Financial Data and Key Metrics Changes - In 2024, EverQuote achieved a revenue growth of 74%, surpassing $500 million for the first time, and adjusted EBITDA reached nearly $60 million [11][30] - The company reported record net income of $12.3 million in Q4 2024, with full-year net income increasing to $32.2 million, compared to a loss of $51.3 million in 2023 [30] - Adjusted EBITDA for the full year increased to $58.2 million, compared to $500,000 in 2023, with adjusted EBITDA as a percentage of revenues remaining at approximately 13% [30][31] Business Line Data and Key Metrics Changes - Revenue from the auto insurance vertical in Q4 was $135.9 million, up over 200% year-over-year, with full-year revenue growing 96% to $446 million [27] - The agency operations segment grew 65% year-over-year in Q4 [27] - Revenue from the home and renters' insurance vertical was $11.3 million in Q4, up 15% year-over-year, with full-year revenue reaching $52 million, a 27% increase [27] Market Data and Key Metrics Changes - The auto insurance market has seen a recovery, with many carriers restoring campaigns and achieving underwriting profitability [17][70] - The homeowners' insurance market is also beginning to recover, indicating growing carrier demand [18][70] - The regulatory landscape has shifted positively for the company, as the one-to-one consent requirement was vacated, allowing for more flexibility in operations [19][66] Company Strategy and Development Direction - EverQuote aims to become the number one growth partner to P&C insurance providers by delivering better-performing referrals, larger traffic scale, and a broader suite of products and services [20][22] - The company plans to invest in technology and data assets to enhance operational efficiencies and build a competitive moat [36][37] - There is a focus on expanding into non-auto verticals and developing deeper relationships with local agents [102][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to leverage traffic expertise and technology to support insurance providers in growing their businesses [38] - The outlook for the auto insurance industry remains positive, with expectations of continued growth in digital advertising spend [33] - Management anticipates a normalization of revenue growth rates after a strong Q1, aligning with the overall market trends [34][95] Other Important Information - The company ended 2024 with over $100 million in cash and no debt, indicating a strong balance sheet [11][31] - Cash operating expenses remained stable at $25.1 million in Q4, with expectations for a slight increase in the back half of 2025 due to investments in technology [31][144] Q&A Session Summary Question: Guidance and Market Growth - The management discussed expectations for revenue growth to normalize after a strong Q1, with a focus on long-term growth rates [41][95] Question: Traffic Operations and Investments - Management highlighted improvements in traffic bidding platforms and operational rigor as key factors driving success in traffic operations [49][51] Question: One-to-One Consent Changes - The rationale for maintaining some one-to-one consent changes was to enhance lead quality and improve consumer experience [58][61] Question: Feedback from Carriers - Management noted that most carriers are focused on growth and have returned to healthy underwriting profitability [70][71] Question: Capital Allocation and M&A - The company is considering organic investments, potential acquisitions, and shareholder value enhancement strategies, including buybacks [80][86] Question: Free Cash Flow Outlook - Adjusted EBITDA is expected to be a good proxy for operating cash flow, with minor fluctuations anticipated [138] Question: Impact of FCC Rule Change on Expenses - Cash operating expenses are expected to remain stable, with slight increases anticipated as investments in technology ramp up [144]

