EverQuote Announces Record Second Quarter 2024 Financial Results
EverQuote (Nasdaq: EVER) reported record second quarter 2024 financial results, with total revenue increasing 72% year-over-year to $117.1 million. The company's automotive insurance vertical revenue grew over 106% to $102.6 million, representing 88% of total revenue. Variable Marketing Margin (VMM) increased 48% to $36.5 million, while net income improved to $6.4 million from a loss of $13.2 million in Q2 2023. Adjusted EBITDA rose to $12.9 million, compared to a loss of $2.1 million in the prior year period.
EverQuote ended the quarter with $60.9 million in cash and cash equivalents, a 25% increase from Q1 2024. For Q3 2024, the company projects revenue between $137.0 - $143.0 million and Adjusted EBITDA of $14.0 - $17.0 million.
EverQuote (Nasdaq: EVER) ha riportato risultati finanziari da record per il secondo trimestre 2024, con un aumento del fatturato totale del 72% rispetto all'anno precedente, raggiungendo 117,1 milioni di dollari. I ricavi del settore assicurativo automotive dell'azienda sono cresciuti di oltre il 106%, arrivando a 102,6 milioni di dollari, rappresentando l'88% del fatturato totale. Il Margine di Marketing Variabile (VMM) è aumentato del 48%, raggiungendo 36,5 milioni di dollari, mentre il reddito netto è migliorato a 6,4 milioni di dollari rispetto a una perdita di 13,2 milioni di dollari nel secondo trimestre del 2023. EBITDA rettificato è salito a 12,9 milioni di dollari, rispetto a una perdita di 2,1 milioni di dollari nello stesso periodo dell'anno precedente.
EverQuote ha concluso il trimestre con 60,9 milioni di dollari in contante e liquidità equivalente, con un aumento del 25% rispetto al primo trimestre 2024. Per il terzo trimestre del 2024, l'azienda prevede ricavi tra 137,0 e 143,0 milioni di dollari e un EBITDA rettificato tra 14,0 e 17,0 milioni di dollari.
EverQuote (Nasdaq: EVER) reportó resultados financieros récord para el segundo trimestre de 2024, con ingresos totales que aumentaron un 72% en comparación con el año anterior, alcanzando 117,1 millones de dólares. Los ingresos del sector de seguros automotrices de la compañía crecieron más del 106%, llegando a 102,6 millones de dólares, lo que representa el 88% de los ingresos totales. El Margen de Marketing Variable (VMM) aumentó un 48% hasta 36,5 millones de dólares, mientras que el ingreso neto mejoró a 6,4 millones de dólares desde una pérdida de 13,2 millones de dólares en el segundo trimestre de 2023. El EBITDA ajustado se elevó a 12,9 millones de dólares, en comparación con una pérdida de 2,1 millones de dólares en el mismo período del año pasado.
EverQuote terminó el trimestre con 60,9 millones de dólares en efectivo y equivalentes de efectivo, un aumento del 25% desde el primer trimestre de 2024. Para el tercer trimestre de 2024, la compañía proyecta ingresos entre 137,0 y 143,0 millones de dólares y un EBITDA ajustado entre 14,0 y 17,0 millones de dólares.
EverQuote (Nasdaq: EVER)는 2024년 2분기 재무 결과에서 기록적인 실적을 보고하며, 총 수익이 전년 대비 72% 증가하여 1억 1,710만 달러에 달했습니다. 회사의 자동차 보험 수익은 106% 이상 증가하여 1억 2,620만 달러를 기록했으며, 이는 총 수익의 88%를 차지합니다. 변동 마케팅 마진(VMM)은 48% 증가하여 3,650만 달러에 달했고, 순이익은 640만 달러로 개선되었습니다, 2023년 2분기에는 1,320만 달러의 손실을 기록했습니다. 조정 EBITDA는 작년 같은 기간 210만 달러의 손실에 비해 1,290만 달러로 증가했습니다.
EverQuote는 2024년 1분기 대비 25% 증가한 6,090만 달러의 현금 및 현금 등가물을 보유하며 분기를 마쳤습니다. 2024년 3분기에는 수익이 1억 3,700만 달러에서 1억 4,300만 달러 사이일 것으로 예상하며, 조정 EBITDA는 1,400만 달러에서 1,700만 달러 사이라고 밝혔습니다.
