1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Price Chart
4. Valuation
5. Offer Terms
6. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
NRDS
Listed on
2021-11-04
Sector
Information Technology
Subsector
IT Services
Offer Price
$18.00
first filed $17.00–$19.00Shares Offered
7.25M
67.07M
$1.2B
10.8%
Implied Upside vs Midpoint
Description
Our mission is to provide clarity for all of life’s financial decisions. Our vision is a world where everyone makes financial decisions with confidence. At NerdWallet, we empower consumers—both individual consumers and small and mid-sized businesses (SMBs)—to make smarter financial decisions with confidence via our digital platform. Technology has changed the way consumers manage their financial lives, making them more comfortable with comparing and shopping for financial products online. This change has accelerated with the dramatic growth in companies offering innovative financial products. At NerdWallet, we are leveraging this transformation to democratize access to trustworthy financial guidance—ultimately helping to improve the financial well-being of consumers and the financial services industry as a whole. As the financial services industry becomes more fragmented and complex, our value proposition as a trusted, independent platform for consumers increases. We deliver guidance to consumers through educational content, tools and calculators, product marketplaces and the NerdWallet app. Our platform delivers unique value across many financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing and student loans, and has grown to include the UK and Canada. Across every touchpoint, the cornerstone of our platform is our consumers’ trust in the independent, objective and relevant guidance we provide, free of charge. This trusted guidance has helped us build a large, loyal and well-informed audience of consumers who turn to us as a resource for many of their money questions and to shop for the best financial products for them. We then use machine learning to present personalized options using aggregated and scalable information. As a result, we have become an attractive partner for financial services providers wanting to access high-value consumers—consumers who might not otherwise trust these financial services providers’ recommendations because their guidance is inherently biased toward their own products. By operating at the intersection of consumers and financial services providers, NerdWallet drives value for both. NerdWallet’s ability to serve consumers and financial services providers hinges on our position as an independent, unbiased resource. The core strength of our platform is the trust that we build with consumers and the tailored and personalized recommendations we deliver via our data science models. Our mission will guide us over the long-term as we build on our leadership as the place consumers turn first for financial guidance. We have already achieved massive, top-of-funnel audience reach with an average of 16 million Monthly Unique Users (MUUs) per month in 2020 and 20 million per month in the first nine months of 2021. We define a Monthly Unique User (MUU) as a unique user with at least one session in a given month as determined by unique device identifiers. By putting the consumer first, we not only empower consumers to make better financial decisions, but also help our financial services partners more effectively find new customers well-suited to their products. --- We were incorporated under the laws of the state of Delaware in December 2011. Our principal executive offices are located at 875 Stevenson St, San Francisco, CA 94103. Our telephone number is (415) 549-8913. Our website address is www.nerdwallet.com.
Priced in line with its peers
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
EV / revenue | 4.5x | 7.2x | ||
Price / earnings | >100x | 80.6x | ||
Revenue growth | 7.4% | 22.2% | ||
Gross margin | 91.3% | 67.6% | ||
Operating margin | 0.8% | 1.3% | ||
Net margin | 2.2% | 1.0% | ||
Free cash flow margin | 5.7% | 7.6% | ||
Rule of 40 | 14.3% | 26.6% | ||
Net cash / market cap | 4.6% | 1.5% | ||
Debt / equity | 0.37 | 0.00 | ||
Current ratio | 5.39 | 1.86 | ||
Stock comp / revenue | 2.6% | 1.8% | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
= Priced at $18.00, 0% above the midpoint of the first filed range ($17.00–$19.00, 2021-10-26).
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2021-10-26 | S-1/A | $17.00–$19.00 | — | 7,250,000 | $130.5M |
| 2021-11-05 | 424B4 | — | $18.00 | 7,250,000 | $130.5M |
NERDWALLET, INC. income statement and balance sheet, FY Dec 2022 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2022after listing | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Revenue | $539M | $599M | $688M | $837M |
| Gross profit | $499M | $545M | $624M | $773M |
| Operating income | ($19.0M) | $3.6M | $9.4M | $65.2M |
| Net income | ($10.2M) | ($11.8M) | $30.4M | $48.7M |
| Revenue growth | — | 11.2% | 14.7% | 21.7% |
| Gross margin | 92.6% | 91.0% | 90.8% | 92.4% |
| Operating margin | −3.5% | 0.6% | 1.4% | 7.8% |
| Net margin | −1.9% | −2.0% | 4.4% | 5.8% |
| Metric | FY Dec 2022after listing | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Total assets | $426M | — | $438M | $461M |
| Total liabilities | $84.0M | — | $73.4M | $86.6M |
| Total equity | $342M | $367M | $364M | $375M |
| Cash & equivalents | $83.9M | $100M | $66.3M | $98.3M |