EverQuote(US:EVER)2025-11-04 21:30Financial Performance - Total revenue for the three months ended September 30, 2025, was $173.9 million, a year-over-year increase of 20.3% from $144.5 million in 2024[96] - Net income for the nine months ended September 30, 2025, was $41.6 million, compared to $19.9 million in 2024, representing a year-over-year increase of 109.5%[96] - Revenue for the nine months ended September 30, 2025, was $497.2 million, an increase of $144.5 million or 41.0% from $352.7 million in the same period of 2024[125] - The company reported a net income of $18.9 million for the three months ended September 30, 2025, compared to $11.6 million for the same period in 2024, reflecting an increase of $7.3 million or 63.1%[122] - Adjusted EBITDA for the three months ended September 30, 2025, was $25.1 million, up from $18.8 million in 2024, reflecting a year-over-year increase of 33.5%[96] - Adjusted EBITDA for the nine months ended September 30, 2025, was $69.5 million, an increase of $30.2 million or 76.8% from $39.3 million in the same period of 2024[121] Revenue Sources - Revenue from auto insurance providers accounted for 90% of total revenue for the nine months ended September 30, 2025, with the two largest auto insurance carrier customers contributing 37% of total revenue[98] - The company generated $157.6 million in revenue from the automotive vertical for the three months ended September 30, 2025, compared to $130.0 million in 2024, marking a 21.3% increase[107] - Direct channels accounted for 85% of total revenue for the three months ended September 30, 2025, compared to 86% in the same period of 2024[123] Expenses - Sales and marketing expenses for the three months ended September 30, 2025, increased to $135.4 million, up $23.6 million or 21.1% from $111.8 million in the same period of 2024[130] - Research and development expenses for the three months ended September 30, 2025, were $7.9 million, a slight decrease of $0.1 million or 1.0% from $8.0 million in the same period of 2024[132] - Research and development expenses increased by $1.3 million, from $21.9 million in 2024 to $23.2 million in 2025, representing a 5.9% increase[134] - General and administrative expenses rose by $3.2 million, from $22.1 million in 2024 to $25.3 million in 2025, a 14.4% increase[136] - Legal settlement expenses for the nine months ended September 30, 2025, totaled $8.2 million, including $7.8 million for litigation settlement costs[137] Cash Flow and Financing - Net cash provided by operating activities was $68.4 million for the nine months ended September 30, 2025, compared to $46.4 million in 2024[150] - A share repurchase program was authorized for up to $50.0 million, with $21.0 million repurchased as of September 30, 2025[148] - During the nine months ended September 30, 2025, net cash used in financing activities was $20.8 million, primarily due to $21.0 million used for share repurchase[154] - As of September 30, 2025, the company had cash and cash equivalents of $145.8 million and $60.0 million available under a revolving line of credit[143] - As of September 30, 2025, there were no outstanding borrowings under the revolving line of credit, indicating no material exposure to interest rate fluctuations[160] Future Outlook - The company expects overall revenue growth in 2025 compared to 2024, driven by increased spending from carrier partners in the automotive and home and renters verticals[107] - The company plans to increase consumer traffic by leveraging platform features and data assets, while also managing advertising spend based on profitability[99] Other Financial Metrics - Cost of revenue for the three months ended September 30, 2025, decreased to $4.7 million, down $0.7 million or 13.5% from $5.5 million in the same period of 2024[126] - The percentage of revenue attributed to cost of revenue for the three months ended September 30, 2025, was 2.7%, down from 3.8% in the same period of 2024[126] - Interest income increased by $0.4 million and $1.2 million for the three and nine months ended September 30, 2025, respectively, due to higher interest earned on cash balances[138] - Variable marketing dollars for the nine months ended September 30, 2025, increased by $31.3 million, from $111.2 million in 2024 to $142.5 million, a 28.2% increase[142] - The remaining purchase commitment for advertising as of September 30, 2025, was $15.5 million, with $3.5 million due in the next twelve months[156] - The company has exposure to foreign currency exchange rate changes due to contracts with foreign vendors and subsidiaries, but this exposure is considered immaterial[161]