EverQuote (Nasdaq: EVER) a rapporté des résultats financiers record pour le deuxième trimestre 2024, avec des revenus totaux en hausse de 72 % par rapport à l'année précédente, atteignant 117,1 millions de dollars. Les revenus du secteur des assurances automobiles de l'entreprise ont augmenté de plus de 106 %, atteignant 102,6 millions de dollars, représentant 88 % des revenus totaux. La Marge de Marketing Variable (VMM) a augmenté de 48 %, s'établissant à 36,5 millions de dollars, tandis que le revenu net a été amélioré à 6,4 millions de dollars, contre une perte de 13,2 millions de dollars au deuxième trimestre 2023. L'EBITDA ajusté a atteint 12,9 millions de dollars, contre une perte de 2,1 millions de dollars à la même période de l'année précédente.
EverQuote a terminé le trimestre avec 60,9 millions de dollars en liquidités et équivalents de liquidités, soit une augmentation de 25 % par rapport au premier trimestre 2024. Pour le troisième trimestre 2024, l'entreprise prévoit des revenus compris entre 137,0 et 143,0 millions de dollars et un EBITDA ajusté de 14,0 à 17,0 millions de dollars.
EverQuote (Nasdaq: EVER) hat für das zweite Quartal 2024 Rekordergebnisse bekannt gegeben, wobei die Gesamterlöse im Vergleich zum Vorjahr um 72% auf 117,1 Millionen Dollar gestiegen sind. Der Umsatz im Bereich Kfz-Versicherungen wuchs um über 106% auf 102,6 Millionen Dollar, was 88% des Gesamterlöses entspricht. Die Variable Marketing Marge (VMM) stieg um 48% auf 36,5 Millionen Dollar, während der Nettogewinn auf 6,4 Millionen Dollar anstieg, nachdem im Q2 2023 ein Verlust von 13,2 Millionen Dollar verzeichnet wurde. EBITDA bereinigt stieg auf 12,9 Millionen Dollar, verglichen mit einem Verlust von 2,1 Millionen Dollar im Vorjahreszeitraum.
EverQuote schloss das Quartal mit 60,9 Millionen Dollar an Bargeld und equivalents ab, was einem Anstieg von 25% im Vergleich zu Q1 2024 entspricht. Für Q3 2024 prognostiziert das Unternehmen einen Umsatz zwischen 137,0 und 143,0 Millionen Dollar und ein bereinigtes EBITDA zwischen 14,0 und 17,0 Millionen Dollar.
- Total revenue increased 72% year-over-year to $117.1 million
- Automotive insurance vertical revenue grew over 106% to $102.6 million
- Variable Marketing Margin (VMM) increased 48% to $36.5 million
- Net income improved to $6.4 million from a loss of $13.2 million in Q2 2023
- Adjusted EBITDA rose to $12.9 million from a loss of $2.1 million in Q2 2023
- Cash and cash equivalents increased 25% to $60.9 million from Q1 2024
- Positive Q3 2024 outlook with projected revenue of $137.0 - $143.0 million
- None.
Insights
EverQuote's Q2 2024 results are exceptionally strong, showcasing significant growth and profitability improvements. The
The
EverQuote's stellar performance reflects a recovering auto insurance market. The company's
The
EverQuote's performance underscores the growing importance of online insurance marketplaces. The company's ability to scale rapidly (
The company's focus on "judiciously invest[ing] in opportunities" indicates potential for further technological advancements. As the insurance industry continues to digitize, EverQuote's tech-driven approach positions it well to capture market share and drive innovation in the sector.
- Revenue Grows
72% Year-Over-Year to$117.1 million - Variable Marketing Margin Increases
48% Year-Over-Year to$36.5 million - Delivers Net Income of
$6.4 million and Adjusted EBITDA of$12.9 million
CAMBRIDGE, Mass., Aug. 05, 2024 (GLOBE NEWSWIRE) -- EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the second quarter ended June 30, 2024.
