EverQuote, Inc. (EVER): Business Model Canvas [11-2024 Updated]
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EverQuote, Inc. (EVER) Bundle
EverQuote, Inc. (EVER) revolutionizes the insurance industry with its innovative business model that connects consumers with insurance providers through a streamlined online marketplace. By leveraging key partnerships, advanced technology, and data-driven insights, EverQuote not only simplifies the insurance shopping experience for individuals but also enhances marketing effectiveness for insurance providers. Dive deeper into the components of EverQuote's Business Model Canvas to uncover how this company is reshaping the way insurance is bought and sold.
EverQuote, Inc. (EVER) - Business Model: Key Partnerships
Insurance carriers and agents for referral sales
EverQuote collaborates with various insurance carriers and agents to generate referral sales. In the three months ended September 30, 2024, EverQuote reported total revenue of $144.5 million, with a significant portion attributed to increased carrier spend on referrals, particularly from its largest customer, which contributed approximately $87.4 million in the automotive vertical alone.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $144.5 million | $55.0 million | 162.7% |
| Automotive Vertical Revenue | $130.0 million | $43.1 million | 201.0% |
| Home and Renters Vertical Revenue | $14.1 million | $10.9 million | 29.0% |
Third-party marketing platforms for consumer outreach
EverQuote utilizes third-party marketing platforms to enhance consumer outreach and engagement. In Q3 2024, the company reported $111.8 million in sales and marketing expenses, which represented 77.4% of total revenue. This increase of $65.3 million from Q3 2023 primarily stemmed from heightened advertising costs associated with increased carrier spending.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales and Marketing Expense | $111.8 million | $46.5 million | 140.4% |
| Percentage of Revenue | 77.4% | 84.5% | -7.1% |
Technology providers for data management and analytics
The company partners with technology providers to enhance its data management and analytics capabilities. In the nine months ended September 30, 2024, EverQuote's adjusted EBITDA was reported at $39.3 million, up from $1.3 million in the same period in 2023. This improvement reflects the impact of enhanced technology and data analytics in driving operational efficiencies and revenue growth.
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Adjusted EBITDA | $39.3 million | $1.3 million | 2,923% |
| Net Income | $19.9 million | ($44.9 million) | — |
EverQuote, Inc. (EVER) - Business Model: Key Activities
Developing and maintaining the online marketplace
EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with insurance providers, including carriers and agents. As of September 30, 2024, the total revenue for EverQuote reached $144.5 million, a significant increase of 162.7% compared to $55.0 million for the same period in 2023 .
The revenue is primarily driven by the automotive vertical, which accounted for $130.0 million of the total revenue in the third quarter of 2024, up from $43.1 million in the previous year, reflecting a growth of 202.2% .
EverQuote's platform is designed to provide a comprehensive insurance shopping experience, allowing consumers to engage with insurance providers through various channels. The company focuses on improving the ease of use and functionality of its marketplace to enhance customer satisfaction and retention.
Managing consumer referral processes
EverQuote's business model relies heavily on managing consumer referrals effectively. The company generates revenue by selling consumer inquiries as referrals to insurance providers. For the three months ended September 30, 2024, EverQuote reported a variable marketing margin of $43.9 million, reflecting a year-over-year increase of 126.8% . The total advertising expense for this period was $100.6 million, leading to a marketing margin percentage of 30.4% .
In the nine months ended September 30, 2024, the variable marketing margin was $111.2 million, an increase of 39.7% from the same period in 2023 . This growth demonstrates the effectiveness of EverQuote's consumer referral management, as the company continues to enhance its relationships with insurance carriers and agents.
Analyzing data to improve service offerings
Data analysis is a critical component of EverQuote's operations, enabling the company to optimize its service offerings. The company invests in research and development to enhance its marketplace platform and develop new tools, with R&D expenses amounting to $8.0 million for the three months ended September 30, 2024 . This represents an increase of 28.0% compared to $6.3 million in the same quarter of 2023 .
For the nine months ended September 30, 2024, R&D expenses totaled $21.9 million, slightly higher than $21.6 million in 2023 . The focus on data analysis allows EverQuote to refine its marketing strategies, enhance consumer engagement, and ultimately drive revenue growth.
| Key Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $144.5 million | $55.0 million | 162.7% |
| Automotive Revenue | $130.0 million | $43.1 million | 202.2% |
| Variable Marketing Margin | $43.9 million | $19.4 million | 126.8% |
| Advertising Expense | $100.6 million | $35.6 million | 182.4% |
| R&D Expenses | $8.0 million | $6.3 million | 28.0% |
These activities underscore EverQuote's commitment to leveraging technology and data analytics to enhance its marketplace, manage consumer referrals effectively, and optimize its service offerings, all contributing to its revenue growth and market position. As of September 30, 2024, the company reported a net income of $11.6 million compared to a net loss of $29.2 million for the same period in 2023 .
