Tuesday, August 9, 2022

EverQuote inventory sinks postmarket on grim outlook amid headwinds in auto insurance coverage

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EverQuote (NASDAQ:EVER) inventory sank ~15% postmarket on Monday after the insurance coverage market issued a discouraging outlook regardless of posting Q1 earnings beat.

EVER expects Q2 income of $92M-97M, beneath consensus estimate of $103.41M. It estimates adj. EBITDA lack of $7M-4M and variable advertising margin of $24M-27M.

2022 income is projected to be $400M-420M vs. consensus estimate of $425.99M. EVER expects adj. EBITDA lack of $15M-5M and variable advertising margin of $110M-120M.

CEO Jayme Mendal mentioned Q1 noticed unprecedented headwinds within the trade, together with a hardening marketplace for auto insurance coverage within the close to time period with price hikes for customers and decrease spending on new shopper acquisition.

The headwinds, which intensified in latest weeks, will seemingly persist by way of Q2. Mendal expects demand from auto insurance coverage carriers to enhance in H2 of 2022, and normalize in H1 of 2023, to the degrees seen previous to the trade downturn in summer season 2021.

EVER reported Q1 EPS of -$0.19 vs. -$0.13 amid an 8.1% enhance in whole bills.

Q1 income grew 6.6% Y/Y to $110.7M. Variable advertising margin elevated 9% to $34.3M.

Automotive insurance coverage vertical income rose 4% to $87.7M in Q1, whereas income from different insurance coverage verticals – which embrace dwelling and renters, life and medical insurance – grew 19% to $23M.

EVER inventory, which ended 6.5% greater forward of earnings, has declined 8.2% YTD.

Check out a comparability of EVER’s key stats with its friends.

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