“EverQuote continued building momentum in the second quarter, and our operating results once again exceeded the high-end of our guidance range and drove record results for revenue, Variable Marketing Margin, or VMM, and Adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote. “The auto insurance recovery continues to progress, with carriers steadily improving underwriting profitability, and moving to reactivate campaigns, restore budgets, and reopen their state footprints in our marketplace.”
“In the second quarter, we continued to execute well against an improving auto carrier landscape, and achieved strong profitability by delivering record levels of net income and operating cash flow,” said Joseph Sanborn, CFO of EverQuote. “We continue to be very disciplined in managing expenses and driving incremental efficiency across the business, which is resulting in expanding operating leverage, as we scale and drive top-line growth. Looking ahead, while we remain steadfast in our commitment to efficient operations, we plan to judiciously invest in opportunities to position our company for long-term success.”
Second Quarter 2024 Highlights:
(Unless otherwise noted, all comparisons are relative to the second quarter of 2023. EverQuote exited the health insurance vertical at the end of the second quarter of 2023. Revenue in our health insurance vertical was
- Total revenue of
$117.1 million , an increase of72% . - Automotive insurance vertical revenue of
$102.6 million , up over106% , and representing88% of revenue. - Home and renters insurance vertical revenue of
$13.9 million , up29% compared to$10.7 million . - VMM increased to
$36.5 million , compared to VMM of$24.7 million . - GAAP net income improved to
$6.4 million , compared to a GAAP net loss of$13.2 million . - Adjusted EBITDA increased to
$12.9 million , compared to Adjusted EBITDA loss of$2.1 million . - Cash flow from operations of
$12.4 million , compared to cash flow from operations of$3.3 million . - Ended the quarter with
$60.9 million in cash and cash equivalents, an increase of25% from$48.6 million at the end of the first quarter of 2024.
Third Quarter 2024 Outlook:
- Revenue of
$137.0 -$143.0 million . - Variable Marketing Margin of
$38.5 -$41.5 million . - Adjusted EBITDA of
$14.0 -$17.0 million .
With respect to the Company’s expectations under “Third Quarter 2024 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, restructuring and other charges, acquisition-related costs, 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 second quarter 2024 financial results at 4:30 p.m. Eastern Time today, August 5, 2024. To access the conference call, dial Toll Free: +1 (800) 715-9871 for the US, or +1 (646) 307-196 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 quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2024, 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 margin, 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; and (16) the future trading prices of our Class A common stock.
About EverQuote
EverQuote operates a leading online insurance marketplace, connecting consumers with insurance providers. Our vision is to become the largest online source of insurance policies by using data, technology, and knowledgeable advisors to make insurance simpler, more affordable, and personalized.
For more information, visit https://investors.everquote.com and follow on LinkedIn.
Investor Relations Contact
Brinlea Johnson
The Blueshirt Group
(415) 489-2193
EVERQUOTE, INC.
