- First Quarter Revenue of
$91.1 million - First Quarter Variable Marketing Margin of
$30.8 million - First Quarter Record GAAP Net Income of
$1.9 million and Adjusted EBITDA of$7.6 million
“We had a strong start to 2024, delivering first quarter results that exceeded the high end of our guidance range for revenue, Variable Marketing Margin, or VMM, and Adjusted EBITDA,” said
“In the first quarter, we achieved record levels of net income, Adjusted EBITDA and operating cash flow, as we started to realize the benefits of actions taken in 2023 to realign the business,” said
First Quarter 2024 Highlights:
(Unless otherwise noted, all comparisons are relative to the first quarter of 2023.
- Total revenue of
$91.1 million , a decrease of 17%. - Automotive insurance vertical revenue of
$77.5 million , a decrease of 14%. - Home and renters insurance vertical revenue of
$12.7 million , up 34%. - VMM of
$30.8 million , representing 34% of total revenue, compared to 33%. - GAAP net income improved to
$1.9 million , compared to a GAAP net loss of$2.5 million . - Adjusted EBITDA increased to
$7.6 million , compared to Adjusted EBITDA of$5.4 million . - Cash flow from operations of
$10.4 million , compared to a negative cash flow from operations of ($1.2 million ). - Ended the quarter with
$48.6 million in cash and cash equivalents, an increase of 28% from$38.0 million at the end of the fourth quarter of 2023.
Second Quarter 2024 Outlook:
- Revenue of
$100.0 –$105.0 million . - Variable Marketing Margin of
$31.0 –$33.0 million . - Adjusted EBITDA of
$7.0 –$9.0 million .
With respect to the Company’s expectations under “Second Quarter 2024 Outlook” 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, restructuring and other charges, 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
Safe Harbor Statement
This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expects,” “might,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “seek,” “would” or “continue,” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, liquidity and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions described in our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K as filed with the
About
For more information, visit everquote.com and follow on LinkedIn https://www.linkedin.com/company/everquote/.
Investor Relations Contact
Brinlea Johnson
(415) 489-2193
| STATEMENTS OF OPERATIONS | ||||||||
| Three Months Ended |
||||||||
| 2024 | 2023 | |||||||
| (in thousands except per share) | ||||||||
| Revenue | $ | 91,065 | $ | 109,220 | ||||
| Cost and operating expenses(1): | ||||||||
| Cost of revenue | 5,041 | 5,770 | ||||||
| Sales and marketing | 70,784 | 90,237 | ||||||
| Research and development | 6,844 | 7,927 | ||||||
| General and administrative | 6,630 | 7,830 | ||||||
| Acquisition-related costs | — | (113 | ) | |||||
| Total cost and operating expenses | 89,299 | 111,651 | ||||||
| Income (loss) from operations | 1,766 | (2,431 | ) | |||||
| Other income (expense): | ||||||||
| Interest income | 386 | 187 | ||||||
| Other income, net | 41 | 1 | ||||||
| Total other income, net | 427 | 188 | ||||||
| Income (loss) before income taxes | 2,193 | (2,243 | ) | |||||
| Income tax expense | (286 | ) | (286 | ) | ||||
| Net income (loss) | $ | 1,907 | $ | (2,529 | ) | |||
| Net income (loss) per share: | ||||||||
| Basic | $ | 0.06 | $ | (0.08 | ) | |||
| Diluted | $ | 0.05 | $ | (0.08 | ) | |||
| Weighted average common shares outstanding: | ||||||||
| Basic | 34,387 | 32,892 | ||||||
| Diluted | 35,608 | 32,892 | ||||||
| (1) Amounts include stock-based compensation expense, as follows: | ||||||||
| Three Months Ended |
||||||||
| 2024 | 2023 | |||||||
| (in thousands) | ||||||||
| Cost of revenue | $ | 36 | $ | 54 | ||||
| Sales and marketing | 1,594 | 2,273 | ||||||
| Research and development | 1,312 | 2,374 | ||||||
| General and administrative | 1,576 | 1,808 | ||||||
