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Why Is EverQuote (EVER) Down 0.1% 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 0.1% 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 its most recent earnings report in order to get a better handle on the important drivers.
EverQuote, Inc. reported adjusted net loss of 12 cents per share for third-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 5 cents per share. In the year-ago quarter, operating income was 1 cent per share.
EverQuote witnessed increased revenues from automotive insurance and other insurance verticals in the reported quarter, offset by higher expenses.
Behind the Headlines
Total revenues improved 34.1% year over year to $89.9 million, driven by the solid performance of automotive insurance vertical and other verticals. Moreover, the top line beat the Zacks Consensus Estimate by 5.8%.
Variable marketing margin grew 41% year over year to $29.4 million. Revenues from automotive insurance vertical increased 30% year over year to $74.8 million. Revenues from other insurance verticals, which include home and renters, life, health and commercial insurance, increased 55% from the year-ago period to $15.2 million.
Total costs and operating expenses increased 38.8% to $93.3 million mainly due to higher cost of revenues, sales and marketing, research and development, and general and administrative expenses. Adjusted EBITDA increased 34.9% year over year to $5.2 million.
Financial Update
As of Sep 30, 2020, EverQuote had assets worth $116.2 million, up 27.4% from the level at 2019 end.
Cash and cash equivalents declined 0.4% from the 2019-end level to $45.9 million.
Shareholder equity at the end of the reported quarter increased 29.8% from the 2019-end to $67.2 million. EverQuote’s cash flow from operations increased 39.4% year over year to $6 million.
Q4 Guidance
Revenues are anticipated to be $90.4-$92.4 million. Variable marketing margin is projected to be $29.3-$30.3 million. Adjusted EBITDA is expected to be $4-$5 million.
2020 Guidance
Revenues are anticipated to be in the range of $340-$342 million, up from the previously mentioned $331-$336 million.
Variable marketing margin is projected to be $106-$107 million, up from the previously guided range of $101-$104.5 million.
Adjusted EBITDA is expected to be $17-$18 million, higher than $15-$17.5 million guided previously.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -69.41% due to these changes.
VGM Scores
At this time, EverQuote has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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 0.1% Since Last Earnings Report?
It has been about a month since the last earnings report for EverQuote (EVER - Free Report) . Shares have lost about 0.1% 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 its most recent earnings report in order to get a better handle on the important drivers.
EverQuote Reports Wider Q3 Loss, Raises 2020 Guidance
EverQuote, Inc. reported adjusted net loss of 12 cents per share for third-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 5 cents per share. In the year-ago quarter, operating income was 1 cent per share.
EverQuote witnessed increased revenues from automotive insurance and other insurance verticals in the reported quarter, offset by higher expenses.
Behind the Headlines
Total revenues improved 34.1% year over year to $89.9 million, driven by the solid performance of automotive insurance vertical and other verticals. Moreover, the top line beat the Zacks Consensus Estimate by 5.8%.
Variable marketing margin grew 41% year over year to $29.4 million. Revenues from automotive insurance vertical increased 30% year over year to $74.8 million. Revenues from other insurance verticals, which include home and renters, life, health and commercial insurance, increased 55% from the year-ago period to $15.2 million.
Total costs and operating expenses increased 38.8% to $93.3 million mainly due to higher cost of revenues, sales and marketing, research and development, and general and administrative expenses. Adjusted EBITDA increased 34.9% year over year to $5.2 million.
Financial Update
As of Sep 30, 2020, EverQuote had assets worth $116.2 million, up 27.4% from the level at 2019 end.
Cash and cash equivalents declined 0.4% from the 2019-end level to $45.9 million.
Shareholder equity at the end of the reported quarter increased 29.8% from the 2019-end to $67.2 million. EverQuote’s cash flow from operations increased 39.4% year over year to $6 million.
Q4 Guidance
Revenues are anticipated to be $90.4-$92.4 million. Variable marketing margin is projected to be $29.3-$30.3 million. Adjusted EBITDA is expected to be $4-$5 million.
2020 Guidance
Revenues are anticipated to be in the range of $340-$342 million, up from the previously mentioned $331-$336 million.
Variable marketing margin is projected to be $106-$107 million, up from the previously guided range of $101-$104.5 million.
Adjusted EBITDA is expected to be $17-$18 million, higher than $15-$17.5 million guided previously.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -69.41% due to these changes.
VGM Scores
At this time, EverQuote has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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.