Q4 2023 NerdWallet Inc Earnings Call

Operator: Thanks for watching! Good day, and thank you for standing by. Welcome to the Nerdwallet Inc. Q4 2023 earnings conference call. At this time, all participants are in a listen-only mode.

Okay.

Good day, and thank you for standing by and welcome to the Nerd wallet in Q4 2023 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Caitlin McNamee. Thank you, operator.

Ask a question during this session. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star. One again, 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.

Thank you operator, welcome to the nurse queue for 2023 earnings call.

Caitlin McNamee: Welcome to the NerdWallet Q4 2023 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.

Joining us today are co founder and Chief Executive Officer, Tim Chen and Chief Financial Officer, Lauren 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.

Caitlin McNamee: Before we begin today's 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. However, 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.

Before we begin todays remarks, and a 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 should be aware that these statements should not be considered a guarantee of future performance.

Caitlin McNamee: You should be aware that these statements should not be considered to guarantee 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, except that we are unable, without reasonable efforts, to calculate certain reconciling items with confidence. With that, I will now turn it over to Tim Chen, our co-founder and CEO. Thanks, Caitlin.

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, except where we are unable without reasonable efforts to calculate certain reconciling items with confidence.

With that I will now turn it over to Tim Chen our co founder and CEO Tim.

Thanks, Caitlin and 2023 headwinds outweighed tailwind in our business and this spring we faced increasing macroeconomic headwinds following the regional banking crisis as well as ongoing rate hikes.

Tim Chen: In 2023, headwinds outweighed tailwinds in our business. In the spring, we faced increasing macroeconomic headwinds following the regional banking crisis, as well as ongoing rate hikes. This affected several verticals, including loans, credit cards, and S&B, and they have not all fully recovered yet. In addition, the strong insurance rebound we saw in Q1 of 23 was premature, as the industry pulled back through the remainder of the year.

It's affected several verticals, including loans credit cards, and SMB and they have not fully recovered yet.

In addition, the strong insurance rebound we saw in Q1 of 'twenty three was premature.

The industry pulled back through the remainder of the year, while the rising rate environment did create tailwind is in areas like banking, which continued to outperform our expectations through the end of the year. This did not offset the headwinds in our other verticals.

Tim Chen: While the rising rate environment did create tailwinds in areas like banking, which continued to outperform our expectations through the end of the year, this did not offset the headwinds in our other verticals. We did not meet our revenue or adjusted EBITDA outlook in Q4, and this is the first time as a public company when we have fallen short of our outlook. We attribute our Q4 miss to underperformance in credit cards and personal loans.

We did not meet our revenue or adjusted EBITDA outlook in Q4, and this is the first time as a public company when we have fallen short of our outlook.

We attribute our Q4 Miss to underperformance in credit cards and personal loans.

Tim Chen: While consumer demand remains strong for balance transfer products, incremental underwriting, tightening, and balance sheet constraints limited issuer appetite. We also encountered unexpected growing pains with matching sub-prime and near-prime users with the best products, which required us to take a step back, but we believe we're making progress and routing these consumers to the right offers. Our business is cyclical, and while I believe there are positive signals to suggest that conditions will improve in 2024, we know that headwinds and tailwinds offset each other over time, so our priority is growing from cycle to cycle.

While consumer demand remains strong for balance transfer products incremental underwriting tightening and balance sheet constraints limited issuer appetite.

We also encountered unexpected growing pains with matching sub and near Prime users with the best products, which required us to take a step back, but we believe we're making progress and routing these consumers to the right offers.

Our business is cyclical and while I believe there are positive signals suggest that conditions will improve in 2024, we know that headwinds <unk> offset each other over time.

Priority is growing from cycle to cycle.

Tim Chen: We continue to take share across the cycle in a large and growing market, independent of macroeconomic factors. For example, our primary addressable market, U.S. financial services digital advertising, is expanding with a 2023 four-year CAGR of approximately 15 percent. And Nerdwallet's share in this market has also increased, with a four-year revenue CAGR of 27%.

We continue to take share across the cycle and a large and growing market independent of macroeconomic factors.

Our primary addressable market U S financial services digital advertising is expanding with the 2023 four year CAGR of approximately 15%.

And nevertheless share in this market has also increased with a four year revenue CAGR of 27% and in Q4, we achieved record monthly unique users up 24% year over year, suggesting a significant opportunity for revenue growth as monetization improves.

Tim Chen: And in Q4, we achieved record monthly unique users, up 24% year-over-year, suggesting a significant opportunity for revenue growth as monetization improves. Also critical to my mind are the structural improvements we made to our business in 2023. We are dedicated to relentlessly improving our operations and increasing our efficiency. This past year, we made our brand spin work harder, and we also efficiently managed R&D expense growth while still launching several new product initiatives, including Nerd AI and Nerd Up by Nerdwallet. As a result, full-year, non-GAAP operating income increased $27 million versus the prior year.

Also critical to my mind are the structural improvements we made to our business in 2023.

We're dedicated to relentlessly improving our operations and increasing our efficiency. This past year, we made our brand spend work harder and we also efficiently managed R&D expense growth, while still launching several new product initiatives, including nerd AI in nerd up by <unk>.

As a result full year non-GAAP operating income increased $27 million versus the prior year and in Q4, we maintained relatively similar margins despite our declining year over year revenue.

Tim Chen: And in Q4, we maintained relatively similar margins despite our declining year-over-year revenue. This work should set us up for improved margin leverage as growth returns. We build Nerdwallet with a long-term orientation, and this means relentlessly improving while executing our strategy to create a trusted financial ecosystem or a single platform where consumers and SMBs can learn, shop, connect their data, and make decisions about their money.

This work should set us up for improved margin leverage as growth returns.

We build nerd wallet with a long term orientation and this means relentlessly improving while executing our strategy to create a trusted financial ecosystem or a single platform, where consumers and smbs can learn shop connect their data and make decisions about their money I continue to believe that this is the right path forward for our consumers partners and business driven by the meaningful.

Progress, we made against our growth pillars in 2023.

I'd like to provide you with more insight into these pillars. The progress we've made toward them this year and how I think they can accelerate our business.

Tim Chen: I continue to believe that this is the right path forward for our consumers, partners, and business, driven by the meaningful progress we made against our growth pillars in 2023. I'd like to provide you with more insight into these pillars, the progress we've made toward them this year, and how I think they can accelerate our business. As a reminder, the Land and Expand initiatives extend Nerdwallet's guidance to new markets, categories, and audiences. While we cover a range of topics today, we know the financial landscape is vast, and there's still plenty of territory to explore. In 2023, we strengthened our presence in Canada and Australia and on topics including Medicare, Social Security, estate planning, and auto loans.

As a reminder, land and expand initiatives extending <unk> guidance to new market categories and audiences. While we cover a range of topics today, we know the financial landscape is fast and Theres still plenty of territory to explore.

In 2023, we strengthened our presence in Canada, and Australia, and then topics, including Medicare Social security the state planning and auto loans.

Looking specifically at Q4, our land and expand efforts have shown particularly strong results in Canada as any of US were up 56% year over year last quarter. Similarly, Q4 saw continued acceleration in our Medicare category, our traffic was up over 150% year over year as we built out our library and enhanced our marketplace to serve.

Consumers during the open enrollment period.

Vertical integration pairs, our competitive advantages and top of funnel and brand with best in class user experiences and throughout 2023. This is a significant focus for nerd would we.

Tim Chen: Looking specifically at Q4, our land and expand efforts have shown particularly strong results in Canada, as MUUs were up 56% year-over-year last quarter. Similarly, Q4 saw continued acceleration in our Medicare category, with our traffic up over 150% year-over-year as we built out our library and enhanced our marketplace to serve more consumers during the open enrollment period.

We pursued vertical integration via continued integration of on the barrel head, including introducing their prequalification technology to our credit cards vertical as well as through several key organic initiatives are.

Our hypothesis is that investing in best in class user experiences will not only provide consumers with new more personalized ways to shop for products, but will also increase our monetization and re engagement capabilities ultimately setting us up to capitalize more effectively on our growing audience from cycle to cycle.

In Q4, we focused on two organic initiatives early in Q4, we launched <unk> first branded product nerd up by node wallet, which is a secured card designed to provide no file thin file and subprime consumers with an option to build their credit.

Tim Chen: Vertical integration pairs our competitive advantages and top of the funnel and brand with best-in-class user experiences, and throughout 2023, this was a significant focus for Nerdwallet. We pursued vertical integration via continued integration with On The Barrelhead, including introducing their pre-qualification technology to our credit cards vertical, as well as through several key organic initiatives. Our hypothesis is that investing in and providing best-in-class user experiences will not only provide consumers with new, more personalized ways to shop for products but will also increase our monetization and re-engagement capabilities, ultimately setting us up to capitalize more effectively on our growing audience from cycle to cycle. In Q4, we focused on two organic initiatives. Early in Q4, we launched NerdWallet's first branded product, NerdUp by NerdWallet, which is a secured card designed to provide no-file, thin-file, and subprime consumers with an option to build their credit, while also benefiting our partners.

While also benefiting our partners.

Meanwhile, our team has recently launched <unk> taxes, a tax preparation software and partnership with Colin attacks. This product seeks to capitalize on the significant organic traffic to our Texas category, which previously went largely on monetized by leveraging our unit economics to offer consumers a fixed fee option for preparing their tax returns.

We also continued to integrate on the barrel hedged technology, extending their personalized experiences to mortgages and anticipation of increased demand when interest rates decrease.

Land and expand in vertical integration support our registrations and data driven engagement strategy.

Five more IMMU use to convert to registered users and give consumers reasons to register and connect their data at.

At the same time, we invest in specific registration and data driven engagement efforts to help foster loyalty based relationships with consumers.

As a result, our registered user base ended the year growing 37%.

Tim Chen: Meanwhile, our team recently launched NerdWallet Taxes, a tax preparation software, in partnership with Column Tax. This product seeks to capitalize on the significant organic traffic to our taxes category, which previously went largely unmonetized, by leveraging our unit economics to offer consumers a fixed fee option for preparing their tax returns. We also continue to integrate On The Barrel Heads technology, extending their personalized experiences to mortgages in anticipation of increased demand when interest rates decrease. LAN and EXPAND and Vertical Integration support our registrations and data-driven engagement strategy. They drive more MUUs to convert to registered users and give consumers reasons to register and connect their data.

In 2023. This work included introducing and optimizing new product features as well as up leveling our CRM capabilities to more effectively nudge our registered users with targeted insights.

Our registered users have five times the lifetime value of visitors, so expanding our registrations and data driven engagement works to furnish more cross sell opportunities and build loyalty base relationships with consumers presents significant growth potential for the business.

Our registrations and data driven engagement work in Q4 included a significant focus on developing our cross sell capabilities. We launched several campaigns to surface personalized product recommendations to registered users based on their data and we plan to continue developing this program in the quarters to come.

By now 2024 is well underway and I'm looking forward to sharing our results with you over the next four quarters as we continue to execute our strategy.

Tim Chen: At the same time, we invest in specific registration and data-driven engagement efforts to help foster loyalty-based relationships with consumers. As a result, our registered user base ended the year at 37%. In 2023, this work included introducing and optimizing new product features, as well as up-leveling our CRM capabilities to more effectively nudge our registered users with targeted insights. Our registered users have five times the lifetime value of visitors, so expanding our registrations and data-driven engagement work to provide more cross-sell opportunities and build loyalty-based relationships with consumers presents significant growth potential for the business. Our registrations and data-driven engagement work in Q4 included a significant focus on developing our cross-sell capabilities. We launched several campaigns to surface personalized product recommendations to registered users based on their data, and we plan to continue developing this program in the quarters to come.

As in 2023, we will embrace relentless self improvement a long term orientation and our commitment to consumers to drive results in the meantime, I'll pass it over to Loren to provide a financial update.

Thanks, Tim we delivered Q4 revenue of $134 million down 6% year over year and.

And we finished the year with $599 million in revenue and 11% increase versus prior year.

We remain in a cyclically depressed macroeconomic environment, particularly in interest rate sensitive areas, such as loans as well as balance sheet intensive prime lending.

We also ended 2023 with a bit more headwinds in credit cards, and personal loans than originally anticipated, causing us to deliver.

Revenue below our previous outlook for the quarter.

We are cautiously optimistic about the macro outlook as well as partner sentiment and we believe that the beginning of recovery is within sight.

Let's take a deeper look at the revenue performance during the quarter within each category.

Credit cards delivered Q4 revenue of $43 million declining 18% year over year.

Lauren St. Clair: By now, 2024 is well underway, and I'm looking forward to sharing our results with you over the next four quarters as we continue to execute our strategy. As in 2023, we will embrace relentless self-improvement, a long-term orientation, and our commitment to consumers to drive results. In the meantime, I'll pass it over to Lauren to provide a financial update. Thanks, Tim.

As we've spoken about previously the regional banking crisis in the spring of 2023 drove increased balance sheet constraints and issue our conservatism.

We believe these dynamics are temporal rather than structural and are weighing on our year over year results.

During Q4, we experienced a higher than usual seasonal decline versus Q3, and slightly worse than our expectations driven by moderately increased levels of issuer conservatism in balance sheet intensive areas such as balance transfer cards.

Lauren St. Clair: We delivered Q4 revenue of $134 million, down 6% year-over-year, and we finished the year with $599 million in revenue, an 11% increase versus the prior year. We remain in a cyclically depressed macroeconomic environment, particularly in interest rate sensitive areas such as loans, as well as balance sheet-intensive prime lending. We also ended 2023 with a bit more headwinds in credit cards and personal loans than originally anticipated, causing us to deliver revenue below our previous outlook for the quarter. However, we are cautiously optimistic about the macro outlook as well as partner sentiment, and we believe that the beginning of recovery is within sight. Let's take a deeper look at the revenue performance during the quarter within each category. Credit cards delivered Q4 revenue of $43 million, declining 18% year-over-year.

We will continue to leverage our strong top of funnel and maintain the discipline to lean back into profitable paid acquisition once we see issuer demand and monetization recover.

For the full year credit cards delivered $210 million of revenue roughly flat to the prior year.

Loans generated Q4 revenue of $24 million growing 5% year over year.

Q4 delivered a larger than normal seasonal decline from Q3, primarily driven by incremental lender tightening and delinquency rates continue to rise and personal loans as well as coming off a strong Q3 in student loan originations.

We believe that at this part of the credit cycle. There is a backlog of consumer demand in personal loans as high loan rates have reduced the incentive for consumers to refinance credit card debt.

A declining rate environment combined with leveraging our improved ability to align consumer demand more effectively with financial service providers will put us in prime position to take advantage of that demand as it surfaces.

Lauren St. Clair: As we've spoken about previously, the regional banking crisis in the spring of 2023 drove increased balance sheet constraints and issuer conservatism. We believe these dynamics are temporal rather than structural and are weighing on our year-over-year results. During Q4, we experienced a higher-than-usual seasonal decline versus Q3 and slightly worse than our expectations, driven by moderately increased levels of issuer conservatism in balance sheet-intensive areas such as balance transfer cards. We will continue to leverage our strong top-of-funnel and maintain the discipline to lean back into profitable paid acquisition once we see issuer demand and monetization recover. For the full year, credit cards delivered $210 million in revenue, roughly flat to the prior year.

