Good day, and thank you for standing by. Welcome to the NerdWallet Inc. Q2 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Caitlin MacNamee. Please go ahead.

Thank you, operator. Welcome to the NerdWallet Q2 2023 earnings call. Joining us today are Co-Founder and Chief Executive Officer, Tim Chen; and Chief Financial Officer, Lauren Stair. Our press release and shareholder letter are available on our Investor Relations website, and a replay of this update will also be available following the conclusion of today's call. We intend to use our Investor Relations website as a means of disclosing certain material information and complying with disclosure obligations under SEC Regulation FD from time to time. As a reminder, today's call is being webcast live and recorded. Before we begin today's remarks and question-and-answer session, I would like to remind you that certain statements made during this call may relate to future events and expectations, and as such, constitute forward-looking statements. Actual results and performance may differ from those expressed or implied by these forward-looking statements as a result of various risks and uncertainties, including the risk factors discussed in reports filed or to be filed with the SEC. We urge you to consider these risk factors and remind you that we undertake no obligation to update the information provided on this call to reflect subsequent events or circumstances. You should be aware that these statements should not be considered a guarantee of future performance. Furthermore, during this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release, except where we are unable without reasonable efforts to calculate certain reconciling items with confidence. With that, I will now turn it over to Tim Chen, our Co-Founder and CEO of NerdWallet. Tim?

Thanks, Caitlin. NerdWallet's mission is to provide clarity for all of life's financial decisions. We operate within the larger financial services market, and our strategy is to supply consumers and SMBs with the most trusted guidance to grow our share of this market cycle to cycle. Achieving this requires a long-term vision for success, doing right by our users to build our brand affinity in the long run rather than operating solely to maximize profits in the short run. Today, we'll be sharing quarterly results in the context of short-term cyclical headwinds and tailwinds. We expect headwinds to outweigh tailwinds through at least the second half of this year. But if I could ask you to remember one thing today, and in the years to come, it’s that those headwinds and tailwinds offset each other over time. Independent of these external macro factors, we are taking share in a large and growing market in a durable, sustainable way. Our primary addressable market, US financial services digital advertising, is expanding with a 2022 three-year CAGR of approximately 23%. NerdWallet's share in this growing market has also increased with a three-year CAGR of 33%, driven by robust top-of-funnel gains and all-time highs in aided brand awareness. In Q2, our brand's resonance with consumers and SMBs across verticals helped mitigate severe cyclical headwinds in consumer loans and carrier profitability challenges in insurance driven by inflation. As a result, we achieved year-over-year revenue and adjusted EBITDA growth despite those factors. We attribute our growing market share to our track record of providing the most trusted financial guidance. Across verticals, including those experiencing headwinds, we continue to provide trusted financial guidance for all of consumers' questions, and we've seen significant consumer engagement in credit cards, travel, home, investing, and SMB. At the same time, our team has recognized the new ways many consumers find financial information. We are growing the audience of our Smart Money podcast, which has been downloaded over 1.5 million times so far this year. We are also developing content for platforms like TikTok, Instagram, and YouTube, and embracing emerging technologies. In late Q2, we launched a beta of NERD AI, a chatbot trained on NerdWallet content to give our consumers a new way to engage with our guidance. Increasing our consumer mind share will fuel our long-term vision, a trusted financial ecosystem or a single platform where consumers and SMBs can learn, shop, and make decisions about their money. In Q2, we made meaningful progress across our three growth pillars: land and expand, vertical integration, and registration and data-driven engagement. In addition to the strong traffic we've seen across verticals this quarter, we leveraged our reach and brand to further our expansion in emerging verticals and serve more consumers. In Canada, we launched a number of new consumer experiences and grew monthly unique users over 150% year-over-year. For US consumers, we've made progress in building out our auto loans, Medicare, and social security verticals, and we launched an estate planning marketplace. These land and expand wins cross-pollinate our other strategic objectives to not only grow our overall traffic, they also contribute to our registration goals with recent emerging vertical content being a top driver of registrations. Vertical integration refers to the synergy we achieved by pairing NerdWallet's brand and reach with best-in-class consumer experiences. In Q2, our on-the-barrelhead integration continued with a focus on cross-selling. The loans team, where OTB is primarily integrated, is able to leverage OTB's technology to identify when a personal loans customer would be better served by a voice transfer credit card, bundling these consumers into our credit cards experience instead. Meanwhile, our SMB team has begun testing experiences that direct business owners who may not qualify for traditional business loans to our personal loans product. In doing this, we believe we can provide consumers with improved outcomes. They can explore alternative products that may be better for them or that they wouldn't have considered while laying the groundwork for more effective monetization. We look forward to relentlessly improving these cross-sell experiences and bringing our learnings to other NerdWallet shopping funnels. As we grow our percentage of consumer mind share, we are also motivated to register and engage NerdWallet users. This will allow us to build relationships with our consumers that ensure they turn and return to NerdWallet for all their money questions. In Q2, we drove a 37% year-over-year increase in our cumulative number of registered users. At the same time, we invested in enhanced consumer experiences that give our users a reason to return to us again and again. We launched additional search and categorization functionality in our app, allowing users to better track their financial health over time. As a result of this work, we have driven improvements to our user engagement. In a moment, our CFO, Lauren Stair, will provide more insight into our financial performance this past quarter. While I am proud of our results, especially given the current climate, I am particularly energized by the focus and velocity our Nerds have brought to executing our strategy this quarter. We are leveraging our competitive advantage in consumer trust to find new ways to serve and delight our customers, to reach new consumers, and to relentlessly improve our business. With that, I'll pass it over to Lauren.

