EverQuote, Inc. (Nasdaq: EVER), a leading online insurance
marketplace, today announced financial results for the third
quarter ended September 30, 2020.
“Our strategy continues to yield excellent results and we
reported a strong quarter across all of our key financial metrics –
delivering 34% year-over-year revenue growth and 41% year-over-year
VMM growth,” said Seth Birnbaum, CEO and Co-Founder of EverQuote.
“During the quarter, revenue from our non-auto insurance verticals,
which includes home and renters, life, health and commercial
insurance, grew 55% year-over-year. Our marketplace flywheel is
demonstrating progress and resilience benefiting from increased
diversity across our team, traffic, verticals, distribution and
customer experiences including direct-to-consumer agency
initiatives in Life and Health insurance. We continue to have
strong momentum in the business, benefitting from the massive
industry shift of nearly $150B of insurance distribution spend
moving online, allowing us to end the year raising our full year
2020 guidance,” concluded Mr. Birnbaum.
Third Quarter 2020 Financial
Highlights:(All comparisons are relative to the third
quarter of 2019 unless otherwise stated):
- Total revenue of $90.0 million, an increase of 34%.
- Automotive insurance vertical revenue of $74.8 million, an
increase of 30%.
- Revenue from our other insurance verticals, which includes home
and renters, life, health and commercial insurance, increased 55%
to $15.2 million.
- Variable Marketing Margin of $29.4 million, an increase of
41%.
- GAAP net loss of $3.2 million, compared to GAAP net income of
$0.2 million.
- Adjusted EBITDA of $5.2 million, compared to Adjusted EBITDA of
$3.9 million.
Third Quarter 2020 Business
Highlights:
- The Company’s consumer traffic initiatives led to an 18%
year-over-year increase in revenue per quote request and a 14%
year-over-year increase in quote requests.
- More than 90% of revenue from carriers came from those who have
been on our platform for more than a year.
- The Company obtained a deep level of integration with 72% of
its carrier partners, improving the customer experience.
- On September 1, 2020, EverQuote completed the previously
announced acquisition of Crosspointe Insurance & Financial
Services, LLC, a leading health insurance agency headquartered in
Evansville, Indiana.
Fourth Quarter and
Increased Full-Year 2020 Guidance:
EverQuote anticipates Revenue, Variable Marketing Margin and
Adjusted EBITDA to be in the following ranges:
Fourth quarter 2020:
- Revenue of $90.4 - $92.4 million.
- Variable Marketing Margin of $29.3 - $30.3 million.
- Adjusted EBITDA in the range of $4.0 - $5.0 million.
Full year 2020
- Revenue of $340.0 - $342.0 million, an increase from our
previous range of $331.0 - $336.0 million.
- Variable Marketing Margin of $106.0 - $107.0 million, an
increase from our previous range of $101.0 - $104.5 million.
- Adjusted EBITDA in the range of $17.0 - $18.0 million, an
increase from our previous range of $15.0 - $17.5 million.
With respect to the Company’s expectations under "Fourth Quarter
and Increased Full Year 2020 Guidance" above, the Company has not
reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure
net loss in this press release because the Company does not provide
guidance for stock-based compensation expense, depreciation
and amortization expense, acquisition-related costs, interest
income and expense, and the provision for (benefit from)
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
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 2020 financial results at 4:30 p.m.
Eastern Time today, November 2, 2020. To access the conference
call, dial (877) 273-5005 for the U.S. or Canada, or (647) 689-5410
for international callers and provide conference ID 8090489. The
webcast will be available live on the Investors section of the
Company's website at https://investors.everquote.com.
An audio replay of the call will also be available to investors
beginning at approximately 6:30 p.m. Eastern Time on November 2,
2020, until 11:59 p.m. Eastern Time on November 9, 2020, by dialing
(800) 585-8367 for the U.S. or Canada, or (416) 621-4642 for
international callers, and entering passcode 8090489. In addition,
an archived webcast will be available on the Investors section of
the Company's website at: https://investors.everquote.com.
