EverQuote, Inc. (Nasdaq: EVER), a leading online insurance
marketplace, today announced financial results for the second
quarter ended June 30, 2021.
“We delivered a strong second quarter 2021 with
year-over-year increases in total revenue and Variable Marketing
Margin, or VMM, of 34% and 40%, respectively. We generated
increased Adjusted EBITDA and had our strongest Adjusted EBITDA
margin since going public,” said Jayme Mendal, CEO of EverQuote.
“With over 30% revenue growth in the first half of the year, we are
making significant investments in our growth levers to build
towards our vision of becoming the largest online source of
insurance policies by using data and technology to make insurance
simpler, more affordable and personalized, ultimately reducing cost
and risk. We remain confident in our outlook for the remainder of
this year and in our ability to build an industry-defining
company.”
After the quarter closed, EverQuote announced the
acquisition of PolicyFuel LLC and its affiliated entities
(“PolicyFuel”), which operates in property and casualty (“P&C”)
insurance verticals, providing policy-sales-as-a-service (“PSaaS”)
offerings to enable carriers to complement their own call center
operations with access to dedicated advisor teams that focus
exclusively on selling each provider’s offerings to its target
customers.
“PolicyFuel’s PSaaS offerings for P&C markets
extends our existing Direct-To-Consumer Agency (“DTCA”) strategy in
our Health and Life insurance verticals, where our tech-driven
first-party distribution platforms have improved consumer
experience, provider bind performance and our own monetization.
PolicyFuel earns revenue based on policies sold and broadens
EverQuote’s ability to access the $135 billion commission component
of our total addressable market. We are excited to welcome
PolicyFuel’s founders and team to the EverQuote family,” concluded
Mr. Mendal.
Second Quarter 2021 Financial
Highlights:(All comparisons are relative to the second
quarter of 2020):
- Total revenue of $105.1 million, an increase of 34%.
- Automotive insurance vertical revenue of $86.4 million, an
increase of 34%.
- Revenue from our other insurance verticals, which includes home
and renters, life, health and commercial insurance, increased 36%
to $18.7 million.
- Variable Marketing Margin of $32.8 million, an increase of
40%.
- GAAP net loss decreased to $1.9 million, compared to GAAP net
loss of $2.8 million.
- Adjusted EBITDA increased to $6.6 million, compared to Adjusted
EBITDA of $4.0 million.
Second Quarter 2021 Business
Highlights:
- Consumer traffic initiatives focused on improving monetization
led to a 34% year-over-year increase in revenue per quote
request.
- Digital carriers continued to increase their spending on our
platform, which grew by over 200% year-over-year.
- EverQuote continued building its leadership team, with Garett
Kitch joining as SVP of Health and Life Agency Sales.
Third Quarter and Updated Full-Year 2021
Guidance:
EverQuote anticipates Revenue, Variable Marketing
Margin and Adjusted EBITDA to be in the following ranges:
Third quarter 2021:
- Revenue of $109 - $111 million, a year-over-year increase of
22% at the mid-point.
- Variable Marketing Margin of $33 - $34 million, a
year-over-year increase of 14% at the mid-point.
- Adjusted EBITDA in the range of $4.5 - $5.5 million, a
year-over-year decrease of 4% at the mid-point.
Full year 2021:
- Revenue of $440 - $446 million, a year-over-year increase of
28% at the mid-point and an increase from our previous guidance of
$434 - $442 million.
- Variable Marketing Margin of $138 - $141 million, a
year-over-year increase of 28% at the mid-point and an increase
from our previous guidance of $136 - $140 million.
- Adjusted EBITDA in the range of $23 - $26 million, a
year-over-year increase of 33% at the mid-point and a decrease from
our previous guidance of $26 - $30 million. Full year 2021 Adjusted
EBITDA is expected to be impacted by incremental investments in
preparation for this year’s health open enrollment period which
takes place in the fourth quarter.
With respect to the Company’s expectations under
"Third Quarter and Updated Full Year 2021 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,
acquisition-related costs, interest income, and 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 second quarter 2021 financial results at
4:30 p.m. Eastern Time today, August 2, 2021. 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
7777683. 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
August 2, 2021, until 11:59 p.m. Eastern Time on August 9, 2021, by
dialing (800) 585-8367 for the U.S. or Canada, or (416) 621-4642
for international callers, and entering passcode 7777683. 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; (11) the Company’s ability to
successfully acquire and operate PolicyFuel; and (12) 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 become the largest online source of
insurance policies by using 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 @everquotelife, Instagram @everquotepics, and
LinkedIn https://www.linkedin.com/company/everquote/.