Thanks, Tim. We're proud of the quarter we achieved in the face of a tough lending and insurance environment, delivering Q2 revenue of $143 million, up 14% year-over-year and above the high end of our guidance. Since last quarter, we've seen that credit quality and unemployment outlooks seem to be trending better than was previously feared, which should improve sub- and near-prime lending first. The banks are still taking a conservative approach to balance sheet lending. This conservatism is driven by uncertainty around possible rate hikes, the impacts of upcoming Basel III revisions, and the stickiness of their deposit base as consumers spend the last of their excess savings from the pandemic. Now, we'll take a deeper look at the revenue performance during the quarter within each category. Credit cards delivered Q2 revenue of $51 million, declining 6% year-over-year. As we mentioned last quarter, we're facing headwinds in our credit cards vertical, and the partner tightening that increased during Q1 by extending to prime consumer-related products led to a larger than typical seasonal quarter-over-quarter decline. Consumer demand remains healthy, and we believe that the strength we've seen in matches with our financial partners indicates we are still taking market share. Though challenges in balance sheet-intensive areas, such as balance transfer cards, are offsetting this. Partner behavior was relatively consistent throughout the quarter. While we believe that current trends will persist during the second half of the year, we should see tailwinds when card issuers regain confidence in expanding their balance sheet. Loans generated Q2 revenue of $23 million, declining 4% year-over-year. Our mortgage vertical, while still declining on a year-over-year basis as the market faces significant headwinds, is now starting to compare to slightly easier time periods from 2022, which we expect to continue throughout the rest of this year. On the back of our progress integrating the acquisition of OTB and personal loans, we saw accelerating growth during Q2 as we were able to match consumer demand at a better rate with our partners. Just to reiterate what we mentioned last quarter, we are committed to making investments in key loans technologies to set us up to take market share when the macro environment recovers. Finally, other verticals finished Q2 with revenue of $69 million, growing 48% year-over-year. Banking growth, while still above 100% year-over-year, decelerated versus previous quarters as we begin to compare to last year's high growth levels, combined with signs of softening consumer demand as interest rate increases slow. As mentioned last quarter, we believe we've been over-earning a bit in our banking vertical, and as consumer interest starts to moderate, growth should slow further. Our insurance vertical had a strong quarter despite persistent inflationary headwinds, with revenue growth of 41% year-over-year as recent product improvements allowed us to gain share in a challenging environment. SMB revenue grew 13% year-over-year as we are still seeing conservative underwriting for SMBs impacting our growth rates. We still expect near-term growth rates to be at more muted levels compared to last year, but the long-term opportunity in SMB and the benefit of our vertical integration strategy have years of tailwinds remaining. Moving on to investments and profitability. During Q2, we earned $20.7 million of adjusted EBITDA at a 14% margin, a 4-point increase versus last year. We had a GAAP net loss of $10.7 million, which includes a $7.1 million income tax provision. Similar to what we mentioned last quarter, we expect to be in a tax expense position for the remainder of the year. Please refer to today's earnings press release for a full reconciliation of our GAAP to non-GAAP measures. Consumers continue to turn to Nerds for their many questions. We provided trustworthy guidance to 22 million average monthly unique users in Q2, up 9% year-over-year. Growth was a result of strength in many areas across NerdWallet, such as banking, insurance, and travel, as well as the impact of our acquisition of OTB. We're still seeing similar year-over-year headwinds from mortgages as the macro environment for both