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EverQuote (EVER) Q3 Loss Wider Than Expected, Revenues Up Y/Y

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EverQuote, Inc. (EVER - Free Report) reported an adjusted net loss of 18 cents per share for third-quarter 2021, wider than the Zacks Consensus Estimate of a loss of 16 cents per share. In the year-ago quarter, operating loss was 12 cents per share.

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 and EPS Surprise

EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote

Behind the Headlines

Total revenues improved 20% year over year to $107.6 million, driven by the solid performance of automotive insurance and other verticals.

Variable marketing margin grew 10% year over year to $32.4 million.

Revenues from the automotive insurance vertical increased 20% year over year to $89.7 million.

Revenues from other insurance verticals, which include home and renters, life, health, and commercial insurance, increased 18% from the year-ago period to $17.9 million.

Total costs and operating expenses increased 23.7% to $115.3 million mainly due to higher cost of revenues, sales and marketing, research and development, and general and administrative expenses and acquisition-related expenses.

Adjusted EBITDA decreased 48.7% year over year to $2.6 million.

Quote requests increased 21% year over year in the quarter under review to $7.6 million.

Financial Update

As of Sep 30, 2021, EverQuote had assets worth $148.5 million, up 15.1% from the level at 2020 end.

Cash and cash equivalents declined 2.6% from the 2020-end level to $41.7 million.

Shareholder equity at the end of the reported quarter increased 21.2% from 2020-end to $86 million.

EverQuote’s cash flow from operations increased 53.1% year over year to $2.8 million.

Q4 Guidance

Revenues are anticipated to be in the range of $93.5-$98.5 million.

Variable marketing margin is projected to be in the range of $30.5-$33.5 million.

Adjusted EBITDA is expected to be in the band of ($1.5)-$1.5 million.

2021 Guidance

Revenues are anticipated to be in the range of $410-$415 million, which indicates a 19% year-over-year increase at the mid-point and marks a decline from the previous guidance of $440 -$446 million.

Variable marketing margin is projected to be in the range of $127-$130 million, down from $138-$141 million guided previously. Also, it indicates an increase of 18% year over year at the mid-point.

Adjusted EBITDA is expected to be in the range of $12.5-$15.5 million, which indicates a decrease of 24% year over year at the mid-point. The recent guidance marks a decline from $23-$26 million guided earlier.

Zacks Rank

EverQuote currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Among the insurance industry players that have reported third-quarter earnings so far, the bottom line of Brown & Brown, Inc. (BRO - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) beat the respective Zacks Consensus Estimate.

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