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EverQuote (EVER) Q1 Loss Lower Than Expected, Revenues Up Y/Y
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EverQuote, Inc. (EVER - Free Report) incurred a net loss of 19 cents per share in first-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The bottom line was however wider than the year-ago quarter’s loss of 13 cents per share.
EverQuote witnessed increased revenues from Automotive insurance and Other insurance verticals in the reported quarter, partially offset by higher expenses.
Total revenues of $110.8 million surpassed the Zacks Consensus Estimate by 8.8%. The top line also rose 6.6% year over year, primarily attributable to a strong performance from Automotive insurance and Other insurance verticals.
Revenues in the Automotive insurance vertical were $87.7 million, up 4% year over year. Also, revenues in the Other insurance vertical totaled $23 million, which grew 19% year over year.
Total costs and operating expenses increased 8.1% to $116.4 million, mainly due to higher costs of revenues, sales and marketing, and general and administrative expenses.
EverQuote’s Variable Marketing Margin expanded 9% year over year in the quarter under review to $34.3 million. Adjusted EBITDA was $0.5 million, which decreased 89.9% year over year. Quote requests dropped 49.5% year over year in the quarter under review to $2.4 million.
Financial Update
EverQuote exited the first quarter with cash and cash equivalents of $46.1 million, up 32.4% from the 2021-end level. Total assets were $170.5 million, up 18.7% year over year. Also, total stockholders' equity increased 20.3% to $58.5 million.
Cash used in operations was $3.8 million against cash provided by operations of $35 million in the year-ago quarter.
Q2 Guidance
EVER estimates revenues of $92 - $97 million, variable marketing margin of $24 - $27 million and adjusted EBITDA of ($4) to ($7) million.
2022 Guidance
EverQuote expects revenues of $400 - $420 million, variable marketing margin of $110 - $120 million and adjusted EBITDA of ($5) to ($15) million.
Of the insurance industry players that have reported first-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) missed the mark.
Travelers reported first-quarter 2022 core income of $4.22 per share, which beat the Zacks Consensus Estimate by 14% and increased 54.6% year over year. Total revenues increased 6.8% from the year-ago quarter to $8.8 billion, primarily due to higher premiums and fee income but missed the consensus estimate. Travelers’ combined ratio deteriorated 530 bps year over year to 91.3.
RLI’s first-quarter 2022 operating earnings of $1.43 per share beat the Zacks Consensus Estimate by 40.2% and improved 64.4% from the prior-year quarter. Operating revenues were $287 million, up 17.1% year over year and beat the Zacks Consensus Estimate by 0.8%. RLI’s gross premiums written increased 22% year over year to $359.2 million. The combined ratio improved 900 bps year over year to 77.9.
Progressive’s first-quarter 2022 earnings per share of $1.12 missed the Zacks Consensus Estimate of $1.24 and declined 34.9% from the year-ago quarter. Net premiums written were $13.2 billion in the quarter, up 12% from $11.7 billion a year ago. Progressive’s combined ratio deteriorated 520 bps from the prior-year quarter to 94.7.
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EverQuote (EVER) Q1 Loss Lower Than Expected, Revenues Up Y/Y
EverQuote, Inc. (EVER - Free Report) incurred a net loss of 19 cents per share in first-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The bottom line was however wider than the year-ago quarter’s loss of 13 cents per share.
EverQuote witnessed increased revenues from Automotive insurance and Other insurance verticals in the reported quarter, partially 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 $110.8 million surpassed the Zacks Consensus Estimate by 8.8%. The top line also rose 6.6% year over year, primarily attributable to a strong performance from Automotive insurance and Other insurance verticals.
Revenues in the Automotive insurance vertical were $87.7 million, up 4% year over year. Also, revenues in the Other insurance vertical totaled $23 million, which grew 19% year over year.
Total costs and operating expenses increased 8.1% to $116.4 million, mainly due to higher costs of revenues, sales and marketing, and general and administrative expenses.
EverQuote’s Variable Marketing Margin expanded 9% year over year in the quarter under review to $34.3 million. Adjusted EBITDA was $0.5 million, which decreased 89.9% year over year. Quote requests dropped 49.5% year over year in the quarter under review to $2.4 million.
Financial Update
EverQuote exited the first quarter with cash and cash equivalents of $46.1 million, up 32.4% from the 2021-end level. Total assets were $170.5 million, up 18.7% year over year. Also, total stockholders' equity increased 20.3% to $58.5 million.
Cash used in operations was $3.8 million against cash provided by operations of $35 million in the year-ago quarter.
Q2 Guidance
EVER estimates revenues of $92 - $97 million, variable marketing margin of $24 - $27 million and adjusted EBITDA of ($4) to ($7) million.
2022 Guidance
EverQuote expects revenues of $400 - $420 million, variable marketing margin of $110 - $120 million and adjusted EBITDA of ($5) to ($15) million.
Zacks Rank
EverQuote currently has a Zacks Rank #3 (Hold). 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 first-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) missed the mark.
Travelers reported first-quarter 2022 core income of $4.22 per share, which beat the Zacks Consensus Estimate by 14% and increased 54.6% year over year. Total revenues increased 6.8% from the year-ago quarter to $8.8 billion, primarily due to higher premiums and fee income but missed the consensus estimate. Travelers’ combined ratio deteriorated 530 bps year over year to 91.3.
RLI’s first-quarter 2022 operating earnings of $1.43 per share beat the Zacks Consensus Estimate by 40.2% and improved 64.4% from the prior-year quarter. Operating revenues were $287 million, up 17.1% year over year and beat the Zacks Consensus Estimate by 0.8%. RLI’s gross premiums written increased 22% year over year to $359.2 million. The combined ratio improved 900 bps year over year to 77.9.
Progressive’s first-quarter 2022 earnings per share of $1.12 missed the Zacks Consensus Estimate of $1.24 and declined 34.9% from the year-ago quarter. Net premiums written were $13.2 billion in the quarter, up 12% from $11.7 billion a year ago. Progressive’s combined ratio deteriorated 520 bps from the prior-year quarter to 94.7.