, creating headwinds in credit cards, but driving tailwind and verticals that benefited from fiscal and monetary stimulus.
These results are great ended up themselves, but I also value then because they reflect a concerted effort across <unk> to execute on our strategy.
With progress every quarter, and our land and expand vertical integration and registration and engagement growth pillars. We ended 2022 several steps further in our journey towards building a trusted financial ecosystem for.
Or a single platform, where consumers and smbs can learn shop and manage their money.
In Q4, we continued to benefit from our diversified business as well as our investments in building a trusted brand with.
We now reach consumers not only in the U S. But also the UK, Canada and as of early Q4, Australia.
While we are still early in our land and expand efforts in Australia, we have confidence in our playbook.
Our sustained investments in established verticals have also continued to pay off.
After years of a low interest rate environment, our banking vertical has surged with rate hikes in Q3, and Q4, delivering another quarter of triple digit year over year growth in Q4, as we help consumers shop for high yield savings accounts and more.
While the insurance vertical has faced in certain industry specific headwinds over the past several quarters. The team has been hard at work preparing for a return to a more normalized environment building.
Building and optimizing our new in house auto insurance marketplace.
This gives <unk> wallet more control over these consumer experiences.
As a result of this work and the normalizing environment insurance drove 43% year over year growth in Q4.
The team plans to extend this success to our life and home insurance marketplaces.
Similarly, we feel confident in our ongoing vertical integration initiatives.
SMB vertical continued to outperform with 94% year over year growth as the team invested in growing their organic and paid reach while continuing to help our installed base of smbs meet their financial needs.
We have primarily integrated on the barrel head or OTB with our loans verticals.
We are facing headwinds across wounds verticals, including our organic and acquired business broadly in line with the industry as interest rates rise and lenders continue to tighten underwriting and anticipation of a slowdown.
As with our insurance vertical the loans team remains committed to investing in customer experiences in advance of the macro recovery.
In Q4, we saw positive signals from the continued vertical integration of Otv's learned matching technology and the improvements have helped us double our match rate when users are directed through the updated personal loans flow.
These improvements position us well for an eventual macro recovery and we look forward to the continued enhancements that further integration will bring in 2023.
We also continue to make strides in our registration and engagement efforts that will help power our trusted financial ecosystem by enabling us to drive repeat visits collect data and nudge our users with relevant personalized insights.
Through content and personalization optimizations, we drove improvements in click through rates for nerd wallet E mail campaigns.
Within our registered user dashboard, we also launched courses, which provide registered users with curated content on financial topics they're interested in.
These have also seen strong engagement and the team plans to expand the catalog of courses to provide our registered users with relevant trusted guidance.
Our consumer trust competitive advantage underpins all of our achievements this past quarter.
Consumers and Smbs increasingly know trust and prefer nerve walid.
We have invested thoughtfully and building this trust, particularly through our brand marketing.
Our prior brand campaigns continued to deliver durable results in.
In Q4, a quarter, where we typically pulled back on brand campaigns, we achieved our highest ever brand awareness measures and we are building on this with our newest National brand campaign, which launched in late December as well as new tactics, including sports sponsorships as discussed last quarter, we plan to continue.
Can you with our recent cadence of running large scale brand campaigns. During the first three quarters of the year and while we will increase our investment in brand given the results. We've seen so far you should expect the growth in that investment will be less than in 2022.
Financial institutions also continue to recognize the value we provide consumers and they make decisions. Accordingly in Q4, our content team revised our star rating for a financial institution when they changed their deposit account offering knowing the weight our ratings have with consumers the institution ultimately re.
<unk> course, and we'll continue to offer a competitive product for all consumers.
These results speaks not only to the tremendous value, we provide consumers and smbs, but also to the strength of the business. We've built and I look forward to sharing more in the months to come in the meantime, I'll pass it to Lauren St. Claire <unk> CFO to share more about our financial performance in Q4.
Thanks, Tim.
We're proud of the execution, we delivered throughout this past year exceeding our financial commitments and every quarter and expanding our adjusted EBITDA as a result of our incremental margins and maturing cost base.
