NerdWallet Reports 15% Revenue Growth to $687.6 Million, Achieves Net Income Turnaround

NerdWallet, Inc. reported a revenue of $687.6 million for the fiscal year ending December 31, 2024, marking a 15% increase from $599.4 million in 2023. The company achieved a net income of $30.4 million, a significant turnaround from a net loss of $11.8 million in the previous year. This improvement in profitability was attributed to a combination of increased revenue and effective cost management, despite a rise in total costs and expenses, which increased by $82.4 million to $657.2 million.

The company experienced notable changes in its revenue streams, with insurance revenue surging by 326% to $146.6 million, driven primarily by increased demand for auto insurance products. Conversely, credit card revenue fell by 16% to $173.5 million, reflecting challenges in organic search traffic and reduced marketing expenditures from financial partners. Additionally, revenue from loans decreased by 17% to $83.1 million, largely due to a decline in personal loans amid a high-interest rate environment. The SMB products segment saw a 9% increase in revenue, indicating steady growth in business-related financial services.

Strategically, NerdWallet expanded its offerings through the acquisition of Next Door Lending LLC (NDL) in October 2024, enhancing its mortgage brokerage capabilities. This acquisition allows NerdWallet to provide more personalized loan matching services to consumers, further solidifying its position in the mortgage market. The company has also focused on geographic expansion, having entered the UK, Canadian, and Australian markets in recent years, which presents additional growth opportunities.

Operationally, NerdWallet reported a registered user base of 25 million as of December 31, 2024, up from 19 million the previous year. This increase in user engagement is critical, as registered users typically generate five times the lifetime revenue compared to non-registered users. The company’s marketing strategy has been effective, with over 70% of traffic coming from organic sources, underscoring the strength of its brand and content. However, the company also faced challenges, including a restructuring plan that reduced its workforce by approximately 15% to streamline operations and reduce costs.

Looking ahead, NerdWallet anticipates continued growth driven by its strategic investments in technology and marketing, as well as its focus on expanding its product offerings and partnerships. The company remains cautious about macroeconomic conditions, including inflation and interest rates, which could impact consumer demand for financial products. Nonetheless, NerdWallet is optimistic about its ability to navigate these challenges and maintain its trajectory of growth and profitability.