EverQuote, Inc. (Nasdaq: EVER), a leading online insurance
marketplace, today announced financial results for the first
quarter ended March 31, 2021.
“We enter 2021 with clarity in our strategy and a focus on
execution - delivering solid results across all of our key metrics
as revenue increased 28%, VMM grew 32%, and Adjusted EBITDA
continued to expand,” said Jayme Mendal, CEO of EverQuote. “We are
pleased with our Q1 performance and are scaling the business by
making strategic investments to attract more shoppers, grow
insurance provider coverage and budget, optimize and deepen
consumer-provider engagement and further expand our non-auto
verticals. We remain bullish in our outlook for the remainder of
this year and in our ability to build an industry-defining
company,” concluded Mr. Mendal.
First Quarter 2021 Financial Highlights:(All
comparisons are relative to the first quarter of 2020):
- Total revenue of $103.8 million, an increase of 28%.
- Automotive insurance vertical revenue of $84.5 million, an
increase of 25%.
- Revenue from our other insurance verticals, which includes home
and renters, life, health and commercial insurance, increased 41%
to $19.3 million.
- Variable Marketing Margin of $31.4 million, an increase of
32%.
- GAAP net loss of $3.8 million, compared to GAAP net loss of
$1.4 million.
- Adjusted EBITDA of $4.8 million, compared to Adjusted EBITDA of
$3.8 million.
First Quarter 2021 Business Highlights:
- Consumer traffic initiatives focused on improving monetization
led to a 22% year-over-year increase in revenue per quote request
as quote requests grew 4% year-over-year.
- Digital carriers grew their spending on our platform by over
200% year-over-year.
- EverQuote continued building its leadership team, with David
Brainard promoted to Chief Technology Officer and Brandon
Washington joining EverQuote as Senior Vice President, Diversity,
Equity and Inclusion.
Second Quarter and Increased Full-Year 2021
Guidance:
EverQuote anticipates Revenue, Variable Marketing Margin and
Adjusted EBITDA to be in the following ranges:
Second quarter 2021:
- Revenue of $101 - $103 million, a year-over-year increase of
30% at the mid-point.
- Variable Marketing Margin of $31 - $32 million, a
year-over-year increase of 34% at the mid-point.
- Adjusted EBITDA in the range of $5 - $6 million, a
year-over-year improvement of 38% at the
mid-point.
Full year 2021:
- Revenue of $434 - $442 million, a year-over-year increase of
26% at the mid-point and an increase from our previous guidance of
$430 - $440 million.
- Variable Marketing Margin of $136 - $140 million, a
year-over-year increase of 27% at the mid-point and an increase
from our previous guidance of $135 - $140 million.
- Adjusted EBITDA in the range of $26 - $30 million, a
year-over-year increase of 52% at the mid-point and an increase
from our previous guidance of $25 - 30 million.
With respect to the Company’s expectations under "Second Quarter
and Increased 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 first quarter 2021 financial results at 4:30 p.m.
Eastern Time today, May 3, 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 7356836. 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 May 3, 2021,
until 11:59 p.m. Eastern Time on May 9, 2021, by dialing (800)
585-8367 for the U.S. or Canada, or (416) 621-4642 for
international callers, and entering passcode 7356836. 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 Annual Report on Form 10-K, 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 March 31, |
|
|
2021 |
|
|
2020 |
|
|
(in thousands except per share) |
|
Revenue |
$ |
103,822 |
|
|
$ |
81,364 |
|
Cost and operating expenses(1): |
|
|
|
|
|
|
|
Cost of revenue |
|
5,953 |
|
|
|
5,335 |
|
Sales and marketing |
|
87,569 |
|
|
|
66,504 |
|
Research and development |
|
8,573 |
|
|
|
6,459 |
|
General and administrative |
|
5,596 |
|
|
|
4,719 |
|
Acquisition-related |
|
(79 |
) |
|
|
— |
|
Total cost and operating expenses |
|
107,612 |
|
|
|
83,017 |
|
Loss from operations |
|
(3,790 |
) |
|
|
(1,653 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
|
14 |
|
|
|
111 |
|
Other income (expense), net |
|
(25 |
) |
|
|
100 |
|
Total other income (expense), net |
|
(11 |
) |
|
|
211 |
|
Net loss |
$ |
(3,801 |
) |
|
$ |
(1,442 |
) |
Net loss per share, basic and diluted |