STATEMENTS OF OPERATIONS
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands except per share) | |||||||||||||||
| Revenue | $ | 117,140 | $ | 67,985 | $ | 208,205 | $ | 177,205 | |||||||
| Cost and operating expenses(1): | |||||||||||||||
| Cost of revenue | 5,011 | 5,547 | 10,052 | 11,317 | |||||||||||
| Sales and marketing | 90,913 | 58,795 | 161,697 | 149,032 | |||||||||||
| Research and development | 7,043 | 7,450 | 13,887 | 15,377 | |||||||||||
| General and administrative | 7,881 | 5,768 | 14,511 | 13,598 | |||||||||||
| Restructuring and other charges | — | 3,832 | — | 3,832 | |||||||||||
| Acquisition-related costs | — | (37 | ) | — | (150 | ) | |||||||||
| Total cost and operating expenses | 110,848 | 81,355 | 200,147 | 193,006 | |||||||||||
| Income (loss) from operations | 6,292 | (13,370 | ) | 8,058 | (15,801 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest income | 456 | 271 | 842 | 458 | |||||||||||
| Other income (expense), net | 60 | (16 | ) | 101 | (15 | ) | |||||||||
| Total other income, net | 516 | 255 | 943 | 443 | |||||||||||
| Income (loss) before income taxes | 6,808 | (13,115 | ) | 9,001 | (15,358 | ) | |||||||||
| Income tax expense | (406 | ) | (78 | ) | (692 | ) | (364 | ) | |||||||
| Net income (loss) | $ | 6,402 | $ | (13,193 | ) | $ | 8,309 | $ | (15,722 | ) | |||||
| Net income (loss) per share: | |||||||||||||||
| Basic | $ | 0.18 | $ | (0.40 | ) | $ | 0.24 | $ | (0.48 | ) | |||||
| Diluted | $ | 0.17 | $ | (0.40 | ) | $ | 0.23 | $ | (0.48 | ) | |||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 34,910 | 33,129 | 34,649 | 32,942 | |||||||||||
| Diluted | 36,698 | 33,129 | 36,154 | 32,942 | |||||||||||
| (1) Amounts include stock-based compensation expense, as follows: | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands) | |||||||||||||||
| Cost of revenue | $ | 42 | $ | 59 | $ | 78 | $ | 113 | |||||||
| Sales and marketing | 1,652 | 2,272 | 3,246 | 4,545 | |||||||||||
| Research and development | 1,426 | 2,285 | 2,738 | 4,659 | |||||||||||
| General and administrative | 2,220 | 1,391 | 3,796 | 3,199 | |||||||||||
| Restructuring and other charges | — | 1,123 | — | 1,123 | |||||||||||
| $ | 5,340 | $ | 7,130 | $ | 9,858 | $ | 13,639 | ||||||||
| EVERQUOTE, INC. BALANCE SHEET DATA | |||||||
| June 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (in thousands) | |||||||
| Cash and cash equivalents | $ | 60,919 | $ | 37,956 | |||
| Working capital | 62,099 | 39,293 | |||||
| Total assets | 157,952 | 110,925 | |||||
| Total liabilities | 57,113 | 30,018 | |||||
| Total stockholders' equity | 100,839 | 80,907 | |||||
| EVERQUOTE, INC. STATEMENTS OF CASH FLOWS | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands) | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income (loss) | $ | 6,402 | $ | (13,193 | ) | $ | 8,309 | $ | (15,722 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization expense | 1,236 | 1,463 | 2,499 | 2,870 | |||||||||||
| Stock-based compensation expense | 5,340 | 7,130 | 9,858 | 13,639 | |||||||||||
| Change in fair value of contingent consideration liabilities | — | (37 | ) | — | (150 | ) | |||||||||
| Provision for bad debt | (10 | ) | (21 | ) | 8 | 224 | |||||||||
| Unrealized foreign currency transaction (gains) losses | 1 | 7 | (3 | ) | 16 | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Accounts receivable | (9,737 | ) | 17,157 | (26,860 | ) | 7,330 | |||||||||
| Prepaid expenses and other current assets | 342 | 158 | 1,314 | 1,867 | |||||||||||
| Commissions receivable, current and non-current | 1,321 | (724 | ) | 2,644 | (129 | ) | |||||||||
| Operating lease right-of-use assets | 755 | 686 | 1,252 | 1,374 | |||||||||||
| Other assets | (291 | ) | — | (291 | ) | 36 | |||||||||
| Accounts payable | 8,615 | (7,816 | ) | 24,483 | (7,812 | ) | |||||||||
| Accrued expenses and other current liabilities | (832 | ) | (583 | ) | 1,038 | 269 | |||||||||
