EverQuote, Inc. (Nasdaq: EVER), a leading online insurance
marketplace, today announced financial results for the fourth
quarter and full year ended December 31, 2020.
“Our team executed remarkably well this quarter, closing out a
record year at EverQuote delivering year-over-year revenue growth
of 32% in the fourth quarter, and 39% for the full year,” remarked
Jayme Mendal, CEO of EverQuote. “We drove greater operating
efficiency with VMM growth of 46% and 48% for the fourth quarter
and full year, respectively, which supported making significant
investments to accelerate our long-term growth. We also achieved
record Adjusted EBITDA in 2020. Our team remains focused on
EverQuote’s vision 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,” concluded Mr. Mendal.
Fourth Quarter 2020 Financial Highlights:(All
comparisons are relative to the fourth quarter of 2019):
- Total revenue of $97.3 million, an increase of 32%.
- Automotive insurance vertical revenue of $76.2 million, an
increase of 27%.
- Revenue from our Other insurance verticals, which includes home
and renters, life, health and commercial insurance, increased 55%
to $21.1 million and a record 22% of total revenues.
- Variable Marketing Margin of $31.9 million, an increase of
46%.
- GAAP net loss of $3.8 million, compared to GAAP net loss of
$0.9 million.
- Adjusted EBITDA of $5.4 million, compared to Adjusted EBITDA of
$4.2 million.
Fourth Quarter 2020 Business Highlights:
- Consumer traffic initiatives led to an 18% year-over-year
increase in revenue per quote request and a 12% year-over-year
increase in quote requests.
- More than 95% of revenue from carriers came from those who have
been on our platform for more than a year, reflecting the strong
re-occuring nature of the Company’s business model.
- The Health insurance vertical benefitted from the annual open
enrollment period and the successful integration of the previously
announced acquisition of Crosspointe Insurance.
- Craig Lister joined as Chief Marketing Officer.
Full Year 2020 Financial Highlights:(All
comparisons are relative to the full year of 2019):
- Total revenue of $346.9 million, an increase of 39%.
- Automotive insurance vertical revenue of $283.2 million, an
increase of 33%.
- Revenue from our Other insurance verticals, which includes home
and renters, life, health and commercial insurance, increased 74%
to $63.7 million.
- Variable Marketing Margin of $108.6 million, an increase of
48%.
- GAAP net loss of $11.2 million, compared to a GAAP net loss of
$7.1 million.
- Adjusted EBITDA of $18.4 million, compared to Adjusted EBITDA
of $8.3 million.
Full Year 2020 Business Highlights:
- The Company’s distribution growth and traffic optimization led
to a 35% growth in quote request volume over the prior year.
- Acquired Crosspointe Insurance, a Direct-To-Consumer (DTC)
health insurance agency, to support the growth of our Health
insurance vertical.
- Launched a DTC agency strategy in our Health and Life insurance
verticals.
- EverQuote welcomed several senior leaders to help scale our
business and drive operational efficiencies.
First Quarter and Full-Year 2021 Guidance:
EverQuote anticipates Revenue, Variable Marketing Margin and
Adjusted EBITDA to be in the following ranges:
First quarter 2021:
- Revenue of $100 - $102 million.
- Variable Marketing Margin of $30.5 - $31.5 million.
- Adjusted EBITDA in the range of $4 - $5 million.
Full year 2021:
- Revenue of $430 - $440 million.
- Variable Marketing Margin of $135 - $140 million.
- Adjusted EBITDA in the range of $25 - $30 million.
With respect to the Company’s expectations under "First Quarter
and 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 fourth quarter and full year 2020 financial results at
4:30 p.m. Eastern Time today, February 22, 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
8772399. 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 February 22,
2021, until 11:59 p.m. Eastern Time on February 28, 2021, by
dialing (800) 585-8367 for the U.S. or Canada, or (416) 621-4642
for international callers, and entering passcode 8772399. 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 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 @EverQuoteInsure.
