EverQuote, Inc. (NASDAQ: EVER)(“EverQuote” or “the Company”), a
leading online insurance marketplace in the U.S., today announced
financial results for the third quarter ended September 30, 2019.
“We are pleased to report a strong quarter of revenue growth and
variable marketing margin expansion, as we continue to scale the
business across all verticals while achieving our first quarter of
GAAP profitability as a public company,” said Seth Birnbaum, CEO
and Co-Founder of EverQuote. “The strength of our data-driven
marketplace, coupled with strategic investments in driving traffic,
improving the customer experience and expanding engagement with our
insurance provider network, delivered a strong third quarter.
We continue to diversify our business with growth in our home and
renters, life, and health insurance verticals, as well as the
launch of commercial, to capitalize on the massive market
opportunity.
“We remain laser focused on execution which is leading to
increasing operating leverage and expanding Adjusted EBITDA.
Based on our strong third quarter results and continued positive
tailwinds in the secular shift of insurance online, we are
increasing our guidance for the full year 2019,” concluded Mr.
Birnbaum.
Third Quarter 2019 Financial Highlights:(All
comparisons are relative to the third quarter of 2018):
- Total revenue of $67.1 million, an increase of 61% driven by
strength in consumer quote request volume.
- Automotive insurance vertical revenue of $57.3 million, an
increase of 60%.
- Revenue from our other insurance verticals, which includes home
and renters, life, and health insurance, increased 68% to $9.8
million.
- Variable Marketing Margin of $20.9 million, an increase of
67%.
- GAAP net income of $0.2 million, compared to a GAAP net loss of
$3.8 million.
- Adjusted EBITDA of $3.9 million, compared to $(1.0)
million.
Third Quarter 2019 Business Highlights:
- The Company’s distribution growth and traffic optimization
initiatives led to an 81% year-over-year increase in quote
requests.
- The Company’s direct business increased to 95% of revenue.
- EverQuote added 24 new technology integrations, which improve
the consumer shopping experience.
- 93% of revenue in the quarter came from established insurance
providers, which are those carriers and agents, who have been on
the Company’s platform for at least a year.
Fourth Quarter and Increased Full-Year 2019
Guidance:
EverQuote anticipates Revenue, Variable Marketing Margin and
Adjusted EBITDA to be in the following ranges:
Fourth quarter 2019:
- Revenue of $67.0 - $69.0 million.
- Variable Marketing Margin of $19.0 - $20.0 million.
- Adjusted EBITDA in the range of $2.0 - $3.0 million.
Full year 2019
- Revenue of $242.0 - $244.0 million, an increase from our
previous range of $215.0 - $219.0 million.
- Variable Marketing Margin of $70.5 - $71.5 million, an increase
from our previous range of $62.5 - $64.5 million.
- Adjusted EBITDA in the range of $6.1 - $7.1 million, an
improvement from our previous range of $1.0 - $2.5 million.
With respect to the Company’s expectations under "Fourth Quarter
and Full Year 2019 Guidance" above, the Company has not reconciled
the non-GAAP measure adjusted EBITDA to the GAAP measure net income
(loss) in this press release because the Company does not provide
guidance for stock-based compensation expense, depreciation
and amortization expense, 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 income (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 2019 financial results and outlook at
4:30 p.m. Eastern Time today, November 4, 2019. 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
6278694. 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 4,
2019, until 11:59 p.m. Eastern Time on November 11, 2019, by
dialing (800) 585-8367 for the U.S. or Canada, or (416) 621-4642
for international callers, and entering passcode 6278694. 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
effectiveness of the Company’s growth strategies and its ability to
effectively manage growth; (4) the Company’s ability to maintain
and build its brand; (5) the Company’s reliance on its third-party
service providers; (6) 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; (7) the impact of competition in the Company’s
industry and innovation by the Company’s competitors; (8) the
Company’s expected use of proceeds from its initial public
offering; and (9) 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
in the U.S., connecting consumers with insurance providers.
The company's data & technology platform matches and connects
consumers seeking to purchase insurance with relevant options from
the company's broad direct network of insurance providers, saving
consumers and providers time and money. EverQuote was founded with
the vision to empower customers to better protect life’s most
important assets - their family, property, and future.
