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EverQuote, Inc.'s (NASDAQ:EVER) Path To Profitability

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·2 min read
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EverQuote, Inc. (NASDAQ:EVER) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The US$444m market-cap company posted a loss in its most recent financial year of US$11m and a latest trailing-twelve-month loss of US$15m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on EverQuote's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for EverQuote

EverQuote is bordering on breakeven, according to the 8 American Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$8.3m in 2024. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 59% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving EverQuote's growth isn’t the focus of this broad overview, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. EverQuote currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of EverQuote to cover in one brief article, but the key fundamentals for the company can all be found in one place – EverQuote's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

  1. Valuation: What is EverQuote worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether EverQuote is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on EverQuote’s board and the CEO’s background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.