While our mortgage vertical remains pressured by the high interest rate environment. We continue to believe that structural improvements we've made to our marketplaces will help us capture meaningful share when the market returns.

We also saw a material quarter over quarter decline in our student loans vertical as we lapped the back to school seasonal impact of loan originations from Q3 and have yet to see a significant pickup in refinance demand.

For the full year loans delivered $102 million of revenue declining 7% year over year.

Beginning this quarter, we have changed our revenue product category presentation and are now providing SMB products revenue as a separate disclosure.

SMB products consist of loans credit cards, and other financial products and services intended for small and mid sized businesses.

Lauren St. Clair: Loans generated Q4 revenue of $24 million, growing 5% year-over-year. However, Q4 delivered a larger-than-normal seasonal decline from Q3, primarily driven by incremental lender tightening as delinquency rates continued to rise in personal loans, as well as coming off a strong Q3 in student loan origination. We believe that at this part of the credit cycle, there is a backlog of consumer demand and personal loans, as high loan rates have reduced the incentive for consumers to refinance credit card debt. A declining rate environment, combined with leveraging our improved ability to align consumer demand more effectively with financial service providers, will put us in a prime position to take advantage of that demand as it surfaces. While our mortgage vertical remains pressured by the high interest rate environment, we continue to believe that structural improvements we've made to our marketplaces will help us capture meaningful share when the market returns. We also saw a material quarter-over-quarter decline in our student loans vertical as we lapped the back-to-school seasonal impact of loan originations from Q3 and have yet to see a significant pickup in refinance demand. For the full year, loans delivered $102 million of revenue, declining 7% year over year.

Previously SMB products was a component of our other verticals revenue disclosure, but given the relative size and long term opportunity you will see us break out their revenue contribution separately.

Please refer to our earnings press release for historical revenue data.

SMB products delivered Q4 revenue of $28 million growing 6% year over year.

While we continue to face some underwriting challenges and our loans category renewables have started to rebound signaling a path to a recovering macro environment and validating our vertical integration strategy with the reoccurring nature of our funnel.

Outside of loans, we have also been scaling our additional product offerings for small and mid sized businesses, including credit cards banking and software to drive overall revenue growth for the quarter.

For the full year SMB products delivered $101 million of revenue growing 11% year over year.

Finally, our emerging verticals, formerly named our other verticals revenue product category finished Q4 with revenue of $39 million declining 3% year over year.

As a reminder, after the regrouping of SMB products revenue emerging verticals consists of areas such as banking insurance investing and international.

Banking grew 5% year over year decelerating versus previous quarters, as we lapped our toughest prior year comparison period combined with continuing signs of moderating consumer demand.

And while we previously mentioned that moderating consumer demand with cause near term year over year declines demand remained a bit more robust than we had previously anticipated in Q4.

Lauren St. Clair: Beginning this quarter, we have changed our revenue product category presentation and are now providing S&B products revenue as a separate disclosure. SMB products consist of loans, credit cards, and other financial products and services intended for small and mid-sized businesses. Previously, S&B Products was a component of our other verticals, Revenue Disclosure, but given the relative size and long-term opportunity, you will see us break out their revenue contributions separately. Please refer to our earnings press release for historical revenue data. S&B products delivered Q4 revenue of $28 million, growing 6% year over year.

Growth in emerging verticals was more than offset by headwinds in insurance, which declined 22% year over year.

Carrier driven profitability pressures continued through most of the quarter, but we're optimistic that the positive momentum we saw at the end of last year and so far into Q1 means that carriers are willing to increase customer acquisition budgets for the upcoming quarters.

For the full year emerging verticals delivered $187 million of revenue growing 46% year over year.

Moving on to investments and profitability.

During Q4, we earned $29 million of adjusted EBITDA at a 22% margin roughly flat versus the prior year.

For the full year, we earned <unk> $98 million of adjusted EBITDA at a 16% margin.

<unk>, a four point increase versus 2022, as we were able to deliver leverage across the majority of our cost base.

Lauren St. Clair: While we continue to face some underwriting challenges in our loans category, renewals have started to rebound, signaling a path to a recovering macro environment and validating our vertical integration strategy with the reoccurring nature of our funnel. Outside of loans, we have also been scaling our additional product offerings for small and mid-sized businesses, including credit cards, banking, and software, to drive overall revenue growth for the quarter. For the full year, S&B Products delivered $101 million in revenue, growing 11% year-over-year.

In the fourth quarter. We also earned over $12 million of non-GAAP operating income at a 9% margin.

For the full year, we earned $26 million of non-GAAP operating income at a 4% margin.

In the fourth quarter, we had a GAAP net loss of $2 3 million.

Which includes a $7.6 million income tax provision.

Similar to what we've mentioned in previous quarters, we expect to be in a tax expense position for the year and also expect to be a cash taxpayer for the foreseeable future.

Please refer to today's earnings press release for a full reconciliation of our GAAP to non-GAAP measures.

Lauren St. Clair: Finally, our Emerging Verticals, formerly named our Other Verticals Revenue Product Category, finished Q4 with revenue of $39 million, declining 3% year over year. As a reminder, after the regrouping of S&B products revenue, emerging verticals consist of areas such as banking, insurance, investing, and international. Banking grew 5% year-over-year, decelerating versus previous quarters, as we lapped our toughest prior-year comparison period, combined with continuing signs of moderating consumer demand. However, while we previously mentioned that moderating consumer demand would cause near-term, year-over-year declines, demand remained a bit more robust than we had previously anticipated in Q4. Growth in emerging verticals was more than offset by headwinds in insurance, which declined 22% year over year.

Consumers continue to turn to the nerds for their money questions. We provided trustworthy guidance to 24 million average monthly unique users in Q4 up 24% year over year.

Growth was the result of strength in many areas across nerd wallet such as travel.

Personal loans and insurance we.

We're seeing consistently strong consumer demand for both our learn and shop content, though our learn content has been a larger portion of where consumer demand has more recently concentrated.

Causing higher <unk> growth with some pressure on revenue per <unk>.

Despite these near term monetization pressures, we think this helps fuel our ecosystem.

In the long run more and you used engaging with our learn content builds our brand recognition and trust and that creates an asset that will ultimately pay dividends.

Onto our financial outlook.

As we enter 2024, we believe that we have line of sight to recovery and growth in our business.

There was some level of uncertainty remains we plan to continue providing quarterly guidance and will also provide qualitative commentary for full year expectations.

Lauren St. Clair: Carrier-driven profitability pressures continued through most of the quarter, but we're optimistic that the positive momentum we saw at the end of last year and so far into Q1, means that carriers are willing to increase customer acquisition budgets for the upcoming quarter. For the full year, Emerging Verticals delivered $187 million of revenue, growing 46% year-over-year. Moving on to Investments and Profitability, during Q4, we earned $29 million of adjusted EBITDA at a 22% margin, roughly flat versus the prior year. For the full year, we earned $98 million of adjusted EBITDA at a 16% margin, roughly a four point increase versus 2022, as we were able to deliver leverage across the majority of our cost base. In the fourth quarter, we also earned over $12 million of non-GAAP operating income at a 9% margin. For the full year, we earned $26 million of non-GAAP operating income at a 4% margin. In the fourth quarter, we had a GAAP net loss of $2.3 million, which included a $7.6 million income tax provision.

We expect to deliver first quarter revenue in the range of $155 million to $160 million.

Which at the midpoint with declined 7% versus prior year, but increased sequentially roughly 18% <unk>.

Indicating the step up we typically see from Q4 to Q1.

To give you more color on our Q1 expectations were.

We are still facing headwinds related to balance transfer credit cards, while banking demand continues to moderate.

We expect a material quarter over quarter increase in insurance and we are also seeing positive momentum in SMB products.

But just as a reminder, we will have a tough Q1 comp and insurance.

As we look to the rest of the year, we expect to return to double digit revenue growth during the second half given recent recovery in SMB products and insurance.

The timing of the recovery in areas such as balance transfer cards combined with how interest rate decreases will impact inversely correlated demand in banking and loans.

Will influence how high those double digit growth rates will be.

But we're confident that we see signs of progress towards growth re acceleration and as we experience additional monetization unlocks from our partners, we will lean back into profitable growth acquisition channels.

Moving to profitability we.

We expect Q1 non-GAAP operating income in the range of $5 million to $8 million or.

<unk>, 4% of revenue at the midpoint roughly at two 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 2023, where the majority of spend will occur during the first three quarters with reduced spend during the fourth.

Lauren St. Clair: Similar to what we've mentioned in previous quarters, we expect to be in a tax expense position for the year and also expect to be a cash taxpayer for the foreseeable future. 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.

With this being said our Q1 brand investments will be lower than last year.

For the full year, we plan to deliver increasing margins as a result of slowing growth in our cost base and roughly similar spend brand spend to 2023.

Lauren St. Clair: We provided trustworthy guidance to 24 million average monthly unique users in Q4, up 24% year over year. Growth was a result of strength in many areas across Nerdwallet, such as travel, personal loans, and insurance. We are seeing consistently strong consumer demand for both our LEARN and SHOP content, though our LEARN content has been a larger portion of where consumer demand has more recently concentrated, causing higher MUU growth with some pressure on revenue per MUU. Despite these near-term monetization pressures, we think this helps fuel our ecosystem. In the long run, more MUUs engaging with our learned content builds our brand recognition and trust, and that creates an asset that will ultimately pay dividends on to our financial outlook. As we enter 2024, we believe that we have a line of sight to recovering growth in our business. Though some level of uncertainty remains, we plan to continue providing quarterly guidance and will also provide qualitative commentary on full-year expectations.

Resulting in approximately 6.5% to 8% of revenue for full year 2024, non-GAAP ally margin.

And while our main profitability metric will be non-GAAP Oi moving forward as a continuation of our previous disclosures and commitments. We expect our full year 2024, adjusted EBITDA margin in the range of 18 to 19, 5% of revenue.

Aligned with our previous commitments. This outlook range would have us return to 2019, adjusted EBITDA margin levels, while strategically investing in our long term vision.

As you may have read in our shareholder letter posted today on March 4th we are planning to release a video presentation for investors sharing more detail on our business and vision for nerd wallet as well as our mid to long term financial goals.

The video will be available on our Investor Relations website, and we look forward to hearing your feedback.

We entered this year optimistic about the future while pragmatic on the gradually improving macroeconomic environment.

We know we have a responsibility to our users to help them navigate their financial questions all while maintaining our long term view prioritizing trust and continuing to diversify and improve our product experiences from cycle to cycle with that we're ready for questions operator.

Lauren St. Clair: We expect to deliver first quarter revenue in the range of $155 to $160 million, which at the midpoint would decline 7% versus prior year but increase sequentially roughly 18%, indicating the step-up we typically see from Q4 to Q1, to give you more color on our Q1 expectations. We're still facing headwinds related to balance transfer credit cards while banking demand continues to moderate. We expect a material quarterly-over-quarter increase in insurance, and we are also seeing positive momentum in S&B products. But just as a reminder, we'll have a tough Q1 comp in insurance. As we look to the rest of the year, we expect to return to double-digit revenue growth during the second half given the recent recovery in S&P products and insurance. However, the timing of the recovery in areas such as balanced transfer cards, combined with how interest rate decreases will impact inversely correlated demand in banking and loans, will influence how high those double-digit growth rates will be.

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, one moment for questions.

Our first question comes from James Fawcett with Morgan Stanley You May proceed.

Oh.

Great sorry about that.

Wanted to ask quickly.

Sounds like you are.

We're seeing some indications that things can improve.

You mentioned small medium sized businesses and insurance seem pretty confident about that.

Describe like what is driving your confidence, particularly for the second half of the year and I'll just tie up my second question, which is kind of related.

In the broader credit market, we're seeing lots of comments around.

Prime and subprime.

Credit.

Four months et cetera seems like there may be some improvements there but.

In your conversations with your partners, how do you usually.

See that communicated to you and kind of what kinds of things should we be tracking to see.

Lauren St. Clair: But we're confident that we see signs of progress towards growth reacceleration, and as we experience additional monetization unlocks from our partners, we will lean back into profitable growth acquisition channels. Moving to profitability, we expect Q1 non-GAAP operating income in the range of $5 to $8 million, or approximately 4% of revenue at the midpoint, roughly a two-point increase versus the prior year. Consistent with what we've mentioned previously, we anticipate that the cadence of our brand spend will be similar to 2023, where the majority of spend will occur during the first three quarters, with reduced spend during the fourth. With this being said, our Q1 brand investments will be lower than last year.

The potential for.

The credit part of the market to contribute to the second half growth.

Materialise.

Okay. Yeah. Thanks for the question so I'll take those one piece at a time I guess in terms of insurance.

Inflation driven insurance industry headwinds.

Continued through throughout all of last year right and into Q4. So we saw a 22% decline on a year over year basis, we started to see a recovery at the end of last year and into Q1.

Which is represented in our outlook for Q1 exiting Q1 carriers seem to be expecting a pretty broad based and durable recovery throughout 2024. So for some context large parts of the U S. Population today is still arent being served from the perspective of carriers wanting to write home and auto policies. So you can imagine that as this resolves itself there will be a medium term.

Lauren St. Clair: For the full year, we plan to deliver increasing margins as a result of slowing growth in our cost base and roughly similar brand spend to 2023, resulting in approximately six and a half to eight percent of revenue for full year 2024 non-GAAP OI margins. And while our main profitability metric will be non-GAAP-OI moving forward, as a continuation of our previous disclosures and commitments, we expect a full year 2024 adjusted EBITDA margin in the range of 18 to 19.5 percent of revenue. Aligned with our previous commitments, this outlook range would have us return to 2019 adjusted EBITDA margin levels while strategically investing in our long-term vision. As you may have read in our shareholder letter posted today, on March 4th, we are planning to release a video presentation for investors sharing more detail on our business and vision for Nerdwallet as well as our mid to long-term financial goals. The video will be available on our Investor Relations website, and we look forward to hearing your feedback.

Tailwind as those markets open back up.

And so that's one of the main drivers in terms of our 2024 outlet, where we're expecting double digit year over year growth in the back half.

Really.

Yes.

Recovery from the worst insurance hard market in a few decades.

And then in terms of small business.

I would say with that one.

We saw a lot of progress.

Across the three year anniversary of integrating <unk>, we more than tripled revenue.

Success in vertical integration and land and expand within SMB. So I'm really happy with that that being said, we're still in a really tough macro right now a lot of the underwriting is tighter than what we've seen historically.

And so we do expect at some point for that to become a tailwind as theres a macro recovery the timing on that one is a little bit harder to call.

Operator: We enter this year optimistic about the future, while pragmatic about the gradually improving macroeconomic environment. We know we have a responsibility to our users to help them navigate their financial questions, all while maintaining our long-term view, prioritizing trust, and continuing to diversify and improve our product experiences from cycle to cycle. With that, we're ready for questions. Operator?

