EverQuote Announces First Quarter 2025 Financial Results

May 05, 2025 16:05 ET | Source: EverQuote, Inc. First Quarter Revenue Growth of 83% Year-Over-Year to $166.6 millionFirst Quarter Variable Marketing Dollars Increase of 52% Year-Over-Year to $46.9 millionDelivers First Quarter Net Income of $8.0 million and Record Adjusted EBITDA of $22.5 million CAMBRIDGE, Mass., May 05, 2025 (GLOBE NEWSWIRE) -- EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the first quarter ended March 31, 2025. “2025 is off to a strong start, building on our momentum from last year, and we once again achieved record financial performance across our key financial metrics of revenue, Variable Marketing Dollars or VMD and Adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote. “Our scale and technology are enabling us to build a competitive moat and leverage a data advantage as we extend AI throughout our traffic and distribution systems. We are delivering strong performance to carriers and agents, and they are rewarding us with increased budgets, which supports continued traffic growth. We remain steadfast in our focus to become the leading growth partner for P&C insurance providers.” “The first quarter marks our fourth consecutive quarter of record revenue and Adjusted EBITDA performance, and we ended the quarter with a strong cash position and no debt outstanding,” said Joseph Sanborn, CFO of EverQuote. “EverQuote remains resilient to macro conditions and is well positioned for continued success as a broad number of carriers are benefiting from healthy combined ratios and are focusing on driving policy growth. Given this favorable environment, we believe that the long-term thesis of insurance advertising spend shifting to digital channels remains firmly intact.” First Quarter 2025 Highlights:(Unless otherwise noted, all comparisons are relative to the first quarter of 2024). Total revenue grew 83% to $166.6 million.Automotive insurance vertical revenue of $152.7 million, an increase of 97%.Home and renters insurance vertical revenue of $13.9 million, an increase of 10%.VMD grew to $46.9 million, compared to $30.8 million, an increase of 52%.GAAP net income of $8.0 million, compared to a GAAP net income of $1.9 million. GAAP net income in Q1 2025 included a non-cash charge of $7.9 million related to divesting the remaining P&C direct-to-consumer agency assets to settle an existing legal matter with the former owners of PolicyFuel, which was acquired in 2021.Adjusted EBITDA of $22.5 million, compared to $7.6 million.Operating cash flow of $23.3 million, compared to $10.4 million.Ended the quarter with $125.0 million in cash and cash equivalents, an increase of 22% from $102.1 million at the end of the fourth quarter of 2024. Second Quarter 2025 Outlook: Revenue of $155.0 – $160.0 million, representing 34% year-over-year growth at the midpoint.Variable Marketing Dollars of $45.0 – $47.0 million, representing 26% year-over-year growth at the midpoint.Adjusted EBITDA of $20.0 – $22.0 million, representing 62% year-over-year growth at the midpoint. With respect to the Company’s expectations under “Second Quarter 2025 Outlook” above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, legal settlement expense, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors. Conference Call and Webcast Information EverQuote will host a conference call and live webcast to discuss its first quarter 2025 financial results at 4:30 p.m. Eastern Time today, May 5, 2025. To access the conference call, dial Toll Free: +1 (800) 715-9871 for the US, or +1 (646) 307-1963 for international callers, and provide conference ID 4210704. The live webcast and replay will be available on the Investors section of the Company’s website at https://investors.everquote.com. Safe Harbor Statement This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expects,” “might,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “seek,” “would” or “continue,” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, liquidity and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions described in our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K as filed with the Securities and Exchange Commission (“SEC”) from time to time. Additional information will also be set forth in the Company's annual report on Form 10-Q for the quarter ended March 31, 2025, which will be filed with the SEC. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law. Some of the key factors that could cause actual results to differ include: (1) our dependence on revenue from the property and casualty insurance industries, and specifically automotive insurance, and exposure to risks related to those industries; (2) our dependence on our relationships with insurance providers with no long-term minimum financial commitments; (3) our reliance on a small number of insurance providers for a significant portion of our revenue; (4) our dependence on third-party media sources for a significant portion of visitors to our websites and marketplace; (5) our ability to attract consumers searching for insurance to our websites and marketplace through Internet search engines, display advertising, social media, content-based online advertising and other online sources; (6) any limitations restricting our ability to market to users or collect and use data derived from user activities; (7) risks related to cybersecurity incidents or other network disruptions; (8) risks related to the use of artificial intelligence; (9) our ability to develop new and enhanced products and services to attract and retain consumers and insurance providers, and to successfully monetize them; (10) the impact of competition in our industry and innovation by our competitors; (11) our ability to hire and retain necessary qualified employees to expand our operations; (12) our ability to stay abreast of and comply with new or modified laws and regulations that currently apply or become applicable to our business, including with respect to the insurance industry, telemarketing restrictions and data privacy requirements; (13) our ability to protect our intellectual property rights and maintain and build our brand; (14) our future financial performance, including our expectations regarding our revenue, cost of revenue, variable marketing dollars, operating expenses, cash flows and ability to achieve, and maintain, future profitability; (15) our ability to properly collect, process, store, share, disclose and use consumer information and other data; (16) any impacts of economic developments, including