refinance and purchase has yet to recover. Given current revenue pressure, combined with consistent consumer demand for our learn and shop content, we now expect that MUU growth should outpace revenue growth during Q3. On to our financial outlook. As we look forward to the remainder of 2023, we remain in a challenging macro environment for many of our verticals and expect recent headwinds to persist. We plan to continue providing quarterly guidance and will also provide qualitative commentary for full year expectations. For the third quarter, we expect to deliver revenue in the range of $142 million to $147 million, which at the midpoint would grow 1% versus prior year. We expect to see continued, albeit slowing growth from banking as well as slightly easier comps in our loans verticals, with minimal expected near-term changes in the macro outlook. Our typical seasonal increase of high single digits from Q2 to Q3 will be more muted this year, given the partner conservatism we're seeing. Insurance is expected to decline year-over-year during the second half as we believe it will still take several quarters for the industry to digest the latest profitability issues. We continue to see partners value the quality of our consumers, putting us in a position of relative strength. While consumer fundamentals and demand still seem relatively healthy, we will face a tougher comparison from the second half of last year when deposit demand was extremely strong and underwriting was a bit looser across the board, especially in prime consumer products. This all led to an expectation that revenue growth levels will remain lower than what we delivered in Q2 for the remainder of the year. Moving to profitability, we expect Q3 adjusted EBITDA in the range of $18 million to $20 million or approximately 13% of revenue at the midpoint, a 3-point increase versus prior year. Our dedication to delivering year-over-year margin improvement in the face of significant revenue deceleration showcases the benefit of our organic traffic as well as the flexibility of our business model. We are still running a large-scale brand campaign during the third quarter, so we expect to have another period of reduced spend versus last year. Aligned with how we've previously described our approach to our performance marketing lever, we will lean into verticals where we're seeing positive momentum to deliver profitable growth. Given our similar quarterly brand cadence to last year, we still expect relative adjusted EBITDA margins to be lower during the first three quarters of the year compared to Q4. We are also reconfirming that we plan to deliver a year-over-year increase in our annual adjusted EBITDA margin for yet another year and now expect that full year 2023 adjusted EBITDA margin should be over 15%, resulting in roughly 3 points of incremental margin versus 2022. I also want to take a moment to discuss the new metric disclosure that we provided within our earnings press release and shareholder letter today. We are now disclosing non-GAAP operating income or adjusted EBITDA less stock-based compensation and internally developed software costs, which were capitalized during the period. We will continue to report on both non-GAAP OI as well as adjusted EBITDA and make progress towards improved levels of profitability in both. We expect to deliver approximately 2% non-GAAP OI margin for the full year 2023, as well as a mid-single-digit margin for 2024. We believe we are getting closer to a mature annualized run rate per employee for stock-based compensation. We believe that the additional expenses included in the newly disclosed metric are part of doing business and hold ourselves accountable both internally as well as with you, our fellow shareholders, for the efficiency of those investments. Delivering on our financial commitments even during challenging conditions reinforces the resilience of our business model. We remain a key destination for consumers to navigate their financial questions during uncertain economic times and believe that our mission to provide clarity for all of life's financial decisions and relentless dedication to consumer-first experiences will help us grow across credit cycles. With that, we're ready for questions.

