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Personal Finance Website NerdWallet Files for IPO

Nerdwallet.com offers advice about credit cards, investing, insurance, student loans, mortgages, personal loans, banking and travel.
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Personal finance web site NerdWallet filed with the Securities and Exchange Commission Friday for an initial public offering. It seeks to trade on Nasdaq with the ticker NRDS.

Nerdwallet.com offers advice about credit cards, investing, insurance, student loans, mortgages, personal loans, banking and travel.

In the first half of the year, NerdWallet posted a loss of $26.8 million, swinging from a profit of $3.1 million in the year-earlier period. Revenue jumped 32% to $181.6 million to $137.3 million.

On the balance sheet, cash and equivalents totaled $41.1 million as of June 30.

Chief Executive Tim Chen, who founded the company 12 years ago, has 92.6% of its voting power. Innovius Capital Sirius I L.P. has 1.5%.

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NerdWallet obviously doesn’t lack for competitors, with everyone from newcomer Robinhood  (HOOD) - Get Robinhood Report to veteran Charles Schwab  (SCHW) - Get Charles Schwab Corporation Report occupying a crowded field.

Morningstar analyst Michael Wong likes Schwab’s merger with TD Ameritrade.

“We assess that a combined Charles Schwab-TD Ameritrade is a financial sector powerhouse that will be able to compete in an environment where traditional industry lines have increasingly blurred,” he wrote in August.

“The combined firm has over $6 trillion of client assets, which compares favorably with the largest wealth managers, asset managers, and banks.

“In addition to its pure scale and efficient business model, both companies have a history of adapting to new sector trends, so we are confident that together they will be a key financial sector player over the next decade." 

He added that “The combined firm may experience a prolonged earnings tailwind.”