Investor Relations Contact:Brinlea
JohnsonThe Blueshirt
Group212-331-8424Brinlea@blueshirtgroup.com
EVERQUOTE, INC.CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
(in thousands except per share) |
|
Revenue |
$ |
105,063 |
|
|
$ |
78,302 |
|
|
$ |
208,885 |
|
|
$ |
159,666 |
|
Cost and operating
expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
5,811 |
|
|
|
4,977 |
|
|
|
11,764 |
|
|
|
10,312 |
|
Sales and marketing |
|
85,610 |
|
|
|
64,561 |
|
|
|
173,179 |
|
|
|
131,065 |
|
Research and development |
|
9,053 |
|
|
|
6,966 |
|
|
|
17,626 |
|
|
|
13,425 |
|
General and administrative |
|
6,200 |
|
|
|
4,754 |
|
|
|
11,796 |
|
|
|
9,473 |
|
Acquisition-related |
|
265 |
|
|
|
— |
|
|
|
186 |
|
|
|
— |
|
Total cost and operating expenses |
|
106,939 |
|
|
|
81,258 |
|
|
|
214,551 |
|
|
|
164,275 |
|
Loss from operations |
|
(1,876 |
) |
|
|
(2,956 |
) |
|
|
(5,666 |
) |
|
|
(4,609 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
10 |
|
|
|
47 |
|
|
|
24 |
|
|
|
158 |
|
Other income (expense), net |
|
(15 |
) |
|
|
101 |
|
|
|
(40 |
) |
|
|
201 |
|
Total other income (expense), net |
|
(5 |
) |
|
|
148 |
|
|
|
(16 |
) |
|
|
359 |
|
Net loss |
$ |
(1,881 |
) |
|
$ |
(2,808 |
) |
|
$ |
(5,682 |
) |
|
$ |
(4,250 |
) |
Net loss per share, basic and
diluted |
$ |
(0.07 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.16 |
) |
Weighted average common shares
outstanding, basic and diluted |
|
28,895 |
|
|
|
27,136 |
|
|
|
28,665 |
|
|
|
26,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts
include stock-based compensation expense, as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
(in thousands) |
|
Cost of revenue |
$ |
83 |
|
|
$ |
88 |
|
|
$ |
174 |
|
|
$ |
142 |
|
Sales and marketing |
|
2,459 |
|
|
|
2,547 |
|
|
|
5,850 |
|
|
|
4,242 |
|
Research and development |
|
2,321 |
|
|
|
1,862 |
|
|
|
4,648 |
|
|
|
3,138 |
|
General and
administrative |
|
2,226 |
|
|
|
1,753 |
|
|
|
3,937 |
|
|
|
3,268 |
|
|
$ |
7,089 |
|
|
$ |
6,250 |
|
|
$ |
14,609 |
|
|
$ |
10,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERQUOTE, INC.CONSOLIDATED BALANCE SHEET
DATA
|
|
|
|
|
June 30, |
|
December 31, |
|
2021 |
|
2020 |
|
(in thousands) |
Cash and cash equivalents |
$ |
54,520 |
|
$ |
42,870 |
Working capital |
|
61,387 |
|
|
50,554 |
Total assets |
|
138,843 |
|
|
129,050 |
Total liabilities |
|
57,188 |
|
|
58,068 |
Total stockholders'
equity |
|
81,655 |
|
|
70,982 |
|
|
|
|
|
|
EVERQUOTE, INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
(in thousands) |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(1,881 |
) |
|
$ |
(2,808 |
) |
|
$ |
(5,682 |
) |
|
$ |
(4,250 |
) |
Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,136 |
|
|
|
594 |
|
|
|
2,310 |
|
|
|
1,443 |
|
Stock-based compensation expense |
|
7,089 |
|
|
|
6,250 |
|
|
|
14,609 |
|
|
|
10,790 |
|
Change in fair value of contingent consideration |
|
(210 |
) |
|
|
— |
|
|
|
(289 |
) |
|
|
— |
|
Provision for (recovery of) bad debt |
|
(4 |
) |
|
|
(4 |
) |
|
|
(50 |
) |
|
|
17 |
|
Unrealized foreign currency transaction (gains) losses |
|
8 |
|
|
|
— |
|
|
|
23 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
3,239 |
|
|
|
(830 |
) |
|
|
297 |
|
|
|
(4,292 |
) |
Prepaid expenses and other current assets |
|
(264 |
) |
|
|
3,730 |
|
|
|
(92 |
) |
|
|
3,636 |
|
Operating lease right-of-use assets |
|
609 |
|
|
|
— |
|
|
|
1,400 |
|
|
|
— |
|
Other assets |
|
393 |
|
|
|
(53 |
) |
|
|
(340 |
) |
|
|
(57 |
) |
Accounts payable |
|
(6,421 |
) |
|
|
(690 |
) |
|
|
(7,123 |
) |
|
|
3,293 |
|
Accrued expenses and other current liabilities |
|
4,728 |
|
