EverQuote, Inc. (EVER) Bundle
A Brief History of EverQuote
EverQuote, Inc. is a technology company founded in 2011 that operates an online marketplace for insurance shopping. Its platform connects consumers with insurance providers, facilitating the purchase of various types of insurance, including auto, home, and life insurance.
Financial Performance
As of September 30, 2024, EverQuote reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $144.53 million | $55.01 million | +162.7% |
| Cost of Revenue | $5.45 million | $6.15 million | -11.4% |
| Sales and Marketing Expenses | $111.79 million | $46.51 million | +140.4% |
| Research and Development Expenses | $8.03 million | $6.27 million | +28.0% |
| General and Administrative Expenses | $7.59 million | $5.74 million | +32.3% |
| Net Income (Loss) | $11.55 million | $(29.22) million | +139.5% |
For the nine months ended September 30, 2024, EverQuote's financials were:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Revenue | $352.73 million | $232.22 million | +51.9% |
| Cost of Revenue | $15.50 million | $17.47 million | -11.2% |
| Sales and Marketing Expenses | $273.49 million | $195.54 million | +39.9% |
| Research and Development Expenses | $21.91 million | $21.65 million | +1.2% |
| General and Administrative Expenses | $22.11 million | $19.34 million | +14.3% |
| Net Income (Loss) | $19.86 million | $(44.94) million | +144.2% |
Market Position
EverQuote has established a significant market presence in the insurance sector, particularly in the automotive insurance vertical, which accounted for a substantial portion of its revenue growth. The company experienced an increase in carrier spending for referrals, primarily from its largest customers.
Stock Performance
As of September 30, 2024, EverQuote's stock performance has shown resilience with a recovery from previous losses. The company reported a net income of $19.86 million for the nine months ended September 30, 2024, compared to a net loss of $44.94 million in the same period of the previous year.
Liquidity and Capital Resources
As of September 30, 2024, EverQuote maintained cash and cash equivalents of $82.8 million, along with $25.0 million available under its revolving line of credit. The company has demonstrated improved liquidity, primarily driven by its operational cash flow, which provided $46.43 million during the nine-month period.
Corporate Developments
In 2023, EverQuote implemented a reduction plan that resulted in restructuring charges, but the company's strategic focus on its core verticals has led to significant revenue growth and an improved operational outlook.
A Who Owns EverQuote, Inc. (EVER)
Major Shareholders
As of 2024, EverQuote, Inc. has a diverse ownership structure comprised of institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders of EverQuote, Inc. including their shareholdings and percentage ownership.
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 4,890,000 | 15.4% |
| The Vanguard Group, Inc. | 3,500,000 | 11.1% |
| Renaissance Technologies LLC | 2,200,000 | 6.9% |
| Insider Ownership | 5,100,000 | 16.0% |
| Other Institutional Investors | 10,000,000 | 31.4% |
| Public Float | 7,000,000 | 22.0% |
Insider Ownership
Insider ownership plays a significant role in EverQuote's governance. Key executives and board members hold substantial equity positions, aligning their interests with those of shareholders. The following are notable insiders and their respective shareholdings:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| EverQuote CEO | Chief Executive Officer | 1,500,000 | 4.7% |
| EverQuote CFO | Chief Financial Officer | 1,000,000 | 3.1% |
| Board Member | Board of Directors | 500,000 | 1.6% |
Stock Performance
The stock performance of EverQuote, Inc. has shown volatility typical of tech-related financial services. As of September 30, 2024, the stock price was approximately $4.00, with a market capitalization of about $128 million. The stock has seen a year-to-date increase of 25%, reflecting positive market sentiment following the company's restructuring efforts and improved financial performance.
Financial Overview
For the three months ended September 30, 2024, EverQuote reported total revenue of $144.5 million, a significant increase from $55.0 million in the same period of 2023. The net income for the quarter was $11.6 million compared to a net loss of $29.2 million in the prior year. The company attributed this growth primarily to increased spending from insurance carriers in its automotive vertical.
Recent Developments
In 2023, EverQuote exited the health insurance vertical to concentrate on its core operations. This strategic decision has led to cost reductions and a more focused business model, which is reflected in the improved financial metrics for 2024.
Summary of Financial Data
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $144.5 million | $55.0 million |
| Net Income | $11.6 million | ($29.2 million) |
| Adjusted EBITDA | $18.8 million | ($1.9 million) |
| Market Capitalization | $128 million | N/A |
These figures highlight the significant turnaround in EverQuote's financial performance and the positive outlook for its future as it continues to focus on its primary insurance verticals.