$ |
(0.13 |
) |
|
$ |
(0.05 |
) |
Weighted average common shares outstanding, basic and
diluted |
|
28,431 |
|
|
|
26,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts
include stock-based compensation expense, as
follows: |
|
Three Months Ended March 31, |
|
|
2021 |
|
|
2020 |
|
|
(in thousands) |
|
Cost of revenue |
$ |
91 |
|
|
$ |
54 |
|
Sales and marketing |
|
3,391 |
|
|
|
1,695 |
|
Research and development |
|
2,327 |
|
|
|
1,276 |
|
General and
administrative |
|
1,711 |
|
|
|
1,515 |
|
|
$ |
7,520 |
|
|
$ |
4,540 |
|
EVERQUOTE, INC.CONSOLIDATED BALANCE SHEET
DATA
|
March 31, |
|
|
December 31, |
|
|
2021 |
|
|
2020 |
|
|
(in thousands) |
|
Cash and cash equivalents |
$ |
46,886 |
|
|
$ |
42,870 |
|
Working capital |
|
55,107 |
|
|
|
50,554 |
|
Total assets |
|
135,669 |
|
|
|
129,050 |
|
Total liabilities |
|
59,681 |
|
|
|
58,068 |
|
Total stockholders'
equity |
|
75,988 |
|
|
|
70,982 |
|
EVERQUOTE, INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
Three Months Ended March 31, |
|
|
2021 |
|
|
2020 |
|
|
(in thousands) |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net loss |
$ |
(3,801 |
) |
|
$ |
(1,442 |
) |
Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
1,174 |
|
|
|
849 |
|
Stock-based compensation expense |
|
7,520 |
|
|
|
4,540 |
|
Change in fair value of contingent consideration |
|
(79 |
) |
|
|
— |
|
Provision for (recovery of) bad debt |
|
(46 |
) |
|
|
21 |
|
Unrealized foreign currency transaction (gains) losses |
|
15 |
|
|
|
— |
|
Changes in operating assets and liabilities, net of effects
from acquisition: |
|
|
|
|
|
|
|
Accounts receivable |
|
(2,942 |
) |
|
|
(3,462 |
) |
Prepaid expenses and other current assets |
|
172 |
|
|
|
(94 |
) |
Operating lease right-of-use assets |
|
791 |
|
|
|
— |
|
Other assets |
|
(733 |
) |
|
|
(4 |
) |
Accounts payable |
|
(702 |
) |
|
|
3,983 |
|
Accrued expenses and other current liabilities |
|
2,810 |
|
|
|
(489 |
) |
Operating lease liabilities |
|
(638 |
) |
|
|
— |
|
Deferred revenue |
|
(57 |
) |
|
|
76 |
|
Other long-term liabilities |
|
36 |
|
|
|
(51 |
) |
Net cash provided by operating activities |
|
3,520 |
|
|
|
3,927 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
Acquisition of property and
equipment, including costs capitalized for development of
internal-use software |
|
(777 |
) |
|
|
(885 |
) |
Net cash used in investing activities |
|
(777 |
) |
|
|
(885 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Proceeds from exercise of
stock options |
|
1,272 |
|
|
|
1,364 |
|
Net cash provided by financing activities |
|
1,272 |
|
|
|
1,364 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
1 |
|
|
|
— |
|
Net increase in cash,
cash equivalents and restricted cash |
|
4,016 |
|
|
|
4,406 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
43,120 |
|
|
|
46,304 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
47,136 |
|
|
$ |
50,710 |
|
EVERQUOTE, INC.FINANCIAL AND OPERATING
METRICS
Revenue by vertical:
|
Three Months Ended March 31, |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
% |
|
|
(in thousands) |
|
|
|
|
|
Automotive |
$ |
84,481 |
|
|
$ |
67,641 |
|
|
|
24.9 |
% |
Other |
|
19,341 |
|
|
|
13,723 |
|
|
|
40.9 |
% |
Total Revenue |
$ |
103,822 |
|
|
$ |
81,364 |
|
|
|
27.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other financial and non-financial metrics:
|
Three Months Ended March 31, |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
% |
|
|
(in thousands) |
|
|
|
|
|
Loss from operations |
$ |
(3,790 |
) |
|
$ |
(1,653 |
) |
|
|
129.3 |
% |
Net loss |
$ |
(3,801 |
) |
|
$ |
(1,442 |
) |
|
|
163.6 |
% |
Quote requests |
|
7,720 |
|
|
|
7,392 |
|
|
|
4.4 |
% |
Variable Marketing Margin |
$ |
31,438 |
|
|
$ |
23,815 |
|
|
|
32.0 |
% |
Adjusted EBITDA(1) |
$ |
4,800 |
|
|
$ |
3,836 |
|
|
|
25.1 |
% |
(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;
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 March 31, |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(3,801 |
) |
|
$ |
(1,442 |
) |
Stock-based compensation |
|
7,520 |
|
|
|
4,540 |
|
Depreciation and amortization |
|
1,174 |
|
|
|
849 |
|
Acquisition-related |
|
(79 |
) |
|
|
— |
|
Interest income |
|
(14 |
) |
|
|
(111 |
) |
Adjusted EBITDA |
$ |
4,800 |
|
|
$ |
3,836 |
|
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