| $ | 4,518 | $ | 6,509 | |||||
| BALANCE SHEET DATA | ||||||||
| 2024 | 2023 | |||||||
| (in thousands) | ||||||||
| Cash and cash equivalents | $ | 48,620 | $ | 37,956 | ||||
| Working capital | 48,624 | 39,293 | ||||||
| Total assets | 135,401 | 110,925 | ||||||
| Total liabilities | 47,078 | 30,018 | ||||||
| Total stockholders’ equity | 88,323 | 80,907 | ||||||
| STATEMENTS OF CASH FLOWS | ||||||||
| Three Months Ended |
||||||||
| 2024 | 2023 | |||||||
| (in thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 1,907 | $ | (2,529 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization expense | 1,263 | 1,407 | ||||||
| Stock-based compensation expense | 4,518 | 6,509 | ||||||
| Change in fair value of contingent consideration liabilities | — | (113 | ) | |||||
| Provision for bad debt | 18 | 245 | ||||||
| Unrealized foreign currency transaction (gains) losses | (4 | ) | 9 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (17,123 | ) | (9,827 | ) | ||||
| Prepaid expenses and other current assets | 972 | 1,709 | ||||||
| Commissions receivable, current and non-current | 1,323 | 595 | ||||||
| Operating lease right-of-use assets | 497 | 688 | ||||||
| Other assets | — | 36 | ||||||
| Accounts payable | 15,868 | 4 | ||||||
| Accrued expenses and other current liabilities | 1,870 | 852 | ||||||
| Deferred revenue | (2 | ) | 80 | |||||
| Operating lease liabilities | (667 | ) | (902 | ) | ||||
| Net cash provided by (used in) operating activities | 10,440 | (1,237 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Acquisition of property and equipment, including costs capitalized for development of internal-use software | (770 | ) | (1,007 | ) | ||||
| Net cash used in investing activities | (770 | ) | (1,007 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of stock options | 1,428 | 287 | ||||||
| Tax withholding payments related to net share settlement | (429 | ) | (130 | ) | ||||
| Net cash provided by financing activities | 999 | 157 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5 | ) | 5 | |||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 10,664 | (2,082 | ) | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 37,956 | 30,835 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 48,620 | $ | 28,753 | ||||
| FINANCIAL AND OPERATING METRICS | ||||||||||||
| Revenue by vertical: | ||||||||||||
| Three Months Ended |
Change | |||||||||||
| 2024 | 2023 | % | ||||||||||
| (in thousands) | ||||||||||||
| Automotive | $ | 77,538 | $ | 89,699 | -13.6 | % | ||||||
| Home and Renters | 12,689 | 9,456 | 34.2 | % | ||||||||
| Other | 838 | 10,065 | -91.7 | % | ||||||||
| Total Revenue | $ | 91,065 | $ | 109,220 | -16.6 | % | ||||||
| Other financial and non-financial metrics: | ||||||||||||
| Three Months Ended |
Change | |||||||||||
| 2024 | 2023 | % | ||||||||||
| (in thousands) | ||||||||||||
| Income (loss) from operations | $ | 1,766 | $ | (2,431 | ) | -172.6 | % | |||||
| Net income (loss) | $ | 1,907 | $ | (2,529 | ) | -175.4 | % | |||||
| Variable Marketing Margin | $ | 30,818 | $ | 35,593 | -13.4 | % | ||||||
| Adjusted EBITDA(1) | $ | 7,588 | $ | 5,373 | 41.2 | % | ||||||
| (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; restructuring and other charges; 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.
| RECONCILIATION OF NON-GAAP MEASURES TO GAAP | ||||||||
| Three Months Ended |
||||||||
| 2024 | 2023 | |||||||
| (in thousands) | ||||||||
| Net income (loss) | $ | 1,907 | $ | (2,529 | ) | |||
| Stock-based compensation | 4,518 | 6,509 | ||||||
| Depreciation and amortization | 1,263 | 1,407 | ||||||
| Acquisition-related costs | — | (113 | ) | |||||
| Interest income | (386 | ) | (187 | ) | ||||
| Income tax expense | 286 | 286 | ||||||
| Adjusted EBITDA | $ | 7,588 | $ | 5,373 | ||||
Source:
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.