Investor Relations Contact:Brinlea JohnsonThe
Blueshirt Group212-331-8424Brinlea@blueshirtgroup.com
EVERQUOTE, INC.STATEMENTS OF OPERATIONS
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
|
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| |
|
|
| |
(in thousands except per share) |
|
|
Revenue |
$ |
97,292 |
|
$ |
73,799 |
|
$ |
346,935 |
|
$ |
248,811 |
|
|
Cost and operating expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
5,683 |
|
|
4,681 |
|
|
21,373 |
|
|
15,903 |
|
|
Sales and marketing |
|
80,217 |
|
|
59,331 |
|
|
284,880 |
|
|
202,689 |
|
|
Research and development |
|
8,088 |
|
|
5,529 |
|
|
29,662 |
|
|
20,214 |
|
|
General and administrative |
|
5,310 |
|
|
4,186 |
|
|
20,444 |
|
|
16,827 |
|
|
Acquisition-related costs |
|
1,778 |
|
|
— |
|
|
2,258 |
|
|
— |
|
|
Legal settlement |
|
— |
|
|
1,227 |
|
|
— |
|
|
1,227 |
|
|
Total cost and operating expenses |
|
101,076 |
|
|
74,954 |
|
|
358,617 |
|
|
256,860 |
|
|
Loss from operations |
|
(3,784 |
) |
|
(1,155 |
) |
|
(11,682 |
) |
|
(8,049 |
) |
|
Other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
13 |
|
|
133 |
|
|
189 |
|
|
669 |
|
|
Other income |
|
3 |
|
|
88 |
|
|
291 |
|
|
263 |
|
|
Total other income |
|
16 |
|
|
221 |
|
|
480 |
|
|
932 |
|
|
Net loss |
$ |
(3,768 |
) |
$ |
(934 |
) |
$ |
(11,202 |
) |
$ |
(7,117 |
) |
|
Net loss per share, basic and diluted |
$ |
(0.13 |
) |
$ |
(0.04 |
) |
$ |
(0.41 |
) |
$ |
(0.28 |
) |
|
Weighted average common shares outstanding, basic and diluted |
|
28,005 |
|
|
26,240 |
|
|
27,329 |
|
|
25,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Amounts
include stock-based compensation expense, as follows: |
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
|
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| |
|
|
| |
(in thousands) |
|
| Cost of revenue |
$ |
108 |
|
$ |
54 |
|
$ |
361 |
|
$ |
193 |
|
| Sales and marketing |
|
2,924 |
|
|
1,129 |
|
|
10,246 |
|
|
3,805 |
|
| Research and development |
|
2,385 |
|
|
1,053 |
|
|
7,751 |
|
|
3,967 |
|
| General and
administrative |
|
772 |
|
|
1,228 |
|
|
5,821 |
|
|
4,756 |
|
| |
$ |
6,189 |
|
$ |
3,464 |
|
$ |
24,179 |
|
$ |
12,721 |
|
| |
EVERQUOTE, INC.BALANCE SHEET DATA
| |
December 31, |
|
| |
2020 |
|
2019 |
|
| |
|
|
| |
(in thousands) |
|
|
Cash and cash equivalents |
$ |
42,870 |
|
$ |
46,054 |
|
| Working capital |
|
50,554 |
|
|
46,944 |
|
| Total assets |
|
129,050 |
|
|
91,221 |
|
| Total liabilities |
|
58,068 |
|
|
39,451 |
|
| Total stockholders'
equity |
|
70,982 |
|
|
51,770 |
|
| |
|
|
|
|
|
|
EVERQUOTE, INC.STATEMENTS OF CASH FLOWS
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
|
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| |
|
|
| |
(in thousands) |
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(3,768 |
) |
$ |
(934 |
) |
$ |
(11,202 |
) |
$ |
(7,117 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,176 |
|
|
593 |
|
|
3,350 |
|
|
2,186 |
|
|
Loss on disposal of property and equipment |
|
— |
|
|
98 |
|
|
— |
|
|
98 |
|
|
Stock-based compensation expense |
|
6,189 |
|
|
3,464 |
|
|
24,179 |
|
|
12,721 |
|
|
Change in fair value of contingent consideration |
|
1,778 |
|
|
— |
|
|
1,778 |
|
|
— |
|
|
Provision for (recovery of) bad debt |
|
90 |
|
|
(1 |
) |
|
105 |
|
|
478 |
|
|
Changes in operating assets and liabilities, net of effects from
acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(4,642 |
) |
|
(2,305 |
) |
|
(13,970 |
) |
|
(15,232 |
) |
|
Operating lease right-of-use assets |
|
2,076 |
|
|
— |
|
|
2,076 |
|
|
— |
|
|
Prepaid expenses and other current assets |
|
(1,425 |
) |
|
(3,855 |
) |
|
623 |
|
|
(5,609 |
) |
|
Other assets |
|
(332 |
) |
|
1 |
|
|
(554 |
) |
|
(1 |
) |
|
Accounts payable |
|
(729 |
) |
|
305 |
|
|
9,301 |
|
|
6,837 |
|
|
Accrued expenses and other current liabilities |
|
(1,643 |
) |
|
6,712 |
|
|
(3,968 |
) |
|
10,126 |
|
|
Operating lease liabilities |
|
