EverQuote (EVER) Q4 Earnings & Revenues Surpass Estimates
EverQuote, Inc. EVER incurred a loss of 19 cents per share in fourth-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 31 cents as well as the year-ago quarter’s loss of 20 cents per share.
Total revenues of $55.7 million beat the Zacks Consensus Estimate by 11.7%. The top line declined 37% year over year, primarily attributable to weak performance in both Automotive and Other insurance verticals.
Given the prolonged auto insurance downturn, the Automotive insurance vertical’s revenues witnessed a year-over-year decline. However, a streamlined cost structure provided respite.
EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote
Behind the Headlines
Revenues from the Automotive insurance vertical were $45 million, down 33% year over year. The Zacks Consensus Estimate was pegged at $38 million. Our estimate was $37.6 million.
Revenues in the Home and Renters insurance vertical totaled $9.8 million, which increased 48% year over year. The Zacks Consensus Estimate was pegged at $11.2 million. Our estimate was $10.9 million.
Revenues in the Other insurance vertical totaled $0.1 million, which plunged 93.8% year over year.
Total costs and operating expenses decreased 35.6% to $62.5 million, mainly due to lower sales and marketing, general and administrative and research and development. Our estimate was $55.8 million.
EverQuote’s variable marketing margin decreased 28.9% year over year in the quarter under review to $20.7 million. Our estimate, as well as the Zacks Consensus Estimate, was $17.3 million.
Adjusted EBITDA was negative $0.9 million versus $0.1 million earned in the year-ago quarter. Our estimate was negative $3.2 million.
Full-Year Highlights
EverQuote incurred a loss of $1.54 per share, wider than the year-ago loss of 77 cents per share.
Total revenues were $287.9 million, down 29%.
Variable marketing margin decreased 21.8% year over year to $100.3 million.
Adjusted EBITDA was $0.5 million, down 92.2% year over year.
Financial Update
EverQuote exited 2023 with cash and cash equivalents of $38 million, up 23% from 2022-end. Total assets were $111 million, down 29% from 2022-end. Total stockholders' equity decreased 24.7% to $80.9 million.
Cash used in operations was $2.8 million in 2023 versus an outflow of $15.8 million in the year-ago period.
Q1 Guidance
EverQuote estimates revenues in the range of $78-$82 million, a variable marketing margin of $26-$28 million and adjusted EBITDA in the range of $3 million-$5 million.
Zacks Rank
EverQuote currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies TRV reported fourth-quarter 2023 core income of $7.01 per share, which beat the Zacks Consensus Estimate of $5.04. The bottom line more than doubled year over year, driven by higher underlying underwriting gain, lower catastrophe losses and higher net investment income. Travelers’ total revenues increased 13.5% from the year-ago quarter to $10.9 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 13% year over year to about $10 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.7 billion. TRV witnessed an underwriting gain of $1.4 billion, up more than three-fold year over year, driven by higher business volumes. The combined ratio improved 870 bps year over year to 85.8, driven by a lower underlying combined ratio and catastrophe losses.
The Progressive Corporation’s PGR fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
Net premiums written were $15.1 billion in the quarter, up 21% from $12.5 billion a year ago. PGR’s premiums beat our estimate of $14 billion. Net premiums earned grew 22% to $15.8 billion and beat our estimate of $14.8 billion.
Progressive’s combined ratio improved 520 bps from the prior-year quarter’s level to 88.7.
W.R. Berkley Corporation’s WRB fourth-quarter 2023 operating income of $1.45 per share beat the Zacks Consensus Estimate of $1.35 by 7.4%. The bottom line improved 25% year over year. Operating revenues came in at $3.2 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income. The top line beat the consensus estimate by 1.3%
W.R. Berkley’s net premiums written were $2.7 billion, up 12% year over year. The figure was lower than our estimate of $2.8 billion. Pre-tax underwriting income increased 8.2% to $315.9 million. The consolidated combined ratio remained flat year over year at 88.4.
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