And then you are suddenly right on the on the commentary around prime consumers.

We're hearing the same thing both in the credit card and personal lending markets.

I'd say, what we saw is going into Q4.

And throughout probably starting the middle of Q4, there is a bit of upside surprise in some of the delinquencies in the prime part of the market.

Given how strong the employment market was I think that cut a few people off guard.

Operator: Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

And so what I'd say here is that card issuers have pretty robust predictive models like the good ones can predict almost within minutes of the first payment due dates how delinquencies are going to trend a few quarters out so what we see in terms of underwriting tightening as really a reaction to that and it's been pretty president the majority of the last seven quarters.

Operator: One moment for questions. Our first question comes from James Fawcett with Morgan Stanley. You may proceed. Great, sorry about that. I was fumbling with the mute button.

And so definitely saw that impacting cards.

James Fawcett: I wanted to ask quickly, it sounds like you're seeing some indications that things can improve. And specifically, you mentioned small and medium-sized businesses and insurance, and you seem pretty confident about that. Can you just describe what is driving your confidence in that, particularly for the second half of the year? And I'll just tie in my second question, which is kind of related.

I will say that while delinquencies have overshot 2019 levels issuers are largely calling out that this is expected normalization in that we've already either seeing a peak in delinquencies or that they are kind of expecting a peak by the middle of the year and are kind of in wait and see mode in terms of when to get aggressive again.

That could be a tailwind at some point.

In the future I will say also on the balance transfer side things are still a little bit balance sheet constraints. So theres. Some caps there so thats another potential tailwind at some point down the road.

Tim Chen: You know, in the broader credit market, we've seen lots of comments around Prime and Subprime, credit performance, et cetera. Seems like there may be some improvements there, but, in your conversations with your partners, how do you usually see that communicated to you, and what kinds of things should we be tracking to see if the potential for the credit part of the market to contribute to second half growth is able to materialize? Thanks. Yeah, thanks for the question. So I'll take those one piece at a time.

Great Thanks for that Tim.

Yes.

Thank you.

One moment for questions.

Our next question comes from Ralph <unk> with William Blair You May proceed.

Good afternoon. Thanks for taking question just on credit cards, you talked about.

Recoveries might be saying, hey, can I have called out maybe some early signs so any color along that just maybe kind of broader just from the credit card issuers what are they sharing with you just in terms of what they're watching for before they returned back to kind of more normalized levels that you've seen historically, then I have a follow up.

Tim Chen: I guess, in terms of insurance, inflation-driven insurance industry headwinds continued throughout all of last year and into Q4, so we saw a 22% decline on a year-over-year basis. However, we started to see a recovery at the end of last year and into Q1, which is represented in our outlook for Q1. Exiting Q1, carriers seem to be expecting a pretty broad-based and durable recovery throughout 2024. So for some context, large parts of the U.S. population today still aren't being served from the perspective of carriers wanting to write home and auto policies.

Sure, Yes, I think it's largely around.

Okay.

Theres two factors happening right like so in some prime areas like saved on transfer that are a bit more balance sheet intensive I mean, I think there is non credit related.

Factors.

And are affecting how many units of demand.

Balance sheets can handle right. So I think some of that will resolve itself as.

We moved through the cycle of it and then from a credit specific perspective.

Tim Chen: So you can imagine that as this resolves itself, there will be a medium-term tail-end as those markets open back up. And so that's one of the main drivers in terms of our 2024 outlook, where we're expecting double-digit year-over-year growth in the back half, really that recovery from the worst insurance hard market in a few decades. And then, in terms of small business, I'd say with that one, we saw a lot of progress. We just crossed the three-year anniversary of integrating Fundera. We more than tripled revenue, had a lot of success in vertical integration, and landed and expanded within S&B. So, we're really happy with that.

I think it's really tracking these early delinquency trends and making sure that they've adjusted underwriting appropriately to be comfortable with some of the trajectories there. So.

I'd really point to this.

This quarter quite a lot of commentary from card issuers.

If you're feeling a little bit more optimistic there.

Ice for in terms of a recovery.

Great and just maybe a follow up to that as we think about credit cards and sort of modeling that for Q1.

What's sort of contemplated in guidance I know you can't give specific numbers, but just maybe kind of think help us think through some of the puts and takes as we sort of recalibrate our models. Thank you.

Tim Chen: That being said, we're still in a really tough macro right now. A lot of the underwriting is a bit tighter than what we've seen historically. And so, you know, we do expect at some point for that to become a tailwind as there is a macro recovery. The timing on that one is a little bit harder to call.

Sure.

Yeah, Let me take that Tim I can go over our Q1 guidance specifically so on your question around credit cards, and what's contemplated first I'll just remind everyone that the guide for Q1 for revenue is $155 million to $160 million, which at the midpoint would be declining 7% year over year.

Tim Chen: And then, yeah, you're certainly right about the commentary around prime consumers. You know, we're hearing the same thing both in the credit card and the personal lending markets. You know, I'd say what we saw going into Q4 and throughout probably straight in the middle of Q4, there was a bit of an upside surprise in some of the delinquencies in the prime part of the market. Given, you know, how strong the employment market was, I think that caught a few people off guard.

But up 18% quarter over quarter and some context on that from Q4 to Q1, we would typically expect to see a material increase quarter over quarter, which in a normal year is driven primarily by consumer demand at the start of the new year supported by our brand efforts last.

Last year was a fairly typical Q1 for us and while we are seeing our typical Q4 to Q1 step up this year, we are still facing many of the headwinds from prior quarters and so it becomes a tougher comp year over year.

Tim Chen: And so what I'd say here is that card issuers have pretty robust predictive models, right? The good ones can predict almost within minutes of the first payment due date how delinquencies are going to trend a few quarters out. So what we see in terms of underwriting timing is really a reaction to that. And it's been pretty consistent the majority of the last seven quarters.

To your question, we are still experiencing headwinds in credit cards, but we have called out that we're starting to see a recovery in areas like insurance and also F&B products, but just as a reminder, insurance is still going to have a tough comp in Q1, so even though we expect a material increase quarter over quarter the comp on a year over year basis will be tough.

Tim Chen: And so, you know, definitely saw that impact in cards. I'll say that while delinquencies have overshot 2019 levels, the issuers are largely calling out that this is expected normalization and that, you know, we've already either seen a peak in delinquencies or that they're kind of expecting a peak by the middle of the year and are kind of in a wait and see mode in terms of, you know So that could be a tailwind at some point in the future. I will also say on the balance transfer side, things are still a little bit balance sheet constrained. So there are some caps there.

Yes.

Add on I guess credit card specific as we look at our 24 outlook, it's kind of hard to call exactly when underwriting starts to loosen again, so we're being relatively conservative about that.

I would definitely encourage you to look at 2019 seasonality in cards as being kind of a more normal historical year, we saw some pretty unusual patterns and the.

The year is following as we recovered from Covid, but.

In 2019, you saw.

A pretty large sequential decline from Q3 to Q4, and then I think that matches more of a normal seasonality pattern.

Tim Chen: So that's another potential tailwind at some point down the road. Great. Thanks for that, Tim. Thank you. One moment for questions. Our next question comes from Ralph Schackart with William Blair. You may proceed. Good afternoon.

Great. Thanks, Tim Thanks, a lot.

Thank you.

One moment for questions.

Our next question comes from Ross Sandler with Barclays. You May proceed.

Tim you mentioned.

Ralph Edward Schackart: Thanks for taking the question. Just on credit cards, you know, just maybe talk about recovery. You might be seeing, I think you might have called out maybe some early signs, so any color along that.

The challenges in matching and.

And the credit card business that you realized in the fourth quarter can you just.

Albeit a little bit more on that.

Technical issue on your side.

Or something external and did you leave any money on the table as a result of this and kind of.

Tim Chen: And maybe kind of broader, just from the credit card issues, you know, what are they sharing with you just in terms of what they're watching for before they may return back to kind of more normalized levels that you've seen historically? Then I have a follow-up. Sure, yeah.

Yes could you just walk us through when you think that will be resolved.

Sure.

Right I describe us as being matchmakers right. So we just got some things wrong in Q3 and over earned in terms of our matching algorithm for near and subprime consumers.

Lauren St. Clair: I think it's largely around, you know, there are two factors happening, right? So, in some prime areas, like, say, balance transfer, that are a bit more balance sheet intensive. I mean, I think there are non-credit-related factors just kind of affecting how many units of demand that balance sheets can handle, right? So I think some of that will resolve itself as we move through the cycle a little bit. And then from a credit-specific perspective, I think it's really tracking these early delinquency trends and making sure that they've adjusted underwriting appropriately to be comfortable with some of the trajectories there. So I'd really point to, you know, this quarter, quite a lot of commentary from card issuers on, you know, feeling a little bit more optimistic there and, you know, eyes forward in terms of a recovery.

Extrapolated incorrectly from there, but we want to get this right for consumers and financial institutions. So we basically hit pause and rebuilt things from the ground up.

This is not the first time. This has happened right. When you go into a new market, sometimes it takes a few cycles and some feedback to get that matching rate, but we feel like we're back on the right path now so.

Encourage going forward, yes, and maybe I just wanted to clarify the commentary around challenges with matching with not in credit cards and personal loans at Tims commentary right now is about personal loans.

Thank you.

One moment for questions.

Our next question comes from Jed Kelly with Oppenheimer You May proceed.

Hey, great.

Thanks for taking my questions.

Two.

Can you talk about how we should think about margins.

Market or demand comes back and how you would lean into it I assume you would you wouldn't mind sacrificing some margin if the gross the gross profit dollars makes sense and then how should we think about the overall opportunity in insurance, it's a huge market, but the customer service isn't always the best so how.

Lauren St. Clair: Great, and maybe a follow-up to that, you know, as we think about credit cards and sort of modeling that for, I guess, Q1, what's sort of contemplated in guidance? I know you can't give specific numbers, but just maybe kind of think, help us think through some of the puts and takes as we sort of recalibrate our models. Thank you.

Do you think about leaning into that market and trying to grow your percentage of the overall carrier budget. Thanks.

Lauren St. Clair: I can go over Q1 guidance specifically. So on your question around credit cards and what's contemplated, first I'll just remind everyone that the guide for Q1 revenue is $155 to $160 million, which at the midpoint would be declining 7% year over year but up 18% quarter over quarter. And some context on that; from Q4 to Q1, we would typically expect to see a material increase quarter over quarter, which in a normal year is driven primarily by consumer demand at the start of the new year, supported by our brand efforts. Last year was a fairly typical Q1 for us.

Great I'll take the first part of your question and then I'll hand, it off to Tim for the insurance piece.

Al just to your question around margins I'll, just remind everyone that in a <unk> wallet for the long term and this is also how we think about margins we've been working towards margin accretion that would get us back to and eventually surpass our 2019, adjusted EBITDA levels, which in the range of our outlook for full year 2020.

Sure we would get back to this year and we work to achieve this through getting leverage in the portion of our cost base that is relatively fixed in nature that includes one hitting a logical ceiling on our brand spend to no longer having the step change in G&A expenses as a result of becoming a public company and three continuing to gain leverage.

Tim Chen: And while we are seeing our typical Q4 to Q1 step up this year, we are still facing many of the headwinds from prior quarters, and so it becomes a tougher comp year over year. So to your question, we are still experiencing headwinds from credit cards, but we have called out that we're starting to see recovery in areas like insurance and also S&B products. But just as a reminder, insurance is still going to have a tough comp in Q1. So even though we expect a material increase quarter over quarter, the comp on a year-over-year basis will be, Yeah, and I'll add on, I guess, credit card specific. As we look at our 24-hour outlook, it's kind of hard to call exactly when underwriting starts to loosen again, so we're being relatively conservative about that.

<unk> in areas, such as R&D and the organic portion of our sales and marketing.

We're really proud that we've been able to deliver consistent margin accretion on an annual basis.

Our IPO in late 2021, even in difficult macroeconomic environment and our outlook showcases our commitment to continuing this trend. So if the top line picks up faster.

Then what we are currently contemplating we will clearly lean in on things like variable expenses that we've talked about so when its profitable and period, we will lean into things like performance marketing you could expect those cost to come up but for the fixed.

A portion of our cost base I would expect to get leverage out of those over the long term.

Yes, great question on insurance, it's a big strategic question.

Tim Chen: I would definitely encourage you to look at 2019 seasonality in cards as being kind of a more normal historical year. We saw some pretty unusual patterns in the years following as we recovered from COVID, but yeah, in 2019, you saw a pretty large sequential decline from Q3 to Q4, and then I think that matches more of a normal seasonality pattern. Great. Thanks, Tim. Thanks, Lauren.

We're constantly trying to work our way towards Youre right its a huge market.

There.

And a lot of challenges in terms of providing consumers with what.

Sensible experience there.

I can say is that we're trying to be creative and exploring a bunch of different avenues and hope to have something to talk about in the coming years, there, but it's going to be a long investment.

Thank you.

Thank you and as a reminder to ask a question. Please press star one on your telephone one moment for questions.

Ross Adam Sandler: Thank you. One moment for questions. Our next question comes from Ross Sandler with Barclays; you may proceed. Tim, you mentioned the challenges in matching in the credit card business that you experienced in the fourth quarter. Can you just elaborate a little bit more on that? Was this a technical issue on your side or something external, and did you leave any money on the table as a result of this? And can you just walk us through when you think that will be resolved? Sure, so... Right. I would describe us as being matchmakers, right?

Our next question comes from Youssef Squali with true Securities You May proceed.

Okay, great. Thank you couple of questions.

One for Loren, maybe Paul for you.

You talked about for a full year adjusted EBITDA margin in Q2.

19, 5% of revenues so thanks for that.

Now the obvious question is kind of what's your base case.

To get either to the low end or the high on him back in terms of growth I'm, assuming its mix.

Tim Chen: So we just got some things wrong in Q3 and over-earned in terms of our matching algorithm for near and subprime consumers and extrapolated incorrectly from there. But we want to get this right for consumers and financial institutions, so we basically hit pause and rebuilt things from the ground up. And, you know, this is not the first time this has happened, right?

And kind of.

The acceleration in second half, but any any kind of guardrails. You can you can kind of share that core that would be helpful and kind of related to that is that.

So kind of related somehow to.

Changes in the rate environment, just maybe Tim.

What's your kind of base case for further rates environment as we go through it because obviously, it's been very very fluid in the last four weeks.

Lauren St. Clair: When you go into a new market, sometimes it takes a few cycles and some feedback to get that matching right. But we feel like we're back on the right path now, so we are encouraged going forward. Yeah, maybe I just wanted to clarify the commentary around challenges with matching was not in credit cards; it was in personal loans. So Tim's commentary right now is about personal loans, not credit cards. Thank you.

That's the first part of your question Youssef in terms of full year adjusted EBITDA as we said before we're really proud of the margin accretion that we've been able to continue to show for full year, even despite some volatility in the macro.

But what we're expecting in terms of full year on the top line. We said that we currently expect to return to double digit rates of revenue growth starting in the second half.

