EverQuote (EVER) Q4 Loss Narrower Than Expected, Revenues Beat
EverQuote, Inc. EVER incurred a net loss of 4 cents per share in fourth-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 6 cents. The bottom line was also narrower than the year-ago quarter’s loss of 28 cents.
The upside mainly resulted from strong growth in consumer quote request volume, stemming from distribution growth and traffic optimization initiatives undertaken by the company.
EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote
Behind the Headlines
Total revenues of $74 million surpassed the Zacks Consensus by 8.2%. The top line soared 85% year over year, primarily attributable to strong performance across the company’s insurance verticals – Automotive and Other.
Revenues in the Automotive insurance vertical were $60.2 million, up nearly 78% year over year. Also, revenues in the Other insurance vertical totaled $13.6 million, which skyrocketed nearly 130% year over year.
The company’s Variable Marketing Margin soared 113% year over year in the quarter under review to $21.8 million. Adjusted EBITDA was $4.2 million, which compares favorably with year-ago negative EBITDA of $3.5 million.
In the fourth quarter, EverQuote included 22 new technology integrations in a bid to enhance customer shopping experience.
Financial Update
The company exited 2019 with cash and cash equivalents of $46.1 million, up 10.6% from the 2018-end level.
Total assets were $91.2 million, up 38.7% year over year. Also, total liabilities increased 74.9% to $39.5 million.
Total stockholders’ equity was $51.8 million, which improved nearly 20% from the 2018-end level.
Full-Year Update
Total revenues for 2019 improved 52% year over year to $248.8 million. Automotive insurance vertical revenues were $212.3 million, up 50% from the 2018-end level. Other insurance vertical revenues improved 65% year over year to $36.5 million.
For 2019, net loss of 29 cents per share were narrower than the year-ago loss of $3.03 per share. Variable Marketing Margin improved 59% year over year to $73.3 million.
Adjusted EBITDA totaled $8.3 million, which improved from the year-ago negative EBITDA of $5.5 million.
1Q20 Guidance
Following the fourth-quarter results, the company provided an outlook for the first quarter of 2020.
EverQuote expects total revenues of $77.0-$79.0 million for the first quarter of 2020. The company also anticipates Variable Marketing Margin of $22.0-$23.5 million. Moreover, adjusted EBITDA is expected to be $2-$3.5 million.
2020 Guidance
The company expects 2020 total revenues of $315-$325 million. Variable Marketing Margin is estimated to be $92-$98 million. Also, adjusted EBITDA is anticipated to be $10-$15million.
Stocks to Consider
EverQuote currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players from the insurance industry having reported fourth-quarter earnings so far, the bottom-line results of CNA Financial Corporation CNA, Cincinnati Financial Corporation CINF and American Financial Group, Inc. AFG surpassed earnings estimates in the last reported quarter by 6.7%, 10.81% and 5.13%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report
CNA Financial Corporation (CNA) : Free Stock Analysis Report
American Financial Group, Inc. (AFG) : Free Stock Analysis Report
EverQuote, Inc. (EVER) : Free Stock Analysis Report
To read this article on Zacks.com click here.
