EverQuote, Inc. (EVER - Free Report) incurred a net loss of 12 cents per share in second-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 47 cents. The bottom line was however wider than the year-ago quarter’s loss of 7 cents per share.
EverQuote witnessed lower revenues from Automotive insurance but higher revenues in the Other insurance vertical. Expenses decreased.
EverQuote, Inc. Price, Consensus and EPS Surprise
Behind the Headlines
Total revenues of $101.9 million surpassed the Zacks Consensus Estimate by 7.2%. The top line declined about 3% year over year, primarily attributable to a weak performance in the Automotive insurance vertical.
Revenues in the Automotive insurance vertical were $81.4 million, down 6% year over year. Nonetheless, revenues in the Other insurance vertical totaled $20.5 million, which grew 10% year over year.
Direct-to-Consumer-Agency operations generated $13.1 million in revenues, representing 13% of total revenues.
Total costs and operating expenses decreased 1.1% to $105.7 million, mainly due to lower research and development expenses.
EverQuote’s Variable Marketing Margin increased 1% year over year in the quarter under review to $33.1 million. Adjusted EBITDA was $1.4 million, which decreased 78.8% year over year.
Financial Update
EverQuote exited the second quarter with cash and cash equivalents of $41.3 million, up 18.4% from the 2021-end level. Total assets were $170.5 million, up 12.1% year over year. Total stockholders' equity increased 24.8% to $106.3 million.
Cash used in operations was $3.6 million against cash provided by operations of $7.7 million in the year-ago quarter.
Q3 Guidance
EVER estimates revenues in the range of $90 - $95 million, variable marketing margin of $24 - $27 million and adjusted EBITDA in the band of ($3) to ($6) million.
2022 Guidance
EverQuote expects revenues of $400 - $410 million, variable marketing margin of $116 - $122 million and adjusted EBITDA of ($1) to ($7) million.
Zacks Rank
EverQuote currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Insurers
Of the insurance industry players that have reported second-quarter results so far, The Travelers Companies (TRV - Free Report) and RLI Corporation (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings, while The Progressive Corporation (PGR - Free Report) met the mark.
Travelers’ core income of $2.57 per share beat the Zacks Consensus Estimate by 28.5% but decreased 26% year over year. Total revenues increased 7% year over year, primarily due to higher premiums, and beat the consensus estimate by 1.8%. Net written premiums increased 11%, driven by strong retention rates and positive renewal premium changes across all the segments. Underwriting gain of $113 million decreased 65% year over year in the reported quarter.
Travelers’ combined ratio deteriorated 300 bps year over year to 98.3 due to higher catastrophe losses and a higher underlying combined ratio.
RLI’s operating earnings of $1.49 per share beat the Zacks Consensus Estimate by 6.1% and improved 36.7% from the prior-year quarter. Operating revenues were $301.3 million, up 16.9% year over year, driven by 17.3% higher net premiums earned and 10.5% higher net investment income. The top line beat the Zacks Consensus Estimate of $276 million by 0.9%.
RLI’s underwriting income of $56 million increased 53%, primarily due to the strong performance of the Property and Surety segments. The combined ratio improved 460 bps year over year to 80.2.
Progressive’s earnings per share of 95 cents came in line with the Zacks Consensus Estimate. The bottom line declined 37.1% year over year. Progressive’s net premiums written were $12.4 billion in the quarter, up 8% from $11.7 billion a year ago.
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EverQuote, Inc. (EVER - Free Report) incurred a net loss of 12 cents per share in second-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 47 cents. The bottom line was however wider than the year-ago quarter’s loss of 7 cents per share.
EverQuote witnessed lower revenues from Automotive insurance but higher revenues in the Other insurance vertical. Expenses decreased.
EverQuote, Inc. Price, Consensus and EPS Surprise
Behind the Headlines
Total revenues of $101.9 million surpassed the Zacks Consensus Estimate by 7.2%. The top line declined about 3% year over year, primarily attributable to a weak performance in the Automotive insurance vertical.
Revenues in the Automotive insurance vertical were $81.4 million, down 6% year over year. Nonetheless, revenues in the Other insurance vertical totaled $20.5 million, which grew 10% year over year.
Direct-to-Consumer-Agency operations generated $13.1 million in revenues, representing 13% of total revenues.
Total costs and operating expenses decreased 1.1% to $105.7 million, mainly due to lower research and development expenses.
EverQuote’s Variable Marketing Margin increased 1% year over year in the quarter under review to $33.1 million. Adjusted EBITDA was $1.4 million, which decreased 78.8% year over year.
Financial Update
EverQuote exited the second quarter with cash and cash equivalents of $41.3 million, up 18.4% from the 2021-end level. Total assets were $170.5 million, up 12.1% year over year. Total stockholders' equity increased 24.8% to $106.3 million.
Cash used in operations was $3.6 million against cash provided by operations of $7.7 million in the year-ago quarter.
Q3 Guidance
EVER estimates revenues in the range of $90 - $95 million, variable marketing margin of $24 - $27 million and adjusted EBITDA in the band of ($3) to ($6) million.
2022 Guidance
EverQuote expects revenues of $400 - $410 million, variable marketing margin of $116 - $122 million and adjusted EBITDA of ($1) to ($7) million.
Zacks Rank
EverQuote currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Insurers
Of the insurance industry players that have reported second-quarter results so far, The Travelers Companies (TRV - Free Report) and RLI Corporation (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings, while The Progressive Corporation (PGR - Free Report) met the mark.
Travelers’ core income of $2.57 per share beat the Zacks Consensus Estimate by 28.5% but decreased 26% year over year. Total revenues increased 7% year over year, primarily due to higher premiums, and beat the consensus estimate by 1.8%. Net written premiums increased 11%, driven by strong retention rates and positive renewal premium changes across all the segments. Underwriting gain of $113 million decreased 65% year over year in the reported quarter.
Travelers’ combined ratio deteriorated 300 bps year over year to 98.3 due to higher catastrophe losses and a higher underlying combined ratio.
RLI’s operating earnings of $1.49 per share beat the Zacks Consensus Estimate by 6.1% and improved 36.7% from the prior-year quarter. Operating revenues were $301.3 million, up 16.9% year over year, driven by 17.3% higher net premiums earned and 10.5% higher net investment income. The top line beat the Zacks Consensus Estimate of $276 million by 0.9%.
RLI’s underwriting income of $56 million increased 53%, primarily due to the strong performance of the Property and Surety segments. The combined ratio improved 460 bps year over year to 80.2.
Progressive’s earnings per share of 95 cents came in line with the Zacks Consensus Estimate. The bottom line declined 37.1% year over year. Progressive’s net premiums written were $12.4 billion in the quarter, up 8% from $11.7 billion a year ago.
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Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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