Jed Kelly: One moment for questions. Our next question comes from Jed Kelly with Oppenheimer. You may proceed. Hey, great. Thanks for taking my question. Just two.

This will be led by SMB products and insurance.

And I will reiterate what I said in my remarks, though that the exact timing of the recovery, especially in areas such as balance transfer cards as well as any interest rate driven demand changes in both banking and loans will influence how high those double digit growth rates will be and by wind.

Lauren St. Clair: Can you talk about how we should think about margins if market or demand comes back and how you would lean into it? I assume you wouldn't mind sacrificing some margin if the gross profit dollars make sense. And then how should we think about the overall opportunity in insurance? It's a huge market, but customer service isn't always the best. So how do you think about leaning into that market and trying to grow your percentage of the overall carrier budget? I'll take the first part of your question, and then I'll hand it off to Tim for the insurance piece.

Yeah and in terms of the base case.

Trying to be.

It's hard to call exact timing on a lot of these things. So we are definitely trying to be conservative I will paint the overall macro picture just as being.

If there is a soft landing scenario that would be pretty ideal for us.

Because what would happen is you would see easing headwinds in credit cards in our loans business is balance sheet.

Tim Chen: You know, I'll just answer your question around margins. I'll just remind everyone that, you know, Tim built Nerdwallet for the long term, and this is also how we think about margins. We've been working towards margin accretion that would get us back to and eventually surpass our 2019 adjusted EBITDA levels, which in the range of our outlook for full year 2024, we would get back to this year, and we've worked to achieve this through getting leverage in the portion of our cost base that is relatively fixed in nature. That includes one hitting a logical ceiling on our brand spend, two no longer having to step change in G&A expenses as a result of becoming a public company, and three continuing to gain leverage in areas such as R&D and the organic portion of our sales and marketing.

Constraints in underwriting loosen and you'd also see an increase in refi demand across all lending areas as rates decline and then we'd also see easing headwinds in our insurance business as inflation continues to moderate and carriers get back on their feet as this pricing flows through.

So should we experience more of a hard landing scenario, you should expect revenue recovery to take a bit longer, possibly even getting more challenged in the near term.

All will be prudent with our expense management in order to deliver on our margin commitments the timing of any material changes in the macro environment impacts for near term progress and some of those margin efforts.

Thank you just one quick clarification, maybe Laura when you talk about same brand spend levels in 2024, and 2023 is that on a percentage basis or is that in aggregate dollars.

That's for the full year in absolute dollars.

Okay, great. Thank you both.

Tim Chen: We're really proud that we've been able to deliver consistent margin accretion on an annual basis since our IPO in late 2021, even in a difficult macroeconomic environment, and our outlook showcases our commitment to continuing this trend. So, if the top line picks up faster than what we're currently contemplating, we will clearly lean in on things like variable expenses that we've talked about. So, when it's profitable and period, we will lean into things like performance marketing. So, you could expect those costs to come up. But for the fixed portion of our cost base, I would expect to get leverage out of those over the long term. Yeah, and a great question on insurance.

Thank you.

One moment for questions.

Our next question comes from Justin Patterson with Keybanc you May proceed.

Alright, Thank you very much good afternoon, Tim.

Could you tease out some of your top priorities each year across.

Your big three growth pillars.

We expect around land and expand vertical integration and engagement initiatives and then I'll have a follow up for Loren.

Yes. Thanks for the question. So those are our three growth pillars, right I'd say land and expand is really more of our.

A tried and true playbook.

Always pushing on that in terms of the stuff thats going to be a bit more novel over the coming several years I think is really in terms of the vertical integration and the registration and data driven engagement. So we're thinking really hard about where there are still gaps in customer experiences, where we can uniquely play.

Operator: It's a big strategic question that we're constantly trying to work our way towards. You're right; it's a huge market. There are a lot of challenges in terms of providing consumers with a sensible experience there. All I can say is that we're trying to be creative and exploring a bunch of different avenues and hope to have something to talk about in the coming years. But it's going to be a long investment. Thank you. Thank you. And as a reminder, to ask a question, please press star one one on your telephone.

<unk> is a great example of that but.

But also things like.

We've launched like drive like a nerd, we've launched <unk> advisors. So theres a lot of different thought processes that were exploring in auto hypotheses that we're eager to evaluate.

Got it thanks.

A follow up for lower on <unk>.

Appreciate the details you gave around it's just revenue growth in the second half of the year wanted to confirm was that double digit growth.

On the second half as a whole or on a quarterly basis, and then as you're thinking about just the growth vectors in there how should we think about.

Youssef Squali: One moment for questions. Our next question comes from Youssef Squali with Truist Securities. You may... Great, thank you. A couple questions. One for Lauren, maybe both for Lauren.

The puts and takes between user growth versus just brand spent or advertiser spend starting to improve again. Thank you.

Sure. So the first part of the question Justin was around revenue growth. So what we said was that we expect to return to double digit rates of growth for revenue year over year, starting in the second half.

Lauren St. Clair: You talked about for a full year adjusted EBITDA margin, the 18 to 19 and a half percent of revenues. So thanks for that. Now the obvious question.

And then.

Tim Chen: What's your base case to get either to the low end or the high end on that in terms of growth? I'm assuming it's a mix and kind of the acceleration in the second half, but any kind of guardrails you can kind of share that for that would be helpful and kind of related to that, also kind of related somehow to changes in the rates environment. Just maybe, Tim, what's your kind of base case for the rates environment as we go through it? Because, obviously, it's been very, very fluid in the last four weeks. To the first part of your question, Yousef, in terms of full-year adjusted EBITDA, you know, as we said before, we're really proud of the margin accretion that we've been able to continue to show for the full year, even despite some volatility in the macro.

And the second part of the question was I believe around <unk> growth and user growth as well as brand spend is that correct.

Yeah, just thinking about the buckets in their user growth is obviously well above total revenue growth right. Now. So just wondering if there's any views off of how users persist versus say pricing recovery, that's driving that reacceleration.

Yeah, let's let's talk a little bit about <unk> and we're really proud of that growth in Q4, we grew roughly 24% year over year from strength in many verticals both from high levels of consumer intent as well as our success in landing and expanding.

Similar to areas, where we saw growth in revenue, we see growth in EM. You use you can think of banking and personal loans and we also saw high consumer interest in areas like travel and investing.

Tim Chen: But what we're expecting in terms of full year on the top line, we said that we currently expect to return to double-digit rates of revenue growth starting in the second half. This would be led by S&B products and insurance, and I will reiterate what I said in my remarks, though, that the exact timing of the recovery, especially in areas such as balance transfer cards, as well as any interest rate-driven demand changes in both banking and loans, will influence how high those double-digit growth rates will be and by when. Yeah, in terms of the base case, we're trying to be, you know, it's hard to call exact timing on a lot of these things. So we're definitely trying to be conservative.

As we expected and to your point and you use grew faster than revenue again in Q4. This trend gives us confidence that consumer demand remains healthy despite ongoing partner conservatism.

And we expect that this outperformance of M. You use versus revenue, we expect that to continue into Q1, as we see really strong engagement with our learning content as consumers are continuously looking for unbiased guidance and financial content. During this complex macroeconomic time.

And despite some of the near term revenue pressure, we expect that the strength in <unk> combined with our ability to match consumers with our financial service providers will accelerate our growth as the macro environment improves.

Lauren St. Clair: I will paint the overall macro picture just as being, you know, if there is a soft landing scenario, that would be pretty ideal for us. Because what would happen is you'd see easing headwinds in credit cards and our loans business, as balance sheet constraints and underwriting loosen. And you'd also see an increase in refi demand across all lending areas as rates decline. And then we would also see easing headwinds in our insurance business as inflation continues to moderate and carriers get back on their feet as this pricing flows through. So should we experience more of a hard landing scenario, you should expect revenue recovery to take a bit longer, possibly even becoming more challenging in the near term. And while we'll be prudent with our expense management in order to deliver on our margin commitments, the timing of any material changes in the macro environment can impact shorter-term progress on some of those margin efforts. Thank you. Just one quick clarification, maybe, Lauren, when you talk about the same brand spend levels in 2024 as in 2023, is that on a percentage basis, or is that in aggregate dollars? That's for the full year in absolute dollars. Great, thank you both.

Yes, I guess just add a thought there.

Yes.

In past cycles right as the macro recover as you definitely get this tailwind is partners are.

<unk> underwriting theyre getting more aggressive around acquisition so.

Yes pricing should definitely be a tailwind as well.

Got it thank you.

Thank you.

One moment for questions.

Our next question comes from Pete Christiansen with Citi. You May proceed.

Good evening I appreciate you.

Answering questions here.

Sure.

I know you called out Prime as an issue earlier and we've heard it in other areas as well.

Just curious what youre seeing on the subprime side in terms of partner willingness to extend offers to them.

Thus there well.

I understand the delinquencies will kind of peak there already things are kind of stabilizing at least on the subprime near Prime area, just curious if youre seeing any.

Improving activity there.

So I think.

Then certainly subprime is more stable.

We eliminate surprises there I think really the tightening their started probably the middle of 2022, probably two to three <unk> and kind.

Kind of incrementally got tighter and tighter.

Justin Patterson: Thank you. One moment for a question. Our next question comes from Justin Patterson with KeyBank. You may proceed. Thank you very much. Good afternoon.

That feels like it's on more of a more of a Florida.

And then Tim in Thomasville quick just curious you called out trial will still be a nice growth vertical here within car.

Just curious if you could put some color on that in terms of travel related products.

How they are faring on the platform.

Tim Chen: Tim, could you tease out some of your top priorities each year across your big three growth pillars? What can we expect around land and expand, vertical integration, and engagement initiatives? Then I'll have a follow-up question for Laura.

So maybe I'll clarify with that wants to the commentary around travel with the travel sort of.

Vertical as a whole not related specifically to credit cards, although that is a piece of it but the commentary was around the user growth and <unk> growth, specifically in Q4, and where areas, where we saw strength one of those areas what's travel.

Lauren St. Clair: Yeah, thanks for the question. So those are our three growth pillars, right? I'd say land and expand is really more of our tried and true playbook. I mean, we're always pushing on that.

Yes.

We've got a lot of great.

Tim Chen: In terms of the stuff that's going to be a bit more novel over the coming several years, I think it's really in terms of vertical integration and registration and data-driven engagement. So we're thinking really hard about where there are still gaps in customer experiences where we can uniquely play. NerdUp is a great example of that, but also things like we've launched Drive Like a Nerd, and we've launched Nerdwallet Advisors. So there are a lot of different thought processes that we're exploring and a lot of hypotheses that we're eager to evaluate. We've got it, thanks.

Great content and insights around travel.

It's amazing way to get in front of users and introduce an internal audit and Reengage Venezuela.

That's super helpful. Thank you Paul.

Yes.

Thank you I would now like to turn the call back over to management for any closing remarks.

Thanks, all for your questions today as always I'd like to thank <unk> for their hard work in 2023, there are efforts to drive progress towards our vision last year. I mean, we are well set up for 2024 and beyond.

Lauren St. Clair: And then the follow-up to Lauren, I appreciate the details you gave around just revenue growth in the second half of the year. But I wanted to confirm, was that double-digit growth, you know, on the second half as a whole or on a quarterly basis? And then as you're thinking about just the growth vectors in there, how should we think about, you know, the puts and takes between user growth versus just brand spend or advertiser spend starting to improve again? Thanks.

To learn more about <unk> business Division Mark your calendars for March 4th when we plan to release, a new investor video on our IR website.

I'm looking forward to hearing your thoughts with that we will see you next quarter.

Thank you for your participation you may now disconnect.

Okay.

[music].

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Justin Patterson: Sure, so the first part of Justin's question was around revenue growth, so what we said was that we expect to return to double-digit rates of growth for revenue year over year starting in the second quarter. And then the second part of the question was, I believe, around MUU growth and user growth, as well as brand spend. Is that correct? Yeah, just thinking about the buckets in there.

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Lauren St. Clair: User growth is obviously well above total revenue growth right now, so just wondering if there's any views on how users persist versus, say, pricing recovery that's driving that re-acceleration. Yeah, let's talk a little bit about MUUs. And we're really proud of that growth in Q4; we grew roughly 24% year over year from strength in many verticals, both from high levels of consumer intent, as well as our success in landing and expanding. Similar to areas where we saw growth in revenue, we see growth in MUUs; you can think of banking and personal loans. And we also saw high consumer interest in areas like travel and investing.

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Lauren St. Clair: As we expected, to your point, MUUs grew faster than revenue again in Q4. This trend gives us confidence that consumer demand remains healthy despite ongoing partner conservatism, and we expect that this outperformance of MUUs versus revenue to continue into Q1 as we see really strong engagement with our learned content as consumers are continuously looking for unbiased guidance and financial content during this complex macroeconomic time. Despite some of the near-term revenue pressure, we expect that the strength of MUUs combined with our ability to match consumers with our financial service providers will accelerate our growth as the macro environment improves. I guess just to add on a thought there.

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Tim Chen: Yeah, in past cycles, right, as macro recovers, you definitely get this tailwind of, you know, partners are listening, underwriting, they're getting more aggressive around acquisition. So yeah, pricing should definitely be a tailwind as well. Thank you.

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Operator: One moment for a question. Our next question comes from Pete Christiansen with Citi. You may proceed. Thanks. Good evening.

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Peter Corwin Christiansen: Appreciate you answering questions here. I know you called out Prime as an issue earlier, and we've heard it in other areas as well. I'm just curious what you're seeing on the subprime side in terms of partner willingness to extend offers or to invest there. That's my understanding of delinquency, it's kind of peaked there already, things are kind of stabilizing, at least in the subprime and ne

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Tim Chen: I'm just curious if you're seeing any improving activity there. So, I think that certainly subprime is more stable. You know, we had limited surprises there. I think really, the tightening there started probably the middle of 2022, probably 2Q, 3Q and kind of incrementally got tighter and tighter. I think that feels like it's on more of a floor.

Yes.

Okay.

[music].

Tim Chen: And then, Tim, in Cards real quick, just curious what you call the travel vertical still being a nice growth vertical there within Cards. Just curious if you could put some color on that in terms of, you know, travel-related products and how they're faring on the platform. And maybe I'll clarify with that one. So the commentary around travel was the travel vertical as a whole, not related specifically to credit cards, although that is a piece of it. But the commentary is around user growth and MOU growth specifically in Q4 and areas where we saw strength; one of those areas was travel. Yeah, so we've got a lot of great, great content and insights around travel. And I think it's an amazing way to get in front of users and introduce them to Nerdwallet and re-engage them as well. That's super helpful.

Sure.

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Lauren St. Clair: Thank you both. Thank you. I would now like to turn the call back over to management for any closing remarks. Thank you all for your questions today. As always, I'd like to thank the nerds for their hard work in 2023. Their efforts to drive progress towards our vision last year mean we are well set up for 2024 and beyond. To learn more about NerdWallet's business and vision, mark your calendars for March 4th when we plan to release a new investor video on our IR website. I'm looking forward to hearing your thoughts.

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[music].

