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Why Is EverQuote (EVER) Down 6.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for EverQuote (EVER - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EverQuote due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
EverQuote Q1 Loss In Line With Estimates, Revenues Top
EverQuote, Inc. incurred a net loss of 13 cents per share in first-quarter 2021, in-line with the Zacks Consensus Estimate loss. 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -140% due to these changes.
VGM Scores
At this time, EverQuote has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise EverQuote has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is EverQuote (EVER) Down 6.9% Since Last Earnings Report?
It has been about a month since the last earnings report for EverQuote (EVER - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EverQuote due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
EverQuote Q1 Loss In Line With Estimates, Revenues Top
EverQuote, Inc. incurred a net loss of 13 cents per share in first-quarter 2021, in-line with the Zacks Consensus Estimate loss. 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -140% due to these changes.
VGM Scores
At this time, EverQuote has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise EverQuote has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.