EverQuote Inc (EVER) Reports Q3 2023 Earnings: Revenue Down by 46.7% YoY
EverQuote Inc (NASDAQ:EVER) reported Q3 2023 revenue of $55.0 million, down 46.7% compared to Q3 2022.
The company's net loss for the quarter was $29.2 million, a significant increase from a net loss of $6.5 million in the same period last year.
EverQuote exited the health insurance vertical at the end of Q2 2023, which had contributed $5.1 million in revenue in Q3 2022.
Despite the challenging auto insurance market, the company remains confident in its resilience and future positioning.
On November 6, 2023, EverQuote Inc (NASDAQ:EVER), a leading online insurance marketplace, released its financial results for the third quarter ended September 30, 2023. The company reported a significant decrease in revenue and an increase in net loss compared to the same period last year.
Financial Performance
EverQuote's revenue for Q3 2023 was $55.0 million, a decrease of 46.7% compared to $103.2 million in Q3 2022. The company's Variable Marketing Margin (VMM) was $19.4 million, and it reported an Adjusted EBITDA of negative $1.9 million.
The company's net loss for the quarter was $29.2 million, a significant increase from a net loss of $6.5 million in the same period last year. This equates to a net loss per share of $0.87, compared to a net loss per share of $0.20 in Q3 2022.
Company's Response to Challenges
EverQuote's CEO, Jayme Mendal, acknowledged the challenging auto insurance market and stated,
As we work through this challenging auto insurance market, our teams strong execution and proven resilience give us high confidence that we will be well positioned when the market recovers."
Joseph Sanborn, CFO of EverQuote, emphasized the company's focus on managing expenses and building its balance sheet. He stated,
We have continued to focus on what we can control by taking decisive action to judiciously manage expenses and build our balance sheet."
Financial Highlights
EverQuote's automotive revenue for Q3 2023 was $43.1 million, a decrease of 51.1% compared to $88.2 million in Q3 2022. However, the company's home and renters revenue saw an increase of 51.4%, from $7.2 million in Q3 2022 to $10.9 million in Q3 2023.
The company's total assets as of September 30, 2023, were $113.9 million, down from $156.5 million as of December 31, 2022. EverQuote's total liabilities decreased to $32.1 million from $49.0 million over the same period.
Looking Ahead
For Q4 2023, EverQuote anticipates its revenue, Variable Marketing Margin, and Adjusted EBITDA to be within ranges that were not specified in the earnings report. The company remains focused on streamlining its cost structure, maintaining financial flexibility, restoring a pattern of consistent cash generation, and driving towards profitability.
Explore the complete 8-K earnings release (here) from EverQuote Inc for further details.
This article first appeared on GuruFocus.
