HomeRenters InsuranceEverQuote (EVER) Up 17% Since Last Earnings Report: Can It Continue?

EverQuote (EVER) Up 17% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for EverQuote (EVER). Shares have added about 17% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is EverQuote due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

EverQuote Q3 Earnings & Revenues Surpass Estimates

EverQuote, Inc. incurred a loss of 40 cents per share in third-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 72 cents. However, the loss was wider than the year-ago quarter’s loss of 20 cents per share.

Total revenues of $55 million beat the Zacks Consensus Estimate by 5.3%. The top line declined 46.7% year over year, primarily attributable to weak performance in both Automotive and Other insurance verticals. Given the prolonged auto insurance downturn, the Automotive insurance vertical’s revenues witnessed a year-over-year decline. However, a streamlined cost structure provided respite.

Behind the Headlines

Revenues from the Automotive insurance vertical were $43.1 million, down 51% year over year. The Zacks Consensus Estimate was pegged at $39.1 million. Our estimate was $38 million. Revenues in the Home and Renters insurance vertical totaled $10.9 million, which increased 51% year over year. The Zacks Consensus Estimate was pegged at $12.9 million.

Revenues in the Other insurance vertical totaled $1 million, which plunged 86.7% year over year.

Total costs and operating expenses decreased 23.1% to $84.4 million, mainly due to lower sales and marketing, general and administrative and research and development. Our estimate was $71.2 million.

EverQuote’s variable marketing margin decreased 39.2% year over year in the quarter under review to $19.4 million. Our estimate was $16.2 million. Adjusted EBITDA was negative $1.9 million versus $2 million earned in the year-ago quarter. Our estimate was negative $5.7 million.

Financial Update

EverQuote exited the third quarter with cash and cash equivalents of $39 million, up from $30.8 million at 2022-end. Total assets were $114 million, down from $156.5 million at 2022-end. Total stockholders’ equity decreased 23.8% to $81.9 million. Cash used in operations was $2 million in the first nine months of 2023 versus an outflow of $10.9 million in the year-ago period.

Q4 Guidance

EverQuote estimates revenues of $47-$52 million, a variable marketing margin of $16.5-$18.5 million and adjusted EBITDA of ($2.5)- ($4.5) million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 16.23% due to these changes.

VGM Scores

At this time, EverQuote has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren’t focused on one strategy, this score is the one you should be interested in.


Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EverQuote has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

EverQuote is part of the Zacks Insurance – Multi line industry. Over the past month, MetLife (MET), a stock from the same industry, has gained 6.5%. The company reported its results for the quarter ended September 2023 more than a month ago.

MetLife reported revenues of $18.24 billion in the last reported quarter, representing a year-over-year change of -23%. EPS of $1.97 for the same period compares with $1.21 a year ago.

For the current quarter, MetLife is expected to post earnings of $2.08 per share, indicating a change of +34.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.7% over the last 30 days.

MetLife has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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