EverQuote, Inc. (EVER) - Business Model: Key Resources
Proprietary technology platform for consumer referrals
EverQuote operates a proprietary technology platform that facilitates consumer referrals to insurance providers. This platform is central to its business model, leveraging data analytics to connect insurance seekers with providers efficiently. As of September 30, 2024, EverQuote reported a total revenue of $144.5 million for the third quarter, showcasing a significant increase from $55.0 million in the same quarter of the previous year. The company’s growth in revenue is attributed to enhanced consumer traffic and increased carrier spending on its platform.
| Key Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $144.5 million | $55.0 million | +162.7% |
| Variable Marketing Margin | $43.9 million | $19.4 million | +126.8% |
| Advertising Expense | $100.6 million | $35.6 million | +182.3% |
Strong brand reputation in the insurance marketplace
EverQuote has established a strong brand reputation within the insurance marketplace, particularly in the automotive insurance sector. The company's commitment to transparency and consumer education has fostered trust among users, which is reflected in its growing user base. For the nine months ended September 30, 2024, EverQuote's revenue from the automotive segment was $310.2 million, up from $182.5 million in the same period of 2023.
| Revenue by Segment | Q3 2024 | Q3 2023 |
|---|---|---|
| Automotive Insurance | $310.2 million | $182.5 million |
| Home and Renters Insurance | $40.7 million | $31.1 million |
| Other | $1.9 million | $18.6 million |
Skilled workforce focused on customer service and technology
The workforce at EverQuote is a critical resource, comprising skilled professionals in technology and customer service. The company has made significant investments in talent acquisition and employee development. For the nine months ended September 30, 2024, EverQuote incurred $22.1 million in general and administrative expenses, reflecting its focus on maintaining a skilled workforce to enhance operational efficiency.
| Operating Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| General and Administrative | $22.1 million | $19.3 million |
| Research and Development | $21.9 million | $21.6 million |
| Sales and Marketing | $273.5 million | $195.5 million |
EverQuote, Inc. (EVER) - Business Model: Value Propositions
Simplified insurance shopping experience for consumers
EverQuote operates a leading online marketplace that connects consumers with insurance providers, simplifying the insurance shopping process. The platform allows consumers to access multiple insurance quotes in one place, enhancing convenience and efficiency. In the three months ended September 30, 2024, EverQuote generated $144.5 million in revenue, a significant increase from $55.0 million in the same period the previous year, demonstrating the effectiveness of its streamlined approach.
High-intent consumer referrals for insurance providers
EverQuote focuses on delivering high-intent consumer referrals to insurance providers, which enhances the quality of leads for its customers. For the nine months ended September 30, 2024, the company reported total revenue of $352.7 million, with $310.2 million attributed to its automotive insurance vertical. This performance underscores the value of its referral model, wherein consumers are pre-validated and matched with insurers based on specific underwriting and profitability requirements, resulting in higher conversion rates for providers.
Data-driven insights to enhance marketing effectiveness
EverQuote leverages its proprietary data and technology platform to provide actionable insights that enhance marketing effectiveness for insurance providers. In the nine months ended September 30, 2024, the company reported a variable marketing margin of $111.2 million, representing a 39.7% increase from the previous year. This margin reflects the efficiency of its advertising and consumer acquisition strategies, which are informed by comprehensive data analytics. The company aims to optimize its clients' marketing spend and improve overall return on investment through detailed campaign management tools.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $144.5 million | $55.0 million | $352.7 million | $232.2 million |
| Automotive Vertical Revenue | $130.0 million | $43.1 million | $310.2 million | $182.5 million |
| Home and Renters Vertical Revenue | $14.1 million | $10.9 million | $40.7 million | $31.1 million |
| Variable Marketing Margin | $43.9 million | $19.4 million | $111.2 million | $79.6 million |
EverQuote, Inc. (EVER) - Business Model: Customer Relationships
Engaging consumers through personalized marketing
EverQuote leverages data-driven strategies to engage consumers through personalized marketing. In the three months ended September 30, 2024, the company's total revenue was $144.5 million, a 162.7% increase from $55.0 million in the same period in 2023. This increase is attributed to a significant rise in consumer engagement and marketing effectiveness, particularly in the automotive vertical, which saw an increase of $86.9 million in carrier spend for referrals.
The breakdown of revenue sources indicates that 86% of total revenue in Q3 2024 came from direct channels, emphasizing the effectiveness of personalized marketing efforts.
Providing transparent referral processes
Transparency in referral processes is a core component of EverQuote's business model. The company's marketplace connects consumers with insurance providers, offering a streamlined and clear referral process. The company reported variable marketing margins of $43.9 million in Q3 2024, reflecting a 126.8% increase from $19.4 million in Q3 2023. This transparency helps insurance providers evaluate the performance of their marketing spend effectively, enhancing trust and collaboration between EverQuote and its partners.
