EverQuote, Inc. EVER 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.
EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote
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.
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.
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.
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.
EverQuote currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.
Performance of Some Other Insurers
Of the insurance industry players that have reported third-quarter results so far, The Hartford Financial Services Group, Inc. HIG, Assurant, Inc. AIZ and Everest Re Group, Ltd. RE beat the respective Zacks Consensus Estimate for earnings.
The Hartford Financial Services reported third-quarter 2022 adjusted operating earnings of $1.44 per share, which outpaced the Zacks Consensus Estimate by 11.6%. The bottom line climbed 14% year over year. Operating revenues of HIG amounted to $3,830 million, which rose 3.6% year over year in the quarter under review.
The top line also beat the consensus mark by 1.8%. Hartford Financial’s total earned premiums improved 7.6% year over year to $4,910 million, which surpassed the Zacks Consensus Estimate of $4,811 million and our estimate of $4,808.2 million. Net investment income of $487 million dropped 25.1% year over year in the third quarter due to a decline in income from limited partnerships and other alternative investments.
Assurant reported third-quarter 2022 net operating income of $1.01 per share, which beat the Zacks Consensus Estimate by 1% but missed our estimate of $2.36. The bottom line decreased 40.2% from the year-ago quarter.
Assurant’s total revenues increased 1.9% year over year to $2.6 billion due to higher net earned premiums and net investment income. The top line, however, missed the Zacks Consensus Estimate by 1.8%. The figure was lower than our estimate of $2.7 billion. Net investment income was up 9.9% year over year to $83.5 million. The figure was higher than our estimate of $81.8 million.
Everest Re Group’s third-quarter 2022 operating loss per share of $5.28 was narrower than the Zacks Consensus Estimate of a loss of $5.89 but wider than the year-ago loss of $1.34. Everest Re’s total operating revenues of $3.2 billion increased 9.5% year over year on higher premiums earned. The top line, however, missed the consensus estimate by 2.2%.
Gross written premiums improved 6.3% year over year to $3.7 billion, largely driven by double-digit growth in the Insurance segment. However, premiums missed our estimate of $3.9 billion. Net investment income was $151 million, down 48.5% year over year.
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