Financial Data and Key Metrics Changes - In 2024, the company achieved revenue growth of 74%, surpassing $500 million for the first time, and adjusted EBITDA reached nearly $60 million [10][29] - The fourth quarter revenue was $147.5 million, up 165% year-over-year and 2% sequentially, driven by a nearly 500% increase in enterprise carrier spending [25][30] - Record net income of $12.3 million was reported for Q4, with full-year net income increasing to $32.2 million, compared to a loss of $51.3 million in 2023 [29][30] - Adjusted EBITDA for Q4 was a record $18.9 million, improving from a loss of $900,000 in the prior year period [29] Business Line Data and Key Metrics Changes - Revenue from the auto insurance vertical in Q4 was $135.9 million, up over 200% year-over-year, with full-year revenue growing 96% to $446 million [26] - The local agent business achieved 65% year-over-year growth in Q4, contributing to a strong foundation for sustained growth [11] - Revenue from the home and renters' insurance vertical was $11.3 million in Q4, up 15% year-over-year, with full-year revenue reaching $52 million, a 27% increase [26] Market Data and Key Metrics Changes - The auto insurance market has returned to broad-based healthy underwriting profitability, with most carriers restoring campaigns and healthy budgets [16][71] - The homeowners' insurance market is beginning to see a return to healthy underlying combined ratios, indicating growing carrier demand [17] Company Strategy and Development Direction - The company aims to become the number one growth partner to P&C insurance providers by delivering better-performing referrals, larger traffic scale, and a broader suite of products and services [19][21] - Investments in technology and AI capabilities are prioritized to improve existing offerings and develop new products for insurance providers [35][111] - The company plans to broaden its portfolio beyond auto insurance to include ancillary products and services, enhancing relationships with local agents [101][113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable market backdrop and the company's ability to leverage its traffic expertise and technology for growth [20][37] - The company anticipates revenue growth rates to normalize after Q1 2025, as auto insurance premiums are expected to return to more normalized levels [32][34] - Management emphasized the importance of maintaining a disciplined approach to investments while balancing operating expenses to sustain adjusted EBITDA margins [36][116] Other Important Information - The company ended 2024 with over $100 million in cash and no debt, reflecting a strong balance sheet [10][30] - The decision to maintain certain one-to-one consent changes is expected to enhance lead quality and improve customer experience [60][68] Q&A Session Summary Question: Guidance and Premium Growth - The company expects growth to normalize after a strong Q1, with a focus on long-term growth rates and seasonal patterns [40][45] Question: Traffic Operations and Investments - The company highlighted improvements in operational rigor and the effectiveness of its ML-based traffic bidding platform as key drivers of success [50][51] Question: One-to-One Consent Changes - Management explained that maintaining some one-to-one consent changes improves lead quality and aligns with the company's strategy [58][60] Question: Carrier Feedback and Profitability - Management noted a convergence in growth focus between agent-led channels and direct carriers, with a return to healthy underwriting profitability across the board [70][71] Question: Capital Allocation and M&A - The company is focused on organic investments and remains open to M&A opportunities that align with its P&C strategy [80][84] Question: Free Cash Flow Outlook - Adjusted EBITDA is expected to be a good proxy for operating cash flow, with modest tax considerations in 2025 [138][140] Question: Impact of FCC Rule Change on Expenses - Cash operating expenses are expected to remain stable, with slight increases anticipated in the second half of the year due to new technology investments [145][146]

Earnings Performance - EverQuote reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, compared to a loss of $0.19 per share a year ago, representing an earnings surprise of 83.33% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] Revenue Performance - EverQuote posted revenues of $147.46 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10%, and showing a significant increase from year-ago revenues of $55.71 million [2] - The company has also topped consensus revenue estimates for four consecutive quarters [2] Stock Performance and Outlook - EverQuote shares have increased approximately 3.9% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] - The company's earnings outlook is favorable, with a current consensus EPS estimate of $0.16 on $139.91 million in revenues for the coming quarter and $0.81 on $578.44 million in revenues for the current fiscal year [7] Industry Context - The Insurance - Multi line industry, to which EverQuote belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Revenue Growth - Total revenue for 2024 reached $500.2 million, representing a 74% increase year-over-year[6] - Fourth quarter revenue grew by 165% year-over-year to $147.5 million, with automotive insurance vertical revenue increasing over 200% to $135.9 million[7][8] - Total revenue for Q4 2024 reached $55,705, a 164.7% increase from $147,455 in Q4 2023[24] - Total revenue for the year 2024 was $500,190, a 73.7% increase from $287,921 in 2023[24] Profitability - Full year net income increased to $32.2 million, compared to a net loss of $51.3 million in 2023[12] - Net income for Q4 2024 was $12,306, compared to a net loss of $6,348 in Q4 2023, representing a significant turnaround[24] - Year-to-date net income for 2024 was $32,169, compared to a net loss of $51,287 for the entire year of 2023[24] Adjusted EBITDA - Adjusted EBITDA for the fourth quarter was $18.9 million, compared to a loss of $0.9 million in the same quarter of 2023[8] - Adjusted EBITDA for Q4 2024 was $18,916, compared to a loss of $886 in Q4 2023, indicating strong operational performance[30] Cash Flow and Liquidity - Operating cash flow for the full year was $66.6 million, compared to a cash outflow of $2.8 million in 2023[12] - The company ended the fourth quarter with $102.1 million in cash and cash equivalents, a 23% increase from $82.8 million at the end of Q3 2024[8] - Cash provided by operating activities for Q4 2024 was $20,134, a significant improvement from cash used of $792 in Q4 2023[22] - Cash, cash equivalents, and restricted cash at the end of Q4 2024 totaled $102,116, up from $37,956 at the end of Q4 2023[22] Marketing and Investment - Variable Marketing Dollars (VMD) for the fourth quarter increased over 110% year-over-year to $44.0 million, and full year VMD grew by 55% to $155.2 million[7][12] - Variable marketing dollars increased to $44,023 in Q4 2024, up 113.0% from $20,668 in Q4 2023[24] - The company plans to continue strategic investments in technology to enhance product offerings and support insurance provider customers[4] - EverQuote aims to leverage its traffic expertise and data assets to drive profitable growth into 2025 and beyond[4] Future Guidance - The first quarter 2025 revenue guidance is projected to be between $155.0 million and $160.0 million, representing approximately 73% year-over-year growth at the midpoint[12] Accounts Payable - The company reported a significant increase in accounts payable, which rose to $12,961 in Q4 2024 from a decrease of $3,382 in Q4 2023[22]