EVERQUOTE, INC.STATEMENTS OF OPERATIONS
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except
per share) |
|
Revenue |
|
$ |
67,112 |
|
|
$ |
41,748 |
|
|
$ |
175,012 |
|
|
$ |
123,570 |
|
Cost and operating expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
4,052 |
|
|
|
3,115 |
|
|
|
11,222 |
|
|
|
8,603 |
|
Sales and marketing |
|
|
53,212 |
|
|
|
35,150 |
|
|
|
143,358 |
|
|
|
105,105 |
|
Research and development |
|
|
5,596 |
|
|
|
4,123 |
|
|
|
14,685 |
|
|
|
9,918 |
|
General and administrative |
|
|
4,334 |
|
|
|
3,296 |
|
|
|
12,641 |
|
|
|
6,742 |
|
Total cost and operating expenses |
|
|
67,194 |
|
|
|
45,684 |
|
|
|
181,906 |
|
|
|
130,368 |
|
Loss from operations |
|
|
(82 |
) |
|
|
(3,936 |
) |
|
|
(6,894 |
) |
|
|
(6,798 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense) |
|
|
168 |
|
|
|
128 |
|
|
|
536 |
|
|
|
(68 |
) |
Other income |
|
|
87 |
|
|
|
— |
|
|
|
175 |
|
|
|
— |
|
Total other income (expense), net |
|
|
255 |
|
|
|
128 |
|
|
|
711 |
|
|
|
(68 |
) |
Net income (loss) |
|
|
173 |
|
|
|
(3,808 |
) |
|
|
(6,183 |
) |
|
|
(6,866 |
) |
Accretion of redeemable convertible preferred stock to redemption
value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(37,415 |
) |
Net income (loss) available (attributable) to common
stockholders |
|
$ |
173 |
|
|
$ |
(3,808 |
) |
|
$ |
(6,183 |
) |
|
$ |
(44,281 |
) |
Net income (loss) per share available (attributable) to common
stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
(0.15 |
) |
|
$ |
(0.24 |
) |
|
$ |
(3.12 |
) |
Diluted |
|
$ |
0.01 |
|
|
$ |
(0.15 |
) |
|
$ |
(0.24 |
) |
|
$ |
(3.12 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
25,910 |
|
|
|
24,595 |
|
|
|
25,596 |
|
|
|
14,187 |
|
Diluted |
|
|
28,607 |
|
|
|
24,595 |
|
|
|
25,596 |
|
|
|
14,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include
stock-based compensation expense, as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Cost of revenue |
|
$ |
52 |
|
|
$ |
12 |
|
|
$ |
139 |
|
|
$ |
29 |
|
Sales and marketing |
|
|
991 |
|
|
|
607 |
|
|
|
2,676 |
|
|
|
1,277 |
|
Research and development |
|
|
1,061 |
|
|
|
858 |
|
|
|
2,914 |
|
|
|
1,150 |
|
General and administrative |
|
|
1,165 |
|
|
|
1,109 |
|
|
|
3,528 |
|
|
|
1,420 |
|
|
|
$ |
3,269 |
|
|
$ |
2,586 |
|
|
$ |
9,257 |
|
|
$ |
3,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERQUOTE, INC. BALANCE SHEET DATA
|
|
September 30, |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Cash and cash equivalents |
|
$ |
41,949 |
|
|
$ |
41,634 |
|
Working capital |
|
|
43,629 |
|
|
|
39,185 |
|
Total assets |
|
|
80,870 |
|
|
|
65,746 |
|
Total liabilities |
|
|
32,556 |
|
|
|
22,562 |
|
Total stockholders'
equity |
|
|
48,314 |
|
|
|
43,184 |
|
EVERQUOTE, INC.STATEMENTS OF CASH FLOWS
|
|
Nine Months Ended September 30, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(6,183 |
) |
|
$ |
(6,866 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
1,593 |
|
|
|
954 |
|
Stock-based compensation expense |
|
|
9,257 |
|
|
|
3,876 |
|
Noncash interest expense |
|
|
— |
|
|
|
14 |
|
Provision for bad debt |
|
|
479 |
|
|
|
— |
|
Deferred rent |
|
|
(79 |
) |
|
|
319 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(12,927 |
) |
|
|
(7,095 |
) |
Prepaid expenses and other current assets |
|
|
(1,754 |
) |
|
|
(1,052 |
) |
Other assets |
|
|
(2 |
) |
|
|
— |
|
Accounts payable |
|
|
6,532 |
|
|
|
2,394 |
|
Accrued expenses and other current liabilities |
|
|
3,414 |
|
|
|
1,367 |
|
Deferred revenue |
|
|
127 |
|
|
|
83 |
|
Net cash provided by (used in) operating activities |
|
|
457 |
|
|
|
(6,006 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Acquisition of property and equipment, including costs capitalized
for development of internal-use software |
|
|
(2,198 |
) |
|
|
(2,476 |
) |
Net cash used in investing activities |
|
|
(2,198 |
) |
|
|
(2,476 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from initial public offering, net of underwriting
discounts and commissions |
|
|
— |
|
|
|
52,313 |
|
Proceeds from exercise of stock options |
|
|
2,056 |
|
|
|
853 |
|
Proceeds from borrowings on line of credit |
|
|
— |
|
|
|
22,729 |
|
Repayments of borrowings on line of credit |
|
|
— |
|
|
|
(24,729 |
