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EverQuote, Inc. (EVER - Free Report) reported an adjusted net loss of 10 cents per share for second-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 5 cents per share. The company reported a loss of 8 cents per share in the prior-year quarter.
EverQuote witnessed increased revenues from automotive insurance vertical and other insurance verticals in the reported quarter, offset by higher expenses.
Total revenues improved 41% year over year to $78.3 million, driven by the solid performance of automotive insurance vertical and other insurance verticals, which include home and renters, life, health, and commercial insurance. However, the top line missed the Zacks Consensus Estimate by 0.88%.
Variable marketing margin grew 40.6% year over year to $23.5 million.
Revenues from Automotive insurance vertical increased 29.7% year over year to $64.6 million.
Revenues from other insurance verticals, which include home and renters, life, health and commercial insurance, surged 133.2% from the year-ago period to $13.7 million.
Total costs and operating expenses increased 40.3% to $81.2 million mainly due to higher cost of revenues, sales and marketing, research and development, and general and administrative expenses.
Adjusted EBITDA increased 150% year over year to $4 million.
Financial Update
As of Jun 30, 2020, EverQuote had assets worth $100.8 million, up 10.5% from the level at 2019 end.
Cash and cash equivalents increased 18.1% from the 2019-end level to $54.4 million.
Shareholder equity at the end of the reported quarter increased 17.1% from the 2019-end to $60.6 million.
EverQuote’s cash flow from operations was $3.9 million compared with the year-ago cash used of $0.3 million.
Q3 Guidance
Revenues are anticipated to be $84-$86 million.
Variable marketing margin is projected to be $26.5-$28 million.
Adjusted EBITDA is expected to be $4-$5 million.
2020 Guidance
Revenues are anticipated to be $331-$336 million, which increased from the previously mentioned $318-$327 million.
Variable marketing margin is projected to be $101-$104.5 million, which increased from previously mentioned $96-$102 million.
Adjusted EBITDA is expected to be $15-$17.5 million, which improved from the previously stated $12.5-$15 million.
Of the insurance industry players that have reported second-quarter results so far, earnings of Arthur J. Gallagher & Co. (AJG - Free Report) , Reinsurance Group of America, Incorporated (RGA - Free Report) and Palomar Holdings, Inc. (PLMR - Free Report) beat the respective Zacks Consensus Estimate.
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EverQuote (EVER) Reports Wider Q2 Loss, Raises 2020 Guidance
EverQuote, Inc. (EVER - Free Report) reported an adjusted net loss of 10 cents per share for second-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 5 cents per share. The company reported a loss of 8 cents per share in the prior-year quarter.
EverQuote witnessed increased revenues from automotive insurance vertical and other insurance verticals in the reported quarter, offset by higher expenses.
EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote
Behind the Headlines
Total revenues improved 41% year over year to $78.3 million, driven by the solid performance of automotive insurance vertical and other insurance verticals, which include home and renters, life, health, and commercial insurance. However, the top line missed the Zacks Consensus Estimate by 0.88%.
Variable marketing margin grew 40.6% year over year to $23.5 million.
Revenues from Automotive insurance vertical increased 29.7% year over year to $64.6 million.
Revenues from other insurance verticals, which include home and renters, life, health and commercial insurance, surged 133.2% from the year-ago period to $13.7 million.
Total costs and operating expenses increased 40.3% to $81.2 million mainly due to higher cost of revenues, sales and marketing, research and development, and general and administrative expenses.
Adjusted EBITDA increased 150% year over year to $4 million.
Financial Update
As of Jun 30, 2020, EverQuote had assets worth $100.8 million, up 10.5% from the level at 2019 end.
Cash and cash equivalents increased 18.1% from the 2019-end level to $54.4 million.
Shareholder equity at the end of the reported quarter increased 17.1% from the 2019-end to $60.6 million.
EverQuote’s cash flow from operations was $3.9 million compared with the year-ago cash used of $0.3 million.
Q3 Guidance
Revenues are anticipated to be $84-$86 million.
Variable marketing margin is projected to be $26.5-$28 million.
Adjusted EBITDA is expected to be $4-$5 million.
2020 Guidance
Revenues are anticipated to be $331-$336 million, which increased from the previously mentioned $318-$327 million.
Variable marketing margin is projected to be $101-$104.5 million, which increased from previously mentioned $96-$102 million.
Adjusted EBITDA is expected to be $15-$17.5 million, which improved from the previously stated $12.5-$15 million.
Zacks Rank
EverQuote currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.
Performance of Other Insurers
Of the insurance industry players that have reported second-quarter results so far, earnings of Arthur J. Gallagher & Co. (AJG - Free Report) , Reinsurance Group of America, Incorporated (RGA - Free Report) and Palomar Holdings, Inc. (PLMR - Free Report) beat the respective Zacks Consensus Estimate.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>