Nerdwallet, Inc. · NASDAQ:NRDS
Nerdwallet — Investor Presentation (March 2024)
32 slides from Nerdwallet's investor presentation, Mar 4, 2024
Slide 1: Investor Presentation
MARCH 4, 2024 Investor Presentation Ⓒ 2024 Copyright
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements This presentation contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this presentation are forward-looking
Slide 3: NerdWallet at a Glance
NerdWallet at a Glance Large Market & History of Compounding Audience Operating Excellence Growth at Scale $30B+ Over 70% $599M Market Opportunity1 Organic Traffic3 2023 Revenue 23M | +16% $26M 27% 2023 Non-GAAP Operating Income4 Average MUUs2 in 2023 Revenue CAGR 2019-2023 2019-2023 CAGR 1. eMarket
Slide 4: Trustworthy financial guidance is hard to find
THE PROBLEM TODAY Trustworthy financial guidance is hard to find Ⓒ 2024 Copyright 4
Slide 5: Our Mission and Vision
OUR MISSION Provide clarity for all of life’s financial decisions. OUR VISION A world where everyone makes financial decisions with confidence. Ⓒ 2024 Copyright 5
Slide 6: Our History
Our History Ⓒ 2024 Copyright 6
Slide 7: Our Competitive Advantage is Our Brand & Reach
Our Competitive Advantage is Our Brand & Reach … and We Cut Through the Noise for Both Our Consumers and Financial Institutions Ⓒ 2024 Copyright 7
Slide 8: Our Product
Our Product Ⓒ 2024 Copyright 8
Slide 9: Our Growth Pillars
Our Growth Pillars WHERE WE LAND & VERTICAL REGISTRATIONS & DATA- STARTED EXPAND INTEGRATION DRIVEN ENGAGEMENT YOU SPENT LESS THIS MONTH, PUT THAT EXTRA MONEY INTO A HIGH-YIELD SAVINGS ACCOUNT! On the Barrelhead now NerdWallet ... Ⓒ 2024 Copyright 9
Slide 10: Addressable Market is Large, Growing with Opportunity for Significant Continued Expansion
Addressable Market is Large, Growing with Opportunity for Significant Continued Expansion Credit Card Applications - Significant Future Expansion in: Share by Offer Channel4 Commission Dollars + Offline-to-Online Shift Comparison 11% Shopping Marketplaces Primary Addressable Market 44% Issuer Digita
Slide 11: Gaining Share in a Tough Macro Environment
Gaining Share in a Tough Macro Environment 263% NerdWallet 236% Revenue Indexed to 2019 166% 107% 100% 122% 108% Peer set1 105% Revenue indexed to 2019 85% 2019 2020 2021 2022 2023 1- Public company peer set includes LendingTree, QuinStreet, EverQuote, MediaAlpha Ⓒ 2024 Copyright 11
Slide 12: Scaling in an Attractive Market Segment
Scaling in an Attractive Market Segment CONSUMERS Offline-to-Online Shift Benefitting All Digital Brands CONSUMERS WITH CHOICE New Entrant Fintechs Are Our MULTI-PRODUCT Partners, Not Our Competitors Stronger Brands Drive Quality Audience Over Time PAYCHECK TO PAYCHECK Consumers with Choice Qualify
Slide 13: Brand Investments Delivering Results
Brand Investments Delivering Results Aided Awareness (%) nerdwallet Compare top cash back cards Brand Spend ($) side-by-side with help from the Nerds… Aided awareness percentages represent the annual average Ⓒ 2024 Copyright 13
Slide 14: Vertical Integration Case Study - SMB Products
Vertical Integration Case Study - SMB Products Pre-Fundera Acquisition Post-Fundera Acquisition ● >3x SMB Products revenue vs pre-acquisition pro-forma revenue ● 12-month cohort Net Dollar repeat rate up to 50% ● 3-year cohorts ~2X revenue vs initial transaction Net dollar repeat rate represents inc
Slide 15: Vertical Integration Case Study - On the Barrelhead (OTB)
Vertical Integration Case Study - On the Barrelhead (OTB) Pre-OTB Acquisition Post-OTB Acquisition ● NerdWallet personal loans Revenue +21% y/y in Q4’23 ● Peer set median y/y revenue change was (4%) in Q4’231 Post-acquisition personal loans match rate 2X pre-acquisition leveraging OTB technology and
Slide 16: Driving Quality Engagement with Consumers
Driving Quality Engagement with Consumers Repeat Transaction Cohorts Repeat Transaction Cohorts All Users Registered Users US NerdWallet consumer data; excludes impacts of recent acquisitions for comparative purposes. Data is subject to variances driven by Ⓒ 2024 Copyright 16 vertical mix as well as
Slide 17: Our Registered User Base is Growing Rapidly and Highly Engaged
Our Registered User Base is Growing Rapidly and Highly Engaged 19M 5x+ 14M Registered 10M Registered User LTV as a multiple of unregistered visitor LTV Users 8M 5.5M+ 3x+ Registered User visits per month on average 37% Year-over-Year Revenue growth from Registered Users as of the end of 2023 2019 20