The revenue composition for the automotive vertical was $130.0 million for Q3 2024, demonstrating the success of their transparent referral processes in attracting significant carrier spending.
Ongoing support and communication with insurance partners
EverQuote maintains ongoing support and communication with its insurance partners, which is critical for retention and growth. The company's total costs and operating expenses for the three months ended September 30, 2024, were $132.9 million, with sales and marketing expenses constituting $111.8 million, highlighting the investment in partner support initiatives.
As of September 30, 2024, the company had cash and cash equivalents of $82.8 million, which provides a robust financial position to support ongoing partner relationships and communication efforts.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $144.5 million | $55.0 million | 162.7% |
| Automotive Revenue | $130.0 million | $43.1 million | 201.9% |
| Variable Marketing Margin | $43.9 million | $19.4 million | 126.8% |
| Sales and Marketing Expenses | $111.8 million | $46.5 million | 140.4% |
| Cash and Cash Equivalents | $82.8 million | N/A | N/A |
EverQuote, Inc. (EVER) - Business Model: Channels
Company website for consumer interactions
EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with insurance providers through its website. In the three months ended September 30, 2024, the company reported total revenue of $144.5 million, a significant increase from $55.0 million in the same period of 2023, primarily driven by an increase in carrier spend for referrals.
Direct sales to insurance providers
EverQuote's business model includes direct sales to insurance providers, which accounted for approximately 86% of its revenue in the three months ended September 30, 2024, up from 76% in the same period of 2023. The company generated $130.0 million in revenue from its automotive vertical and $14.1 million from home and renters insurance during this period.
Online advertising and partnerships for consumer traffic
Online advertising and strategic partnerships are critical to driving consumer traffic to EverQuote's platform. In the three months ended September 30, 2024, the company spent $111.8 million on sales and marketing, which represented 77.4% of its revenue. This marked a 140.4% increase compared to $46.5 million in the same period of 2023, reflecting the company's aggressive marketing strategy to capture more consumer inquiries.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $144.5 million | $55.0 million | $89.5 million (162.7% increase) |
| Direct Revenue Percentage | 86% | 76% | 10% increase |
| Sales and Marketing Expense | $111.8 million | $46.5 million | $65.3 million (140.4% increase) |
| Automotive Revenue | $130.0 million | $43.1 million | $86.9 million (201.6% increase) |
| Home and Renters Revenue | $14.1 million | $10.9 million | $3.2 million (29.4% increase) |
In summary, the channels utilized by EverQuote, including their website, direct sales to insurance providers, and online advertising strategies, contribute significantly to the company's growing revenue and market presence.
EverQuote, Inc. (EVER) - Business Model: Customer Segments
Individual consumers seeking insurance policies
EverQuote serves individual consumers who are actively searching for insurance policies. The company provides a platform that allows users to compare different insurance options, including auto, home, and renters insurance. In the three months ended September 30, 2024, EverQuote reported total revenue of $144.5 million, a significant increase of 162.7% from $55.0 million in the same period of 2023. This growth is indicative of a rising demand from consumers for insurance products, facilitated by EverQuote’s user-friendly online marketplace.
Auto, home, and renters insurance providers
EverQuote partners with a variety of insurance providers, including major companies that offer auto, home, and renters insurance. In the nine months ended September 30, 2024, EverQuote generated $352.7 million in revenue, driven largely by increases in carrier spend for referrals, particularly from the automotive sector, which accounted for $310.2 million. The home and renters insurance vertical also contributed $40.7 million during the same period. This collaborative approach benefits both the insurance providers, who gain access to pre-qualified leads, and EverQuote, which earns commissions based on successful policy sales.
Insurance agents and brokers
EverQuote also targets insurance agents and brokers, facilitating their access to potential clients through its marketplace. The company provides these agents with tools and analytics to evaluate their marketing spend and return on investment. In the three months ended September 30, 2024, the sales and marketing expenses totaled $111.8 million, reflecting a 140.4% increase from $46.5 million in the same quarter of the previous year. The increase in marketing expenses demonstrates EverQuote's commitment to enhancing its platform's visibility and effectiveness for agents and brokers seeking to expand their client base.
| Customer Segment | Revenue Contribution (2024) | Key Metrics | Growth Rate (YoY) |
|---|---|---|---|
| Individual Consumers | $144.5 million | Increased user engagement | 162.7% |
| Insurance Providers | $352.7 million | Majority from automotive sector | 51.9% |
| Agents and Brokers | Part of total revenue | Increased marketing spend | 140.4% |
EverQuote, Inc. (EVER) - Business Model: Cost Structure
Advertising and Marketing Expenses
For the nine months ended September 30, 2024, EverQuote, Inc. reported sales and marketing expenses of $273.5 million, a significant increase from $195.5 million recorded in the same period for 2023, reflecting a 39.9% year-over-year growth. This increase was primarily driven by a rise in advertising costs, which grew by $88.9 million due to increased carrier spend.
