Stock Story -
Online insurance comparison site EverQuote (NASDAQ:EVER) announced better-than-expected results in Q2 CY2024, with revenue up 72.3% year on year to $117.1 million. On top of that, next quarter's revenue guidance ($140 million at the midpoint) was surprisingly good and 41.6% above what analysts were expecting. It made a GAAP profit of $0.17 per share, improving from its loss of $0.40 per share in the same quarter last year.
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EverQuote (EVER) Q2 CY2024 Highlights:
- Revenue: $117.1 million vs analyst estimates of $102.8 million (13.9% beat)
- EPS: $0.17 vs analyst estimates of $0.04 ($0.13 beat)
- Revenue Guidance for Q3 CY2024 is $140 million at the midpoint, above analyst estimates of $98.85 million
- Gross Margin (GAAP): 95.7%, up from 91.8% in the same quarter last year
- Adjusted EBITDA Margin: 11%, up from -3.1% in the same quarter last year
- Free Cash Flow of $11.53 million, up 19.2% from the previous quarter
- Market Capitalization: $862.1 million
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Online MarketplaceMarketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
Sales GrowthEverQuote's revenue has been declining over the last three years, dropping on average by 4.3% annually. This quarter, EverQuote beat analysts' estimates and reported exceptional 72.3% year-on-year revenue growth.
Guidance for the next quarter indicates EverQuote is expecting revenue to grow 154% year on year to $140 million, improving from the 46.7% year-on-year decline it recorded in the comparable quarter last year. Ahead of the earnings results, analysts were projecting sales to grow 39.5% over the next 12 months.
Key Takeaways from EverQuote's Q2 ResultsWe were impressed by how significantly EverQuote blew past analysts' revenue expectations this quarter. We were also glad next quarter's revenue guidance came in higher than Wall Street's estimates. Zooming out, we think this was a fantastic quarter that should have shareholders cheering. The stock remained flat at $24.18 immediately after reporting.
