Online insurance comparison site EverQuote (NASDAQ:EVER) announced better-than-expected results in Q1 CY2024, with revenue down 16.6% year on year to $91.07 million. On top of that, next quarter's revenue guidance ($102.5 million at the midpoint) was surprisingly good and 30.8% above what analysts were expecting. It made a GAAP profit of $0.05 per share, improving from its loss of $0.08 per share in the same quarter last year.
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EverQuote (EVER) Q1 CY2024 Highlights:
- Revenue: $91.07 million vs analyst estimates of $80.3 million (13.4% beat)
- EPS: $0.05 vs analyst estimates of -$0.07 ($0.12 beat)
- Revenue Guidance for Q2 CY2024 is $102.5 million at the midpoint, above analyst estimates of $78.36 million
- Gross Margin (GAAP): 94.5%, in line with the same quarter last year
- Free Cash Flow of $9.67 million is up from -$1.64 million in the previous quarter
- Market Capitalization: $755.3 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 7.5% annually. This quarter, EverQuote beat analysts' estimates but reported a year on year revenue decline of 16.6%.
Guidance for the next quarter indicates EverQuote is expecting revenue to grow 50.8% year on year to $102.5 million, improving from the 33.3% year-on-year decline it recorded in the comparable quarter last year. Ahead of the earnings results, analysts were projecting sales to grow 27.2% over the next 12 months.
Key Takeaways from EverQuote's Q1 Results We 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. On the other hand, its revenue growth regrettably slowed. Zooming out, we think this was a solid quarter that shareholders will appreciate despite the slowing topline. The stock is up 10.1% after reporting and currently trades at $23.5 per share.
