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EverQuote (EVER) Q4 Earnings and Revenues Beat Estimates

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·5 min read
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EverQuote, Inc. EVER incurred a net loss of 29 cents per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of 32 cents. The bottom line was wider than the year-ago quarter’s loss of 13 cents per share.

EverQuote witnessed increased revenues from other insurance verticals in the reported quarter, offset by decreased revenues in automotive insurance as well as higher expenses.

EverQuote, Inc. Price, Consensus and EPS Surprise

EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. Price, Consensus and EPS Surprise

EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote

Behind the Headlines

Total revenues of $102.1 million surpassed the Zacks Consensus Estimate by 6.2%. The top line also rose 5% year over year, primarily attributable to a strong performance in the Other insurance vertical.

Revenues in the Automotive insurance vertical were $70.4 million, down 7.6% year over year. Also, revenues in the Other insurance vertical totaled $31.6 million, which grew 50.2% year over year.

Total costs and operating expenses increased 9.4% to $110 million, mainly due to higher cost of revenues, sales and marketing, research and development and general and administrative expenses.

EverQuote’s Variable Marketing Margin expanded 3% year over year in the quarter under review to $32.9 million. Adjusted EBITDA was $0.5 million, which decreased 89.9% year over year.

Quote requests increased 24.5% year over year in the quarter under review to $8.1 million.

Financial Update

EverQuote exited 2021 with cash and cash equivalents of $34.8 million, down 18.7% from the 2020-end level.

Total assets were $144 million, up 11.3% year over year. Also, total liabilities increased 0.7% to $58.5 million.

Total stockholders’ equity was $85.1 million, which improved nearly 20% from the level at 2020 end.

Full-Year Update

Total revenues for 2021 improved 38.8% year over year to $418.5 million. Automotive insurance vertical revenues were $330.9 million, up 17% from the 2020-end level. Other insurance vertical revenues improved 38% year over year to $87.6 million.

For 2021, the net loss of 67 cents per share was wider than the year-ago loss of 41 cents. Variable Marketing Margin grew 19.2% year over year to $129.5 million.

Adjusted EBITDA totaled $14.6 million, which decreased 20.5% year over year.

Q1 Guidance

Following the fourth-quarter results, EverQuote provided guidance for the first quarter of 2022.

EverQuote expects total revenues of $101-$103 million for the March quarter of the ongoing year. EVER also anticipates Variable Marketing Margin of $32-$33.5 million. Adjusted EBITDA is expected to be $0 - $1.5 million.

2022 Guidance

EverQuote expects current-year total revenues of $420-$430 million. Variable Marketing Margin is estimated to be $128-$134 million. Also, adjusted EBITDA is anticipated to be $0 - $5 million.

Zacks Rank & Peer Releases

EverQuote currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Of the insurance industry players that have reported fourth-quarter results so far, Horace Mann Educators Corporation HMN, Assurant, Inc. AIZ and Cigna Corporation CI beat the Zacks Consensus Estimate for earnings.

Horace Mann Educators reported fourth-quarter 2021 adjusted earnings of 97 cents per share, which outpaced the Zacks Consensus Estimate by 34.7%. The bottom line declined 14.2% year over year. Total revenues of $331 million decreased 6% year over year in the quarter under review and beat the consensus mark by 0.9%.

Net investment income of HMN improved 12.7% year over year to $114.1 million in the fourth quarter. Net income of $40.5 million tumbled 15.3% year over year in the quarter under review. The core earnings of Horace Mann plunged 14.1% year over year to $40.8 million.

Assurant reported fourth-quarter 2021 net operating income of $2.47 per share, which beat the Zacks Consensus Estimate by 7.4% and increased 35.7% from the year-ago quarter. Total revenues were up 2.2% year over year to $2.5 billion due to higher net earned premiums (3.5%), fees and other income (47.9%) and net investment income (8%). The top line missed the Zacks Consensus Estimate by 0.07%.

Total benefits, loss and expenses increased 6.8% to $2.4 billion due to higher selling, underwriting, general and administrative expenses and interest expense.

Cigna reported fourth-quarter 2021 earnings of $4.77 per share, which beat the Zacks Consensus Estimate by 1.9%. The bottom line improved 36% year over year. Adjusted revenues of $45.7 billion rose 10% year over year in the quarter under review. The top line outpaced the consensus mark by 3.7%.

Cigna saw an uptick of 431,000 customers on a year-over-year basis to 17.1 million in its medical enrollment in the fourth quarter, courtesy of growth within U.S. Commercial, U.S. Government and International Health markets.


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