Safe Harbor Statement
Any statements in this press release about future expectations,
plans and prospects for EverQuote, Inc. (“EverQuote” or the
“Company”), including statements about future results of operations
or the future financial position of the Company, including
financial targets, business strategy, plans and objectives for
future operations and other statements containing the words
“anticipates,” “believes,” “expects,” “plans,” and similar
expressions, constitute forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those indicated by such
forward-looking statements as a result of various important
factors, including: (1) the Company’s ability to attract and retain
consumers and insurance providers using the Company’s marketplace;
(2) the Company’s ability to maintain or increase the amount
providers spend per quote request; (3) the impact on the Company
and the insurance industry of the COVID-19 pandemic; (4) the
effectiveness of the Company’s growth strategies and its ability to
effectively manage growth; (5) the Company’s ability to maintain
and build its brand; (6) the Company’s reliance on its third-party
service providers; (7) the Company’s ability to develop new and
enhanced products and services to attract and retain consumers and
insurance providers, and the Company’s ability to successfully
monetize them; (8) the impact of competition in the Company’s
industry and innovation by the Company’s competitors; (9) the
Company’s expected use of proceeds from its initial public
offering; (10) developments regarding the insurance industry and
the transition to online marketing; and (11) other factors
discussed in the “Risk Factors” section of the Company’s most
recent Quarterly Report on Form 10-Q, which is on file with the
Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
the Company’s views as of the date of this press release. The
Company anticipates that subsequent events and developments will
cause the Company’s views to change. However, while the Company may
elect to update these forward-looking statements at some point in
the future, the Company specifically disclaims any obligation to do
so. These forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the
date of this press release.
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 use data and technology to make insurance simpler,
more affordable and personalized ultimately reducing cost and
risk.
For more information, visit EverQuote.com and follow
on Twitter @EverQuoteInsure.
Investor Relations Contact:Brinlea JohnsonThe
Blueshirt Group212-331-8424Brinlea@blueshirtgroup.com
EVERQUOTE, INC.CONSOLIDATED STATEMENTS OF
OPERATIONS
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except per share) |
|
Revenue |
$ |
89,977 |
|
|
$ |
67,112 |
|
|
$ |
249,643 |
|
|
$ |
175,012 |
|
Cost and operating expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
5,378 |
|
|
|
4,052 |
|
|
|
15,690 |
|
|
|
11,222 |
|
Sales and marketing |
|
73,598 |
|
|
|
53,212 |
|
|
|
204,663 |
|
|
|
143,358 |
|
Research and development |
|
8,149 |
|
|
|
5,596 |
|
|
|
21,574 |
|
|
|
14,685 |
|
General and administrative |
|
6,141 |
|
|
|
4,334 |
|
|
|
15,614 |
|
|
|
12,641 |
|
Total cost and operating expenses |
|
93,266 |
|
|
|
67,194 |
|
|
|
257,541 |
|
|
|
181,906 |
|
Loss from operations |
|
(3,289 |
) |
|
|
(82 |
) |
|
|
(7,898 |
) |
|
|
(6,894 |
) |
Other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
18 |
|
|
|
168 |
|
|
|
176 |
|
|
|
536 |
|
Other income |
|
87 |
|
|
|
87 |
|
|
|
288 |
|
|
|
175 |
|
Total other income |
|
105 |
|
|
|
255 |
|
|
|
464 |
|
|
|
711 |
|
Net income (loss) and comprehensive income (loss) |
$ |
(3,184 |
) |
|
$ |
173 |
|
|
$ |
(7,434 |
) |
|
$ |
(6,183 |
) |
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.12 |
) |
|
$ |
0.01 |
|
|
$ |
(0.27 |
) |
|
$ |
(0.24 |
) |
Diluted |
$ |
(0.12 |
) |
|
$ |
0.01 |
|
|
$ |
(0.27 |
) |
|
$ |
(0.24 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
27,526 |
|
|
|
25,910 |
|
|
|
27,102 |
|
|
|
25,596 |
|
Diluted |
|
27,526 |
|
|
|
28,607 |
|
|
|
27,102 |
|
|
|
25,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts
include stock-based compensation expense, as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Cost of revenue |
$ |
111 |
|
|
$ |
52 |
|
|
$ |
253 |
|
|
$ |
139 |
|
Sales and marketing |
|
3,080 |
|
|
|
991 |
