25-May-2024

EverQuote Announces Third Quarter 2023 Financial Results

Grand News Network | November 6, 2023
  • Third Quarter Revenue of $55.0 million
  • Third Quarter Variable Marketing Margin of $19.4 million, Representing 35% of Revenue

CAMBRIDGE, Mass., Nov. 06, 2023 (GLOBE NEWSWIRE) -- EverQuote, Inc. (NASDAQ:EVER), a leading online insurance marketplace, today announced financial results for the quarter ended September 30, 2023.

"In the third quarter, EverQuote delivered revenue of $55.0 million, Variable Marketing Margin, or VMM, of $19.4 million, and Adjusted EBITDA of negative $1.9 million," said Jayme Mendal, CEO of EverQuote. "During the quarter, we restored greater focus on our most differentiated assets so we can accelerate the rate at which we deliver deeper value to our customers. These assets include our P&C insurance shopping traffic scale and technology, our local agent network, and our proprietary data and associated data science and machine learning capabilities.

"As we work through this challenging auto insurance market, our team's strong execution and proven resilience give us high confidence that we will be well positioned when the market recovers. EverQuote's vision remains unchanged: to become the largest online source of insurance policies, using data, technology, and knowledgeable advisors to make insurance simpler, more affordable and more personalized," concluded Mr. Mendal.

"We have continued to focus on what we can control by taking decisive action to judiciously manage expenses and build our balance sheet," said Joseph Sanborn, CFO of EverQuote. "We remain focused on streamlining our cost structure, maintaining financial flexibility, restoring a pattern of consistent cash generation, and driving towards profitability."

Third Quarter 2023 Financial Highlights:
(Unless otherwise noted, all comparisons are relative to the third quarter of 2022. EverQuote exited the health insurance vertical at the end of the second quarter of 2023. Revenue in our health insurance vertical was $5.1 million in the third quarter of 2022.)

  • Total revenue of $55.0 million, a decrease of 47%.
  • Automotive insurance vertical revenue of $43.1 million, a decrease of 51%.
  • Revenue from home and renters insurance vertical of $10.9 million, an increase of 51%.
  • VMM of $19.4 million, representing 35% of revenue.
  • GAAP net loss increased to a loss of $29.2 million, compared to a GAAP net loss of $6.5 million. The net loss includes a $19.4 million charge related to the sale of our health insurance vertical assets.
  • Adjusted EBITDA decreased to $(1.9) million, compared to Adjusted EBITDA of $2.0 million.
  • Ended the quarter with $39.0 million in cash and cash equivalents, an increase of 26% from $31.0 million at the end of the second quarter of 2023.

Fourth Quarter 2023 Outlook:
(Revenue in our health insurance vertical was $13.1 million in the fourth quarter of 2022.

For the fourth quarter 2023, EverQuote anticipates revenue, Variable Marketing Margin and Adjusted EBITDA to be in the following ranges:

  • Revenue of $47.0 - $52.0 million.
  • Variable Marketing Margin of $16.5 - $18.5 million.
  • Adjusted EBITDA of $(4.5) - $(2.5) million.

With respect to the Company's expectations under "Fourth Quarter 2023 Outlook" above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, restructuring and other charges, acquisition-related costs, legal settlement expense, one-time severance charges, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.

Conference Call and Webcast Information

EverQuote will host a conference call and live webcast to discuss its third quarter 2023 financial results at 4:30 p.m. Eastern Time today, November 6, 2023. To access the conference call, dial Toll Free: +1 (800) 599-2055 for the US, or +1 (647) 362-9671 for international callers, and provide conference ID 1374717. The live webcast and replay will be available on the Investors section of the Company's website at https://investors.everquote.com.

Safe Harbor Statement

This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "should," "expects," "might," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "seek," "would" or "continue," or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition liquidity and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions described in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2022, in our subsequent periodic filings with the Securities and Exchange Commission and in our Quarterly Reports on Form 10-Q, particularly in Item 1A. Risk Factors. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law. Some of the key factors that could cause actual results to differ include: (1) our future financial performance, including our expectations regarding our revenue, cost of revenue, variable marketing margin, operating expenses, cash flows and ability to achieve, and maintain, future profitability; (2) our ability to attract and retain consumers and insurance providers using our marketplace; (3) our dependence on our relationships with insurance providers with no long-term contracts; (4) our reliance on a small number of insurance providers for a significant portion of our revenue; (5) our dependence on revenue from automotive insurance providers for a significant portion of our revenue and those automotive insurance providers' exposure to risks related to the automotive insurance industry; (6) our ability to attract consumers searching for insurance, including through search engines, display advertising, email and social media; (7) our ability to develop new and enhanced products and services to attract and retain consumers and insurance providers, and our ability to successfully monetize them; (8) our anticipated growth and growth strategies and our ability to effectively manage that growth; (9) our ability to maintain and build our brand; (10) our ability to properly collect, process, store, share, disclose and use consumer information and other data; (11) our reliance on our third-party service providers; (12) the impact of competition in our industry and innovation by our competitors; (13) our ability to hire and retain necessary qualified employees to expand our operations; (14) the impact of our recent restructuring and anticipated costs savings and operational efficiencies; (15) our increased reliance on acquiring quote requests from third-party sources; (16) our ability to stay abreast of and comply with new or modified laws and regulations that currently apply or become applicable to our business; (17) failure to maintain an effective system of internal controls necessary to accurately report our financial results and prevent fraud; and (18) the future trading prices of our Class A common stock.

About EverQuote

EverQuote operates a leading online insurance marketplace, connecting consumers with insurance providers. The Company's mission is to empower insurance shoppers to better protect life's most important assets—their family, property, and future. Our vision is to become the largest online source of insurance policies by using data, technology, and knowledgeable advisors to make insurance simpler, more affordable and personalized, ultimately reducing cost and risk.

For more information, visit everquote.com and follow on X (formerly Twitter) @everquotelife, Instagram @everquotepics, and LinkedIn https://www.linkedin.com/company/everquote/.

Investor Relations Contact

Brinlea Johnson
The Blueshirt Group
415-489-2193

EVERQUOTE, INC.
STATEMENTS OF OPERATIONS
 
  Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
  2023     2022     2023     2022  
  (in thousands except per share)  
Revenue $ 55,011     $ 103,223     $ 232,216     $ 315,819  
Cost and operating expenses(1):                              
Cost of revenue   6,150       5,877       17,467       17,920  
Sales and marketing   46,505       89,098       195,537       273,102  
Research and development   6,270       7,832       21,647       24,273  
General and administrative   5,741       7,102       19,339       21,400  
Restructuring and other charges   19,757             23,589        
Acquisition-related costs         (96 )     (150 )     (4,767 )
Total cost and operating expenses   84,423       109,813       277,429       331,928  
Loss from operations   (29,412 )     (6,590 )     (45,213 )     (16,109 )
Other income (expense):                              
Interest income   411       113       869       158  
Other income, net   20       26       5       29  
Total other income, net   431       139       874       187  
Loss before income taxes   (28,981 )     (6,451 )     (44,339 )     (15,922 )
Income tax expense   (236 )           (600 )      
Net loss $ (29,217 )   $ (6,451 )   $ (44,939 )   $ (15,922 )
Net loss per share, basic and diluted $ (0.87 )   $ (0.20 )   $ (1.36 )   $ (0.51 )
Weighted average common shares outstanding, basic and diluted

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