We delivered Q4 revenue of $142 million.
Up 43% year over year and above the high end of our guidance.
We finished the year with $539 million in revenue, a 42% increase versus 2021.
Yeah.
While the focus of today's commentary will be on our fourth quarter performance. We are encouraged by the full year growth, we've been able to achieve highlighting years' long success in areas, such as credit cards, and SMB as well as strength in our banking vertical offsetting the pressure we solid mortgage.
Yes.
We know that certain macroeconomic factors will impact individual areas of our business from time to time.
We remain confident that our level of diversification and our continued ability to expand on that in the future will provide growth tailwind for us for years to come.
Now, let's take a deeper look at the revenue performance during the quarter within each category.
Credit cards delivered Q4 revenue of $53 million growing 52% year over year.
Our credit cards vertical has shown resilience and sustainable growth in Q4 and also reflects what we believe is a normalized seasonal cadence.
While the market still feels in good shape, we continue to monitor consumer health.
Our focus on providing the guidance and products that are most important to our site.
And are keeping our eye on key metrics, such as unemployment to help inform where the industry might trend in the near term.
For the full year credit cards delivered $210 million of revenue growing 70% year over year.
Loans generated Q4 revenue of $22 million declining 24% year over year.
Our mortgage vertical saw another quarter of increasing pressure from the heightened interest rate environment, but offsetting that decline with growth in personal loans due to the addition of our recent acquisition of OTV.
As Tim mentioned, we continue to make investments in key areas of our loans verticals that may not immediately drive outsized revenue gains in the current landscape, but will set us up to take market share when the macro environment recovers.
For the full year loans delivered $109 million of revenue declining 14% year over year.
Finally other.
Other verticals finished Q4 with revenue of $66 million growing 90% year over year.
Our SMB vertical grew 94% year over year, and we are proud of the team's ability to showcase that our vertical integration strategy has immense opportunity.
Banking grew over 280% year over year as we saw an acceleration in consumer interest driven by the rising interest rate environment, and we're able to effectively capture high intent consumers.
In fact, the growth we saw in banking with nearly twice the corresponding decline in mortgages.
Okay.
After a year of decline due to a pressured macro environment, our insurance vertical delivered revenue growth during Q4 due to a record quarter in auto insurance following the launch of our revamped marketplace and industry recovery.
For the full year other verticals delivered $219 million of revenue growing 70% year over year.
Moving on to investments and profitability.
During Q4, we earned $31 million of adjusted EBITDA at a 22% margin.
For the full year, we earned $67 1 million of adjusted EBITDA at a 12% margin.
Five point increase versus 2021, as we were able to deliver leverage across all areas of our business.
In the fourth quarter, we had GAAP net income of $8 9 million.
Which includes zero point $6 million of the final contingent consideration expenses related to our 2020 acquisitions.
The associated cash outflows are expected to happen in the second quarter of 2023.
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 questions.
We provide a trustworthy guidance to 20 million average monthly unique users in Q4 up 9% year over year.
Growth was a result of the impact of our acquisition of OTB combined with strength in many areas across nerd wallet, such as banking and travel.
We're still seeing the same headwinds as earlier in the year with pressure for mortgages and investing given the current macro environment.
Our outlook includes investments and top of funnel through brand and performance marketing to drive increased user growth, but as we double down on engaging acquired users. We expect that revenue growth will continue to outpace <unk> growth.
Onto our financial outlook.
As we look forward to 2023.
Know that the uncertainty we weathered last year remains.
We plan to continue providing quarterly guidance.
And we'll also provide qualitative commentary for full year expectations.
For the first quarter, we expect to deliver revenue in the range of 165 million to $170 million, which at the midpoint represents 30% growth year over year.
We expect to see continued growth contribution from credit cards insurance and banking during Q1.
For the full year, despite the uncertain macro environment, we expect to deliver strong revenue growth, though not to the levels of what we saw in 2022.
Let me provide some more context.
First the credit cards vertical is still experiencing a healthy environment. The growth rates will begin to decelerate versus 2022 levels as we are no longer lapping the easier comps related to Covid recovery.
