- Fourth Quarter Revenue of $88.3 million
- Fourth Quarter Variable Marketing Margin of $29.1 million
- Full Year Revenue of $404.1 million
- Full Year Variable Marketing Margin of $128.3 million
EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the fourth quarter and year ended December 31, 2022.
“In 2022, we achieved positive Adjusted EBITDA for the year through the continued strength and agility of our team to respond swiftly to frequent, large reductions in carrier demand with amplified discipline in expense management and pursuit of targeted growth opportunities,” said Jayme Mendal, CEO of EverQuote. “We delivered full year revenue and Variable Marketing Margin, or VMM, of $404.1 million and $128.3 million, respectively; and generated positive Adjusted EBITDA.”
“Despite a very challenging auto insurance environment last year, EverQuote enters 2023 in a stronger position than ever before. As a market leader, EverQuote continues to gain market share and is focused on redefining the category of insurance distribution as we build the one-stop insurance destination for the digital age. In 2023, we will work to restore revenue growth, bring profitability back to pre-downturn levels and generate positive cash flow, while continuing to make key investments to advance our strategy.”
Fourth Quarter 2022 Highlights:
(All comparisons are relative to the fourth quarter of 2021):
- Total revenue of $88.3 million, a decrease of 13%.
- Automotive insurance vertical revenue of $67.2 million, a decrease of 5%.
- Revenue from other insurance verticals, which includes home and renters, life, and health insurance, decreased 33% to $21.1 million.
- Variable Marketing Margin of $29.1 million, a decrease of 12%.
- GAAP net loss was $8.5 million, flat with the prior year period.
- Adjusted EBITDA was $0.1 million, compared to Adjusted EBITDA of $0.5 million.
- Direct to consumer agency, or DTCA, revenue of $13.9 million, or 15.7% of total revenue.
Full Year 2022 Highlights:
(All comparisons are relative to the full year of 2021):
- Total revenue of $404.1 million, a decrease of 3%.
- Automotive insurance vertical revenue of $324.4 million, a decrease of 2%.
- Revenue from other insurance verticals, which includes home and renters, life, and health insurance, decreased 9% to $79.7 million.
- Variable Marketing Margin of $128.3 million, a decrease of 1%.
- Variable Marketing Margin as a percentage of revenue was a record 31.7%, driven by the strength of our traffic operations.
- GAAP net loss increased to $24.4 million, compared to GAAP net loss of $19.4 million.
- Adjusted EBITDA was $5.9 million, compared to Adjusted EBITDA of $14.6 million.
- DTCA generated $51.4 million in revenue, or 12.7% of total revenue, while driving significant improvements in operational efficiency.
First Quarter and Full Year 2023 Guidance:
First Quarter 2023:
- Revenue of $101 – $105 million.
- Variable Marketing Margin of $31.5 – $33.5 million.
- Adjusted EBITDA of $2 – $4 million.
Full Year 2023:
- Revenue of $420 – $435 million.
- Variable Marketing Margin of $132 – $140 million.
- Adjusted EBITDA of $7 – $13 million.
With respect to the Company’s expectations under “First Quarter and Full Year 2023 Guidance” 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, acquisition-related costs, one-time severance charges, 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 fourth quarter and full year 2022 financial results at 4:30 p.m. Eastern Time today, February 27, 2022. To access the conference call, dial Toll Free: (844) 200-6205 for the US, or (929) 526-1599 for international callers, and provide conference ID 396529. 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
Any statements in this press release about future expectations, plans and prospects for EverQuote, Inc. (“EverQuote” or the “Company”), including statements about future results of operations or the future financial position of the Company, including financial targets, business strategy, plans and objectives for future operations and other statements containing the words “anticipates,” “believes,” “expects,” “plans,” “continues,” “will” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: (1) the Company’s ability to attract and retain consumers and insurance providers using the Company’s marketplace; (2) the Company’s ability to maintain or increase the amount providers spend per quote request; (3) the impact on the Company and the insurance industry of the COVID-19 pandemic; (4) the effectiveness of the Company’s growth strategies and its ability to effectively manage growth; (5) the Company’s ability to maintain and build its brand; (6) the Company’s reliance on its third-party service providers; (7) the Company’s ability to develop new and enhanced products and services to attract and retain consumers and insurance providers, and the Company’s ability to successfully monetize them; (8) the impact of competition in the Company’s industry and innovation by the Company’s competitors; (9) the expected recovery of the auto insurance industry; (10) developments regarding the insurance industry and the transition to online marketing; (11) the possible impacts of inflation; and (12) other factors discussed in the “Risk Factors” section of the Company’s most recent Quarterly Report on Form 10-Q, which is on file with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.
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