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Tim Chen: With that, we'll see you next quarter. Thank you for your participation. You may now disconnect. All links in description, Thanks for watching!

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Operator: www.nerdwallet.com, Fantastic Beasts Thanks for watching! www.nerdwallet.com, Thanks for watching! Good day and thank you for standing by. Welcome to the Nerdwallet Inc. Q4 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.

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Caitlin McNamee: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Caitlin McNamee. Thank you, operator.

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Caitlin McNamee: Welcome to the NerdWallet Q4 2023 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 today's 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.

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Caitlin McNamee: 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.

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Caitlin McNamee: You should be aware that these statements should not be considered to guarantee 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, except where we are unable, without reasonable efforts, to calculate certain reconciling items with confidence. With that, I will now turn it over to Tim Chen, our co-founder and CEO. Thanks, Caitlin.

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Tim Chen: In 2023, headwinds outweighed tailwinds in our business. In the spring, we faced increasing macroeconomic headwinds following the regional banking crisis, as well as ongoing rate hikes. This affected several verticals, including loans, credit cards, and SMB, and they have not all fully recovered yet. In addition, the strong insurance rebound we saw in Q1 of 2023 was premature, and the industry pulled back through the remainder of the year.

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Tim Chen: While the rising rate environment did create tailwinds in areas like banking, which continued to outperform our expectations through the end of the year, this did not offset the headwinds in our other verticals. We did not meet our revenue or adjusted EBITDA outlook in Q4, and this is the first time as a public company when we have fallen short of our outlook. We attribute our Q4 miss to underperformance in credit cards and personal loans.

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Tim Chen: While consumer demand remains strong for balance transfer products, incremental underwriting, tightening, and balance sheet constraints limited issuer appetite. We also encountered unexpected growing pains with matching sub-prime and near-prime users with the best products, which required us to take a step back, but we believe we're making progress and routing these consumers to the right offers. Our business is cyclical, and while I believe there are positive signals to suggest that conditions will improve in 2024, we know that headwinds and tailwinds offset each other over time, so our priority is growing from cycle to cycle.

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Tim Chen: We continue to take share across the cycle in a large and growing market, independent of macroeconomic factors. For example, our primary addressable market, U.S. financial services digital advertising, is expanding with a 2023 four-year CAGR of approximately 15 percent. And Nerdwallet's share in this market has also increased, with a four-year revenue CAGR of 27%.

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Tim Chen: And in Q4, we achieved record monthly unique users, up 24% year-over-year, suggesting a significant opportunity for revenue growth as monetization improves. Also critical to my mind are the structural improvements we made to our business in 2023. We are dedicated to relentlessly improving our operations and increasing our efficiency. This past year, we made our brand spin work harder, and we also efficiently managed R&D expense growth while still launching several new product initiatives, including Nerd AI and Nerd Up by Nerdwallet. As a result, full-year, non-GAAP operating income increased $27 million versus the prior year.

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Good day and thank you for standing by welcome to the <unk> wallet in Q4 2023 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session. Please press star one one on your telephone and wait for your name to be announced.

To withdraw your question. Please press star one again, 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.

Tim Chen: And in Q4, we maintained relatively similar margins despite our declining year-over-year revenue. This work should set us up for improved margin leverage as growth returns. We build Nerdwallet with a long-term orientation, and this means relentlessly improving while executing our strategy to create a trusted financial ecosystem or a single platform where consumers and SMBs can learn, shop, connect their data, and make decisions about their money.

Thank you operator.

I'll come to the Nerd Wallach Q4, 2023 earnings call.

Joining us today are co founder and Chief Executive Officer, Tim Chen and Chief Financial Officer, Lauren 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.

Tim Chen: I continue to believe that this is the right path forward for our consumers, partners, and business, driven by the meaningful progress we made against our growth pillars in 2023. I'd like to provide you with more insight into these pillars, the progress we've made toward them this year, and how I think they can accelerate our business. As a reminder, the Land and Expand initiatives extend Nerdwallet's guidance to new markets, categories, and audiences. While we cover a range of topics today, we know the financial landscape is vast, and there's still plenty of territory to explore. In 2023, we strengthened our presence in Canada and Australia and on topics including Medicare, Social Security, estate planning, and auto loans.

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 a 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.

Tim Chen: Looking specifically at Q4, our land and expand efforts have shown particularly strong results in Canada, as MUUs were up 56% year-over-year last quarter. Similarly, Q4 saw continued acceleration in our Medicare category, with our traffic up over 150% year-over-year as we built out our library and enhanced our marketplace to serve more consumers during the open enrollment period.

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, except where we are unable without reasonable efforts to calculate certain reconciling items with confident.

Tim Chen: Vertical integration pairs our competitive advantages and top of the funnel and brand with best-in-class user experiences, and throughout 2023, this was a significant focus for Nerdwallet. We pursued vertical integration via continued integration with On The Barrelhead, including introducing their pre-qualification technology to our credit cards vertical, as well as through several key organic initiatives. Our hypothesis is that investing in and providing best-in-class user experiences will not only provide consumers with new, more personalized ways to shop for products but will also increase our monetization and re-engagement capabilities, ultimately setting us up to capitalize more effectively on our growing audience from cycle to cycle. In Q4, we focused on two organic initiatives. Early in Q4, we launched NerdWallet's first branded product, NerdUp by NerdWallet, which is a secured card designed to provide no-file, thin-file, and subprime consumers with an option to build their credit, while also benefiting our partners.

With that I will now turn it over to Tim Chen our co founder and CEO Tim.

Thanks, Caitlin in 2023 headwinds outweighed tailwind in our business and this spring we faced increasing macroeconomic headwinds following the regional banking crisis as well as ongoing rate hikes.

This affected several verticals, including loans credit cards, and SMB and they have not all fully recovered yet and.

In addition, the strong insurance rebound we saw in Q1 of 'twenty three was premature the.

The industry pulled back through the remainder of the year, while the rising rate environment did create tailwind in areas like banking, which continued to outperform our expectations through the end of the year. This did not offset the headwinds in our other verticals.

We did not meet our revenue or adjusted EBITDA outlook in Q4, and this is the first time as a public company when we have fallen short of our outlook.

We attribute our Q4 Miss to underperformance in credit cards and personal loans.

While consumer demand remains strong for balance transfer products incremental underwriting tightening and balance sheet constraints limited issuer appetite.

We also encountered unexpected growing pains with matching sub and near Prime users with the best products, which required us to take a step back, but we believe we're making progress and routing these consumers to the right offers.

Tim Chen: Meanwhile, our team recently launched NerdWallet Taxes, a tax preparation software, in partnership with Column Tax. This product seeks to capitalize on the significant organic traffic to our taxes category, which previously went largely unmonetized, by leveraging our unit economics to offer consumers a fixed fee option for preparing their tax returns. We also continue to integrate On The Barrel Heads technology, extending their personalized experiences to mortgages in anticipation of increased demand when interest rates decrease. Landon Xpand and Vertical Integration support our registrations and data-driven engagement strategy. They drive more MUUs to convert to registered users and give consumers reasons to register and connect their data.

Our business is cyclical and while I believe there are positive signals suggest that conditions will improve in 2024, we know that headwinds and <unk> offset each other over time.

Priority is growing from cycle to cycle.

We continue to take share across the cycle and a large and growing market independent of macroeconomic factors.

Our primary addressable market U S financial services digital advertising is expanding with the 2023 four year CAGR of approximately 15%.

And nevertheless share in this market has also increased with a four year revenue CAGR of 27% and in Q4, we achieved record monthly unique users up 24% year over year, suggesting a significant opportunity for revenue growth as monetization improves.

Tim Chen: At the same time, we invest in specific registration and data-driven engagement efforts to help foster loyalty-based relationships with consumers. As a result, our registered user base ended the year at 37%. In 2023, this work included introducing and optimizing new product features, as well as up-leveling our CRM capabilities to more effectively nudge our registered users with targeted insights. Our registered users have five times the lifetime value of visitors, so expanding our registrations and data-driven engagement work to provide more cross-sell opportunities and build loyalty-based relationships with consumers presents significant growth potential for the business. Our registrations and data-driven engagement work in Q4 included a significant focus on developing our cross-sell capabilities. We launched several campaigns to surface personalized product recommendations to registered users based on their data, and we plan to continue developing this program in the quarters to come.

Also critical to my mind are the structural improvements we made to our business in 2023.

We're dedicated to relentlessly improving our operations and increasing our efficiency. This past year, we made our brand spend work harder and we also efficiently managed R&D expense growth, while still launching several new product initiatives, including nerd, AI and nerd up by <unk>.

As a result full year non-GAAP operating income increased $27 million versus the prior year and in Q4, we maintained relatively similar margins despite our declining year over year revenue.

This work should set us up for improved margin leverage as growth returns.

We build nerd wallet with a long term orientation and this means relentlessly improving while executing our strategy to create a trusted financial ecosystem or a single platform, where consumers and smbs can learn shop connect their data and make decisions about their money I continue to believe that this is the right path forward for our consumers partners and business driven by the meaningful.

Progress, we made against our growth pillars in 2023.

Tim Chen: By now, 2024 is well underway, and I'm looking forward to sharing our results with you over the next four quarters as we continue to execute our strategy. As in 2023, we will embrace relentless self-improvement, a long-term orientation, and our commitment to consumers to drive results. In the meantime, I'll pass it over to Lauren to provide a financial update. Thanks, Tim.

I'd like to provide you with more insight into these pillars. The progress we've made toward them this year and how I think they can accelerate our business.

As a reminder, land and expand initiatives extending <unk> guidance to new markets categories and audiences. While we cover a range of topics today, we know the financial landscape is fast and there is still plenty of territory to explore.

In 2023, we strengthened our presence in Canada, and Australia, and then topics, including Medicare Social security the state planning and auto loans.

Looking specifically at Q4, our land and expand efforts have shown particularly strong results in Canada as any of US were up 56% year over year last quarter. Similarly, Q4 saw continued acceleration in our Medicare category, our traffic was up over 150% year over year as we built out our library and enhanced our marketplace to serve.

Lauren St. Clair: We delivered Q4 revenue of $134 million, down 6% year-over-year, and we finished the year with $599 million in revenue, an 11% increase versus the prior year. We remain in a cyclically depressed macroeconomic environment, particularly in interest rate sensitive areas such as loans, as well as balance sheet-intensive prime lending. We also ended 2023 with a bit more headwinds in credit cards and personal loans than originally anticipated, causing us to deliver revenue below our previous outlook for the quarter. However, we are cautiously optimistic about the macro outlook as well as partner sentiment, and we believe that the beginning of recovery is within sight. Let's take a deeper look at the revenue performance during the quarter within each category. Credit cards delivered Q4 revenue of $43 million, declining 18% year-over-year.

Consumers during the open enrollment period.

Vertical integration pairs, our competitive advantages and top of funnel and brand with best in class user experiences and throughout 2023. This is a significant focus for nerd wise.

We pursued vertical integration via continued integration of on the barrel head, including introducing their prequalification technology to our credit cards vertical as well as through several key organic initiatives are.

Our hypothesis is that investing in best in class user experiences will not only provide consumers with new more personalized ways to shop for products that will also increase our monetization and reengagement capabilities ultimately setting us up to capitalize more effectively on our growing audience from cycle to cycle.

In Q4, we focused on two organic initiatives early in Q4, we launched <unk> first branded product nerd up by nerd wallet, which is a secured card designed to provide no file thin file and subprime consumers with an option to build their credit.

Lauren St. Clair: As we've spoken about previously, the regional banking crisis in the spring of 2023 drove increased balance sheet constraints and issuer conservatism. We believe these dynamics are temporal rather than structural and are weighing on our year-over-year results. During Q4, we experienced a higher-than-usual seasonal decline versus Q3 and slightly worse than our expectations, driven by moderately increased levels of issuer conservatism in balance sheet-intensive areas such as balance transfer cards. We will continue to leverage our strong top-of-funnel and maintain the discipline to lean back into profitable paid acquisition once we see issuer demand and monetization recover. For the full year, credit cards delivered $210 million in revenue, roughly flat to the prior year.

While also benefiting our partners.

Meanwhile, our team has recently launched <unk> taxes, a tax preparation software and partnership with colony tax this product seeks to capitalize on the significant organic traffic to our taxes category, which previously went largely on monetized by leveraging our unit economics to offer consumers a fixed fee option for preparing their tax returns.

We also continued to integrate on the barrel hedged technology, extending their personalized experiences to mortgages and anticipation of increased demand when interest rates decrease.

Land and expand in vertical integration support our registration and data driven engagement strategy.

Five more IMMU use to convert to registered users and give consumers reasons to register and connect their data.

Lauren St. Clair: Loans generated Q4 revenue of $24 million, growing 5% year-over-year. However, Q4 delivered a larger-than-normal seasonal decline from Q3, primarily driven by incremental lender tightening as delinquency rates continued to rise in personal loans, as well as coming off a strong Q3 in student loan origination. We believe that at this part of the credit cycle, there is a backlog of consumer demand and personal loans, as high loan rates have reduced the incentive for consumers to refinance credit card debt. A declining rate environment, combined with leveraging our improved ability to align consumer demand more effectively with financial service providers, will put us in a prime position to take advantage of that demand as it surfaces. While our mortgage vertical remains pressured by the high interest rate environment, we continue to believe that structural improvements we've made to our marketplaces will help us capture meaningful share when the market returns. We also saw a material quarter-over-quarter decline in our student loans vertical as we lapped the back-to-school seasonal impact of loan originations from Q3 and have yet to see a significant pickup in refinance demand. For the full year, loans delivered $102 million of revenue, declining 7% year over year.

At the same time, we invest in specific registration and data driven engagement efforts to help foster loyalty based relationships with consumers.

As a result, our registered user base ended the year growing 37%.

In 2023. This work included introducing and optimizing new product features as well as up leveling our CRM capabilities to more effectively nudge our registered users with targeted insights.

Our registered users have five times the lifetime value of visitors, so expanding our registrations and data driven engagement works to furnish more cross sell opportunities and build loyalty based relationships with consumers presents significant growth potential for the business.

Our registration and data driven engagement work in Q4 included a significant focus on developing our cross sell capabilities. We launched several campaigns to surface personalized product recommendations to registered users based on their data and we plan to continue developing this program in the quarters to come.

By now 2024 is well underway and I am looking forward to sharing our results with you over the next four quarters as we continue to execute our strategy.

As in 2023, we will embrace relentless self improvement a long term orientation and our commitment to consumers to drive results in the meantime, I'll pass it over to Loren to provide a financial update.

Thanks, Tim we delivered Q4 revenue of $134 million down 6% year over year, and we finished the year with $599 million in revenue and 11% increase versus prior year.

Lauren St. Clair: Beginning this quarter, we have changed our revenue product category presentation and are now providing S&B products revenue as a separate disclosure. SMB products consist of loans, credit cards, and other financial products and services intended for small and mid-sized businesses. Previously, S&B Products was a component of our other verticals, Revenue Disclosure, but given the relative size and long-term opportunity, you will see us break out their revenue contributions separately. Please refer to our earnings press release for historical revenue data. S&B products delivered Q4 revenue of $28 million, growing 6% year over year.