(2,233 |
) |
|
— |
|
|
(2,233 |
) |
|
— |
|
|
Deferred revenue |
|
177 |
|
|
(66 |
) |
|
368 |
|
|
61 |
|
|
Other long-term liabilities |
|
51 |
|
|
(56 |
) |
|
815 |
|
|
(135 |
) |
|
Net cash provided by (used in) operating activities |
|
(3,235 |
) |
|
3,956 |
|
|
10,668 |
|
|
4,413 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment, including costs capitalized
for development of internal-use software |
|
(1,114 |
) |
|
(777 |
) |
|
(3,822 |
) |
|
(2,975 |
) |
|
Acquisition of business |
|
— |
|
|
— |
|
|
(14,930 |
) |
|
— |
|
|
Net cash used in investing activities |
|
(1,114 |
) |
|
(777 |
) |
|
(18,752 |
) |
|
(2,975 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options |
|
1,345 |
|
|
926 |
|
|
4,907 |
|
|
2,982 |
|
|
Net cash provided by financing activities |
|
1,345 |
|
|
926 |
|
|
4,907 |
|
|
2,982 |
|
| Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(7 |
) |
|
— |
|
|
(7 |
) |
|
— |
|
|
Net increase (decrease) in cash, cash
equivalents and restricted cash |
|
(3,011 |
) |
|
4,105 |
|
|
(3,184 |
) |
|
4,420 |
|
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
46,131 |
|
|
42,199 |
|
|
46,304 |
|
|
41,884 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
43,120 |
|
$ |
46,304 |
|
$ |
43,120 |
|
$ |
46,304 |
|
|
|
EVERQUOTE, INC.FINANCIAL AND OPERATING
METRICS
Revenue by vertical:
| |
Three Months Ended December 31, |
|
Change |
|
| |
2020 |
|
2019 |
|
% |
|
| |
|
|
|
|
|
| |
(in thousands) |
|
|
|
|
|
Automotive |
$ |
76,222 |
|
$ |
60,192 |
|
|
26.6 |
% |
|
Other |
|
21,070 |
|
|
13,607 |
|
|
54.8 |
% |
| Total Revenue |
$ |
97,292 |
|
$ |
73,799 |
|
|
31.8 |
% |
| |
Year Ended December 31, |
|
Change |
|
| |
2020 |
|
2019 |
|
% |
|
| |
|
|
|
|
| |
(in thousands) |
|
|
|
|
Automotive |
$ |
283,236 |
|
$ |
212,300 |
|
33.4 |
% |
|
Other |
|
63,699 |
|
|
36,511 |
|
74.5 |
% |
| Total Revenue |
$ |
346,935 |
|
$ |
248,811 |
|
39.4 |
% |
| |
|
|
|
|
|
|
|
|
Other financial and non-financial metrics:
| |
Three Months Ended December 31, |
|
Change |
|
| |
2020 |
|
2019 |
|
% |
|
| |
|
|
|
|
| |
(in thousands) |
|
|
|
|
Loss from operations |
$ |
(3,784 |
) |
$ |
(1,155 |
) |
227.6 |
% |
| Net loss |
$ |
(3,768 |
) |
$ |
(934 |
) |
303.4 |
% |
| Quote requests |
|
6,553 |
|
|
5,863 |
|
11.8 |
% |
| Variable Marketing Margin |
$ |
31,921 |
|
$ |
21,836 |
|
46.2 |
% |
| Adjusted EBITDA(1) |
$ |
5,362 |
|
$ |
4,217 |
|
27.2 |
% |
| |
Year Ended December 31, |
|
Change |
|
| |
2020 |
|
2019 |
|
% |
|
| |
|
|
|
|
| |
(in thousands) |
|
|
|
|
Loss from operations |
$ |
(11,682 |
) |
$ |
(8,049 |
) |
45.1 |
% |
| Net loss |
$ |
(11,202 |
) |
$ |
(7,117 |
) |
57.4 |
% |
| Quote requests |
|
27,013 |
|
|
20,011 |
|
35.0 |
% |
| Variable Marketing Margin |
$ |
108,642 |
|
$ |
73,316 |
|
48.2 |
% |
| Adjusted EBITDA(1) |
$ |
18,396 |
|
$ |
8,348 |
|
120.4 |
% |
|
(1 |
) |
Adjusted
EBITDA is a non-GAAP measure. Please see
“EverQuote,
Inc. Reconciliation of Non-GAAP Measures to
GAAP” below for more information. |
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;
legal settlement; 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 December 31, |
|
Year Ended December 31, |
|
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| |
|
|
| |
(in thousands) |
|
|
Net income (loss) |
$ |
(3,768 |
) |
$ |
(934 |
) |
$ |
(11,202 |
) |
$ |
(7,117 |
) |
|
Stock-based compensation |
|
6,189 |
|
|
3,464 |
|
|
24,179 |
|
|
12,721 |
|
|
Depreciation and amortization |
|
1,176 |
|
|
593 |
|
|
3,350 |
|
|
2,186 |
|
|
Acquisition-related costs |
|
1,778 |
|
|
— |
|
|
2,258 |
|
|
— |
|
|
Legal settlement |
|
— |
|
|
1,227 |
|
|
— |
|
|
1,227 |
|
|
Interest income |
|
(13 |
) |
|
(133 |
) |
|
(189 |
) |
|
(669 |
) |
| Adjusted EBITDA |
$ |
5,362 |
|
$ |
4,217 |
|
$ |
18,396 |
|
$ |
8,348 |
|
EverQuote (NASDAQ:EVER)
Historical Stock Chart
From Mar 2024 to Apr 2024
EverQuote (NASDAQ:EVER)
Historical Stock Chart
From Apr 2023 to Apr 2024