Second we will face headwinds in loans during Q1, as we lap the toughest comps from last year.
And while we don't expect macro factors to materially change in the near term.
The mortgage comps will be a bit easier as we move throughout 2023.
Okay.
And third as our SMB vertical scale.
We expect that growth rates will drop below triple digits. This year.
We will continue to expand our current offerings and deliver sustainable growth.
Moving to profitability.
We expect Q1 adjusted EBITDA in the range of 17 million to $19 million.
Or approximately 11% of revenue at the midpoint, a four point increase versus prior year.
Consistent with what we've mentioned previously we anticipate that the cadence of our brand spend will be similar to 2022, where the majority of spend will occur during the first three quarters with minimal brand spend during the fourth.
As a result, we expect relative adjusted EBITDA margins to be roughly similar during the first three quarters compared to our higher margin in Q4.
All while increasing our annual margin for yet another year.
We plan to deliver increasing margins as a result of slowing growth in our cost base.
We expect 2023 to be a continuation of our journey to get back to and eventually exceed 2019, adjusted EBITDA margin levels, while strategically investing in our long term vision.
We entered this year clear eyed and pragmatic on the current macroeconomic environment, knowing we have the responsibility to consumers to help them navigate their financial questions, all while being optimistic about our opportunities to deliver profitable revenue growth.
With that we're ready for questions operator.
Thank you.
As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.
To withdraw your question. Please press star one again please.
Please standby, while we compile the Q&A roster.
And I show. Our first question comes from the line of Ross Sandler from Barclays. Please go ahead.
Hey, guys.
Congrats on a good quarter.
Can I have two questions first is on just overall engagement of registered users compared to regular users.
How is that trending and is the 38% growth in registered users a decent kind of proxy for a leading indicator for.
What you tend to see on the revenue side kind of it seems like those two are converging and then similarly on that.
Why do you think your growth rates overall are diverging so much from credit Karma away. What do you think the biggest factors are that are allowing you guys to.
Outperform them.
So significantly.
So that'd be the first question. The second question is just.
The obligatory performance marketing that was up another triple digits in the fourth quarter.
Running ahead of revenue how do you think about that as we move.
Move through 'twenty three thanks, a lot.
Alright, yes, thanks, I'll take the first one.
Throughout this past year, we've been prioritizing user registration is a focus area and that's really helped us to drive growth there ending the year with 14 million cumulative registered users, which is up 39% year over year.
We're also starting to see the benefits of the OTV integration and driving even more registrations.
So what we're seeing is that okay.
Unsurprisingly personalization drives engagement.
The key to driving personalization is first party data and so thats all about registration and so from a product development perspective, we're improving registration on ramps throughout the site.
Improving on this personalized nudges and we've launched things like courses during Q4, which provides registered users with curated content on financial topics. They are interested in.
So, yes I think.
Growth in registered users is going to continue.
We really think about that in relation to a registered user revenue growth, which was up 80% year over year in 2022.
There can be some puts and takes there.
But we continue to expect that to continue outpacing registered user growth.
In terms of the divergence with credit Karma or other people in the industry, we really have.
Two factors going on one is that our revenue mix skews up market relative to some others were more prime and Super Prime.
And then I guess the second factor is that we're pretty diversified across a wide variety of verticals and some of them are <unk>.
Inversely correlated to the credit cycle like our banking business.
And I'll take the second part of that question regarding performance marketing. So just taking a step back and as a reminder, 70% of our traffic comes through organic channels, which over time has allowed us to diversify into other channels like performance marketing and brand.
We've always thought about performance marketing as a variable expense that we can dial up or down depending on the returns and when we see better conversion or pricing, we're able to lean in with more efficient spend.
More importantly, we view performance marketing as a means to an end as part of our registration and engagement initiatives and as we create more seamless registration experience is starting to the next to connect more first party data, we're able to proactively nudge our users to make to make smart money moves in.
In Q4, we were able to continue that recent pace of investing and growing users through these channels and.
And where we see similar opportunities during 2023, you should expect us to continue to lean in.
Thank you.
And I show. Our next question comes from the line of Justin Patterson from Keybanc. Please go ahead.
