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EverQuote Inc (EVER)
NASDAQ:EVER
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EverQuote
(NASDAQ:EVER)
82Outperform
Positive Factors
Cash Position
EverQuote generated $23M in cash during the quarter and now holds over $125M in cash, which should strengthen the company's strategic position.
Earnings
EverQuote's Q1 results came in solidly above expectations, with revenue, VMD, and adj. EBITDA all noticeably above CGe as the recovery in auto insurance customer acquisition spending continues.
Revenue Growth
Strong enterprise spend continues, driving impressive cash flow expansion: EverQuote reported total revenue of $167M, up ~83% y/y, ~6% above CGe, and solidly above guidance.
Negative Factors
Market Expectations
The removal of the proposed FCC TCPA regulation under the new administration has eliminated a major overhang on the stock.
Regulatory Changes
The FCC's recent reversal of its 1:1 marketing rules will enable the team to focus more firmly on growth initiatives, and it plans to increase investments in the second half of the year to ensure platform leadership and long-term growth.
EverQuote (EVER) vs. S&P 500 (SPY)
Market Cap
$838.11M
Dividend YieldN/A
Average Volume (3M)670.43K
Price to Earnings (P/E)22.6
Beta (1Y)1.15
Revenue Growth113.43%
EPS GrowthN/A
CountryUS
Employees324
SectorCommunication Services
Sector Strength84
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.42
Shares Outstanding32,552,265
10 Day Avg. Volume637,000
30 Day Avg. Volume670,434
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.77
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.34
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.50Price Target Upside46.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EverQuote Business Overview & Revenue Model
Company DescriptionEverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company's online marketplace offers consumers shopping for auto, home and renters, life, and health insurance. It serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.
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 has demonstrated strong financial performance with significant revenue growth, improved profitability, and robust cash flow metrics. The balance sheet reflects financial stability with low leverage and high equity. These factors contribute to a solid overall financial performance.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 |
| 37.42M | -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
Negative
22.90
Price Trends
24.86
Negative
22.30
Positive
21.65
Positive
Market Momentum
0.13
Negative
45.87
Neutral
38.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVER, the sentiment is Negative. The current price of 22.9 is below the 20-day moving average (MA) of 22.93, below the 50-day MA of 24.86, and above the 200-day MA of 21.65, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 38.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $838.11M | 22.57 | 32.17% | ― | 113.43% | ― | |
65 Neutral | $539.44M | 15.81 | 5.05% | ― | -16.79% | ― | |
60 Neutral | $13.74B | 7.25 | -2.74% | 3.81% | 2.21% | -37.97% | |
58 Neutral | $669.97M | 34.31 | -115.07% | ― | 148.62% | ― | |
56 Neutral | $617.08M | ― | -53.22% | ― | 14.63% | 62.75% | |
46 Neutral | $118.15M | ― | -26.46% | ― | 10.18% | 1.47% | |
46 Neutral | $575.13M | ― | -19.38% | ― | 13.27% | 34.93% |
* Communication Services Sector Average
Performance Comparison
EVER
EverQuote
22.90
-0.92
-3.86%
ANGI
Angi
15.15
-10.25
-40.35%
TRUE
TrueCar
1.32
-1.41
-51.65%
MAX
MediaAlpha
9.91
-10.08
-50.43%
KIND
Nextdoor Holdings
1.51
-0.95
-38.62%
SMWB
Similarweb
7.45
0.45
6.43%
EverQuote Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -13.06%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment driven by record-breaking revenue growth and significant achievements across key metrics, despite some challenges with one-to-one consent dynamics and specific market verticals. The company shows promising advancements in technology and operational efficiency.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Total revenues in Q1 2025 grew to $166.6 million, up 83% from the prior year period and up 13% sequentially.
Strong Performance in Auto Insurance Vertical
Revenue from the auto insurance vertical was $152.7 million in Q1, up 97% year-over-year.
Significant Growth in Variable Marketing Dollars
VMD increased to $46.9 million for the first quarter, up 52% from the prior year period.
Adjusted EBITDA Achievement
Adjusted EBITDA in Q1 was a record $22.5 million, compared to $7.6 million in the prior year period.
Operational Efficiency and Cash Flow
Operating cash flow of $23.3 million for the first quarter with cash and cash equivalents of $125 million, up from $102.1 million at the end of 2024.
Smart Campaigns Product Success
Smart Campaigns product improved a customer’s campaign performance by over 40% and is gaining wider adoption.
Expansion in Paid Products
Paid products per agency increased 25% year-over-year in March.
Negative Updates
Impact of One-to-One Consent Dynamics
Variable Marketing Margin was negatively impacted by one-to-one consent dynamics early in the quarter, although this improved as the period progressed.
Non-Cash Charge Related to Legal Settlement
A non-cash charge of $7.9 million was reported due to divesting remaining P&C direct-to-consumer agency assets to settle an outstanding legal matter.
Challenges in Home Insurance Vertical
Revenue from home and renters insurance vertical was up only 10% year-over-year due to wildfires and was impacted by the one-to-one consent transition.
Company Guidance
During the EverQuote First Quarter 2025 Earnings Call, the company provided financial guidance for the second quarter of 2025, expecting revenue to be between $155 million and $160 million, indicating a year-over-year growth of 34% at the midpoint. They projected Variable Marketing Dollars (VMD) to range from $45 million to $47 million, signifying a 26% year-over-year increase. The guidance for adjusted EBITDA was set between $20 million and $22 million, reflecting a 62% year-over-year growth at the midpoint. The company highlighted its strategic focus on leveraging technology and AI to drive performance, which is expected to maintain EBITDA margins at or near current levels even as they invest in technology, data assets, and AI capabilities in the latter half of 2025.EverQuote Corporate Events
Financial Disclosures
EverQuote Reports Strong Q1 2025 Financial Results
Positive
May 5, 2025
On May 5, 2025, EverQuote announced its first quarter financial results, showcasing significant growth with an 83% increase in revenue to $166.6 million and a 52% rise in Variable Marketing Dollars. The company achieved a net income of $8.0 million and a record Adjusted EBITDA of $22.5 million. This marks the fourth consecutive quarter of record revenue and Adjusted EBITDA, positioning EverQuote strongly in the digital insurance advertising market. The company remains resilient to macroeconomic conditions and is poised for continued success, benefiting from a favorable environment where insurance advertising spend is shifting to digital channels.
Spark’s Take on EVER Stock
According to Spark, TipRanks’ AI Analyst, EVER is a Outperform.
EverQuote’s overall stock score reflects strong financial performance and positive earnings call sentiment, highlighting significant revenue and profitability improvements. Technical analysis shows mixed signals, with potential short-term weakness but longer-term strength. The stock is reasonably valued, although the absence of a dividend yield might deter some investors. Overall, EverQuote is well-positioned for future growth, supported by strategic investments and a robust balance sheet.
To see Spark’s full report on EVER stock, click here.
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.