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EverQuote (EVER) Q4 Loss Narrower Than Expected, Revenues Top
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EverQuote, Inc. (EVER - Free Report) incurred a net loss of 13 cents per share in fourth-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 14 cents. However, the bottom line was wider than the year-ago quarter’s loss of 4 cents.
EverQuote witnessed increased revenues from automotive insurance and other insurance verticals in the reported quarter, offset by higher expenses.
Total revenues of $97 million surpassed the Zacks Consensus by 5.4%. The top line also soared 31.1% 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 $76.2 million, up nearly 27% year over year. Also, revenues in the Other insurance vertical totaled $21.1 million, which grew 55% year over year.
Total costs and operating expenses increased 34.8% to $101 million, mainly due to higher cost of revenues, sales and marketing, research and development, general and administrative expenses, and acquisition-related costs.
The company’s Variable Marketing Margin expanded 46% year over year in the quarter under review to $31.9 million. Adjusted EBITDA was $5.4 million, which grew 28.6% year over year.
Quote requests increased 11.8% year over year in the quarter under review to $6.5 million.
Financial Update
The company exited 2020 with cash and cash equivalents of $42.9 million, down 6.9% from the 2019-end level.
Total assets were $129 million, up 41.5% year over year. Also, total liabilities increased 47.2% to $58.1 million.
Total stockholders’ equity was $70.9 million, which improved nearly 37.1% from the level at 2019 end.
Full-Year Update
Total revenues for 2020 improved 39.4% year over year to $346.9 million. Automotive insurance vertical revenues were $283.2 million, up 33.4% from the 2019-end level. Other insurance vertical revenues improved 74.5% year over year to $63.7 million.
For 2020, net loss of 41 cents per share was wider than the year-ago loss of 28 cents. Variable Marketing Margin grew 48% year over year to $108.6 million.
Adjusted EBITDA totaled $18.4 million, which soared 121.7% year over year.
Q121 Guidance
Following the fourth-quarter results, the company provided an outlook for the first quarter of 2021.
EverQuote expects total revenues of $100-$102 million for the March quarter of the ongoing year. The company also anticipates Variable Marketing Margin of $30.5-$31.5 million. Moreover, adjusted EBITDA is expected to be $4-$5 million.
2021 Guidance
The company expects current-year total revenues of $430-$440 million. Variable Marketing Margin is estimated to be $135-$140 million. Also, adjusted EBITDA is anticipated to be $25-$30 million.
Fourth-quarter earnings of Athene Holding Ltd. , Reinsurance Group of America (RGA - Free Report) and Kinsale Capital Group (KNSL - Free Report) beat the respective Zacks Consensus Estimate.
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EverQuote (EVER) Q4 Loss Narrower Than Expected, Revenues Top
EverQuote, Inc. (EVER - Free Report) incurred a net loss of 13 cents per share in fourth-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 14 cents. However, the bottom line was wider than the year-ago quarter’s loss of 4 cents.
EverQuote witnessed increased revenues from automotive insurance 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 of $97 million surpassed the Zacks Consensus by 5.4%. The top line also soared 31.1% 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 $76.2 million, up nearly 27% year over year. Also, revenues in the Other insurance vertical totaled $21.1 million, which grew 55% year over year.
Total costs and operating expenses increased 34.8% to $101 million, mainly due to higher cost of revenues, sales and marketing, research and development, general and administrative expenses, and acquisition-related costs.
The company’s Variable Marketing Margin expanded 46% year over year in the quarter under review to $31.9 million. Adjusted EBITDA was $5.4 million, which grew 28.6% year over year.
Quote requests increased 11.8% year over year in the quarter under review to $6.5 million.
Financial Update
The company exited 2020 with cash and cash equivalents of $42.9 million, down 6.9% from the 2019-end level.
Total assets were $129 million, up 41.5% year over year. Also, total liabilities increased 47.2% to $58.1 million.
Total stockholders’ equity was $70.9 million, which improved nearly 37.1% from the level at 2019 end.
Full-Year Update
Total revenues for 2020 improved 39.4% year over year to $346.9 million. Automotive insurance vertical revenues were $283.2 million, up 33.4% from the 2019-end level. Other insurance vertical revenues improved 74.5% year over year to $63.7 million.
For 2020, net loss of 41 cents per share was wider than the year-ago loss of 28 cents. Variable Marketing Margin grew 48% year over year to $108.6 million.
Adjusted EBITDA totaled $18.4 million, which soared 121.7% year over year.
Q121 Guidance
Following the fourth-quarter results, the company provided an outlook for the first quarter of 2021.
EverQuote expects total revenues of $100-$102 million for the March quarter of the ongoing year. The company also anticipates Variable Marketing Margin of $30.5-$31.5 million. Moreover, adjusted EBITDA is expected to be $4-$5 million.
2021 Guidance
The company expects current-year total revenues of $430-$440 million. Variable Marketing Margin is estimated to be $135-$140 million. Also, adjusted EBITDA is anticipated to be $25-$30 million.
Stocks to Consider
EverQuote currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fourth-quarter earnings of Athene Holding Ltd. , Reinsurance Group of America (RGA - Free Report) and Kinsale Capital Group (KNSL - Free Report) beat the respective Zacks Consensus Estimate.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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