Great. Thanks, two if I can just building off of personalization I know what the OTB acquisition one of the key levers there was to improve personalization across the rest of the portfolio I just would love to hear an update on just.
How that integration is pursuing.
Proceeding.
What are we seeing that conversion benefits take place yet then.
And then secondarily there has been a lot of talk about <unk>.
Got out there so I'm curious, whether the bonds becomes a potential threat or even opportunity for nerve wallet over time. Thank you.
Yes, I'll take that one so as a reminder, our general M&A thesis is that we can pare our top of funnel brand and reach with these best in class shopping experiences.
Like OTV so.
Key components of the acquisition thesis look very promising so most notably we're seeing conversion from integrating their technology, where as I mentioned, we're seeing double the match right now for our consumers coming through our improved personal loans flow.
And we're serving a larger audience and we're registering a lot more people than we were previously that gives us a lot more to work with in terms of those personalized nudges going forward.
That said, yes, the macro for loans is more challenging than we anticipated going into the second half of 2022.
So we're still working through certain components of integration as well, so that's kind of a headwind.
But taking all that into consideration super positive about what OTV will contribute to <unk>, while in the long term, especially as we go into more of a recovery.
Yes in terms of the chat AI question, we see both risks and opportunities for <unk> wallet.
There's some obvious benefits in terms of using chat.
A productivity tool for teams like content and engineering.
I think more relevant to <unk> wallet is how chat AI affects the future of search engines, and we really think about that by stepping back and thinking about what consumers are trying to do so today you might go to a search engine to find a quick factual answer or you might also be looking for a more nuanced answer so for quick answers for quick answers like.
What's the temperature outside the.
The search engine gives you an answer immediately for those more nuanced answers there is up in subjectivity involved and more data needed and that's why you might seek out a brand you know and trust first and then turn to a search engine. If you don't have to go to and then you got to really think about the dynamic of Internet marketplaces to so for example, if youre looking for a loan in the bank.
Creases rates on Tuesday at nine a M that needs to be factored into the marketplace instantly and thats not something a machine learning model can do in real time right.
So.
If we look forward to the futuristic part of this I think about chat AI is being able to extend what search can do so for example.
It's not a great website for rap songs about 59 plans because nobody has a commercial incentive to create that web page because nobody's searches for that so these bespoke and frequently asked questions are where you'll get a much better result from chat AI and a search engine, especially if theres a good training set to work off those and so as we think about the.
<unk> for nerve wallet today, you need to have hundreds of thousands of dollars in investable assets to justify a financial advisors time, one on one it is expensive and so chat AI trained on <unk>, while its first party data marketplace data our house views. It can have an opinion and it can provide a response at a much lower cost than a human.
And this lower cost can drive democratization of very personalized and bespoke.
Question help right. So all in all I'd say, it's very early days and we see this as an opportunity to serve our audience in new ways.
Great. Thank you. Thank you.
Thank you.
And I show. Our next question comes from the line of Youssef Squali from choice. Please go ahead.
Great. Thank you very much couple of questions here.
Here first can you maybe just elaborate a little more on what youre seeing on the insurance business I think you actually.
Turned the corner there I think it was up 43% year on year in Q4, you talked about launching a new house marketplace.
And on kind of your experience there, so far and kind of within insurance what are kind of the.
The bright spots that you've seen is it kind of across the board or just one or two products.
Then on the.
Credit card revenues were down sequentially can you maybe speak to the level of credit tightening out there and maybe just how.
How much of that may be seasonal versus just softening demand.
Yes.
Yes, Okay I'll take the first one.
Yeah. So we spent the past year or so facing all the same headwinds in insurance that you've heard about from others inflation and supply chain issue is making it more expensive to fix a car or replace or fix a house right.
But during that time, we launched this enhanced marketplace experience.
And we're going to soon follow up with the marketplaces and home and life insurance that was all about improving the user experience, giving more personalized responses.
Increasing conversion rates, so that was successful in that.
That drove the success here so really excited about the investments we made during the downturn and how that will help us as things recover and things are looking strong going into 2023.