|
|
|
7,322 |
|
|
|
2,676 |
|
Research and development |
|
2,228 |
|
|
|
1,061 |
|
|
|
5,366 |
|
|
|
2,914 |
|
General and
administrative |
|
1,781 |
|
|
|
1,165 |
|
|
|
5,049 |
|
|
|
3,528 |
|
|
$ |
7,200 |
|
|
$ |
3,269 |
|
|
$ |
17,990 |
|
|
$ |
9,257 |
|
EVERQUOTE, INC.CONSOLIDATED BALANCE SHEET
DATA
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
|
|
|
|
|
(in thousands) |
Cash and cash equivalents |
$ |
45,881 |
|
$ |
46,054 |
Working capital |
|
47,876 |
|
|
46,944 |
Total assets |
|
116,235 |
|
|
91,221 |
Total liabilities |
|
49,012 |
|
|
39,451 |
Total stockholders'
equity |
|
67,223 |
|
|
51,770 |
EVERQUOTE, INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(3,184 |
) |
|
$ |
173 |
|
|
$ |
(7,434 |
) |
|
$ |
(6,183 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
731 |
|
|
|
588 |
|
|
|
2,174 |
|
|
|
1,593 |
|
Stock-based compensation expense |
|
7,200 |
|
|
|
3,269 |
|
|
|
17,990 |
|
|
|
9,257 |
|
Provision for (recovery of) bad debt |
|
(2 |
) |
|
|
57 |
|
|
|
15 |
|
|
|
479 |
|
Changes in operating assets and liabilities, net of effects from
acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(5,036 |
) |
|
|
(5,818 |
) |
|
|
(9,328 |
) |
|
|
(12,927 |
) |
Prepaid expenses and other current assets |
|
(1,588 |
) |
|
|
(1,781 |
) |
|
|
2,048 |
|
|
|
(1,754 |
) |
Other assets |
|
(165 |
) |
|
|
(2 |
) |
|
|
(222 |
) |
|
|
(2 |
) |
Accounts payable |
|
6,737 |
|
|
|
5,003 |
|
|
|
10,030 |
|
|
|
6,532 |
|
Accrued expenses and other current liabilities |
|
925 |
|
|
|
3,061 |
|
|
|
(2,325 |
) |
|
|
3,414 |
|
Deferred revenue |
|
59 |
|
|
|
(194 |
) |
|
|
191 |
|
|
|
127 |
|
Other long-term liabilities |
|
318 |
|
|
|
(57 |
) |
|
|
764 |
|
|
|
(79 |
) |
Net cash provided by operating activities |
|
5,995 |
|
|
|
4,299 |
|
|
|
13,903 |
|
|
|
457 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and
equipment, including costs capitalized for development of
internal-use software |
|
(837 |
) |
|
|
(646 |
) |
|
|
(2,708 |
) |
|
|
(2,198 |
) |
Acquisition of business |
|
(14,930 |
) |
|
|
— |
|
|
|
(14,930 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(15,767 |
) |
|
|
(646 |
) |
|
|
(17,638 |
) |
|
|
(2,198 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of
stock options |
|
1,244 |
|
|
|
1,173 |
|
|
|
3,562 |
|
|
|
2,056 |
|
Net cash provided by financing activities |
|
1,244 |
|
|
|
1,173 |
|
|
|
3,562 |
|
|
|
2,056 |
|
Net increase
(decrease) in cash, cash equivalents
and restricted cash |
|
(8,528 |
) |
|
|
4,826 |
|
|
|
(173 |
) |
|
|
315 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
54,659 |
|
|
|
37,373 |
|
|
|
46,304 |
|
|
|
41,884 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
46,131 |
|
|
$ |
42,199 |
|
|
$ |
46,131 |
|
|
$ |
42,199 |
|
EVERQUOTE, INC.FINANCIAL AND OPERATING
METRICS
Revenue by vertical:
|
Three Months Ended September 30, |
|
Change |
|
|
2020 |
|
2019 |
|
% |
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
Automotive |
$ |
74,779 |
|
$ |
57,306 |
|
30.5 |
% |
Other |
|
15,198 |
|
|
9,806 |
|
55.0 |
% |
Total Revenue |
$ |
89,977 |
|
$ |
67,112 |
|
34.1 |
% |
|
Nine Months Ended September 30, |
|
Change |
|
|
2020 |
|
2019 |
|
% |
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
Automotive |
$ |
207,014 |
|
$ |
152,108 |
|
36.1 |
% |
Other |
|
42,629 |
|
|
22,904 |
|
86.1 |
% |
Total Revenue |
$ |
249,643 |
|
$ |
175,012 |
|
42.6 |
% |
|
|
|
|
|
|
|
|
|
Other financial and non-financial metrics:
|
Three Months Ended September 30, |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
Loss from operations |
$ |
(3,289 |
) |
|
$ |
(82 |
) |
|
NM |
|
Net income (loss) |
$ |
(3,184 |
) |
|
$ |
173 |
|
|
NM |
|
Quote requests |
|
6,291 |
|
|
|
5,516 |
|
|
14.1 |
% |
Variable Marketing Margin |
$ |
29,428 |
|
|
$ |
20,912 |
|
|
40.7 |
% |
Adjusted EBITDA(1) |
$ |
5,209 |
|
|
$ |
3,862 |
|
|
34.9 |
% |
|
Nine Months Ended September 30, |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
Loss from operations |
$ |
(7,898 |
) |
|
$ |
(6,894 |
) |
|
14.6 |
% |
Net loss |
$ |
(7,434 |
) |
|
$ |
(6,183 |
) |
|
20.2 |
% |
Quote requests |
|
20,460 |
|
|
|
14,148 |
|
|
44.6 |
% |
Variable Marketing Margin |
$ |
76,721 |
|
|
$ |
51,480 |
|
|
49.0 |
% |
Adjusted EBITDA(1) |
$ |
13,034 |
|
|
$ |
4,131 |
|
|
215.5 |
% |
(1) |
Adjusted EBITDA is a non-GAAP measure. Please
see “EverQuote, Inc.