Slide 18: Financial Highlights
Financial Highlights Ⓒ 2024 Copyright 18
Slide 19: Large Growing User Base as we Land & Expand
Large Growing User Base as we Land & Expand Monthly Unique Users (Million MUUs) 23 23 24 24 22 ● 2021 growth was supported by the 20 meme stock phenomenon, strong 19 18 refinance demand in mortgage and an extended tax filing season ● 2022 saw strength in SMB, Banking and Credit Cards offset by lappi
Slide 20: Diversified Revenue Leads to Sustained Growth
Diversified Revenue Leads to Sustained Growth Revenue ($M) $599 $539 ● 2022 saw significant recovery in Credit cards $187 combined with strength in SMB products. As $128 interest rates began to rise, strength in banking was partially offset by headwinds in mortgages. $380 $91 $101 ● 2023 began with
Slide 21: Gaining Leverage Across Our Fixed Portion of Cost Base As We Scale
Gaining Leverage Across Our Fixed Portion of Cost Base As We Scale GAAP Expense Items (% of Revenue) Contingent Consideration1 5% 1% General & Administrative 10% 11% 10% ● Our cost base that is relatively fixed in nature consists of areas such as 51%2 General & Administrative, Research Perf Marketin
Slide 22: Delivering on Margin Accretion
Delivering on Margin Accretion Adjusted EBITDA & Non-GAAP Operating Income Margin (% of Revenue) 24% 18-19.5% 16% 15% 12% 6.5-8% 7% 4% Adj EBITDA margin 0% Non-GAAP OI margin -4% 2024 … 2026 2021 2022 2023 Outlook1 Targets Within our 2024 Outlook1, we would return to 2019 Adjusted EBITDA margin leve
Slide 23: Capital Allocation Philosophy
Capital Allocation Philosophy M&A Organic Investments Capital Returns Pair existing distribution Drive organic re- Opportunistically return with more personalized engagement and re- capital to shareholders and data-driven shopping occurring revenue streams though share repurchase experiences authori
Slide 24: Mid- to Long-Term Targets
Mid- to Long-Term Targets 2026 Long-Term 15% of revenue 15-20% Non-GAAP Operating Revenue Growth Income Margin >10% growth expected in financials Leverage in fixed cost base services digital advertising1 Brand low double-digits % of revenue +5-10 points driven by execution in growth pillars 24% of r
Slide 25: On The Path To Executing Our Vision
On The Path To Executing Our Vision Taking share in a growing market NerdWallet Brand is a real and growing differentiator and re-investment moat Driving sustained audience growth in both existing + new verticals Long capital deployment runway through Vertical Integration + Reg & Data-driven engagem
Slide 26: Appendix
Appendix WN nerdwallet ©2024 Copyri 2
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures We use non-GAAP operating income (loss) and adjusted EBITDA in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our busin
Slide 28: Non-GAAP Financial Measure Reconciliation - Non-GAAP OI
Non-GAAP Financial Measure Reconciliation - Non-GAAP OI Non-GAAP operating income (loss) as we define it may not be comparable to similarly titled measures used by other companies. Because of these limitations, you should consider non-GAAP operating income (loss) alongside other financial performanc
Slide 29: Non-GAAP Financial Measure Reconciliation - Adjusted EBITDA
Non-GAAP Financial Measure Reconciliation - Adjusted EBITDA Adjusted EBITDA as we define it may not be comparable to similarly titled measures used by other companies. Because of these limitations, you should consider adjusted EBITDA alongside other financial performance measures, including net inco
Slide 30: Non-GAAP Financial Measure Reconciliation - 2024 Outlook
Non-GAAP Financial Measure Reconciliation - 2024 Outlook Refers to 2024 outlook as previously disclosed and contained in our Q4’23 Earnings Release issued on February 14, 2024 Non-GAAP operating income (loss) as we define it may not be comparable to similarly titled measures used by other companies.
Slide 31: Non-GAAP Financial Measure Reconciliation - 2026 Outlook
Non-GAAP Financial Measure Reconciliation - 2026 Outlook Non-GAAP operating income (loss) as we define it may not be comparable to similarly titled measures used by other companies. Because of these limitations, you should consider non-GAAP operating income (loss) alongside other financial performan
Slide 32: Ⓒ 2024 Copyright
nerdwallet © 2024 Copyright