EverQuote (EVER) Q2 Earnings Top on Solid Automotive Revenues

Core Insights - EverQuote, Inc. reported a significant rebound in its second-quarter 2024 operating net income per share, reaching 17 cents, which exceeded the Zacks Consensus Estimate by 325% and improved from a loss of 40 cents per share in the same quarter last year [1] - Total revenues for the quarter were $117 million, surpassing the Zacks Consensus Estimate by 13.6% and reflecting a year-over-year increase of 72.3% [1] Revenue Breakdown - Revenues from the Automotive insurance vertical doubled year over year to $102.6 million, significantly exceeding the Zacks Consensus Estimate of $85 million [3] - Home and Renters insurance revenues totaled $13.9 million, marking a 29.5% year-over-year increase and beating the Zacks Consensus Estimate of $13.2 million [3] - Revenues in the Other insurance vertical fell sharply by 91.6% year over year to $0.63 million, missing the Zacks Consensus Estimate of $0.84 million [4] Expense and Margin Analysis - Total costs and operating expenses rose by 36.2% to $110.8 million, primarily due to increased sales and marketing, as well as general and administrative expenses [4] - EverQuote's variable marketing margin increased by 47.9% year over year to $36.4 million, contrasting with previous estimates [5] Financial Position - At the end of the second quarter, EverQuote had cash and cash equivalents of $60.9 million, a 60.4% increase from the end of 2023 [6] - Total assets grew by 42.4% to $157.9 million, while total stockholders' equity increased by 24.6% to $100.8 million [6] - Cash from operations surged more than three-fold year over year to $12.4 million [6] Future Guidance - For the third quarter, EverQuote estimates revenues between $137 million and $143 million, with a variable marketing margin projected between $38.5 million and $41.5 million [7] - The company expects adjusted EBITDA to be in the range of $14 million to $17 million [7] Market Position - EverQuote currently holds a Zacks Rank 1 (Strong Buy), indicating a favorable outlook in the market [8]