A month has gone by since the last earnings report for EverQuote (EVER Quick QuoteEVER - Free Report) . Shares have added about 76.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is EverQuote due for a pullback? 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 catalysts.

EverQuote Q3 Earnings and Revenues Beat Estimates

EverQuote incurred a net loss of 20 cents per share in third-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 41 cents. The bottom line was, however, wider than the year-ago quarter’s loss of 18 cents per share.

EverQuote witnessed lower revenues from the Automotive and Other insurance vertical offset by lower expenses.

Behind the Headlines

Total revenues of $103.2 million surpassed the Zacks Consensus Estimate by 10.7%. The top line declined about 4% year over year, primarily attributable to a weak performance in the Automotive and Other insurance vertical.

Revenues in the Automotive insurance vertical were $88.1 million, down 1.7% year over year. Revenues in the Other insurance vertical totaled $15.1 million, which decreased 15.8% year over year.

Total costs and operating expenses decreased 4.8% to $109.8 million, mainly due to lower cost of revenues, sales and marketing and research and development.

EverQuote’s Variable Marketing Margin decreased 2% year over year in the quarter under review to $31.8 million. Adjusted EBITDA was $1.9 million, which decreased 25.8% year over year.

Financial Update

EverQuote exited the third quarter with cash and cash equivalents of $36.6 million, up 5% from the 2021-end level. Total assets were $163.8 million, up 14.1% year over year. Total stockholders' equity increased 26% to $107.2 million.

Cash used in operations was $3.5 million against cash provided by operations of $2.8 million in the year-ago quarter.  

Q4 Guidance

EverQuote estimates revenues in the range of $87 - $92 million, variable marketing margin of $27 - $30 million and adjusted EBITDA in the band of ($1.5) to $1.5 million.

2022 Guidance

EverQuote expects revenues of $403 - $408 million, an increase from the earlier guidance of $400-$410 million.

The company expects a variable marketing margin of $126 - $122 million, up from the previous guidance of $116 - $122 million.

EverQuote expects adjusted EBITDA of $4 to $7 million against the earlier guidance of adjusted EBITDA of ($1) to ($7) million.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 31.38% due to these changes.

VGM Scores

At this time, EverQuote has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EverQuote has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.