|
|
(2,761 |
) |
|
|
7,538 |
|
|
|
(3,250 |
) |
Deferred revenue |
|
24 |
|
|
|
56 |
|
|
|
(33 |
) |
|
|
132 |
|
Operating lease liabilities |
|
(699 |
) |
|
|
— |
|
|
|
(1,337 |
) |
|
|
— |
|
Other long-term liabilities |
|
(32 |
) |
|
|
497 |
|
|
|
4 |
|
|
|
446 |
|
Net cash provided by operating activities |
|
7,715 |
|
|
|
3,981 |
|
|
|
11,235 |
|
|
|
7,908 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and
equipment, including costs capitalized for development of
internal-use software |
|
(533 |
) |
|
|
(986 |
) |
|
|
(1,310 |
) |
|
|
(1,871 |
) |
Net cash used in investing activities |
|
(533 |
) |
|
|
(986 |
) |
|
|
(1,310 |
) |
|
|
(1,871 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of
stock options |
|
452 |
|
|
|
954 |
|
|
|
1,724 |
|
|
|
2,318 |
|
Net cash provided by financing
activities |
|
452 |
|
|
|
954 |
|
|
|
1,724 |
|
|
|
2,318 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Net increase in cash,
cash equivalents and restricted
cash |
|
7,634 |
|
|
|
3,949 |
|
|
|
11,650 |
|
|
|
8,355 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
47,136 |
|
|
|
50,710 |
|
|
|
43,120 |
|
|
|
46,304 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
54,770 |
|
|
$ |
54,659 |
|
|
$ |
54,770 |
|
|
$ |
54,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERQUOTE, INC.FINANCIAL AND OPERATING
METRICS
Revenue by
vertical: |
|
Three Months Ended June 30, |
|
|
Change |
|
|
2021 |
|
2020 |
|
|
% |
|
|
(in thousands) |
|
|
|
|
Automotive |
$ |
86,358 |
|
$ |
64,594 |
|
|
33.7 |
% |
Other |
|
18,705 |
|
|
13,708 |
|
|
36.5 |
% |
Total Revenue |
$ |
105,063 |
|
$ |
78,302 |
|
|
34.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
Change |
|
|
2021 |
|
2020 |
|
|
% |
|
|
(in thousands) |
|
|
|
|
Automotive |
$ |
170,839 |
|
$ |
132,235 |
|
|
29.2 |
% |
Other |
|
38,046 |
|
|
27,431 |
|
|
38.7 |
% |
Total Revenue |
$ |
208,885 |
|
$ |
159,666 |
|
|
30.8 |
% |
|
|
|
|
|
|
|
|
|
|
Other financial and non-financial metrics:
|
Three Months Ended June 30, |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
% |
|
|
(in thousands) |
|
|
|
|
Loss from operations |
$ |
(1,876 |
) |
|
$ |
(2,956 |
) |
|
-36.5 |
% |
Net loss |
$ |
(1,881 |
) |
|
$ |
(2,808 |
) |
|
-33.0 |
% |
Quote requests |
|
6,781 |
|
|
|
6,777 |
|
|
0.1 |
% |
Variable Marketing Margin |
$ |
32,830 |
|
|
$ |
23,478 |
|
|
39.8 |
% |
Adjusted EBITDA(1) |
$ |
6,599 |
|
|
$ |
3,989 |
|
|
65.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
% |
|
|
(in thousands) |
|
|
|
|
Loss from operations |
$ |
(5,666 |
) |
|
$ |
(4,609 |
) |
|
22.9 |
% |
Net loss |
$ |
(5,682 |
) |
|
$ |
(4,250 |
) |
|
33.7 |
% |
Quote requests |
|
14,501 |
|
|
|
14,169 |
|
|
2.3 |
% |
Variable Marketing Margin |
$ |
64,268 |
|
|
$ |
47,293 |
|
|
35.9 |
% |
Adjusted EBITDA(1) |
$ |
11,399 |
|
|
$ |
7,825 |
|
|
45.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) |
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; 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 June 30, |
|
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
(in thousands) |
|
Net loss |
$ |
(1,881 |
) |
|
$ |
(2,808 |
) |
|
|
$ |
(5,682 |
) |
|
$ |
(4,250 |
) |
Stock-based compensation |
|
7,089 |
|
|
|
6,250 |
|
|
|
|
14,609 |
|
|
|
10,790 |
|
Depreciation and amortization |
|
1,136 |
|
|
|
594 |
|
|
|
|
2,310 |
|
|
|
1,443 |
|
Acquisition-related |
|
265 |
|
|
|
— |
|
|
|
|
186 |
|
|
|
— |
|
Interest income |
|
(10 |
) |
|
|
(47 |
) |
|
|
|
(24 |
) |
|
|
(158 |
) |
Adjusted EBITDA |
$ |
6,599 |
|
|
$ |
3,989 |
|
|
|
$ |
11,399 |
|
|
$ |
7,825 |
|
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