) |
Repayments of term loan |
|
|
— |
|
|
|
(2,625 |
) |
Payments of initial public offering costs |
|
|
— |
|
|
|
(3,713 |
) |
Net cash provided by financing activities |
|
|
2,056 |
|
|
|
44,828 |
|
Net increase in cash, cash equivalents and restricted
cash |
|
|
315 |
|
|
|
36,346 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
|
41,884 |
|
|
|
2,613 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
42,199 |
|
|
$ |
38,959 |
|
|
|
|
|
|
|
|
|
|
EVERQUOTE, INC.FINANCIAL AND OPERATING
METRICS
Revenue by vertical:
|
|
Three Months Ended September 30, |
|
|
Change |
|
|
|
2019 |
|
|
2018 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
Automotive |
|
$ |
57,306 |
|
|
$ |
35,900 |
|
|
59.6 |
% |
Other |
|
|
9,806 |
|
|
|
5,848 |
|
|
67.7 |
% |
Total Revenue |
|
$ |
67,112 |
|
|
$ |
41,748 |
|
|
60.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
Change |
|
|
|
2019 |
|
|
2018 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
Automotive |
|
$ |
152,108 |
|
|
$ |
107,334 |
|
|
41.7 |
% |
Other |
|
|
22,904 |
|
|
|
16,236 |
|
|
41.1 |
% |
Total Revenue |
|
$ |
175,012 |
|
|
$ |
123,570 |
|
|
41.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial and non-financial metrics:
|
|
Three Months Ended September 30, |
|
|
Change |
|
|
|
2019 |
|
|
2018 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
Loss from operations |
|
$ |
(82 |
) |
|
$ |
(3,936 |
) |
|
-97.9 |
% |
Net income (loss) |
|
$ |
173 |
|
|
$ |
(3,808 |
) |
|
-104.5 |
% |
Quote requests |
|
|
5,516 |
|
|
|
3,044 |
|
|
81.2 |
% |
Variable Marketing Margin(1) |
|
$ |
20,912 |
|
|
$ |
12,551 |
|
|
66.6 |
% |
Adjusted EBITDA(2) |
|
$ |
3,862 |
|
|
$ |
(1,008 |
) |
|
-483.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
Change |
|
|
|
2019 |
|
|
2018 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
Loss from operations |
|
$ |
(6,894 |
) |
|
$ |
(6,798 |
) |
|
1.4 |
% |
Net loss |
|
$ |
(6,183 |
) |
|
$ |
(6,866 |
) |
|
-9.9 |
% |
Quote requests |
|
|
14,148 |
|
|
|
9,519 |
|
|
48.6 |
% |
Variable Marketing Margin(1) |
|
$ |
51,480 |
|
|
$ |
35,835 |
|
|
43.7 |
% |
Adjusted EBITDA(2) |
|
$ |
4,131 |
|
|
$ |
(1,968 |
) |
|
-309.9 |
% |
(1 |
) |
Beginning in the first quarter of
2019, we revised our definition of variable marketing margin, or
VMM, as revenue, as reported in our statements of operations and
comprehensive income (loss), less advertising costs (a component of
sales and marketing expense, as reported in our statements of
operations and comprehensive income (loss)). We use VMM to measure
the efficiency of individual advertising and consumer acquisition
sources and to make trade-off decisions to manage our
return on advertising. Under our previous definition of VMM, our
VMM for the three and nine months ended September 30, 2018 was
$12.9 million and $37.4 million, respectively, as advertising costs
used in our previously defined VMM calculation excluded advertising
costs related to our EverDrive app and advertising costs not
related to obtaining quote requests. |
|
|
|
(2 |
) |
Adjusted EBITDA is
a non-GAAP measure. Please see “EverQuote, Inc.
Reconciliation of Non-GAAP Measures to GAAP” below
for more information. |
|
|
|
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; interest income and interest
expense; and the provision for (benefit from) 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, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Net income (loss) |
|
$ |
173 |
|
|
$ |
(3,808 |
) |
|
$ |
(6,183 |
) |
|
$ |
(6,866 |
) |
Stock-based compensation |
|
|
3,269 |
|
|
|
2,586 |
|
|
|
9,257 |
|
|
|
3,876 |
|
Depreciation and amortization |
|
|
588 |
|
|
|
342 |
|
|
|
1,593 |
|
|
|
954 |
|
Interest (income) expense, net |
|
|
(168 |
) |
|
|
(128 |
) |
|
|
(536 |
) |
|
|
68 |
|
Adjusted EBITDA |
|
$ |
3,862 |
|
|
$ |
(1,008 |
) |
|
$ |
4,131 |
|
|
$ |
(1,968 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contact:
Brinlea Johnson The Blueshirt Group 212-331-8424
Brinlea@blueshirtgroup.com
Or
Allise FurlaniThe Blueshirt
Group212-331-8433allise@blueshirtgroup.com
SOURCE: EverQuote, Inc.
EverQuote (NASDAQ:EVER)
Historical Stock Chart
From Sep 2024 to Oct 2024
EverQuote (NASDAQ:EVER)
Historical Stock Chart
From Oct 2023 to Oct 2024