We remain in a cyclically depressed macroeconomic environment, particularly in interest rate sensitive areas, such as loans as well as balance sheet intensive prime lending.

We also ended 2023 with a bit more headwinds in credit cards, and personal loans than originally anticipated, causing us to deliver.

Revenue below our previous outlook for the quarter.

While we are cautiously optimistic about the macro outlook as well as partner sentiment and we believe that the beginning of recovery is within sight.

Let's take a deeper look at the revenue performance during the quarter within each category.

Credit cards delivered Q4 revenue of $43 million declining 18% year over year.

Lauren St. Clair: While we continue to face some underwriting challenges in our loans category, renewals have started to rebound, signaling a path to a recovering macro environment and validating our vertical integration strategy with the reoccurring nature of our funnel. Outside of loans, we have also been scaling our additional product offerings for small and mid-sized businesses, including credit cards, banking, and software, to drive overall revenue growth for the quarter. For the full year, S&B Products delivered $101 million in revenue, growing 11% year-over-year.

As we've spoken about previously the regional banking crisis in the spring of 2023 drove increased balance sheet constraints and issuer conservatism.

We believe these dynamics are 10 portal rather than structural and are weighing on our year over year results.

During Q4, we experienced a higher than usual seasonal decline versus Q3, and slightly worse than our expectations driven by moderately increased levels of issuer conservatism in balance sheet intensive areas such as balance transfer cards.

We will continue to leverage our strong top of funnel and maintain the discipline to lean back into profitable paid acquisition once we see issuer demand and monetization recover.

Lauren St. Clair: Finally, our emerging verticals, formerly named our Other Verticals Revenue Product Category, finished Q4 with revenue of $39 million, declining 3% year-over-year. As a reminder, after the regrouping of S&B products revenue, emerging verticals consist of areas such as banking, insurance, investing, and international. Banking grew 5% year-over-year, decelerating versus previous quarters, as we lapped our toughest prior-year comparison period, combined with continuing signs of moderating consumer demand. However, while we previously mentioned that moderating consumer demand would cause near-term, year-over-year declines, demand remained a bit more robust than we had previously anticipated in Q4. Growth in emerging verticals was more than offset by headwinds in insurance, which declined 22% year over year.

For the full year credit cards delivered $210 million of revenue roughly flat to the prior year.

Loans generated Q4 revenue of $24 million growing 5% year over year.

Q4 delivered a larger than normal seasonal decline from Q3, primarily driven by incremental lender tightening and delinquency rates continue to rise and personal loans as well as coming off a strong Q3 in student loan originations.

We believe that at this part of the credit cycle. There is a backlog of consumer demand in personal loans as high loan rates have reduced the incentive for consumers to refinance credit card debt.

A declining rate environment combined with leveraging our improved ability to align consumer demand more effectively with financial service providers will put us in prime position to take advantage of that demand as it surfaces.

While our mortgage vertical remains pressured by the high interest rate environment. We continue to believe that structural improvements we've made to our marketplaces will help us capture meaningful share when the market returns.

Lauren St. Clair: Carrier-driven profitability pressures continued through most of the quarter, but we're optimistic that the positive momentum we saw at the end of last year and so far into Q1, means that carriers are willing to increase customer acquisition budgets for the upcoming quarter. For the full year, Emerging Verticals delivered $187 million of revenue, growing 46% year-over-year. Moving on to Investments and Profitability, during Q4, we earned $29 million of adjusted EBITDA at a 22% margin, roughly flat versus the prior year. For the full year, we earned $98 million of adjusted EBITDA at a 16% margin, roughly a four point increase versus 2022, as we were able to deliver leverage across the majority of our cost base. In the fourth quarter, we also earned over $12 million of non-GAAP operating income at a 9% margin. For the full year, we earned $26 million of non-GAAP operating income at a 4% margin. In the fourth quarter, we had a GAAP net loss of $2.3 million, which included a $7.6 million income tax provision.

We also saw a material quarter over quarter decline in our student loans vertical as we lapped the back to school seasonal impact of loan originations from Q3 and have yet to see a significant pickup in refinance demand.

For the full year loans delivered $102 million of revenue declining 7% year over year.

Beginning this quarter, we have changed our revenue product category presentation and are now providing SMB products revenue as a separate disclosure.

SMB products consist of loans credit cards, and other financial products and services intended for small and mid sized businesses.

Previously SMB products was a component of our other verticals revenue disclosure, but given the relative size and long term opportunity you will see us break out their revenue contribution separately.

Please refer to our earnings press release for historical revenue data.

SMB products delivered Q4 revenue of $28 million growing 6% year over year.

While we continue to face some underwriting challenges in our loans category renewals have started to rebound signaling a path to a recovering macro environment and validating our vertical integration strategy with the reoccurring nature of our funnel.

Lauren St. Clair: Similar to what we've mentioned in previous quarters, we expect to be in a tax expense position for the year and also expect to be a cash taxpayer for the foreseeable future. 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.

Outside of loans, we have also been scaling our additional product offerings for small and mid sized businesses, including credit cards.

King and software to drive overall revenue growth for the quarter.

For the full year SMB products delivered $101 million of revenue growing 11% year over year.

Lauren St. Clair: We provided trustworthy guidance to 24 million average monthly unique users in Q4, up 24% year over year. Growth was a result of strength in many areas across Nerdwallet, such as travel, personal loans, and insurance. We are seeing consistently strong consumer demand for both our LEARN and SHOP content, though our LEARN content has been a larger portion of where consumer demand has more recently concentrated, causing higher MUU growth with some pressure on revenue per MUU. Despite these near-term monetization pressures, we think this helps fuel our ecosystem. In the long run, more MUUs engaging with our learned content builds our brand recognition and trust, and that creates an asset that will ultimately pay dividends on to our financial outlook. As we enter 2024, we believe that we have a line of sight to recovering growth in our business. Though some level of uncertainty remains, we plan to continue providing quarterly guidance and will also provide qualitative commentary on full-year expectations.

Finally, our emerging verticals, formerly named our other verticals revenue product category finished Q4 with revenue of $39 million declining 3% year over year.

As a reminder, after the regrouping of SMB products revenue emerging verticals consists of areas such as banking insurance investing and international.

Banking grew 5% year over year decelerating versus previous quarters, as we lapped our toughest prior year comparison period combined with continuing signs of moderating consumer demand.

And while we previously mentioned that moderating consumer demand with cause near term year over year declines demand remained a bit more robust than we had previously anticipated in Q4.

Growth in emerging verticals was more than offset by headwinds in insurance, which declined 22% year over year.

Carrier driven profitability pressures continued through most of the quarter, but we're optimistic that the positive momentum we saw at the end of last year and so far into Q1 means that carriers are willing to increase customer acquisition budgets for the upcoming quarters.

Lauren St. Clair: We expect to deliver first quarter revenue in the range of $155 to $160 million, which at the midpoint would decline 7% versus prior year but increase sequentially roughly 18%, indicating the step-up we typically see from Q4 to Q1, to give you more color on our Q1 expectations. We're still facing headwinds related to balance transfer credit cards while banking demand continues to moderate. We expect a material quarterly-over-quarter increase in insurance, and we are also seeing positive momentum in S&B products. But just as a reminder, we'll have a tough Q1 comp in insurance. As we look to the rest of the year, we expect to return to double-digit revenue growth during the second half given the recent recovery in S&B products and insurance. However, the timing of the recovery in areas such as balanced transfer cards, combined with how interest rate decreases will impact inversely correlated demand in banking and loans, will influence how high those double-digit growth rates will be.

For the full year emerging verticals delivered $187 million of revenue growing 46% year over year.

Moving on to investments and profitability.

During Q4, we earned $29 million of adjusted EBITDA at a 22% margin roughly flat versus the prior year.

For the full year, we earned <unk> $98 million of adjusted EBITDA at a 16% margin.

Roughly a four point increase versus 2022, as we were able to deliver leverage across the majority of our cost base.

In the fourth quarter. We also earned over $12 million of non-GAAP operating income at a 9% margin.

For the full year, we earned $26 million of non-GAAP operating income at a 4% margin.

In the fourth quarter, we had a GAAP net loss of $2 3 million.

Which includes a $7.6 million income tax provision.

Similar to what we've mentioned in previous quarters, we expect to be in a tax expense position for the year and also expect to be a cash taxpayer for the foreseeable future.

Lauren St. Clair: But we're confident that we see signs of progress towards growth reacceleration, and as we experience additional monetization unlocks from our partners, we will lean back into profitable growth acquisition channels. Moving to profitability, we expect Q1 non-GAAP operating income in the range of $5 to $8 million, or approximately 4% of revenue at the midpoint, roughly a two-point increase versus the prior year. Consistent with what we've mentioned previously, we anticipate that the cadence of our brand spend will be similar to 2023, where the majority of spend will occur during the first three quarters, with reduced spend during the fourth. With this being said, our Q1 brand investments will be lower than last year.

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 provided trustworthy guidance to 24 million average monthly unique users in Q4 up 24% year over year.

Growth was the result of strength in many areas across nerd wallet such as travel.

Personal loans and insurance.

We are seeing consistently strong consumer demand for both our learn and shop content. So our learn content has been a larger portion of where consumer demand has more recently concentrated causing higher <unk> growth with some pressure on revenue per <unk>.

Lauren St. Clair: For the full year, we plan to deliver increasing margins as a result of slowing growth in our cost base and roughly similar brand spend to 2023, resulting in approximately 6.5% to 8% of revenue for full year 2024 non-GAAP OI margins. And while our main profitability metric will be non-GAAP OI moving forward, as a continuation of our previous disclosures and commitments, we expect a full year 2024 adjusted EBITDA margin in the range of 18 to 19.5% of revenue. Aligned with our previous commitments, this outlook range would have us return to 2019 adjusted EBITDA margin levels while strategically investing in our long-term vision. As you may have read in our shareholder letter posted today, on March 4th, we are planning to release a video presentation for investors sharing more detail on our business and vision for Nerdwallet as well as our mid to long-term financial goals. The video will be available on our Investor Relations website, and we look forward to hearing your feedback.

Despite these near term monetization pressures, we think this helps fuel our ecosystem.

In the long run more and you used engaging with our learn content builds our brand recognition and trust and that creates an asset that will ultimately pay dividends.

Onto our financial outlook.

As we enter 2024, we believe that we have line of sight to recovery and growth in our business.

So some level of uncertainty remains we plan to continue providing quarterly guidance and will also provide qualitative commentary for full year expectations.

We expect to deliver first quarter revenue in the range of $155 million to $160 million, which at the midpoint with declined 7% versus prior year, but increased sequentially roughly 18%, indicating.

Indicating the step up we typically see from Q4 to Q1.

To give you more color on our Q1 expectations were.

We're still facing headwinds related to balance transfer credit cards, while banking demand continues to moderate.

Lauren St. Clair: We enter this year optimistic about the future, while pragmatic about the gradually improving macroeconomic environment. We know we have a responsibility to our users to help them navigate their financial questions, all while maintaining our long-term view, prioritizing trust, and continuing to diversify and improve our product experiences from cycle to cycle. With that, we're ready for questions. Operator?

We expect a material quarter over quarter increase in insurance and we are also seeing positive momentum in SMB products.

But just as a reminder, we will have a tough Q1 comp and insurance.

As we look to the rest of the year, we expect to return to double digit revenue growth during the second half given recent recovery in SMB products and insurance.

The timing of the recovery in areas such as balance transfer cards.

Combined with how interest rate decreases will impact inversely correlated demand in banking and loans.

Operator: Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

Will influence how high those double digit growth rates will be.

But we're confident that we see signs of progress towards growth re acceleration and as we experience additional monetization unlocks from our partners, we will lean back into profitable growth acquisition channels.

James Fawcett: One moment for questions. Our first question comes from James Fawcett with Morgan Stanley. You may proceed. Great. Sorry about that. I was fumbling with the mute button.

Moving to profitability we.

We expect Q1 non-GAAP operating income in the range of $5 million to $8 million.

Tim Chen: I wanted to ask quickly, it sounds like you're seeing some indications that things can improve. And specifically, you mentioned small and medium-sized businesses and insurance and seem pretty confident about that. Can you just describe what is driving your confidence in that, particularly for the second half of the year? And I'll just tie in my second question, which is kind of related.

Or approximately 4% of revenue at the midpoint roughly at two 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 2023, where the majority of spend will occur during the first three quarters with reduced spend during the fourth.

With this being said our Q1 brand investments will be lower than last year.

For the full year, we plan to deliver increasing margins as a result of slowing growth in our cost base and roughly similar spend brand spend to 2023.

Tim Chen: You know, in the broader credit market, we've seen lots of comments around Prime and Subprime, credit performance, et cetera. Seems like there may be some improvements there, but, in your conversations with your partners, how do you usually see that communicated to you, and what kinds of things should we be tracking to see if the potential for the credit part of the market to contribute to second half growth is able to materialize? Thanks. Yeah, thanks for the question. So I'll take those one piece at a time.

Resulting in approximately 6.5% to 8% of revenue for full year 2024, non-GAAP <unk> margin.

And while our main profitability metric will be non-GAAP Oi moving forward as a continuation of our previous disclosures and commitments. We expect our full year 2024, adjusted EBITDA margin in the range of 18% to 19, 5% of revenue.

Tim Chen: I guess, in terms of insurance, inflation-driven insurance industry headwinds continued throughout all of last year and into Q4, so we saw a 22% decline on a year-over-year basis. However, we started to see a recovery at the end of last year and into Q1, which is represented in our outlook for Q1. Exiting Q1, carriers seem to be expecting a pretty broad-based and durable recovery throughout 2024. So for some context, large parts of the U.S. population today still aren't being served from the perspective of carriers wanting to write home and auto policies.

Aligned with our previous commitments. This outlook range would have us return to 2019, adjusted EBITDA margin levels, while strategically investing in our long term vision.

As you may have read in our shareholder letter posted today. Our March 4th we are planning to release a video presentation for investors sharing more detail on our business and vision for nerd wallet as well as our mid to long term financial goals.

The video will be available on our Investor Relations website, and we look forward to hearing your feedback.

We entered this year optimistic about the future while pragmatic on the gradually improving macroeconomic environment.

Tim Chen: So you can imagine that as this resolves itself, there will be a medium-term tail-end as those markets open back up. And so that's one of the main drivers in terms of our 2024 outlook, where we're expecting double-digit year-over-year growth in the back half, really that recovery from the worst insurance hard market in a few decades. And then, in terms of small business, I'd say with that one, we saw a lot of progress. We just crossed the three-year anniversary of integrating Fundera. We more than tripled revenue, had a lot of success in vertical integration, and landed and expanded within S&B. So, we're really happy with that.

We know we have a responsibility to our users to help them navigate their financial questions all while maintaining our long term view prioritizing trust and continuing to diversify and improve our product experiences from cycle to cycle 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, one moment for questions.

Our first question comes from James Fawcett with Morgan Stanley You May proceed.

Great sorry about that.