Core Insights - EverQuote, Inc. reported a significant financial performance in 2024, achieving a revenue growth of 74% year-over-year, surpassing $500 million for the first time, and generating an Adjusted EBITDA of nearly $60 million [2][6][7] - The company aims to be the leading growth partner for property and casualty (P&C) insurance providers, focusing on delivering better-performing referrals and a broader suite of products and services [2][13] - EverQuote's strong momentum is expected to continue into 2025, with strategic investments planned to enhance its technology platform [2][6] Fourth Quarter 2024 Highlights - Total revenue for Q4 2024 reached $147.5 million, marking a 165% increase year-over-year [6][7] - Variable Marketing Dollars (VMD) increased over 110% year-over-year to $44.0 million [6][7] - The company reported a net income of $12.3 million and an Adjusted EBITDA of $18.9 million for the fourth quarter [6][7] Full Year 2024 Highlights - Total revenue for the full year 2024 was $500.2 million, a 74% increase compared to 2023 [7][6] - Automotive insurance vertical revenue grew by 96% to $446.1 million, while home and renters insurance revenue increased by 27% to $52.0 million [7][6] - The company achieved a net income of $32.2 million, a significant turnaround from a net loss of $51.3 million in 2023 [7][6] First Quarter 2025 Outlook - The company anticipates revenue between $155.0 million and $160.0 million for Q1 2025, representing a 73% year-over-year growth at the midpoint [5][11] - Expected VMD for Q1 2025 is projected to be between $44.0 million and $46.0 million, indicating a 46% year-over-year growth at the midpoint [11] Financial Metrics - Operating cash flow for the full year 2024 was $66.6 million, compared to a cash outflow of $2.8 million in 2023 [7][6] - The company ended Q4 2024 with $102.1 million in cash and cash equivalents, a 23% increase from the previous quarter [7][6] - Total assets as of December 31, 2024, were $210.5 million, with total liabilities of $75.2 million [19]

Core Insights - Return on equity (ROE) is a key profitability metric favored by investors, measuring earnings generated from equity [1] - Advanced analysis of ROE through DuPont analysis can provide deeper insights into a company's financial condition by breaking down ROE into profit margin, asset turnover ratio, and equity multiplier [2][3] DuPont Analysis - DuPont analysis allows investors to assess the components affecting ROE, helping to differentiate between companies with high margins and those with high turnover [3] - It also highlights a company's leverage status, indicating that a high ROE could be misleading if it results from excessive debt [4] Screening Parameters - Key screening parameters for identifying strong stocks include: - Profit Margin of 3% or higher, indicating profitable business operations [6] - Asset Turnover Ratio of 2 or higher, reflecting management efficiency in asset utilization [6] - Equity Multiplier between 1 and 3, showing the extent of debt used to finance assets [6] - Zacks Rank of 1 (Strong Buy) or 2 (Buy), suggesting better performance compared to peers [7] - Current Price above $5 to filter out low-priced stocks [7] Stock Examples - WalMart de Mexico (Zacks Rank 2) operates 587 commercial units and has an expected EPS growth of 8.23% over the next 3-5 years [7][8] - EverQuote (Zacks Rank 1) operates an online marketplace for various insurance products, reporting an average earnings surprise of 149.6% over the past four quarters and holds a top Growth Score of A [8]

Core Viewpoint - EverQuote, Inc. will report its fourth quarter and full year 2024 financial results on February 24, 2025, and will host a conference call to discuss these results and the company's outlook [1][2]. Company Overview - EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with insurance providers, including carriers and agents [3]. - The company's vision is to be the leading growth partner for property and casualty (P&C) insurance providers, utilizing a results-driven marketplace powered by proprietary data and technology [3]. Conference Call Details - The conference call will take place on February 24, 2025, at 4:30 p.m. ET, with a live call available for participants [2]. - The US toll-free number for the call is (800) 715-9871, and for all other participants, it is +1 (646) 307-1963, with a conference ID of 4210704 [2]. - A live webcast will also be available on the company's investor relations website [2].