inflation and potential tariffs; and (17) the future trading prices of our Class A common stock. About EverQuote EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with insurance provider customers, which includes both carriers and agents. Our vision is to be the leading growth partner for property and casualty, or P&C, insurance providers. Our results-driven marketplace, powered by our proprietary data and technology platform, is improving the way insurance providers attract and connect with consumers shopping for insurance. For more information, visit https://investors.everquote.com and follow on LinkedIn. Investor Relations Contact Brinlea JohnsonThe Blueshirt Group(415) 269-2645 EVERQUOTE, INC.STATEMENTS OF OPERATIONS Three Months Ended March 31, 2025 2024 (in thousands except per share) Revenue $166,632 $91,065 Cost and operating expenses(1): Cost of revenue 5,380 5,041 Sales and marketing 129,430 70,784 Research and development 7,485 6,844 General and administrative 8,440 6,630 Legal settlement 7,900 — Total cost and operating expenses 158,635 89,299 Income from operations 7,997 1,766 Other income (expense): Interest income 708 386 Other income (expense), net (31) 41 Total other income, net 677 427 Income before income taxes 8,674 2,193 Income tax expense (684) (286)Net income $7,990 $1,907 Net income per share: Basic $0.22 $0.06 Diluted $0.21 $0.05 Weighted average common shares outstanding, basic and diluted: Basic 35,879 34,387 Diluted 37,667 35,608 (1) Amounts include stock-based compensation expense, as follows: Three Months Ended March 31, 2025 2024 (in thousands) Cost of revenue $9 $36 Sales and marketing 1,565 1,594 Research and development 1,370 1,312 General and administrative 2,476 1,576 $5,420 $4,518 EVERQUOTE, INC.BALANCE SHEET DATA March 31, December 31, 2025 2024 (in thousands) Cash and cash equivalents $124,968 $102,116 Working capital 113,927 99,131 Total assets 232,145 210,530 Total liabilities 82,645 75,162 Total stockholders' equity 149,500 135,368 EVERQUOTE, INC.STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2025 2024 (in thousands) Cash flows from operating activities: Net income $7,990 $1,907 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 1,221 1,263 Stock-based compensation expense 5,420 4,518 Provision for bad debt — 18 Unrealized foreign currency transaction (gains) losses 35 (4)Changes in operating assets and liabilities: Accounts receivable (457) (17,123)Prepaid expenses and other current assets 496 972 Commissions receivable, current and non-current 1,014 1,323 Operating lease right-of-use assets 267 497 Accounts payable (2,765) 15,868 Accrued expenses and other current liabilities 10,018 1,870 Deferred revenue 335 (2)Operating lease liabilities (268) (667)Net cash provided by operating activities 23,306 10,440 Cash flows from investing activities: Acquisition of property and equipment, including costs capitalized for development of internal-use software (1,133) (770)Net cash used in investing activities (1,133) (770)Cash flows from financing activities: Proceeds from exercise of stock options 1,962 1,428 Tax withholding payments related to net share settlement (1,293) (429)Net cash provided by financing activities 669 999 Effect of exchange rate changes on cash, cash equivalents and restricted cash 10 (5)Net increase in cash, cash equivalents and restricted cash 22,852 10,664 Cash, cash equivalents and restricted cash at beginning of period 102,116 37,956 Cash, cash equivalents and restricted cash at end of period $124,968 $48,620 EVERQUOTE, INC.FINANCIAL AND OPERATING METRICS Revenue by vertical: Three Months Ended March 31, Change 2025 2024 % (in thousands) Automotive $152,715 $77,538 97.0%Home and renters 13,904 12,689 9.6%Other 13 838 -98.4%Total revenue $166,632 $91,065 83.0% Other financial and non-financial metrics: Three Months Ended March31, Change 2025 2024 % (in thousands) Income from operations $7,997 $1,766 352.8%Net income $7,990 $1,907 319.0%Variable marketing dollars $46,860 $30,818 52.1%Adjusted EBITDA(1) $22,507 $7,588 196.6% (1) Adjusted EBITDA is a non-GAAP measure. Please see “EverQuote, Inc. Reconciliation of Non-GAAP Measures to GAAP” below for more information. To supplement the Company’s financial statements presented in accordance with GAAP and to provide investors with additional information regarding EverQuote’s financial results, the Company has presented Adjusted EBITDA as a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies. The Company defines Adjusted EBITDA as net income (loss), excluding the impact of stock-based compensation expense; depreciation and amortization expense; legal settlement expense; interest income; and income taxes. The most directly comparable GAAP measure is net income (loss). The Company monitors and presents Adjusted EBITDA because it is a key measure used by management and the board of directors to understand and evaluate operating performance, to establish budgets and to develop operational goals for managing EverQuote’s business. In particular, the Company believes that excluding the impact of these items in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of EverQuote’s core operating performance. The Company uses Adjusted EBITDA to evaluate EverQuote’s operating performance and trends and make planning decisions. The Company believes that this non-GAAP financial measure helps identify underlying trends in EverQuote’s business that could otherwise be masked by the effect of the items that the Company excludes in the calculations of Adjusted EBITDA. Accordingly, the Company believes that this financial measure provides useful information to investors and others in understanding and evaluating EverQuote’s operating results, enhancing the overall understanding of the Company’s past performance and future prospects. The Company’s non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, other companies may use other measures to evaluate their performance, which could reduce the usefulness of the Company’s non-GAAP financial measures as tools for comparison. The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP. EVERQUOTE, INC.RECONCILIATION OF NON-GAAP MEASURES TO GAAP Three Months Ended March 31, 2025 2024 (in thousands) Net income $7,990 $1,907 Stock-based compensation 5,420 4,518 Depreciation and amortization 1,221 1,263 Legal settlement 7,900 — Interest income (708) (386)Income tax expense 684 286 Adjusted EBITDA $22,507 $7,588

EverQuote Announces First Quarter 2025 Financial Results

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