Yeah, maybe I'll comment on sort of the credit card performance quarter over quarter, and then Tim If you want to maybe add more color on just the environment right now and what Youre seeing for credit cards. Overall, we've talked about credit cards performed incredibly well over the course of 2022.
We talked about two things one was the pricing recovery from the lows of Covid and the second piece that we've talked about has been conversion improvements that we've made within our product and so the expectation around credit cards is that that pricing improvement in the growth that we're getting from the pricing improvement is going to level off.
As we move into this year and a little bit as we talked about in Q4.
Of 2022.
But again, we still expect lots of headroom there lots of opportunity and we will continue with those product improvements.
And in terms of seasonality Q4, traditionally is seasonally weak and credit card. So no surprises there and yes, I would say more broadly.
It's a healthy environment out there for prime and often there's a pretty broad expectation from loan officers about unemployment, increasing 100 basis points throughout the course of 2023 is kind of a low case scenario.
And so.
Assuming we don't go too far beyond those levels, we're expecting to be kind of in line with our expectations.
Okay, that's great thanks and congrats.
Yes.
Thank you.
And I show. Our next question comes from the line of James Faucette from Morgan Stanley . Please go ahead.
Hi, Tim it's Michael in Fontana for James Congrats on the quarter.
Lauren I know you mentioned Q1 being the toughest mortgage comp what are your general perspective.
The extent of the recovery, we may potentially see in 2023 and mortgage specifically, particularly given some of the banking executives have started to note that a lot of the excess capacity has already been drained from the system.
Yeah, I'll, maybe reiterate some of my commentary from my prepared remarks, and then I'll also hand, it over to Tim to give his perspective.
Perspective, so yes, as we said in Q1 of this year, we expect us to still have really tough comps relative to a year ago when the environment was.
Not quite as bad.
Not expecting any massive change in sort of the macro environment around mortgages for the rest of this year.
Yes.
And I guess I'd, just add it's a challenging macro environment for both refi and purchase volumes are low interest rates are high. So we're really using this slowdown as an opportunity to invest in our home equity marketplace. It's a really small part of our business today, but in the spirit of landing and expanding we've launched new comparison tools here and continue to.
Onboard partners and so our longer term outlook really incorporates the view that it's going to be challenging as Lauren mentioned.
Yes.
Okay.
Understood. Thanks for that and secondly, I know Ross asked earlier about the relative outperformance vis vis one of your competitors, but I wanted to dig in a little bit deeper ask whether or not over the last three to six months, you've seen an acceleration in partners that perhaps previously we're allocating marketing dollars across a variety.
<unk>, a financial marketplaces, but now maybe sort of consolidated not spend on your platform just given the quality of the user base that we've talked about previously.
Yes, so I would characterize the primary driver is just the.
The deterioration in really near Prime has been.
Subprime has been just much more accelerated than prime I think thats probably.
Something you would typically see in a normal credit cycle, and that's probably driving a higher beta.
Yes of course like we are investing in our experiences in the OTV integration I think is really leveled up our product experience and our personal loans search for example.
But the first one is really the major driver.
Great. Thanks, guys.
Thank you.
And I show next question comes from the line of Jed Kelly from Oppenheimer. Please go ahead.
Hey, great. Thanks for taking my questions just going back to insurance.
You mentioned, the new consumer experience I mean, I think insurance is always typically better product thats hard to sell and probably some of your competitors. It's a lot of phone calls. So can you just touch on like where you're sort of disrupting you think the consumer experience in insurance.
You see that becoming a big enough segment, where you could break that out separately one day.
Yeah. So.
Question I mean of.
Of course, that's something we think about a ton in terms of user experience and so internally the conversations often.
Can we can we do better than that user experience, while leveraging our brand and our brand trust to drive parity in terms of things like conversion rates right and so.
Without getting into specifics those were a lot of the iterations, we're trying to drive with our in house experience.
Yes.
Results have been pretty promising.
Yeah, I'll take the second part of that question around breaking it out.
As you know we have three revenue categories of increased disclosure its credit cards, we have loans and we have the other verticals insurance today sits within that other verticals.