Reconciliation of Non-GAAP Measures to GAAP”
below for more information. |
NM—Percentage is not meaningful.
EVERQUOTE,
INC.NON-GAAP FINANCIAL MEASURES
To supplement the Company’s financial statements presented in
accordance with GAAP and to provide investors with additional
information regarding EverQuote’s financial results, the Company
has presented Adjusted. EBITDA
as a non-GAAP financial measure. This non-GAAP financial measure
is not based on any standardized methodology prescribed by GAAP and
is not necessarily comparable to similarly titled measures
presented by other companies.
The Company defines Adjusted EBITDA as net income (loss),
excluding the impact of stock-based compensation expense;
depreciation and amortization expense; acquisition-related costs;
interest income; and income taxes. The most directly comparable
GAAP measure is net income (loss). The Company monitors and
presents Adjusted EBITDA because it is a key measure used by
management and the board of directors to understand and evaluate
operating performance, to establish budgets and to develop
operational goals for managing EverQuote’s business. In particular,
the Company believes that excluding the impact of these items in
calculating Adjusted EBITDA can provide a useful
measure for period-to-period comparisons of
EverQuote’s core operating performance.
The Company uses Adjusted EBITDA to evaluate EverQuote’s
operating performance and trends and make planning decisions. The
Company believes
that this non-GAAP financial measure helps
identify underlying trends in EverQuote’s business that could
otherwise be masked by the effect of the items that the Company
excludes in the calculations of Adjusted EBITDA. Accordingly, the
Company believes that this financial measure provides useful
information to investors and others in understanding and evaluating
EverQuote’s operating results, enhancing the overall understanding
of the Company’s past performance and future prospects.
The Company’s non-GAAP financial measures
are not prepared in accordance with GAAP and should not be
considered in isolation of, or as an alternative to, measures
prepared in accordance with GAAP. There are a number of limitations
related to the use of Adjusted EBITDA rather than net income
(loss), which is the most directly comparable financial measure
calculated and presented in accordance with GAAP. In addition,
other companies may use other measures to evaluate their
performance, which could reduce the usefulness of
the Company’s non-GAAP financial measures as
tools for comparison.
The following table reconciles Adjusted EBITDA to net income
(loss), the most directly comparable financial measure calculated
and presented in accordance with GAAP.
EVERQUOTE,
INC.RECONCILIATION OF NON-GAAP MEASURES TO
GAAP
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
(in thousands) |
|
Net income (loss) |
$ |
(3,184 |
) |
|
$ |
173 |
|
|
$ |
(7,434 |
) |
|
$ |
(6,183 |
) |
Stock-based compensation |
|
7,200 |
|
|
|
3,269 |
|
|
|
17,990 |
|
|
|
9,257 |
|
Depreciation and amortization |
|
731 |
|
|
|
588 |
|
|
|
2,174 |
|
|
|
1,593 |
|
Acquisition-related costs |
|
480 |
|
|
|
— |
|
|
|
480 |
|
|
|
— |
|
Interest income |
|
(18 |
) |
|
|
(168 |
) |
|
|
(176 |
) |
|
|
(536 |
) |
Adjusted EBITDA |
$ |
5,209 |
|
|
$ |
3,862 |
|
|
$ |
13,034 |
|
|
$ |
4,131 |
|
EverQuote (NASDAQ:EVER)
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EverQuote (NASDAQ:EVER)
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From May 2023 to May 2024