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EverQuote (EVER) Q4 Loss In Line With Estimates, Revenues Top
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EverQuote, Inc. (EVER - Free Report) incurred a net loss of 13 cents per share in first-quarter 2021, in line with the Zacks Consensus Estimate. However, the bottom line was wider than the year-ago quarter’s loss of 5 cents.
Higher revenues from automotive insurance and other insurance verticals were offset by higher expenses in the first quarter.
Total revenues of $104 million surpassed the Zacks Consensus Estimate by 2.6%. The top line also increased 28.4% year over year, primarily attributable to a strong performance across the company’s insurance verticals, namely Automotive and Other.
Revenues in the Automotive insurance vertical were $84.5 million, up 25% year over year. Also, revenues in the Other insurance vertical totaled $19.3 million, which grew 41% year over year.
Total costs and operating expenses increased 29.6% to $107.6 million, mainly due to higher cost of revenues, sales and marketing, research and development, general and administrative expenses.
The company’s variable marketing margin expanded 32% year over year in the quarter under review to $31.4 million. Adjusted EBITDA was $4.8 million, up 25.1% year over year.
Quote requests increased 4.4% year over year in the quarter under review to $7.7 million.
Financial Update
The company exited the quarter with cash and cash equivalents of $46.9 million, up 9.4% from the 2020-end level.
Total assets were $135.7 million, up 5.1% year over year. Also, total liabilities increased 2.8% to $59.7 million.
Total stockholders’ equity was $75.9 million, which improved 7.1% from the level at 2020 end.
Cash provided by operating activities was $3.5 million, down 10.4% year over year.
Q2 Guidance
Following the first-quarter results, the company provided guidance for the second quarter of 2021.
EverQuote expects total revenues of $101-$103 million, indicating year-over-year increase of 30% at the mid-point. The company also anticipates variable marketing margin of $31-$32 million, indicating year-over-year increase of 34% at the mid-point. Moreover, adjusted EBITDA is expected to be $5-$6 million, implying year-over-year improvement of 38% at the mid-point.
2021 Guidance
The company expects current-year total revenues in the range of $434-$442 million, indicating year-over-year increase of 26% at the mid-point and an increase from the previous guidance of $430-$440 million. Variable marketing margin is estimated to be $136-$140 million, indicating year-over-year increase of 27% at the mid-point and an increase from the previous guidance of $135-$140 million. Also, adjusted EBITDA is anticipated to be $26-$30 million, implying year-over-year increase of 52% at the mid-point and an increase from the previous guidance of $25-30 million.
First-quarter earnings of Cincinnati Financial Corporation (CINF - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Everest Re Group, Ltd. beat the respective Zacks Consensus Estimate.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
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EverQuote (EVER) Q4 Loss In Line With Estimates, Revenues Top
EverQuote, Inc. (EVER - Free Report) incurred a net loss of 13 cents per share in first-quarter 2021, in line with the Zacks Consensus Estimate. However, the bottom line was wider than the year-ago quarter’s loss of 5 cents.
Higher revenues from automotive insurance and other insurance verticals were offset by higher expenses in the first quarter.
EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote
Behind the Headlines
Total revenues of $104 million surpassed the Zacks Consensus Estimate by 2.6%. The top line also increased 28.4% year over year, primarily attributable to a strong performance across the company’s insurance verticals, namely Automotive and Other.
Revenues in the Automotive insurance vertical were $84.5 million, up 25% year over year. Also, revenues in the Other insurance vertical totaled $19.3 million, which grew 41% year over year.
Total costs and operating expenses increased 29.6% to $107.6 million, mainly due to higher cost of revenues, sales and marketing, research and development, general and administrative expenses.
The company’s variable marketing margin expanded 32% year over year in the quarter under review to $31.4 million. Adjusted EBITDA was $4.8 million, up 25.1% year over year.
Quote requests increased 4.4% year over year in the quarter under review to $7.7 million.
Financial Update
The company exited the quarter with cash and cash equivalents of $46.9 million, up 9.4% from the 2020-end level.
Total assets were $135.7 million, up 5.1% year over year. Also, total liabilities increased 2.8% to $59.7 million.
Total stockholders’ equity was $75.9 million, which improved 7.1% from the level at 2020 end.
Cash provided by operating activities was $3.5 million, down 10.4% year over year.
Q2 Guidance
Following the first-quarter results, the company provided guidance for the second quarter of 2021.
EverQuote expects total revenues of $101-$103 million, indicating year-over-year increase of 30% at the mid-point. The company also anticipates variable marketing margin of $31-$32 million, indicating year-over-year increase of 34% at the mid-point. Moreover, adjusted EBITDA is expected to be $5-$6 million, implying year-over-year improvement of 38% at the mid-point.
2021 Guidance
The company expects current-year total revenues in the range of $434-$442 million, indicating year-over-year increase of 26% at the mid-point and an increase from the previous guidance of $430-$440 million. Variable marketing margin is estimated to be $136-$140 million, indicating year-over-year increase of 27% at the mid-point and an increase from the previous guidance of $135-$140 million. Also, adjusted EBITDA is anticipated to be $26-$30 million, implying year-over-year increase of 52% at the mid-point and an increase from the previous guidance of $25-30 million.
Stocks to Consider
EverQuote currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
First-quarter earnings of Cincinnati Financial Corporation (CINF - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Everest Re Group, Ltd. beat the respective Zacks Consensus Estimate.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>