Wanted to ask quickly.

Sounds like you are.

Tim Chen: That being said, we're still in a really tough macro right now. A lot of the underwriting is a bit tighter than what we've seen historically. And so, you know, we do expect at some point for that to become a tailwind as there is a macro recovery. The timing on that one is a little bit harder to call.

We're seeing some indications that things can improve and specifically you mentioned small medium sized businesses and insurance seem pretty confident about that can you just describe what is driving your confidence or not particularly for the second half of the year and I'll just tie up my second question, which is kind of related.

Tim Chen: And then, yeah, you're certainly right about the commentary around prime consumers. You know, we're hearing the same thing both in the credit card and the personal lending markets. You know, I'd say what we saw going into Q4 and throughout probably straight in the middle of Q4, there was a bit of an upside surprise in some of the delinquencies in the prime part of the market. Given, you know, how strong the employment market was, I think that caught a few people off guard.

In the broader credit market, we are seeing lots of comments around.

Prime and subprime.

Credit performance et cetera seems like there may be some improvements there but.

Your conversations with your partners, how do you usually.

See that communicated to you and what kinds of things should we be tracking to see the potential for.

The credit part of the market to contribute to the second half growth.

Sure realize.

Okay. Thanks.

Thanks for the question so I'll take those one piece at a time I guess in terms of insurance.

Tim Chen: And so what I'd say here is that card issuers have pretty robust predictive models, right? The good ones can predict almost within minutes of the first payment due date how delinquencies are going to trend a few quarters out. So what we see in terms of underwriting timing is really a reaction to that. And it's been pretty consistent the majority of the last seven quarters.

The inflation driven insurance industry headwinds.

<unk> through throughout all of last year right and into Q4. So we saw a 22% decline on a year over year basis, we started to see a recovery at the end of last year and into Q1.

As represented in our outlook for Q1 exiting Q1 carriers seem to be expecting a pretty broad based and durable recovery throughout 2024. So for some context large parts of the U S. Population today is still aren't being served from the perspective of carriers wanting to write home and auto policies. So you can imagine that as this resolves itself there will be a medium term.

Tim Chen: And so, you know, definitely saw that impact in cards. I'll say that while delinquencies have overshot 2019 levels, the issuers are largely calling out that this is expected normalization and that, you know, we've already either seen a peak in delinquencies or that they're kind of expecting a peak by the middle of the year and are kind of in a wait and see mode in terms of, you know So that could be a tailwind at some point in the future. I will also say on the balance transfer side, things are still a little bit balance sheet constrained. So there are some caps there.

Tailwind as those markets open back up.

And so thats one of the main drivers in terms of our 2024 outlet, where we're expecting double digit year over year growth in the back half.

Really that.

Yes.

Recovery from the worst insurance hard market in a few decades.

And then in terms of small business.

Say with that one.

We saw a lot of progress.

We just crossed the three year anniversary of integrating <unk>, we more than tripled revenue a.

Ralph Edward Schackart: So that's another potential tailwind at some point down the road. Great. Thanks for that, Tim. Thank you. One moment for questions. Our next question comes from Ralph Schackart with William Blair. You may proceed. Good afternoon.

A lot of success in vertical integration.

Land and expand within SMB, so really happy with that being said, we're still in a really tough macro right now.

The underwriting is a bit tighter than what we've seen historically.

And so we do expect at some point for that to become a tailwind as there is a macro recovery the timing on that one is a little bit harder to call.

Tim Chen: Thanks for taking the question. Just on credit cards, you know, just maybe talk about recovery. You might be seeing, I think you might have called out maybe some early signs, so any color on that and maybe kind of broader just from the credit card issues, you know, what are they sharing with you just in terms of what they're watching for before they may return back to kind of more normalized levels that you've seen historically? Then I have a follow-up. Sure, yeah.

And then yes, you are certainly right on that.

Commentary around prime consumers.

We're hearing the same thing both in the credit card in the personal lending markets.

I'd say, what we saw is going into Q4.

And throughout probably starting the middle of Q4, there is a bit of upside.

Outside surprise in some of the delinquencies in the prime part of the market.

Given how strong the employment market was I think that caught a few people off guard.

Tim Chen: I think it's largely around, you know, there are two factors happening, right? Like, so, in some prime areas, like, say, balance transfer that are a bit more balance sheet intensive, I mean, I think there are non-credit-related factors just kind of affecting how many units of demand that balance sheets can handle, right? So, I think some of that will resolve itself as we move through the cycle a little bit. And then, from a credit-specific perspective, I think it's really tracking these early delinquency trends and making sure that they've adjusted underwriting appropriately to be comfortable with some of the trajectories there.

And so what I would say here is that card issuers have pretty robust predictive models like the good ones can predict almost within minutes of the first payment due dates how delinquencies are going to trend a few quarters out so what we see in terms of underwriting tightening as really a reaction to that and it's been pretty president the majority of the last seven quarters.

So definitely saw that impacting cards.

I will say that while delinquencies have overshot 2019 levels issuers are largely calling out that this is expected normalization in that.

We've already either seeing a peak in delinquencies or that they are kind of expecting a peak by the middle of the year and are kind of in wait and see mode in terms of when they get aggressive again, so that could be a tailwind at some point in.

In the future I will say also on the balance transfer side.

Lauren St. Clair: So, I'd really point to, you know, this quarter, quite a lot of commentary from card issuers on, you know, feeling a little bit more optimistic there and, you know, eyes forward in terms of a recovery. Great, and just maybe a follow-up to that, you know, as we think about credit cards and sort of modeling that for, I guess, Q1, what's sort of contemplated in guidance? I know you can't give specific numbers, but just maybe kind of think, help us think through some of the puts and takes as we sort of recalibrate our models. Thank you. Yeah, let me take that, Tim.

They are still a little bit balance sheet constraints. So theres some caps there so thats another potential tailwind at some point down the road.

Great Thanks for that Jim.

Yes.

Thank you.

One moment for questions.

Our next question comes from Ralph <unk> with William Blair You May proceed.

Good afternoon, and thanks for taking question just on credit cards, you talked about.

Recoveries might be saying I think you may have called out maybe some early signs so any color along that maybe kind of broader just from the credit card issuers what are they sharing with you just in terms of what they're watching for before they returned back to kind of more normalized levels that you've seen historically, then I have a follow up.

Sure, Yes, I think it's largely around.

Lauren St. Clair: I can go over Q1 guidance specifically. So on your question around credit cards and what's contemplated, first I'll just remind everyone that the guide for Q1 revenue is $155 to $160 million, which at the midpoint would be declining 7% year over year but up 18% quarter over quarter. And some context on that; from Q4 to Q1, we would typically expect to see a material increase quarter over quarter, which in a normal year is driven primarily by consumer demand at the start of the new year, supported by our brand efforts. Last year was a fairly typical Q1 for us.

Okay.

Theres two factors happening right like so in some prime areas like saved on transfer that are a bit more balance sheet intensive I mean, I think there is non credit related.

Factors.

And are affecting how many units of demand.

Balance sheets can handle right. So I think some of that will resolve itself as.

We move through the cycle of it and then from a credit specific perspective.

I think it's really tracking these early delinquency trends and making sure that they've adjusted underwriting appropriately to be comfortable with some of the trajectories, they're so I'd.

Really point to this.

This quarter quite a lot of commentary from card issuers.

Fueling a little bit more optimistic there.

Lauren St. Clair: And while we are seeing our typical Q4 to Q1 step up this year, we are still facing many of the headwinds from prior quarters, and so it becomes a tougher comp year over year. So to your question, we are still experiencing headwinds from credit cards, but we have called out that we're starting to see recovery in areas like insurance and also S&B products. But just as a reminder, insurance is still going to have a tough comp in Q1. So even though we expect a material increase quarter over quarter, the comp on a year-over-year basis will be, And I'll add on, I guess, credit card specific. As we look at our 24-hour outlook, it's kind of hard to call exactly when underwriting starts to loosen again, so we're being relatively conservative about that. I would definitely encourage you to look at 2019 seasonality in cards as being kind of a more normal historical year. We saw some pretty unusual patterns in the years following as we recovered from COVID, but in 2019, you saw a pretty large sequential decline from Q3 to Q4, and then I think that matches more of a normal seasonality pattern.

Ice for in terms of a recovery.

Great and just maybe a follow up to that as we think about credit cards sort of modeling that for Q1.

What's sort of contemplated in guidance and I know you can't give specific numbers, but just maybe kind of help us think through some of the puts and takes as we sort of recalibrate our models. Thank you.

Sure.

Yeah, Let me take that Tim I can go over our Q1 guidance specifically so on your question around credit cards, and what's contemplated first I'll just remind everyone that the guide for Q1 for revenue is $155 million to $160 million, which at the midpoint would be declining 7% year over year.

But up 18% quarter over quarter and some context on that from Q4 to Q1, we would typically expect to see a material increase quarter over quarter, which in a normal year is driven primarily by consumer demand at the start of the new year supported by our brand efforts last.

Last year was a fairly typical Q1 for us and while we are seeing our typical Q4 to Q1 step up this year, we are still facing many of the headwinds from prior quarters and so it becomes a tougher comp year over year so to your.

<unk>, we are still experiencing headwinds in credit cards, but we have called out that we're starting to see a recovery in areas like insurance and also F&B products, but just as a reminder, insurance is still going to have a tough comp in Q1, so even though we expect a material increase quarter over quarter the comp on a year over year basis will be tough.

Tim Chen: Great. Thanks, Tim. Thanks, Lauren.

Ross Adam Sandler: Thank you. One moment for questions. Our next question comes from Ross Sandler with Barclays; you may proceed. Tim, you mentioned the challenges in matching in the credit card business that you experienced in the fourth quarter. Can you just elaborate a little bit more on that? Was this a technical issue on your side or something external, and did you leave any money on the table as a result of this? And can you just walk us through when you think that will be resolved?

Yes.

Add on I guess credit cards specific as we look at our 24 outlook.

It's kind of hard to call exactly when underwriting start solution again, so we're we're being relatively conservative about that.

I would definitely encourage you to look at 2019 seasonality any cards as being kind of a more normal historical year, we saw some pretty unusual patterns and.

Tim Chen: Sure. So. Right. I would describe us as being matchmakers, right?

Tim Chen: So we just got some things wrong in Q3 and over-earned in terms of our matching algorithm for near and subprime consumers and extrapolated incorrectly from there. But we want to get this right for consumers and financial institutions, so we basically hit pause and rebuilt things from the ground up. And, you know, this is not the first time this has happened, right?

The years following as we recovered from Covid, but yes.

Thousand 19, you saw.

A pretty large sequential decline from Q3 to Q4, and then I think that matches more of a normal seasonality pattern.

Great. Thanks, Tim Thanks, Laura.

Thank you.

One moment for questions.

Our next question comes from Ross Sandler with Barclays. You May proceed.

Tim you mentioned.

Good challenges and matching.

The credit card business that you realized in the fourth quarter could you just elaborate a little bit more on that.

Lauren St. Clair: When you go into a new market, sometimes it takes a few cycles and some feedback to get that matching right, but we feel like we're back on the right path now, so I'm encouraged going forward. Yeah, maybe I just wanted to clarify the commentary around challenges with matching was not in credit cards; it was in personal loans.

Technical issue on your side.

If something external and did you leave any money on the table as well.

Result of this and kind of.

Yes could you just walk us through why do you think that will be resolved.

Sure.

Right I would describe us as being matchmakers right. So we just got some things wrong in Q3 and over earned in terms of our matching algorithm for near and subprime consumers.

Extrapolated incorrectly from there but.

We want to get this right for consumers and financial institutions. So, we basically hit pause and rebuilt things from the ground up.

Jed Kelly: So Tim's commentary right now is about personal loans, not. Thank you. One moment for questions. Our next question comes from Jed Kelly with Oppenheimer. You may proceed. Hey, great.

This is not the first time. This has happened right. When you go into a new market, sometimes it takes a few cycles and some feedback to get that matching rate, but we feel like we're back on the right path now so.

Encourage going forward, yes, maybe I just wanted to clarify the commentary around challenges with matching with not in credit cards and personal loans to Tim's commentary right now is about personal loans.

Lauren St. Clair: Thanks for taking my question. Just two, can you talk about how we should think about margins if market or demand comes back and how you would lean into it? I assume you wouldn't mind sacrificing some margin if the gross profit dollars make sense. And then how should we think about the overall opportunity in insurance? It's a huge market, but customer service isn't always the best, so how do you think about leaning into that market and trying to grow your percentage of the overall carrier budget? Thanks.

Thank you.

One moment for questions.

Our next question comes from Jed Kelly with Oppenheimer You May proceed.

Hey, great. Thanks for taking my questions just two.

Can you talk about how we should think about margins.

Marketer demand comes back and how you would lean into it I assume you would you wouldn't mind sacrificing some margin if the gross the gross profit dollars makes sense and then how should we think about the overall opportunity in insurance, it's a huge market, but the customer service isn't always the best.

Tim Chen: I'll take the first part of your question and then I'll hand it off to Tim for the insurance piece. You know, to your question around margins, I'll just remind everyone that, you know, Tim built Nerdwallet for the long term, and this is also how we think about margins. We've been working towards margin accretion that would get us back to and eventually surpass our 2019 adjusted EBITDA levels, which in the range of our outlook for full year 2024, we would get back to this year. And we've worked to achieve this through getting leverage in the portion of our cost base that is relatively fixed in nature.

Do you think about leaning into that market and trying to grow your percentage of the overall carrier budget. Thanks.

Great I'll take the first part of your question and then I'll hand, it off to Tim for the insurance piece.

I will just to your question around margins I will just remind everyone that in <unk>.

Kimberly <unk> wallet for the long term and this is also how we think about margins.

We've been working towards margin accretion that would get us back to and eventually surpass our 2019 adjusted EBITDA levels, which in the range of our outlook for full year 2024, we would get back to you this year.

And we've worked to achieve this through getting leverage in the portion of our cost base that is relatively fixed in nature that includes one hitting a logical ceiling on our brand spend to no longer having the step change in G&A expenses as a result of becoming a public company and three continuing to gain leverage in areas such as R&D and <unk>.

Lauren St. Clair: That includes, one, hitting a logical ceiling on our brand spend, two, no longer having to step change in G&A expenses as a result of becoming a public company, and three, continuing to gain leverage in areas such as R&D and the organic portion of our sales and marketing. We're really proud that we've been able to deliver consistent margin accretion on an annual basis since our IPO in late 2021, even in a difficult macroeconomic environment, and our outlook showcases our commitment to continuing this trend. So, if the top line picks up faster than we're currently contemplating, we will clearly lean in on things like variable expenses that we've talked about. So, when it's profitable and period, we will lean into things like performance marketing.

Ganic portion of our sales and marketing.

We're really proud that we've been able to deliver consistent margin accretion on an annual basis since our IPO in late 2021, even in difficult macroeconomic environment and our outlook showcases our commitment to continuing this trend. So if the top line picks up faster.

Then what we are currently contemplating we will clearly lean in on things like variable expenses that we've talked about so when its profitable and period, we will lean into things like performance marketing you could expect those cost to come up but for the fixed.