Thank you. Our first question comes from the line of Justin Patterson with KeyBanc. Please proceed with your question.

Great. Thank you, and good afternoon. Lauren, I wanted to stick to where you just ended the non-GAAP operating margin. That sounds like great progress in the next year, mid-single digit with the target. I'm curious, just given all the moving parts in the macro environment, what's giving the confidence behind just that progression into next year? Is there any assumption of just fitting passing of these revenue headwinds to achieve that target? And then for Tim, in the letter, you did talk a little bit about a Nerd AI chatbot beta. I'd love to hear a little bit more about just how you think that that chatbot could change how consumers and advertisers engage with NerdWallet over time? Thank you.

Thanks, Justin. I'll take the first part here. So I'll just remind everyone, given the operating leverage that we have as a result of our organic traffic, we feel confident that we can continue to show margin accretion in both adjusted EBITDA margins as well as our newly disclosed non-GAAP operating income metric, regardless of what type of macro environment we're in. As you've seen over the past couple of quarters, we're continuing to show nice leverage in areas like R&D as we're more efficient with our use of headcount and the investments in product and engineering. We've also talked about being incredibly disciplined about our sales and marketing spend. We've proactively reduced some of our brand spend, as you can see this year, and then we really see performance marketing as a variable cost that we can scale up or pull back on as needed. And then we talked a little bit about in our G&A. As the result of becoming a public company, you see sort of a step up in cost, and we don't expect those to step up any further. And so you can see how we've been showing that leverage over the last couple of quarters, and we expect all those same things to happen as we move into the short-term and into the New Year as well. In addition, we've talked a little bit in the prepared remarks around stock-based compensation and how we're seeing us reach more mature levels on a per head basis. And so that will also help with margin accretion from a non-GAAP OI perspective.

Yes, and I can speak a bit to the 2024 big picture macro before I dive into AI. So generally speaking, on the consumer demand side, we continue to grow our reach and increase the value of our franchisee. We hit records in just about every traffic and brand metric we track during the first half, things like brand awareness, MUU, brand affinity. What changed over the last quarter is that the credit default risk and unemployment outlook seem to be trending better than what was previously feared. But as Lauren mentioned in her remarks, there's a bit of conservatism in balance sheet management happening at the banks post-SVB as consumers work through their excess deposits. Deposits are a bit slighter. There might be a few more rate hikes coming, and the regulatory rules are finalizing. This means in consumer lending, we have dynamics where near-prime lending has probably found a floor, but prime lending appetite is lagging a bit as banks manage their balance sheets. Sub-prime remains subdued compared to the second half of 2022, and a recovery there will probably follow a recovery in near-prime. You're seeing this show up as personal loans growing sequentially, while in credit cards, areas like balance transfers face headwinds relative to the second half of last year. As we look into 2024, there are a few possible scenarios. In a soft landing scenario, we probably look back several years and say that 2023 was below our normalized revenue growth rate, and exiting 2024, we were above it due to recoveries in cards, loans, and insurance. If the Fed needs to hike rates materially more than expected to fight off inflation, that could lead to another step-down longer period, and a more dramatic recovery on the back end. In either scenario, we've got our game plan, and we're pushing internally on being efficient. In terms of AI, we remain excited about the possibilities here. NERD AI is a chatbot trained on NerdWallet content, and it's giving our consumers a new way to engage with our financial guidance. Feel free to play around with it. It's on a lot of our personal finance pages. It can summarize an article or help you navigate to the next relevant article. Beta is live now, and like all product features, we see these as hypotheses to be iterated on over time and are excited to have this online.

One moment for our next question.

Hi. This is Robert Zeller on for Youssef. Thanks for taking my questions. On your guidance in ad spend, it looks like brand spend was down year-over-year, while performance was up based on our estimates. I'm just curious why that was. Regarding the new channel like short-form video, are you guys taking spend off of different channels or is this incremental? Thanks.

Yeah, I can take that. Just as a reminder, in the shareholder letter as well as in the Q, we provide a breakdown of our sales and marketing spend. You can see the percentage split between our three big investment areas: organic, performance marketing, and brand. As we've mentioned on the last call, we are reducing brand spend while still investing in large-scale campaigns. We're adjusting to be nimble and flexible based on the macro conditions that we're seeing, and we are being proactive in that area. Performance marketing, we think about it slightly differently. We see this as a variable cost that we can increase or decrease as needed. In areas where we're seeing nice returns, we'll continue to lean in; in areas where we're not seeing the returns, either due to consumer behavior changing or partner demand changing, we can easily pull back as well. You can expect us to do that. The other thing I'll mention about performance marketing: we see it almost as a means to an end. It's a way for us to get folks to the site, get them registered when it makes sense. Then we can reach out to them and proactively nudge them when it's time to come back and make a smart money move or reengage them with new offerings.

Can I just add that it's exciting to see record brand awareness in the first half and record monthly unique users, along with 37% growth in cumulative registrations, despite pulling back a bit on brand. We're relatively new to this; 2022 was our first full year of spending on brand campaigns, and we've learned some things. We're going to get smarter about our trades and where we spend. Hopefully, we can get a bigger bang for our buck each ensuing year. We'll keep making adjustments up and down as we gather more information.