For right now that is the plan that we will continue to provide that level of disclosure, but we are always looking at to some verticals and making sure that.
We are disclosing the right information externally and so we'll continue to evaluate that.
Thanks, and then just a follow up you've obviously generated a lot of synergies with your past acquisitions on the barrel being the most recent.
Can you give us an update on any potential acquisition opportunities or products, you would want to add to the <unk> wallet to the <unk> platform.
Sure. Yes, just quick reminder, general M&A thesis has been match our brand and reach with these better converting user experiences right. So.
Were you tend to find opportunities as areas, where there is complexity, where you see humans like advisers agents and brokers.
Trying to help people through transactions and.
So we're looking at quite a wide variety of things just trying to be opportunistic and disciplined from a capital allocation perspective.
About about what we take on next.
Thank you.
Yep.
Thank you.
And I show. Our next question comes from the line of Ralph <unk> from William Blair. Please go ahead.
Good afternoon. Thanks for taking the question just on Australia launch I know, it's very very early but just curious what are the signs that you're seeing there and how would that compare to other markets.
Similar launch stages, and just more broadly how you think about the opportunity compared to other markets and then I'll hop off.
Yes, so just to level set I mean, the U S is our ordinal priority right. It's just a huge market. We feel like we have so much room to land and expand within the U S and vertically integrate given our existing reach and traffic and brand Trust.
In terms of Australia, it's really early we're excited to see.
Hopefully a repeat of Canada, it feels like running a similar playbook.
It's something we're very familiar with and just feels very familiar to for example, the early days of the U S market and we'll keep giving you updates as we progress in these areas.
But yes, there were no priority as the U S market.
Great and then just on the loan segment you talked about on the call about investing in consumer experience before and improving or potentially improving macro and then I think you also talked about some positive signals in the shareholder letter just curious if you could provide some more color there what are the positive signals there that youre, saying.
So to be clear.
Yes, we havent pretty muted outlook for 2023 in terms of the macro we expect unemployment to keep on rising throughout the year. We think that's largely what loan officers are pricing into both their underwriting models and their pricing so.
Not baking in much optimism about a recovery there.
Yes, if we deviate from those expectations, then we could see upside or downside on the margin, but I think we are a bit lower beta with regards to others given just the skew towards prime.
Okay. Thank you.
Yes.
Thank you.
As a reminder to ask a question you will need to press star one on your telephone.
And I show. Our next question comes from the line of Nicolet Radomski from Citi. Please go ahead.
Hi, This is Nicky Radomski, Peter Christiansen Citi research. Thanks for taking my question.
Have you or do you expect to see an impact from goldman's removal of markets and the personal lending Steve any details regarding timing or quantity would be helpful. Thank you.
Okay.
You repeat the question we didn't it didn't come across very clearly.
Sorry.
Have you or do you expect to see an impact from Goldman removal of markets and the personal lending space any details regarding timing or.
Quantity would be helpful.
Right, yes, Okay got it.
Yes, so we do see lenders pulling out of the space and going into this space.
Pretty pretty frequently right.
The way I would think about personal loans is there is a few players competing in the different bands credit bands within that market.
So you typically have 2345 lenders in the for example, the Super Prime in or the near Prime et cetera.
So any one lender pulling out or coming in doesn't tend to have a huge impact on the marketplace. Overall, we really tried to just make sure. We're presenting the right options in the set of options to the consumer.
I'll answer that.
Makes sense. Thank you.
Okay.
Thank you.
I'm showing no further questions in the queue at this time I would like to turn the call over back to management for closing remarks.
Alright, Thanks al.
<unk> wrap up I wanted to be sure to thank the <unk> for their hard work, which made these results possible as I reflect on this past year and our plans for 2023 I'm really encouraged by the progress we've made the financial performance, we've achieved and the opportunities available to us as a result.
Looking ahead, we know this financial environment will continue to challenge, our consumers and Smbs and we plan to meet this moment with ingenuity focus and meaningful investments specifically around driving engagement iterating quickly and providing clarity for all of life's financial decisions. Thank you.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
The conference will begin shortly.
Two reasons lower Johan during Q&A, you can dial one one.
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