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EverQuote (EVER) Reports Wider Q2 Loss, Raises 2020 Guidance

Zacks Equity Research
·3 min read

EverQuote, Inc. EVER reported an adjusted net loss of 10 cents per share for second-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 5 cents per share. The company reported a loss of 8 cents per share in the prior-year quarter.

EverQuote witnessed increased revenues from automotive insurance vertical and other insurance verticals in the reported quarter, offset by 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 improved 41% year over year to $78.3 million, driven by the solid performance of automotive insurance vertical and other insurance verticals, which include home and renters, life, health, and commercial insurance. However, the top line missed the Zacks Consensus Estimate by 0.88%.

Variable marketing margin grew 40.6% year over year to $23.5 million.

Revenues from Automotive insurance vertical increased 29.7% year over year to $64.6 million.

Revenues from other insurance verticals, which include home and renters, life, health and commercial insurance, surged 133.2% from the year-ago period to $13.7 million.

Total costs and operating expenses increased 40.3% to $81.2 million mainly due to higher cost of revenues, sales and marketing, research and development, and general and administrative expenses.

Adjusted EBITDA increased 150% year over year to $4 million.

Financial Update

As of Jun 30, 2020, EverQuote had assets worth $100.8 million, up 10.5% from the level at 2019 end.

Cash and cash equivalents increased 18.1% from the 2019-end level to $54.4 million.

Shareholder equity at the end of the reported quarter increased 17.1% from the 2019-end to $60.6 million.

EverQuote’s cash flow from operations was $3.9 million compared with the year-ago cash used of $0.3 million.

Q3 Guidance

Revenues are anticipated to be $84-$86 million.

Variable marketing margin is projected to be $26.5-$28 million.

Adjusted EBITDA is expected to be $4-$5 million.

2020 Guidance

Revenues are anticipated to be $331-$336 million, which increased from the previously mentioned $318-$327 million.

Variable marketing margin is projected to be $101-$104.5 million, which increased from previously mentioned $96-$102 million.

Adjusted EBITDA is expected to be $15-$17.5 million, which improved from the previously stated $12.5-$15 million.

Zacks Rank

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

Performance of Other Insurers

Of the insurance industry players that have reported second-quarter results so far, earnings of Arthur J. Gallagher & Co. AJG, Reinsurance Group of America, Incorporated RGA and Palomar Holdings, Inc. PLMR beat the respective Zacks Consensus Estimate.

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Arthur J. Gallagher Co. (AJG) : Free Stock Analysis Report
 
Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report
 
EverQuote, Inc. (EVER) : Free Stock Analysis Report
 
Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report
 
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