Okay. Thanks. And if I can just ask one more on NII. I thought that was very interesting. I want to clarify if the AI chatbot is through a partnership or if you guys are building it out in-house, and what the cost impact will be over the next year or so? Is that related to the breakout of the non-GAAP operating income, and if that's responsible for expectations of software development costs increasing going forward? If I'm thinking about that wrong, feel free to correct me. Thanks.

Yes, I'd say we're leveraging third parties like OpenAI, so it's really not a significant operating expense on a variable basis. The training side is our own content; that's really the secret sauce behind this tool. From a consumer perspective, I think it can really summarize things well and get people to the great content on our site more effectively. But again, not a huge impact on costs.

Yes, I can comment on the non-GAAP OI question as it relates to AI. AI is still in early days, but we don't see this much differently than other initiatives that we're pursuing. We're continuing to invest for the long term while getting more efficient in areas like R&D. Your question around non-GAAP OI? That's not the reason we disclosed the new metric this quarter; it's part of the way we think about all of our investments. Our need to disclose or want to disclose the non-GAAP OI metric was around aligning how we operate things internally while providing clarity for investors. As Tim has discussed in the past, stock-based compensation and capitalized software are a true cost of doing business, whether they're cash or non-cash. We felt that increased disclosure was something that shareholders should hold us accountable for.

Okay. Thank you.

One moment for our next question. Our next question comes from the line of James Faucette, Morgan Stanley. Please proceed with your question.

Hi, everyone. It's Michael Infante for James. Thanks for taking our question. Lauren, Tim, I'm curious if you could help us sort of decompose the mix between lead pricing versus volume of matches, just trying to understand while the volume of matches might be migrating lower, how is pricing evolving? Are both decelerating?

Yes. I'd characterize this as having similar dynamics to say, in 2020. The core underlying franchise value to me is really around matches and match volumes. So that's actually quite healthy. What's happening is that the financial institutions are pulling back on how much lending they want to do in some areas, especially in those that are more balance sheet intensive. Imagine you're really subsidizing 0% interest for a year or more, and that can be a consideration given all the other stuff happening right now with deposit stickiness, interest rate hikes, and regulatory changes. We think that's a bit of conservatism. It's temporal, and similar to past cycles.

Understood. Maybe just on the other verticals, especially understand sort of the high-yield savings account tailwinds over the last several quarters. How are you guys thinking about the back half and what that's ultimately going to mean for near to medium-term revenue growth as we get some normalization?

Great. Well, specific to banking, just a reminder for everyone on the call, it's part of our other verticals category, and it more than doubled in Q2. So yes, we're starting to see a bit of deceleration. If rates stay where they are, we'd expect a higher new normal in banking, though probably a little lower than where we currently are. The macro really depends on where rates go. If we revert back to a zero-rate environment, we go back to levels we probably saw a few years ago. Conversely, we'd also expect a pickup in our mortgages business as that sets this. Big picture, with banking, we want to capitalize while the sun shines. One of our growth pillars is to register and engage. This is a bit of a different audience than, for example, personal loan shoppers. It’s a great opportunity to register a broader audience and expand our reach.

Thanks, Tim.

One moment for our next question. Our next question comes from the line of Jed Kelly with Oppenheimer. Please proceed with your question.

Great. Just want to talk about two verticals where it looks like you're driving more share gains relative to your competitors. One, on personal loans, can you talk about what's working there? On the strength you called out in insurance, obviously, the underwriting headwinds are pretty self-explanatory. But what's going on with your carrier relationships that's allowing you to drive growth in both those segments? Thanks.

Yes, I'll take those one at a time. In terms of personal loans, we have two underlying factors driving the broader industry. On the credit quality side, we've seen three-plus quarters of tightening, and there haven't been major surprises there. Things are tracking roughly where lenders expected them to be. A lot of lenders were expecting unemployment close to 6% exiting 2023, and they're factoring that into their underwriting for the past couple of quarters. That's proving to be quite conservative. We're finding some loosening there. On the demand side, there's a strong long-term tailwind driven by personal loan demand typically due to people consolidating credit card debt. We are seeing a tailwind in terms of rising credit card balances. Regarding our market share, we mentioned last quarter that we've managed to double our match rate on people looking for personal loans by integrating the OTB technology and iterating from there. We are offering a more comprehensive marketplace, asking people the right questions, and utilizing better matching technology on the back end. That's definitely helping us serve consumers better and gain a bit on the top of funnel. About insurance, even though we’re up 41% year-over-year, there are carrier profitability headwinds. The carriers are likely losing money in half the states right now by writing new policies. There is a lot of visibility there. What causes this in the past is inflation coming down and carriers getting a chance to reset pricing. In terms of relative market share, we talked about last quarter about a more personalized marketplace experience. We think that's driving our share gains and are excited to continue investing there despite this being a hard market.