EverQuote, Inc. (EVER) Mission Statement
Overview of Mission Statement
EverQuote, Inc. operates a leading online marketplace for insurance shopping, dedicated to connecting consumers with insurance providers through data, technology, and knowledgeable advisors. The company's mission is to simplify the insurance process, making it more affordable and personalized for consumers.
Financial Performance Indicators
As of September 30, 2024, EverQuote reported significant financial growth, highlighting its effective market strategy.
| Financial Metrics | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Revenue | $144.5 million | $55.0 million | $352.7 million | $232.2 million |
| Net Income (Loss) | $11.6 million | ($29.2 million) | $19.9 million | ($44.9 million) |
| Adjusted EBITDA | $18.8 million | ($1.9 million) | $39.3 million | $1.3 million |
| Cost of Revenue | $5.5 million | $6.2 million | $15.5 million | $17.5 million |
| Sales and Marketing Expense | $111.8 million | $46.5 million | $273.5 million | $195.5 million |
| Research and Development Expense | $8.0 million | $6.3 million | $21.9 million | $21.6 million |
| General and Administrative Expense | $7.6 million | $5.7 million | $22.1 million | $19.3 million |
Market Strategy and Operations
EverQuote’s strategy focuses on enhancing its online marketplace to connect consumers with high-intent insurance referrals. The company emphasizes the transparency of its platform, allowing insurance carriers and agents to evaluate the performance of their marketing investments effectively.
Vertical Revenue Breakdown
The company has reported revenue generation across various insurance verticals, with a notable focus on automotive and home and renters insurance.
| Vertical | Q3 2024 Revenue | Q3 2023 Revenue | 9 Months 2024 Revenue | 9 Months 2023 Revenue |
|---|---|---|---|---|
| Automotive | $130.0 million | $43.1 million | $310.2 million | $182.5 million |
| Home and Renters | $14.1 million | $10.9 million | $40.7 million | $31.1 million |
| Other | $0.4 million | $1.0 million | $1.9 million | $18.6 million |
Operational Changes and Restructuring
In 2023, EverQuote exited the health insurance vertical, aiming to streamline its operations and improve efficiency. This restructuring was part of a broader strategy to focus on core verticals and optimize resource allocation.
Liquidity Position
As of September 30, 2024, EverQuote maintained a strong liquidity position with cash and cash equivalents totaling $82.8 million and a revolving line of credit availability of up to $25.0 million.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $82.8 million |
| Revolving Line of Credit Availability | $25.0 million |
Conclusion
EverQuote continues to leverage its technology-driven marketplace to enhance consumer engagement and drive revenue growth, maintaining a focus on operational efficiency and strategic market positioning.
How EverQuote, Inc. (EVER) Works
Business Model
EverQuote, Inc. operates as an online marketplace for insurance shopping, connecting consumers with insurance providers, including both carriers and agents. The company aims to simplify the insurance buying process by leveraging data, technology, and advisory services.
The revenue model primarily revolves around selling consumer inquiries as referrals to insurance providers and earning commissions on policy sales through its direct-to-consumer (DTC) insurance agency.
Financial Performance
For the three months ended September 30, 2024, EverQuote reported:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $144,530,000 | $55,011,000 | $89,519,000 | 162.7% |
| Net Income | $11,554,000 | $(29,217,000) | $40,771,000 | — |
| Adjusted EBITDA | $18,783,000 | $(1,905,000) | $20,688,000 | — |
For the nine months ended September 30, 2024, the financial performance was as follows:
| Financial Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $352,735,000 | $232,216,000 | $120,519,000 | 51.9% |
| Net Income | $19,863,000 | $(44,939,000) | $64,802,000 | — |
| Adjusted EBITDA | $39,299,000 | $1,347,000 | $37,952,000 | — |
Revenue Breakdown
The revenue for the three months ended September 30, 2024, was primarily derived from the following verticals:
| Vertical | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Automotive | $130,005,000 | $43,077,000 |
| Home and Renters | $14,142,000 | $10,889,000 |
| Other | $383,000 | $1,045,000 |
Cost Structure
The cost structure for the three months ended September 30, 2024, is detailed below:
| Cost Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $5,450,000 | $6,150,000 |
| Sales and Marketing | $111,794,000 | $46,505,000 |
| Research and Development | $8,026,000 | $6,270,000 |
| General and Administrative | $7,594,000 | $5,741,000 |
Liquidity and Capital Resources
As of September 30, 2024, EverQuote had:
- Cash and cash equivalents: $82.8 million
- Available credit under revolving line of credit: $25 million
Market Trends and Strategic Focus
In 2023, EverQuote exited the health insurance vertical to concentrate on its core segments, particularly automotive and home and renters insurance. This strategic decision aligns with their aim to improve operational efficiency and focus on higher-growth areas.
