A month has gone by since the last earnings report for EverQuote (EVER Quick QuoteEVER - Free Report) . Shares have lost about 11.1% 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 the most recent earnings report in order to get a better handle on the important catalysts.

EverQuote Q2 Loss Narrower Than Expected, View Tweaked

EverQuote, Inc. incurred a net loss of 12 cents per share in second-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 47 cents. The bottom line was however wider than the year-ago quarter’s loss of 7 cents per share.

EverQuote witnessed lower revenues from Automotive insurance but higher revenues in the Other insurance vertical. Expenses decreased.

Behind the Headlines

Total revenues of $101.9 million surpassed the Zacks Consensus Estimate by 7.2%. The top line declined about 3% year over year, primarily attributable to a weak performance in the Automotive insurance vertical.

Revenues in the Automotive insurance vertical were $81.4 million, down 6% year over year. Nonetheless, revenues in the Other insurance vertical totaled $20.5 million, which grew 10% year over year.

Direct-to-Consumer-Agency operations generated $13.1 million in revenues, representing 13% of total revenues. Total costs and operating expenses decreased 1.1% to $105.7 million, mainly due to lower research and development expenses.

EverQuote’s Variable Marketing Margin increased 1% year over year in the quarter under review to $33.1 million. Adjusted EBITDA was $1.4 million, which decreased 78.8% year over year.

Financial Update

EverQuote exited the second quarter with cash and cash equivalents of $41.3 million, up 18.4% from the 2021-end level. Total assets were $170.5 million, up 12.1% year over year. Total stockholders' equity increased 24.8% to $106.3 million.
Cash used in operations was $3.6 million against cash provided by operations of $7.7 million in the year-ago quarter.  

Q3 Guidance

EVER estimates revenues in the range of $90 - $95 million, variable marketing margin of $24 - $27 million and adjusted EBITDA in the band of ($3) to ($6) million.

2022 Guidance

EverQuote expects revenues of $400 - $410 million, variable marketing margin of $116 - $122 million and adjusted EBITDA of ($1) to ($7) million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision.

The consensus estimate has shifted 7.14% due to these changes.

VGM Scores

Currently, EverQuote has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, EverQuote has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.