Core Insights - EverQuote (EVER) reported a fourth-quarter 2024 operating net income per share of 33 cents, exceeding the Zacks Consensus Estimate by 83.3% and rebounding from a loss of 19 cents per share in the prior year [1][2] Financial Performance - Total revenues reached $147.5 million, surpassing the Zacks Consensus Estimate by 10% and increasing 164.8% year over year [4] - Revenues in the Automotive insurance vertical surged 200% year over year to $135 million, exceeding the Zacks Consensus Estimate of $121 million [3] - Home and Renters insurance revenues totaled $11.3 million, a 15% increase year over year, but fell short of the Zacks Consensus Estimate of $13.5 million [3] - Revenues in the Other insurance vertical plummeted 74.7% year over year to $0.2 million [3] - Total costs and operating expenses rose 116.7% to $135.4 million, driven by increased sales and marketing, research and development, and general and administrative expenses [4] - Adjusted EBITDA was $18.9 million, a significant improvement from an adjusted EBITDA loss of $0.9 million in the previous year [5] Cash and Assets - EverQuote ended 2024 with cash and cash equivalents of $102.1 million, a 169% increase from the end of 2023 [6] - Total assets grew by 89.9% to $180.5 million, while total stockholders' equity increased 67.3% to $135.4 million [6] - Cash from operations was $66.6 million in 2024, compared to a cash outflow of $2.8 million in the prior year [6] Future Guidance - For Q1 2025, EverQuote estimates revenues between $155 million and $160 million, with a variable marketing margin of $44 million to $46 million, and adjusted EBITDA expected to be between $19 million and $21 million [7]

Core Insights - EverQuote, Inc. is a leading online insurance marketplace that connects consumers with insurance providers, including carriers and agents [2] - The company aims to be the leading growth partner for property and casualty (P&C) insurance providers, leveraging its proprietary data and technology platform [2] Event Announcement - EverQuote will present and host one-on-one investor meetings at the Raymond James Annual Institutional Investors Conference on March 4th, 2025, at 4:35 p.m. ET in Orlando, FL [1] - The conference will feature live audio webcasts and archived replays available on EverQuote's investor relations website [1] Company Information - EverQuote operates a results-driven marketplace that enhances the way insurance providers attract and connect with consumers [2] - For further information, stakeholders can visit EverQuote's investor relations website or follow the company on LinkedIn [3]

Core Insights - EverQuote reported a revenue of $147.46 million for the quarter ended December 2024, marking a significant increase of 164.7% year-over-year [1] - The company's EPS was $0.33, a turnaround from -$0.19 in the same quarter last year, indicating strong earnings growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $134.06 million by 10%, and the EPS surpassed the consensus estimate of $0.18 by 83.33% [1] Performance Metrics - EverQuote's Variable Marketing Margin was $44.02 million, exceeding the average estimate of $39.21 million from six analysts [4] - The Variable Marketing Margin as a percentage of revenue was 29.9%, slightly above the five-analyst average estimate of 29.2% [4] - Automotive revenue reached $135.93 million, significantly higher than the four-analyst average estimate of $120.95 million, reflecting a year-over-year increase of 202.2% [4] - Home and Renters revenue was reported at $11.30 million, which was below the three-analyst average estimate of $13.52 million, but still represented a year-over-year increase of 15% [4] - Other revenue was $0.23 million, falling short of the estimated $0.39 million from two analysts, and showed a substantial decline of 74.8% compared to the previous year [4] Stock Performance - Over the past month, EverQuote's shares have returned +18.2%, contrasting with a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]

Investor Presentation February 2025 Disclaimer This presentation 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 presentation, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forw ...

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]