In the third quarter of 2024, sales and marketing expenses reached $111.8 million, a dramatic increase from $46.5 million in the third quarter of 2023, representing a staggering 140.4% increase.
| Period | Sales and Marketing Expense ($ in thousands) | Percentage of Revenue |
|---|---|---|
| Q3 2024 | $111,794 | 77.4% |
| Q3 2023 | $46,505 | 84.5% |
| 9M 2024 | $273,491 | 77.5% |
| 9M 2023 | $195,537 | 84.2% |
Technology and Platform Maintenance Costs
The cost of revenue, which includes technology and platform maintenance costs, decreased to $15.5 million for the nine months ended September 30, 2024, down from $17.5 million in the corresponding period of 2023. This represented an 11.2% decline. The reduction was mainly attributed to decreased personnel-related costs of $1.1 million and a decrease in depreciation costs of $1.0 million, as certain technology assets were fully depreciated in 2023.
Hosting costs also saw a decrease of $0.3 million.
| Period | Cost of Revenue ($ in thousands) | Percentage of Revenue |
|---|---|---|
| Q3 2024 | $5,450 | 3.8% |
| Q3 2023 | $6,150 | 11.2% |
| 9M 2024 | $15,502 | 4.4% |
| 9M 2023 | $17,467 | 7.5% |
Personnel-related Costs for Operations and Support
Personnel-related costs, which encompass salaries, benefits, and stock-based compensation, were a notable component of EverQuote's cost structure. For the nine months ended September 30, 2024, personnel-related costs within sales and marketing included stock-based compensation expenses of $5.1 million compared to $6.8 million in 2023. Overall, personnel-related costs decreased by $9.9 million in sales and marketing due to reduced headcount in the Direct to Consumer (DTC) agency.
In the research and development segment, personnel-related costs for the nine months ended September 30, 2024, included stock-based compensation expenses of $4.1 million, down from $6.5 million in 2023.
| Cost Category | Personnel-related Costs ($ in thousands) | Change from Previous Year |
|---|---|---|
| Sales and Marketing (9M 2024) | $5,083 (Stock-based) | Decreased by $1.7 million |
| Research and Development (9M 2024) | $4,080 (Stock-based) | Decreased by $2.4 million |
| General and Administrative (9M 2024) | $6,012 (Stock-based) | Increased by $1.4 million |
EverQuote, Inc. (EVER) - Business Model: Revenue Streams
Sales of Consumer Referrals to Insurance Providers
EverQuote primarily generates revenue by selling consumer referrals to insurance providers. In the three months ended September 30, 2024, the company reported total revenue of $144.5 million, a significant increase from $55.0 million during the same period in 2023, representing a year-over-year growth of 162.7%.
The automotive insurance vertical contributed largely to this revenue, with an increase in carrier spending for referrals amounting to $132.1 million. As of September 30, 2024, referrals generated from the automotive segment accounted for a substantial portion of EverQuote's overall revenue growth.
Commission Revenue from Policy Sales, Primarily in Automotive Insurance
EverQuote also earns commission revenue from the direct sale of insurance policies, predominantly in the automotive sector. For the nine months ended September 30, 2024, the total revenue reached $352.7 million, up from $232.2 million in the same period of 2023, reflecting a 51.9% increase.
Specifically, the commission revenue from automotive policies saw a decrease of $4.5 million, yet it remains a critical part of the company's revenue stream. The overall contribution from commissions continues to be significant, particularly as the company focuses on its core verticals.
Revenue from Advertising and Promotional Partnerships
In addition to referrals and commissions, EverQuote also derives revenue from advertising and promotional partnerships. The company's sales and marketing expenses for the three months ended September 30, 2024, were reported at $111.8 million, significantly higher than the $46.5 million spent during the same period in 2023.
This increase in advertising expense is attributed to heightened carrier spending which directly impacts the revenue generated from promotional partnerships. The total advertising expense for the three months ended September 30, 2024, was $100.6 million, indicating a focus on enhancing market visibility and driving consumer engagement.
| Revenue Stream | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|---|
| Sales of Consumer Referrals | $144.5 | $55.0 | 162.7% |
| Commission Revenue (Automotive) | Decrease of $4.5 million | Not specified | Not applicable |
| Advertising and Promotional Partnerships | $111.8 | $46.5 | 140.4% |
As of September 30, 2024, EverQuote's focus on enhancing its revenue streams through referrals, commissions, and advertising partnerships demonstrates its strategy to maximize growth within the competitive insurance marketplace.
Updated on 16 Nov 2024
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.