EverQuote(US:EVER)2025-02-25 21:26Revenue and Income - Total revenue for 2024 was $500.2 million, a 73.7% increase from $287.9 million in 2023, but a 28.8% decrease from $404.1 million in 2022[156]. - Net income for 2024 was $32.2 million, while net losses were $51.3 million in 2023 and $24.4 million in 2022[156]. - Revenue for the year ended December 31, 2024, was $500.2 million, an increase of $212.3 million or 73.7% from $287.9 million in 2023[187]. - The automotive insurance vertical contributed an increase of $218.6 million to revenue, while the home and renters insurance vertical added $11.1 million[187]. - Automotive insurance revenue for 2024 was $446.1 million, representing 89% of total revenue, compared to $227.5 million in 2023[271]. - One customer accounted for 39% of total revenue in 2024, up from 18% in 2023, indicating increased customer concentration risk[263]. - Commission revenue represented less than 10% of total revenue for both 2024 and 2023, and 13% for 2022[268]. Expenses - Total operating expenses for 2024 were $468,439,000, up from $339,896,000 in 2023, primarily driven by increased sales and marketing expenses[248]. - Sales and marketing expenses increased by $147.6 million to $387.7 million in 2024, representing 83.4% of revenue[189]. - Research and development expenses rose to $29.6 million in 2024, an increase of $2.0 million or 7.1% from 2023[191]. - General and administrative expenses increased by $4.0 million to $30.3 million in 2024, accounting for 6.1% of revenue[192]. - Cost of revenue decreased to $20.9 million in 2024, down 6.8% from $22.5 million in 2023, representing 4.2% of revenue[188]. - Advertising expenses for the years ended December 31, 2024, 2023, and 2022 totaled $345.0 million, $187.6 million, and $275.9 million, respectively, indicating a significant increase in 2024 compared to 2023[289]. Cash Flow and Assets - Cash and cash equivalents as of December 31, 2024, were $102.1 million, with an additional $25.0 million available under the revolving line of credit[200]. - Net cash provided by operating activities was $66.6 million in 2024, compared to a cash used of $2.8 million in 2023[205]. - Current assets increased significantly to $171.78 million in 2024 from $69.24 million in 2023, with cash and cash equivalents rising to $102.12 million[246]. - Total assets grew to $210.53 million in 2024, up from $110.93 million in 2023[246]. - The company maintained no outstanding borrowings under its credit facility as of December 31, 2024, indicating no material exposure to interest rate fluctuations[227]. Stock and Equity - Stockholders' equity increased to $135.37 million in 2024, compared to $80.91 million in 2023[246]. - The weighted average common shares outstanding for 2024 were 35,007,000, an increase from 33,350,000 in 2023[248]. - The Company granted 1,302,166 restricted stock units (RSUs) in 2024, with a grant-date fair value of $18.24 per share[329]. - The unvested balance of RSUs as of December 31, 2024, was 2,079,245 shares, with a weighted average grant-date fair value of $15.17[329]. Tax and Deferred Assets - The effective income tax rate for 2024 was 5.4%, compared to (1.1)% in 2023, influenced by a full valuation allowance against net deferred tax assets[333]. - The valuation allowance for deferred tax assets decreased to $48,508,000 in 2024 from $53,948,000 in 2023, primarily due to the use of net operating loss carryforwards[338]. - As of December 31, 2024, the Company had federal net operating loss carryforwards of $70.1 million and state net operating loss carryforwards of $82.5 million[333]. Company Strategy and Operations - The company exited the health insurance vertical in 2023 to focus on core areas and implemented a workforce reduction plan to improve efficiency[155]. - The company plans to increase consumer traffic by leveraging platform features and data assets, while managing advertising spend based on profitability[158]. - The Company operates as a single segment, generating revenue principally from referral fees in its online marketplace for auto and home insurance quotes[286]. Legal and Compliance - The company is currently involved in a civil action regarding alleged breaches of the Equity Purchase Agreement related to its acquisition of certain entities, with unspecified damages sought[351]. - The company has not incurred any material costs from indemnification agreements through December 31, 2024, and does not believe any claims will materially affect its financial position[349].