Yahoo Finance EverQuote (EVER) Q4 Earnings Beat on Lower Operating Expense
EverQuote, Inc. EVER incurred a net loss of 26 cents per share in fourth-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 27 cents. The bottom line was also narrower than the year-ago quarter’s loss of 29 cents per share.
EverQuote witnessed lower revenues from the Automotive and Other insurance verticals offset by lower expenses. High cost of claim issues resulting from supply-chain challenges showed signs of stability this year as signaled by lower expenses. Moreover, the company is raising rates continuously, fueling top-line growth in the coming years.
EverQuote, Inc. Price, Consensus and EPS Surprise
EverQuote, Inc. price-consensus-eps-surprise-chart | EverQuote, Inc. Quote
Behind the Headlines
Total revenues of $88.3 million missed the Zacks Consensus Estimate by 2.09%. The top line declined 13.5% year over year, primarily attributable to a weak performance in the Automotive and Other insurance verticals.
Revenues in the Automotive insurance vertical were $67.2 million, down 4.6% year over year. Revenues in the Other insurance vertical totaled $21.1 million, which decreased 33.3% year over year.
Total costs and operating expenses decreased 12.2% to $96.9 million, mainly due to lower costs of revenues, sales and marketing and research and development.
EverQuote’s Variable Marketing margin decreased 11.6% year over year in the quarter under review to $29.1 million. Adjusted EBITDA was $0.1 million, which decreased 83.1% year over year.
Financial Update
EverQuote exited 2022 with cash and cash equivalents of $30.8 million, down 12.1% from 2021-end. Total assets were $156.5 million, up 9% year over year. Total stockholders' equity increased 26.3% to $107.4 million.
Cash used in operations was $4.9 million compared with $6.8 million in the year-ago quarter.
Full-Year Highlights
Net loss per share in 2022 came in at 77 cents per share, up from 67 cents at 2021-end.
Revenues for the year totaled $404.1 million, down from $418.5 million at 2021-end.
Variable Marketing Margin totaled $128.3 million, a decrease of 1% from 2021-end.
Adjusted EBITDA for 2022 saw a sharp decline of 59.4% to $5.9 million.
Q1 2023 Guidance
EverQuote estimates revenues in the range of $101-$105 million, variable marketing margin of $31.5-$33.5 million and adjusted EBITDA in the band of $2-$4 million.
2023 Full-Year Guidance
EverQuote expects revenues of $420-$435 million, an increase of 4% from 2022.
The company expects a variable marketing margin of $132-$140 million, an increase of 2.8% from 2022-end.
EverQuote expects an adjusted EBITDA from $7 to $13 millioncompared with the reported figure of $5.9 million at 2022-end.
Zacks Rank
EverQuote currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Multi-Line Insurers
Some of the insurance industry players that have reported fourth-quarter results so far are The Hartford Financial Services Group, Inc. HIG, Assurant, Inc. AIZ and Radian Group Inc. RDN, which beat the respective Zacks Consensus Estimate for earnings.
Hartford Financial reported fourth-quarter 2022 adjusted operating earnings of $2.31 per share, which beat the Zacks Consensus Estimate by 24.2%. The bottom line advanced 14% year over year. Operating revenues of HIG improved 8.4% year over year to $4,007 million in the quarter under review. The top line also beat the consensus mark by 3.6%. Net earned premiums of $5,019 million rose 8.4% year over year in the fourth quarter. The net investment income climbed 11.7% year over year to $640 million.
Assurant’s fourth-quarter 2022 net operating income of $3.23 per share beat the Zacks Consensus Estimate by 24.7%. The bottom line increased 15% from the year-ago quarter. Total revenues were up 3.7% year over year to $2.7 billion. The top line beat the Zacks Consensus Estimate by 1.2%. AIZ’s net earned premiums of $2.3 billion climbed 4% year over year. Net investment income increased 29.2% year over year to $102.3 million.
Radian Group reported a fourth-quarter 2022 adjusted operating income of $1.05 per share, which beat the Zacks Consensus Estimate by 20.6%. The bottom line decreased 1.8% year over year. Operating revenues decreased 8.2% year over year to $307.9 million. Net premiums earned by RDN were $232.8 million, down 10.9% year over year. Net investment income increased 58% year over year to $59 million.
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The Hartford Financial Services Group, Inc. (HIG) : Free Stock Analysis Report
Assurant, Inc. (AIZ) : Free Stock Analysis Report
Radian Group Inc. (RDN) : Free Stock Analysis Report
EverQuote, Inc. (EVER) : Free Stock Analysis Report
