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EverQuote Inc (EVER)
NASDAQ:EVER
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EverQuote
(NASDAQ:EVER)
78Outperform
Positive Factors
Cash Position
EverQuote generated $19M in cash during the quarter and now holds over $100M in cash, which should strengthen the company's strategic position.
Financial Performance
EverQuote's Q4 results came in solidly above expectations, with revenue, VMM, and adj. EBITDA all noticeably above estimates as the recovery in auto insurance spending continues.
Regulatory Environment
The removal of the proposed FCC TCPA regulation under the new administration has eliminated a major overhang on the stock.
Negative Factors
Market Conditions
Q1 seasonality may be more pronounced than normal, both for revenue and VMM as the company navigates the new RCC rule regarding 1:1 consent under the TCPA.
Profit Margins
EverQuote expects continued VMM pressure in Q4 and the early part of next year.
EverQuote (EVER) vs. S&P 500 (SPY)
Market Cap
$1.03B
Dividend YieldN/A
Average Volume (3M)703.52K
Price to Earnings (P/E)33.0
Beta (1Y)1.07
Revenue Growth73.72%
EPS GrowthN/A
CountryUS
Employees384
SectorCommunication Services
Sector Strength80
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)0.87
Shares Outstanding32,119,686
10 Day Avg. Volume776,062
30 Day Avg. Volume703,525
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.05
Price to Cash Flow (P/CF)12.70
P/FCF Ratio12.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.60Price Target Upside17.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EverQuote Business Overview & Revenue Model
Company DescriptionEverQuote, Inc. operates as an online insurance marketplace connecting consumers with insurance providers. It offers car, home and life insurance. The firm's data and technology platform matches and connects consumers seeking to purchase insurance with relevant options from its broad direct network of insurance providers. The company was founded by Seth N. Birnbaum, David B. Blundin, and Tomas Revesz in August 1, 2008 and is headquartered in Cambridge, MA.
How the Company Makes MoneyEverQuote makes money primarily through its marketplace platform by charging insurance providers and agents for customer referrals. The company's revenue model is based on a pay-per-quote or pay-per-click basis, where insurance providers pay EverQuote for each qualified lead or consumer interaction generated through the platform. Additionally, EverQuote has partnerships with a wide range of insurance carriers and agents, which enhance its network and contribute to its ability to offer competitive quotes to consumers. The company also leverages data insights to optimize its marketing efforts and improve the quality of leads provided to its partners, further driving its earnings.
EverQuote Financial Statement Overview
Summary
EverQuote's financial performance has improved considerably, with strong revenue growth and a return to profitability. The company's balance sheet is robust, with low leverage and high equity. Cash flow metrics highlight enhanced liquidity and operational cash management, positioning the company well for future growth.Income Statement
EverQuote has demonstrated significant revenue growth from 2023 to 2024, with a Revenue Growth Rate of 73.76%. The company has turned its net income positive with a Net Profit Margin of 6.43% in 2024, indicating improved profitability. The Gross Profit Margin remains strong at 95.82%. Despite past negative EBIT margins, the current EBIT Margin stands at 6.35%, showcasing operational improvements.85
Very Positive
Balance Sheet
The company has a strong equity position with an Equity Ratio of 64.31% and a low Debt-to-Equity Ratio of 0.03, indicating financial stability and low leverage. The Return on Equity (ROE) improved significantly to 23.76%, reflecting enhanced shareholder value. The balance sheet reflects a healthy cash position with substantial cash reserves relative to debt.78
Positive
Cash Flow
EverQuote's Free Cash Flow has turned positive with significant growth, resulting in a Free Cash Flow to Net Income Ratio of 2.07. The Operating Cash Flow to Net Income Ratio of 2.07 further emphasizes strong cash generation capabilities. The positive shift in cash flow metrics indicates improved operational efficiency and financial flexibility.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 500.19M | 287.92M | 404.13M | 418.51M | 346.94M | Gross Profit |
| 479.27M | 265.47M | 380.15M | 394.57M | 325.56M | EBIT |
| 31.75M | -51.98M | -28.92M | -20.86M | -9.42M | EBITDA |
| 31.75M | -22.36M | -23.07M | -16.87M | -6.07M | Net Income Common Stockholders |
| 32.17M | -51.29M | -15.43M | -19.43M | -13.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 102.12M | 37.96M | 30.84M | 34.85M | 42.87M | Total Assets |
| 210.53M | 110.92M | 156.52M | 143.61M | 129.05M | Total Debt |
| 3.63M | 2.16M | 6.44M | 8.23M | 10.69M | Net Debt |
| -98.49M | -35.80M | -24.40M | -26.62M | -32.18M | Total Liabilities |
| 75.16M | 30.02M | 49.03M | 58.48M | 58.07M | Stockholders Equity |
| 135.37M | 80.91M | 107.49M | 85.13M | 70.98M |
| Cash Flow | Free Cash Flow | |||
| 62.45M | -6.67M | -20.08M | 4.33M | 6.85M | Operating Cash Flow |
| 66.57M | -2.83M | -15.79M | 7.19M | 10.67M | Investing Cash Flow |
| -4.11M | 9.35M | -4.29M | -18.82M | -18.75M | Financing Cash Flow |
| 1.71M | 577.00K | 15.84M | 3.62M | 4.91M |
EverQuote Technical Analysis
Positive
28.71
Price Trends
22.54
Positive
20.61
Positive
21.24
Positive
Market Momentum
1.55
Negative
65.56
Neutral
92.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVER, the sentiment is Positive. The current price of 28.71 is above the 20-day moving average (MA) of 26.06, above the 50-day MA of 22.54, and above the 200-day MA of 21.24, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 65.56 is Neutral, neither overbought nor oversold. The STOCH value of 92.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVER.
