Yahoo Finance EverQuote (EVER) Up 3.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for EverQuote (EVER). Shares have added about 3.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is EverQuote due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
EverQuote Q4 Earnings & Revenues Surpass Estimates
EverQuote incurred a loss of 19 cents per share in fourth-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 31 cents as well as the year-ago quarter’s loss of 20 cents per share.
Total revenues of $55.7 million beat the Zacks Consensus Estimate by 11.7%. The top line declined 37% year over year, primarily attributable to weak performance in both Automotive and Other insurance verticals.
Given the prolonged auto insurance downturn, the Automotive insurance vertical’s revenues witnessed a year-over-year decline. However, a streamlined cost structure provided respite.
Behind the Headlines
Revenues from the Automotive insurance vertical were $45 million, down 33% year over year. The Zacks Consensus Estimate was pegged at $38 million. Our estimate was $37.6 million.
Revenues in the Home and Renters insurance vertical totaled $9.8 million, which increased 48% year over year. The Zacks Consensus Estimate was pegged at $11.2 million. Our estimate was $10.9 million.
Revenues in the Other insurance vertical totaled $0.1 million, which plunged 93.8% year over year.
Total costs and operating expenses decreased 35.6% to $62.5 million, mainly due to lower sales and marketing, general and administrative and research and development. Our estimate was $55.8 million.
EverQuote’s variable marketing margin decreased 28.9% year over year in the quarter under review to $20.7 million. Our estimate, as well as the Zacks Consensus Estimate, was $17.3 million.
Adjusted EBITDA was negative $0.9 million versus $0.1 million earned in the year-ago quarter. Our estimate was negative $3.2 million.
Full-Year Highlights
EverQuote incurred a loss of $1.54 per share, wider than the year-ago loss of 77 cents per share.
Total revenues were $287.9 million, down 29%.
Variable marketing margin decreased 21.8% year over year to $100.3 million.
Adjusted EBITDA was $0.5 million, down 92.2% year over year.
Financial Update
EverQuote exited 2023 with cash and cash equivalents of $38 million, up 23% from 2022-end. Total assets were $111 million, down 29% from 2022-end. Total stockholders' equity decreased 24.7% to $80.9 million.
Cash used in operations was $2.8 million in 2023 versus an outflow of $15.8 million in the year-ago period.
Q1 Guidance
EverQuote estimates revenues in the range of $78-$82 million, a variable marketing margin of $26-$28 million and adjusted EBITDA in the range of $3 million-$5 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 65.94% due to these changes.
VGM Scores
At this time, EverQuote has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EverQuote has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
EverQuote is part of the Zacks Insurance - Multi line industry. Over the past month, American International Group (AIG), a stock from the same industry, has gained 7.6%. The company reported its results for the quarter ended December 2023 more than a month ago.
American International Group reported revenues of $12.72 billion in the last reported quarter, representing a year-over-year change of +4.6%. EPS of $1.79 for the same period compares with $1.36 a year ago.
For the current quarter, American International Group is expected to post earnings of $1.71 per share, indicating a change of +4.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days.
American International Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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EverQuote, Inc. (EVER) : Free Stock Analysis Report
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