EverQuote (EVER – Free Report) reported fourth-quarter 2024 operating net income per share of 33 cents, which beat the Zacks Consensus Estimate by 83.3%. Moreover, the bottom line rebounded from the year-ago quarter’s loss of 19 cents per share.
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The quarterly results reflected solid performances across Automotive insurance and Home and Renters insurance verticals, and increased variable marketing margin, partially offset by higher expenses.
Behind EVER’s Headlines
Revenues in the Automotive insurance vertical increased 200% year over year to $135 million. The Zacks Consensus Estimate was pegged at $121 million.
Revenues in the Home and Renters insurance vertical totaled $11.3 million, which increased 15% year over year. The Zacks Consensus Estimate and our estimate was pegged at $13.5 million.
Revenues in the Other insurance vertical totaled $0.2 million, which plunged 74.7% year over year.
Total revenues of $147.5 million beat the Zacks Consensus Estimate by 10%. The top line surged 164.8% year over year.
Total costs and operating expenses increased 116.7% to $135.4 million, mainly due to higher sales and marketing, research and development costs and general and administrative expenses.
EverQuote’s variable marketing margin increased 110% year over year in the quarter under review to $44 million. The Zacks Consensus Estimate was pegged at $39.2 million.
Adjusted EBITDA was $18.9 million against the year-ago quarter’s adjusted EBITDA loss of $0.9 million.
Financial Update
EverQuote exited 2024 with cash and cash equivalents of $102.1 million, up 169% from 2023 end. Total assets were $180.5 million, up 89.9% from 2023 end.
Total stockholders’ equity increased 67.3% to $135.4 million.
Cash from operations was $66.6 million in 2024 versus cash outflow of $2.8 million.
Q1 2025 Guidance
EverQuote estimates revenues in the range of $155-$160 million and a variable marketing margin in the band of $44-$46 million. The company expects adjusted EBITDA between $19 million and $21 million.
Zacks Rank
EVER currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies (TRV – Free Report) reported fourth-quarter 2024 core income of $9.15 per share, which beat the Zacks Consensus Estimate by 39.3% and improved 30.5% year over year. Travelers’ total revenues increased 10.4% from the year-ago quarter to $11.9 billion. The top-line figure beat the Zacks Consensus Estimate by 1%.
Net written premiums increased 7% year over year to a record $10.7 billion, driven by strong growth across all three segments. Our estimate was $10.8 billion. The Zacks Consensus Estimate was pegged at $926 million. TRV witnessed an underwriting gain of $1.4 billion, up 30.5% year over year. The consolidated underlying combined ratio of 84% improved 190 bps year over year.
RLI Corp. (RLI – Free Report) reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income. The top line matched the Zacks Consensus Estimate.
Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4%. The Zacks Consensus Estimate for the metric was pegged at 96%, while our estimate was 102%.
W.R. Berkley Corporation’s (WRB – Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. Operating revenues were $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.
W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2%. The Zacks Consensus Estimate was 91%.
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.