Lauren St. Clair: So, you could expect those costs to come up. But for the fixed portion of our cost base, I would expect to get leverage out of those over the long term. Yeah, and a great question on insurance. It's a big strategic issue that we're constantly trying to work our way towards. You're right, it's a huge market, and there are a lot of challenges in terms of providing consumers with a sensible experience there.

A portion of our cost base I would expect to get leverage out of those over the long term.

Yes.

Question on insurance, it's a <unk>.

Big strategic question that we're constantly trying to work our way towards Youre right its a huge market.

There.

A lot of challenges in terms of providing consumers with a with a sensible experienced there.

Tim Chen: All I can say is that we're trying to be creative and exploring a bunch of different avenues and hope to have something to talk about in the coming years. But it's going to be a long investment. Thank you. Thank you. And as a reminder, to ask a question, please press star one one on your telephone.

I can say is that we're trying to be creative and exploring a bunch of different avenues and hope to have something to talk about in the coming years, there, but it's going to be a long investment.

Thank you.

Thank you and as a reminder to ask a question. Please press star one on your telephone one moment for questions.

Youssef Squali: One moment for questions. Our next question comes from Youssef Squali with Truist Securities. He may... Great, thank you. A couple questions. One for Lauren, maybe both for Lauren.

Our next.

<unk> comes from Youssef Squali with crew Securities you May proceed.

Okay, great. Thank you couple of questions.

One for Loren, maybe Paul for you talks about for our full year adjusted EBITDA margin to 18%.

Lauren St. Clair: You talked about for a full year adjusted EBITDA margin, the 18 to 19 and a half percent of revenues. So thanks for that. Now the obvious question.

<unk> 19, 5% of revenues so thanks for that.

Now the obvious question is kind of what's your base case.

Tim Chen: What's your base case to get either to the low end or the high end on that in terms of growth? I'm assuming it's a mix and kind of the acceleration in the second half, but any kind of guardrails you can kind of share that for that would be helpful and kind of related to that, also kind of related somehow. Sandler, Ralph Schackart, Peter Christiansen, Nerdwallet, To the first part of your question, Yousef, in terms of full-year adjusted EBITDA, you know, as we've said before, we're really proud of the margin accretion that we've been able to continue to show for the full year, even despite some volatility in the macro. But what we're expecting in terms of full year on the top line, we said that we currently expect to return to double-digit rates of revenue growth starting in the second half.

To get either to the low end or the high end on that in terms of growth I'm, assuming its mix.

And kind of the <unk>.

The acceleration in second half, but any any kind of guardrails you can you can kind of share that.

That would be helpful and kind of related to that is that.

So kind of related somehow to.

Changes in the rate environment, just maybe Tim.

What's your what's your kind of base case for further rates environment as we go through it because obviously, it's been very very fluid in the last four weeks.

Scott to the first part of your question Youssef in terms of full year adjusted EBITDA as we said before we're really proud of the margin accretion that we've been able to continue to show for full year, even despite some volatility in the macro.

But what we're expecting in terms of full year on the top line. We said that we currently expect to return to double digit rates of revenue growth starting in the second half.

Tim Chen: This would be led by S&B products and insurance, and I will reiterate what I said in my remarks, though, that the exact timing of the recovery, especially in areas such as balance transfer cards, as well as any interest rate-driven demand changes in both banking and loans, will influence how high those double-digit growth rates will be and by when. Yeah, in terms of the base case, we're trying to be, you know, it's hard to call exact timing on a lot of these things. So we're definitely trying to be conservative.

This will be led by SMB products and insurance.

And I will reiterate what I said in my remarks, though that the exact timing of the recovery, especially in areas such as balance transfer cards as well as any interest rate driven demand changes in both banking and loans will influence how high those double digit growth rates will be and by wind.

Yeah and in terms of the base case.

Trying to be.

It's hard to call exact timing on a lot of these things. So we are definitely trying to be conservative I will paint the overall macro picture just as being.

Lauren St. Clair: I will paint the overall macro picture just as being, you know, if there is a soft landing scenario, that would be pretty ideal for us. Because what would happen is you'd see easing headwinds in credit cards and our loans businesses, balance sheet constraints, and underwriting loosen. And you'd also see an increase in refi demand across all lending areas as rates decline. And then we would also see easing headwinds in our insurance business as inflation continues to moderate and carriers get back on their feet as this pricing flows through. So should we experience more of a hard landing scenario, you should expect revenue recovery to take a bit longer, possibly even becoming more challenging in the near term. And while we'll be prudent with our expense management in order to deliver on our margin commitments, the timing of any material changes in the macro environment could impact shorter-term progress on some of those margin efforts.

If there is a soft landing scenario that would be pretty ideal for us.

Because what would happen is you would see easing headwinds in credit cards in our loans business is balance sheet constraints.

Constraints in underwriting loosen and you'd also see an increase in refi demand across all lending areas as rates decline and then we'd also see easing headwinds in our insurance business as inflation continues to moderate and carriers get back on their feet as this pricing flows through.

So should we experienced more of a hard landing scenario, you should expect revenue recovery to take a bit longer possibly even getting more challenged in the near term and all will be prudent with our expense management in order to deliver on our margin commitments the timing of any material changes in the macro environment impacts for near term progress and some of those margin efforts.

Lauren St. Clair: Thank you. Just one quick clarification, maybe, Lauren, when you talk about the same brand spend levels in 2024 as in 2023, is that on a percentage basis, or is that in aggregate dollars? That's for the full year in absolute dollars.

Thank you just one quick clarification, maybe Laura when you talk about same brand spend levels in 2024, and 2023 is that on a percentage basis or is that in aggregate dollars.

That's for the full year in absolute dollars.

Justin Patterson: Great, thank you both. Thank you. One moment for questions. Our next question comes from Justin Patterson with KeyBank. You may proceed. Thank you very much. Good afternoon.

Okay.

Great. Thank you both.

Thank you.

One moment for questions.

Our next question comes from Joseph Patterson with Keybanc you May proceed.

Alright, Thank you very much good afternoon, Tim.

Tim Chen: Tim, could you tease out some of your top priorities each year across your big three growth pillars? What can we expect around land and expand, vertical integration, and engagement initiatives? And then I'll have a follow-up question for Lawrence.

Could you tease out some of your top priorities each year across.

Your big three growth pillars, what can we expect around land and expand in vertical integration and engagement initiatives and then I'll have a follow up for Loren.

Tim Chen: Yeah, thanks for the question. So those are our three growth pillars, right? I'd say land and expand is really more of our tried and true playbook. I mean, we're always pushing on that.

Yes. Thanks for the question. So those are our three growth pillars, right I'd say land and expand is really more of our.

Try to entry playbook.

Always pushing on that in terms of the stuff that's going to be a bit more novel over the coming several years I think is really in terms of the vertical integration and the registration and data driven engagement. So we're thinking really hard about where there are still gaps in customer experiences, where we can uniquely play.

Tim Chen: In terms of the stuff that's going to be a bit more novel over the coming several years, I think it's really in terms of vertical integration and registration and data-driven engagement. So we're thinking really hard about where there are still gaps in customer experiences where we can uniquely play. NerdUp is a great example of that, but also things like we've launched Drive Like a Nerd, and we've launched Nerdwallet Advisors. So there are a lot of different thought processes that we're exploring and a lot of hypotheses that we're eager to evaluate. You got it. Thanks. And then the follow-up to Lauren.

<unk> is a great example of that.

But also things like.

We've launched like drive like a nerd, we've launched <unk> advisors. So theres a lot of different thought processes that were exploring in a lot of hypotheses that we're eager to evaluate.

Got it thanks.

The follow up for Loren I. Appreciate the details you gave around is just revenue growth in the second half of the year I wanted to confirm was that double digit growth.

Lauren St. Clair: I appreciate the details you gave around just revenue growth in the second half of the year. But I wanted to confirm, was that double-digit growth, you know, on the second half as a whole or on a quarterly basis? And then as you're thinking about just the growth vectors in there, how should we think about, you know, the puts and takes between user growth versus just brand spend or advertiser spend starting to improve again? Thanks.

On the second half as a whole or on a quarterly basis, and then as you're thinking about just the growth vectors in there how should we think about that.

And takes between user growth versus just brand spend or advertiser spend starting to improve again. Thank you.

Justin Patterson: So the first part of the question, Justin, was around revenue growth. So what we said was that we expect to return to double-digit rates of growth for revenue year-over-year starting in the second quarter. And then the second part of the question was, I believe, around MUU growth and user growth, as well as brand spend. Is that correct? Yeah, just thinking about the buckets in there.

Sure. So the first part of the question Justin was around revenue growth. So what we said was that we expect to return to double digit rates of growth for revenue year over year, starting in the second half.

And then.

And the second part of the question was I believe around <unk> growth and user growth as well as brand spend is that correct.

Yeah, just thinking about the buckets in their user growth is obviously well above total revenue growth right. Now. So just wondering if there's any views off of how users persist versus say pricing recovery, that's driving that reacceleration.

Lauren St. Clair: User growth is obviously well above total revenue growth right now, so just wondering if there's any views on how users persist versus, say, pricing recovery that's driving that re-acceleration. Yeah, let's talk a little bit about MUUs. And we're really proud of that growth in Q4. We grew roughly 24% year over year from strength in many verticals, both from high levels of consumer intent, as well as from our success in landing and expanding. Similar to areas where we saw growth in revenue, we saw growth in MUUs; you can think of banking and personal loans. And we also saw high consumer interest in areas like travel and investing.

Yes, let's let's talk a little bit about <unk> and we're really proud of that growth in Q4, we grew roughly 24% year over year from strength in many verticals both from high levels of consumer intent as well as our success in landing and expanding.

Similar to areas, where we saw growth in revenue, we see growth in our new use you can think of banking and personal loans and we also saw high consumer interest in areas like travel and investing.

Lauren St. Clair: As we expected, to your point, MUUs grew faster than revenue again in Q4. This trend gives us confidence that consumer demand remains healthy despite ongoing partner conservatism, and we expect that this outperformance of MUUs versus revenue to continue into Q1 as we see really strong engagement with our learned content as consumers are continuously looking for unbiased guidance and financial content during this complex macroeconomic time. Despite some of the near-term revenue pressure, we expect that the strength of MUUs combined with our ability to match consumers with our financial service providers will accelerate our growth as the macro environment improves. I guess just to add on a thought there. Yeah, in past cycles, right, as the macro rate covers, you definitely get this tailwind of, you know, partners are loosening underwriting, they're getting more aggressive around acquisition. So yeah, pricing should definitely be a tailwind as well. Thank you. One moment for a question. Our next question comes from Pete Christiansen with Citi. You may proceed. Thanks. Good evening.

As we expected to your point and you use grew faster than revenue again in Q4, and this trend gives us confidence that consumer demand remains healthy despite ongoing partner conservatism.

And we expect that this outperformance of M. You use versus revenue, we expect that to continue into Q1, as we see really strong engagement with our learning content as consumers are continuously looking for unbiased guidance and financial content. During this complex macroeconomic time.

And despite some of the near term revenue pressure, we expect that the strength in <unk> combined with our ability to match consumers with our financial service providers will accelerate our growth as the macro environment improves.

Yes, I guess just to add a thought there.

Yes.

In past cycles right as the macro recover as you definitely get this.

Tailwind is partners are.

Listening underwriting theyre getting more aggressive around acquisition so.

Yes pricing should definitely be a tailwind as well.

Got it thank you.

Thank you.

One moment for questions.

Our next question comes from Pete Christiansen with Citi. You May proceed.

Good evening I appreciate your.

Tim Chen: I appreciate you answering questions here. I know you called out Prime as an issue earlier, and we've heard it in other areas as well. I'm just curious what you're seeing on the subprime side in terms of partner willingness to extend offers or to invest there. That's why I understand delinquencies have kind of peaked there already; things are kind of stabilizing, at least in the subprime and neoprime areas. I'm just curious if you're seeing any improving activity there. So I think that, certainly, subprime is more stable.

Answering questions here.

Yeah.

I know you called out Prime as an issue earlier and we've heard it in other areas as well.

Just curious what youre seeing on the subprime side in terms of partner willingness to extend offers or.

Thus there well.

While I understand delinquencies will kind of peak bear royalty things are kind of stabilizing at least on the subprime near Prime area, just curious if youre seeing any.

Improving activity there.

So I think.

Certainly subprime is more stable.

Peter Corwin Christiansen: You know, we had limited surprises there. I think really, the tightening there started probably the middle of 2022, probably 2Q, 3Q and kind of incrementally got tighter and tighter. I think that that feels like it's found more of a floor.

We eliminate surprises there I think really the tightening their started probably the middle of 2022, probably two to three <unk> and kind.

Kind of incrementally got tighter and tighter.

That feels like it's on more of a more of a Florida.

Tim Chen: And then Tim, in Cards real quick, just curious what you call the travel vertical still being a nice growth vertical there within Cards. Just curious if you can put some color on that in terms of, you know, travel-related products and how they're faring on the platform. And maybe I'll clarify with that one. So the commentary around travel was the travel vertical as a whole, not related specifically to credit cards, although that is a piece of it.

And then Tim in current real quick just curious you called out trial will still be a nice growth vertical there within cars.

Just curious if you could put some color on that in terms of travel related products.

How they are faring on the platform.

So maybe I'll clarify with that one so the commentary around travel was the travel sort of.

Vertical as a whole not related specifically to credit cards, although that is a piece of it but the commentary was around the user growth and <unk> growth, specifically in Q4, and where areas where we saw strength one of those areas was travel.

Lauren St. Clair: But the commentary is around user growth and MOU growth specifically in Q4 and areas where we saw strength; one of those areas was travel. Yeah, so we've got a lot of great, great content and insights around travel. And I think it's an amazing way to get in front of users and introduce them to Nerdwallet and re-engage them as well. That's super helpful.

Okay, Yes.

We've got a lot of great.

Great content and insights around travel and I think it is.

Amazing way to get in front of users and introducing <unk> and Reengage Venezuela.

That's super helpful. Thank you Paul.

Tim Chen: Thank you both. Thank you. I would now like to turn the call back over to management for any closing remarks. Thank you all for your questions today. As always, I'd like to thank the nerds for their hard work in 2023. Their efforts to drive progress towards our vision last year mean we are well set up for 2024 and beyond. To learn more about NerdWallet's business and vision, mark your calendars for March 4th when we plan to release a new investor video on our IR website. I'm looking forward to hearing your thoughts. With that, we'll see you next quarter. Thank you for your participation. You may now disconnect.

Yes.

Thank you I would now like to turn the call back over to management for any closing remarks.

Thanks, all for your questions today as always I'd like to thank <unk> for their hard work in 2023, there are efforts to drive progress towards our vision last year. I mean, we are well set up for 2024 and beyond.

To learn more about <unk> business Division Mark your calendars for March 4th when we plan to release, a new investor video on our IR website.

I'm looking forward to hearing your thoughts with that we will see you next quarter.

Thank you for your participation you may now disconnect.