NerdWallet Shares Sink on Lower-than-Expected 3Q Results

Dow Jones11-06

Shares of NerdWallet fell after the company reported a lower profit and underwhelming revenue in the latest quarter.

The stock lost nearly a quarter of its value premarket Friday, trading at $8.74. Through Thursday's close, shares are down 12% year to date.

The financial services company before the bell reported a third-quarter profit of $14.9 million, down from $26.3 million a year earlier. Quarterly earnings came out to 23 cents a share, missing the 34 cents a share that analysts polled by FactSet expected.

Revenue climbed 11% to $239.6 million but missed Wall Street models of $251.9 million.

Consumer revenue increased 12% from last year, to $214.5 million, primarily driven by higher student loans and the peak summer lending season, the company said.

Revenue from small- and medium-sized businesses came in at $25.1 million, up 6% from a year earlier as an increase in loan originations was partially offset by continued pressure in organic search traffic.

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