Got it. And for a follow-up, given that your results show you're operating from a position of strength while many smaller competitors are facing tough times, how should we view the acquisition environment right now, and how you're thinking about it?

Yes. More broadly speaking, we think about capital allocation as having a few outlets, from returning capital to investing in organic growth, inorganic growth. We just need to be opportunistic. We care a lot about pricing and relative value. There’s definitely a lot of activity out there in terms of potential acquisitions, so we're trying to be disciplined and think hard about what makes a lot of sense and where we can have a pretty good margin for execution.

Our next question comes from the line of Ralph Schackart from William Blair. Please proceed with your question.

Good afternoon. Thanks for taking my questions. Two, if I could, please. First, on the strong 37% growth that you had year-over-year in registered users, where are some of the top factors driving that and maybe your opportunity to continue to drive registered users going forward? Secondly, Tim, going back to the Nerd AI chatbot, looking ahead, how is that, I guess, informing or shaping your view on generative AI more broadly in its impact or opportunities for the platform going forward? Thank you.

Yes, thanks for your question. On the registered users, the top drivers are our success in land and expand. We're getting into more verticals and recovering our existing verticals more deeply, which gives us a larger surface area to register users. For instance, areas like social security, Medicare, and small business are really building out and onboarding people there. The second driver is shopping: As we get more personalized with our shopping experiences, users have a compelling reason to register for more personalized results, and that’s also driving more registrations. We're just getting better organized and iterating aggressively there. On generative AI, I'd like to return to first principles: what are the consumer problems that need to be solved? The biggest opportunities for us are can we democratize access to great financial guidance? Typically, you would need a human managing a significant amount of investable assets to justify the expense. How do we make that more mass-market? Every function at NerdWallet should think about using generative AI for improved productivity. That applies to every company; getting left behind is the alternative.

Our next question comes from the line of Pete Christiansen with Citi. Please proceed with your question.

Thank you. Good afternoon. Hi, guys. Nice job on the MAU growth. That's impressive. I was wondering if you could talk about the health of your partners' budgets, particularly on the loan side. Are you seeing any differences between smaller banks, like community banks, which I believe are still aggressively spending to drive share versus some of the larger players? Are you seeing differences between those two groups? Thank you.

Most of our revenue in the various parts of lending is heavily indexed towards six credit card issuers, many of whom are money center banks. We are seeing the effect at the money center banks. In terms of other verticals, you might index more toward non-bank lenders and mortgage or fintechs in personal loans, so less of an obvious impact in that segment. That’s probably how I would characterize it.

That's fair. Thank you. I wanted to clarify your comment stating that perhaps we're at the bottom concerning personal loan issuance. I'm curious if we could dig deeper into that comment about what gives you confidence that this vertical can improve, at least from here or not go down further.

Internally, we're seeing sequential growth in personal loans, and things seem to have stabilized. It seemed like ever since the middle of 2022, there was tightness with incremental measures each quarter, and more talk of an impending spike in unemployment. Recently, though, that narrative has changed a bit. Even some of the personal lending partners out there don’t lend from their own balance sheet, and their access to capital seems to be improving. Overall, there's a sense that things are stabilizing and that lenders are beginning to look for volume again.

That's helpful. I'm sorry, just one more for me. Have you seen heightened activity around the student loan news that’s been out recently? Do you think that has driven some of your traffic?

The recent student loan news included a Supreme Court ruling followed by the Biden administration announcing several initiatives for forgiveness, which apply to a smaller subset of borrowers. At this point, we're waiting for the outcomes of those proposals. Considering frequent litigation and policy changes, we have low visibility regarding predicting timing or outcomes. Thus, we aren't expecting much change in 2023.

I'm showing no further questions at this time. I would now like to turn the conference back to management for closing remarks.

Thanks, everyone. Before we wrap up, I wanted to sincerely thank our Nerds for their hard work during the quarter. Through this credit cycle and the next, we remain committed to executing on our strategy by investing opportunistically in our business and building on our significant reach to capture more consumer mind share in our growing market. I look forward to sharing more highlights and examples of our relentless improvements in Q3.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.