Core Insights - EverQuote (EVER) shares increased by 18.9% to close at $20.89, following a notable trading volume, contrasting with a 10.7% loss over the past four weeks [1] - The company is expected to leverage its exclusive data assets, technology, and a strong financial profile for long-term growth [1][2] Financial Performance - EverQuote anticipates quarterly earnings of $0.18 per share, reflecting a year-over-year increase of 194.7%, with revenues projected at $134.06 million, up 140.6% from the previous year [3] - The consensus EPS estimate for EverQuote has remained stable over the last 30 days, indicating potential for continued stock strength [4] Market Position - EverQuote is positioned to benefit from the shift towards online insurance sales and is focused on increasing consumer traffic and channel additions [2] - The company holds a Zacks Rank of 1 (Strong Buy), indicating positive market sentiment [4]

Core Viewpoint - EverQuote, Inc. (EVER) is trading at a premium compared to the Zacks Multiline Insurance industry, with a price-to-book value of 5.69X against the industry average of 2.3X [1] Company Performance - EverQuote has a market capitalization of $669 million and an average trading volume of 0.5 million shares over the last three months [1] - EVER shares have gained 2.8% in the past month, outperforming its industry, sector, and the Zacks S&P 500 composite [4] - The shares are trading well above the 50-day moving average, indicating a bullish trend [7] Financial Metrics - Return on equity (ROE) for the trailing 12 months is 13.9%, which is lower than the industry average of 15.3% [8] - Return on invested capital (ROIC) for the trailing 12 months is 13.7%, significantly higher than the industry average of 2.4% [8] Growth Factors - Despite a prolonged downturn in auto insurance affecting revenues, EverQuote is positioned to benefit from the recovery in auto carrier demand [10] - The company aims to increase consumer traffic by expanding advertising channels and leveraging its data assets [11] - Variable marketing margin (VMM) is improving, with expectations of strong revenue growth during the annual health open enrollment period [12] Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings has increased by 3 cents in the past 30 days, with an expected earnings of 80 cents, reflecting a 10.7% increase on revenues of $578 million, which is 18.8% higher [13] - The average price target for EVER is $32.17 per share, suggesting a potential upside of 69.9% from the recent closing price [14] Long-term Outlook - EverQuote is expected to benefit from its exclusive data assets, technology, and a strong financial profile, positioning it for long-term growth [15]

Market Performance - U.S. stock markets experienced significant rallies in 2023 and 2024, with the S&P 500 rising 24.2% in 2023 and 23.3% in 2024. The Dow and Nasdaq Composite also saw increases of 12.9% and 28.6% respectively in 2024, following gains of 13.7% and 43.4% in 2023 [1][2]. Sector Analysis - The technology sector, particularly generative AI-centric stocks, largely drove the market rally over the past two years, while small-cap stocks showed relatively subdued performance, as indicated by the Russell 2000 index, which rose 12.9% in 2023 and 10% in 2024 [2]. Investment Recommendations - Due to the overstretched valuations of large-cap stocks, there is a potential shift in market preference towards small-cap stocks. Recommendations include five small-cap stocks with favorable Zacks Rank and strong growth potential for 2025: Travelzoo (TZOO), EverQuote Inc. (EVER), Lindblad Expeditions Holdings Inc. (LIND), Rigel Pharmaceuticals Inc. (RIGL), and Graham Corp. (GHM) [3][10]. Small Business Environment - Small businesses have faced significant challenges since the COVID-19 pandemic, including demand issues and supply chain disruptions. The implementation of tariffs on foreign products aims to strengthen U.S. industries and support small businesses by making imported goods more expensive [4][5][6]. Economic Indicators - The Federal Reserve's reduction of the benchmark interest rate by 1% in 2024 to a range of 4.25-4.5% is expected to benefit small businesses, which typically rely on affordable credit. The Fed has indicated potential further rate cuts in 2025 [8]. Small Business Optimism - The National Federation of Independent Business (NFIB) small business optimization index reached 101.7 in November, surpassing the 50-year average of 98 for the first time in 34 months [9]. Company-Specific Insights - **Travelzoo (TZOO)**: Expected revenue and earnings growth rates of 14.6% and 10.8% for 2025, with a price target indicating a maximum upside of 73.4% [12][13]. - **EverQuote Inc. (EVER)**: Anticipated revenue and earnings growth rates of 18.8% and 10.7% for 2025, with a price target suggesting a maximum upside of 100.7% [14][15]. - **Lindblad Expeditions Holdings Inc. (LIND)**: Expected revenue and earnings growth rates of 10.2% and 93.1% for 2025, with a price target indicating a maximum upside of 53.2% [16][18]. - **Rigel Pharmaceuticals Inc. (RIGL)**: Projected revenue and earnings growth rates of 14.7% and over 100% for 2025, with a price target suggesting a maximum upside of 250.8% [19][21]. - **Graham Corp. (GHM)**: Expected revenue and earnings growth rates of 11.9% and over 100% for the current year, with a price target indicating a maximum upside of 20.4% [22][23][24].