Overview

* NerdWallet ( NRDS ) Q2 revenue rises 24% yr/yr but misses analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 beats estimates

* Insurance revenue up 86% yr/yr, driven by growth in auto insurance

Outlook

* NerdWallet ( NRDS ) expects Q3 revenue between $189 mln and $197 mln

* Company forecasts Q3 GAAP operating income of $17 mln to $21 mln

* NerdWallet ( NRDS ) sees full-year adjusted EBITDA between $120 mln and $128 mln

* Company increases full-year GAAP operating income forecast to $38 mln-$48 mln

Result Drivers

* INSURANCE GROWTH - Insurance revenue surged 86% year-over-year, driven by strong growth in auto insurance products as carriers expanded budgets

* CREDIT CARD DECLINE - Credit card revenue fell 25% year-over-year, impacted by persistent headwinds in organic search traffic

* LOANS INCREASE - Loans revenue rose 27% year-over-year, boosted by growth in personal and mortgage loans, including integration of Next Door Lending acquisition

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $186.90 $195.30

Revenue mln mln (6

Analysts

)

Q2 Net $8.20

Income mln

Q2 Beat $33.60 $32.10

Adjusted mln mln (6

EBITDA Analysts

)

Q2 $11.50

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the consumer lending peer group is "buy"

* Wall Street's median 12-month price target for NerdWallet Inc ( NRDS ) is $15.50, about 28.6% above its August 6 closing price of $11.07

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)