| Deferred revenue | 29 | (138 | ) | 27 | (58 | ) | |||||||||
| Operating lease liabilities | (793 | ) | (741 | ) | (1,460 | ) | (1,643 | ) | |||||||
| Net cash provided by operating activities | 12,378 | 3,348 | 22,818 | 2,111 | |||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Acquisition of property and equipment, including costs capitalized for development of internal-use software | (852 | ) | (1,015 | ) | (1,622 | ) | (2,022 | ) | |||||||
| Net cash used in investing activities | (852 | ) | (1,015 | ) | (1,622 | ) | (2,022 | ) | |||||||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from exercise of stock options | 1,186 | 53 | 2,614 | 340 | |||||||||||
| Tax withholding payments related to net share settlement | (414 | ) | (102 | ) | (843 | ) | (232 | ) | |||||||
| Net cash provided by (used in) financing activities | 772 | (49 | ) | 1,771 | 108 | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1 | 11 | (4 | ) | 16 | ||||||||||
| Net increase in cash, cash equivalents and restricted cash | 12,299 | 2,295 | 22,963 | 213 | |||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 48,620 | 28,753 | 37,956 | 30,835 | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 60,919 | $ | 31,048 | $ | 60,919 | $ | 31,048 | |||||||
| EVERQUOTE, INC. FINANCIAL AND OPERATING METRICS | |||||||||||
| Revenue by vertical: | |||||||||||
| Three Months Ended June 30, | Change | ||||||||||
| 2024 | 2023 | % | |||||||||
| (in thousands) | |||||||||||
| Automotive | $ | 102,622 | $ | 49,744 | 106.3 | % | |||||
| Home and renters | 13,884 | 10,723 | 29.5 | % | |||||||
| Other | 634 | 7,518 | -91.6 | % | |||||||
| Total revenue | $ | 117,140 | $ | 67,985 | 72.3 | % | |||||
| Six Months Ended June 30, | Change | ||||||||||
| 2024 | 2023 | % | |||||||||
| (in thousands) | |||||||||||
| Automotive | $ | 180,160 | $ | 139,443 | 29.2 | % | |||||
| Home and renters | 26,573 | 20,179 | 31.7 | % | |||||||
| Other | 1,472 | 17,583 | -91.6 | % | |||||||
| Total revenue | $ | 208,205 | $ | 177,205 | 17.5 | % | |||||
| Other financial and non-financial metrics: | |||||||||||
| Three Months Ended June 30, | Change | ||||||||||
| 2024 | 2023 | % | |||||||||
| (in thousands) | |||||||||||
| Income (loss) from operations | $ | 6,292 | $ | (13,370 | ) | -147.1 | % | ||||
| Net income (loss) | $ | 6,402 | $ | (13,193 | ) | -148.5 | % | ||||
| Variable marketing margin | $ | 36,455 | $ | 24,653 | 47.9 | % | |||||
| Adjusted EBITDA(1) | $ | 12,928 | $ | (2,121 | ) | -709.5 | % | ||||
| Six Months Ended June 30, | Change | ||||||||||
| 2024 | 2023 | % | |||||||||
| (in thousands) | |||||||||||
| Income (loss) from operations | $ | 8,058 | $ | (15,801 | ) | -151.0 | % | ||||
| Net income (loss) | $ | 8,309 | $ | (15,722 | ) | -152.8 | % | ||||
| Variable marketing margin | $ | 67,273 | $ | 60,246 | 11.7 | % | |||||
| Adjusted EBITDA(1) | $ | 20,516 | $ | 3,252 | 530.9 | % | |||||
| (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; restructuring and other charges; acquisition-related costs; 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands) | |||||||||||||||
| Net income (loss) | $ | 6,402 | $ | (13,193 | ) | $ | 8,309 | $ | (15,722 | ) | |||||
| Stock-based compensation | 5,340 | 6,007 | 9,858 | 12,516 | |||||||||||
| Depreciation and amortization | 1,236 | 1,463 | 2,499 | 2,870 | |||||||||||
| Restructuring and other charges | — | 3,832 | — | 3,832 | |||||||||||
| Acquisition-related costs | — | (37 | ) | — | (150 | ) | |||||||||
| Interest income | (456 | ) | (271 | ) | (842 | ) | (458 | ) | |||||||
| Income tax expense | 406 | 78 | 692 | 364 | |||||||||||
| Adjusted EBITDA | $ | 12,928 | $ | (2,121 | ) | $ | 20,516 | $ | 3,252 | ||||||
FAQ
What was EverQuote's (EVER) revenue for Q2 2024?
How much did EverQuote's (EVER) automotive insurance vertical grow in Q2 2024?
What was EverQuote's (EVER) net income for Q2 2024?
What is EverQuote's (EVER) revenue guidance for Q3 2024?
