NerdWallet, the financial education company, reported a rise in its shares following strong performance in key metrics for the third quarter. While the stock is down for the year, this recent uptick shows promising signs of improvement.
During the third quarter ended Sept. 30, NerdWallet experienced a loss of $500,000, or one cent a share. This is a significant change from the net income of $700,000, or one cent a share, that was reported during the same period last year. However, this result exceeded analysts' expectations, as they had predicted a loss of eight cents a share.
On the revenue side, NerdWallet saw a growth of 7% with $152.8 million in revenue compared to $142.6 million from the previous year. This surpassed analysts' estimate of $144.3 million. These positive financial results highlight the company's ability to adapt and thrive despite challenging circumstances.
Increasing User Engagement
NerdWallet reported an impressive increase in average monthly users, reaching 24 million in the quarter. This reflects a substantial growth of 22% compared to the same period last year. The company identified strong engagement in various areas such as travel products, banking, and investing. This demonstrates NerdWallet's relevance and appeal to consumers seeking financial guidance and support.
Chief Financial Officer Lauren StClair expressed confidence in NerdWallet's potential to further meet consumer needs and create long-term value. As economic conditions improve, the company expects its growing consumer mind share to contribute to its success.
Expansion into Credit Card Market
In a separate announcement, NerdWallet shared the launch of its first-ever credit card. This diversification of services positions NerdWallet to cater to a wider range of financial needs, further establishing its presence in the industry.
NerdWallet's positive performance in key metrics, along with its commitment to meeting consumer needs and expanding its offerings, sets it on a path of growth and success in the financial education sector.