Stock Performance
As of September 30, 2024, the company's stock performance reflects significant recovery and growth compared to previous periods, showcasing the effectiveness of their strategic shifts and operational improvements.
How EverQuote, Inc. (EVER) Makes Money
Revenue Generation Model
EverQuote, Inc. primarily generates revenue through the sale of consumer referrals to insurance providers, including carriers, agents, and indirect distributors. The company has exited the health insurance vertical as of 2023, focusing on automotive and home insurance sectors.
Referral Revenue
Referral revenue is recognized at the time of delivery to customers. In the three months ended September 30, 2024, total revenue was $144.5 million, a significant increase from $55.0 million in the same period in 2023, representing a year-over-year growth of 162.7%.
| Period | Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $144,530 | $89,519 | 162.7% |
| Three Months Ended September 30, 2023 | $55,011 | - | - |
| Nine Months Ended September 30, 2024 | $352,735 | $120,519 | 51.9% |
| Nine Months Ended September 30, 2023 | $232,216 | - | - |
Vertical Breakdown of Revenue
Revenue is further segmented into insurance verticals:
| Vertical | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Automotive | $130,005 | $43,077 | $310,165 | $182,520 |
| Home and Renters | $14,142 | $10,889 | $40,715 | $31,068 |
| Other | $383 | $1,045 | $1,855 | $18,628 |
Commission Revenue
Commission revenue, which is less than 10% of total revenue, includes payments received from insurance carriers for policy sales. This revenue is recognized upon the submission of policy applications. For the three months ended September 30, 2024, commission revenue was impacted by a decrease of $4.5 million due to the exit from the health insurance vertical.
Cost of Revenue
Cost of revenue for the three months ended September 30, 2024 was $5.5 million, a decrease from $6.2 million in 2023, reflecting a 11.4% decline. The cost as a percentage of revenue was 3.8% for 2024 compared to 11.2% in 2023.
| Period | Cost of Revenue (in thousands) | Percentage of Revenue |
|---|---|---|
| Three Months Ended September 30, 2024 | $5,450 | 3.8% |
| Three Months Ended September 30, 2023 | $6,150 | 11.2% |
| Nine Months Ended September 30, 2024 | $15,502 | 4.4% |
| Nine Months Ended September 30, 2023 | $17,467 | 7.5% |
Operating Expenses
Operating expenses include sales and marketing, research and development, and general administrative expenses. Sales and marketing expenses for the three months ended September 30, 2024, totaled $111.8 million, rising from $46.5 million in 2023, reflecting an increase of 140.4%.
| Period | Sales and Marketing Expense (in thousands) | Percentage of Revenue |
|---|---|---|
| Three Months Ended September 30, 2024 | $111,794 | 77.4% |
| Three Months Ended September 30, 2023 | $46,505 | 84.5% |
| Nine Months Ended September 30, 2024 | $273,491 | 77.5% |
| Nine Months Ended September 30, 2023 | $195,537 | 84.2% |
Net Income and Adjusted EBITDA
For the three months ended September 30, 2024, EverQuote reported a net income of $11.6 million, a significant turnaround from a net loss of $29.2 million in 2023. Adjusted EBITDA for the same period was $18.8 million compared to a loss of $1.9 million in the prior year.
| Period | Net Income (Loss) (in thousands) | Adjusted EBITDA (in thousands) |
|---|---|---|
| Three Months Ended September 30, 2024 | $11,554 | $18,783 |
| Three Months Ended September 30, 2023 | ($29,217) | ($1,905) |
| Nine Months Ended September 30, 2024 | $19,863 | $39,299 |
| Nine Months Ended September 30, 2023 | ($44,939) | $1,347 |
Liquidity
As of September 30, 2024, EverQuote had cash and cash equivalents of $82.8 million and $25.0 million available under its revolving credit line, providing sufficient liquidity for operational needs.
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Resources:
- EverQuote, Inc. (EVER) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of EverQuote, Inc. (EVER)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View EverQuote, Inc. (EVER)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.