EverQuote Risk Analysis
EverQuote disclosed 30 risk factors in its most recent earnings report. EverQuote reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EverQuote Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.03B | 32.98 | 29.75% | ― | 73.72% | ― | |
78 Outperform | $6.35B | 16.15 | 26.89% | 1.40% | 37.67% | 44.64% | |
77 Outperform | $1.51B | 20.95 | 15.57% | 2.11% | 5.40% | 14.68% | |
73 Outperform | $30.65B | 16.69 | 34.29% | 1.64% | 2.79% | -23.30% | |
60 Neutral | $692.18M | ― | -35.80% | ― | 33.86% | 66.85% | |
59 Neutral | $29.05B | 0.82 | -18.77% | 4.01% | 2.13% | -47.15% | |
52 Neutral | $300.26M | ― | -1.24% | ― | 8.74% | 89.80% |
* Communication Services Sector Average
Performance Comparison
EVER
EverQuote
28.71
10.42
56.97%
EBAY
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65.78
15.49
30.80%
SPNS
Sapiens
27.03
-4.03
-12.97%
TREE
Lendingtree
51.68
10.86
26.60%
GOCO
GoHealth
13.00
2.33
21.84%
MNSO
MINISO Group Holding
18.94
-1.08
-5.39%
EverQuote Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: 42.48% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong and positive sentiment with significant revenue growth, technological advancements, and operational efficiencies. Despite some regulatory challenges and seasonal revenue deviations, the highlights notably outweigh the lowlights.Highlights
Record-Breaking Revenue and Growth
In 2024, EverQuote achieved a revenue growth of 74%, crossing the $500 million mark for the first time, and adjusted EBITDA grew to nearly $60 million. The company also entered 2025 with over $100 million of cash on the balance sheet and no debt.
Enterprise Carrier Spend Surge
Enterprise carrier spend increased nearly 500% from the comparable period last year, driving significant revenue growth in the fourth quarter.
Local Agent Business Acceleration
Local agent business achieved 65% year-over-year growth in Q4, showing strong recovery and growth potential.
Technological Advancements
EverQuote made significant strides in modernizing and simplifying platforms, advancing AI-powered solutions, and enhancing operational efficiency.
Strong Financial Performance
The company reported record net income of $12.3 million in Q4 and an adjusted EBITDA of $18.9 million, marking a significant improvement from previous losses.
Lowlights
Regulatory Challenges
Throughout 2024, the company had to navigate a complex regulatory landscape, including preparations for a now-vacated FCC rule, which created operational complexities.
Seasonal Revenue Patterns
Despite strong overall growth, Q4 revenue only increased 2% sequentially, deviating from the typical seasonal pattern of sequential declines.
Company Guidance
During the EverQuote Fourth Quarter 2024 Earnings Call, the company provided financial guidance for the first quarter of 2025, expecting revenue to range between $155 million and $160 million, which represents 73% year-over-year growth at the midpoint. They anticipate Variable Marketing Dollars (VMD) to be between $44 million and $46 million, reflecting a 46% year-over-year growth at the midpoint. Additionally, adjusted EBITDA is projected to be between $19 million and $21 million, indicating 163% year-over-year growth at the midpoint. The company emphasized a strong growth trajectory, with 2024 revenue having increased by 74% to exceed $500 million for the first time, alongside a rise in adjusted EBITDA to nearly $60 million. They also highlighted a significant improvement in their balance sheet, entering 2025 with over $100 million in cash and no debt.EverQuote Corporate Events
Business Operations and StrategyFinancial Disclosures
EverQuote Reports Strong Q4 2024 Financial Results
Positive
Feb 24, 2025
On February 24, 2025, EverQuote announced its financial results for the fourth quarter and full year of 2024, highlighting significant growth and profitability. The company reported a 165% year-over-year increase in fourth-quarter revenue to $147.5 million and a 74% increase in full-year revenue to over $500 million. The automotive insurance vertical saw a remarkable 200% increase in revenue for the quarter, contributing to the overall success. EverQuote’s strategic investments in technology and product enhancements are expected to drive further growth in 2025, positioning the company as a key player in the insurance marketplace.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.