Yahoo Finance EverQuote (EVER) Q1 Earnings Beat on Lower Operating Expenses
EverQuote, Inc. EVER incurred a net loss of 8 cents per share in first-quarter 2023, narrower than the Zacks Consensus Estimate and our estimate of a loss of 19 cents and 20 cents, respectively. The bottom line was also narrower than the year-ago quarter’s loss of 19 cents per share.
Total revenues of $109.2 million beat the Zacks Consensus Estimate by 6.2% and our estimate of $102.5 million. However, the top line declined 1.3% year over year, primarily attributable to a weak performance in the other insurance verticals.
The better-than-expected results reflect improving dynamics of the auto insurance industry. EverQuote’s rising revenues from the Automotive vertical were driven by an increased focus on customer acquisition by a major carrier, which experienced an improved financial performance.
The company’s continued investments in technology drove traffic costs down and ultimately reduced total expenses. However, the persistent instability of the auto insurance market in the early second quarter can hamper the company’s results in the future.
EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote
Behind the Headlines
Revenues in the Automotive insurance vertical were $89.7 million, up 2% year over year. The metric beat the Zacks Consensus Estimate by 7.2% and our estimate of $81.8 million. Revenues in the Other insurance vertical totaled $19.5 million, which decreased 15% year over year. The metric missed the consensus mark by 3.9% and our estimate of $20.7 million.
Total costs and operating expenses decreased 4.1% to $111.7 million mainly due to lower costs of revenues, sales and marketing, and research and development.
EverQuote’s Variable Marketing margin increased 4% year over year in the quarter under review to $35.6 million. Adjusted EBITDA was $5.4 million, which increased 125% year over year.
Financial Update
EverQuote exited the first quarter with cash and cash equivalents of $28.8 million, down from $30.8 million at 2022-end. Total assets were $160.4 million, up from $156.5 million at 2022-end. Total stockholders' equity increased 3.9% to $111.6 million.
Cash used in operations was $1.2 million compared with $3.8 million in the year-ago quarter.
2Q23 Guidance
EverQuote estimates revenues of $70-$75 million, a variable marketing margin of $23-$26 million and adjusted EBITDA of ($4)-($1) million.
The company has withdrawn its full-year guidance due to persistent instability in the auto insurance market.
Zacks Rank
EverQuote currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Players
Some other multi-line insurance players that have reported first-quarter results so far are The Cigna Group CI, Assurant, Inc. AIZ and Radian Group Inc. RDN, which beat the Zacks Consensus Estimate for earnings.
The Cigna Group reported first-quarter 2023 adjusted earnings of $5.41 per share, which beat the Zacks Consensus Estimate by 3.4% but fell short of our estimate of earnings of $5.43 per share. The bottom line declined 10.7% year over year.
Adjusted revenues of $46,479 million improved 5% year over year in the quarter under review on the back of solid performances of Evernorth Health Services and Cigna Healthcare businesses. The top line outpaced the consensus mark by 2.1%.
Assurant reported first-quarter 2023 net operating income of $3.49 per share, which beat the Zacks Consensus Estimate by 55% and our estimate of $2.62. The bottom line dipped 12.3% from the year-ago quarter.
The decrease was primarily due to lower segment earnings, a higher effective tax rate and an increase in depreciation expense. It was partially offset by share repurchases from previous quarters.
Radian Group reported a first-quarter 2023 adjusted operating income of 98 cents per share, which beat the Zacks Consensus Estimate by 29%. However, the bottom line declined 16.2% year over year.
Operating revenues decreased 8.8% year over year to $294.1 million due to lower net premiums earned and services revenues. However, the metric beat the Zacks Consensus Estimate by 62.2%.
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