EverQuote's Q1 revenue beats analyst estimates on strong home, renters insurance sales

Overview

• U.S. P&C insurance solutions provider's Q1 revenue grew 15%, beating analyst expectations

• Q1 adjusted EBITDA rose 30% yr/yr, beating analyst estimates

• Company repurchased 1.1 mln shares for $19.9 mln during Q1

Outlook

• EverQuote sees Q2 revenue of $185 mln to $195 mln, up 21% year-on-year at midpoint

• Company expects Q2 adjusted EBITDA of $28 mln to $30 mln, up 32% year-on-year at midpoint

• EverQuote reiterates goal of reaching $1 bln in annual revenue within 2-3 years

Result Drivers

• VERTICAL GROWTH - Revenue growth was driven by a 13% increase in automotive insurance and a 33% increase in home and renters insurance revenue

• AI SOLUTIONS - Co said AI-powered solutions enabled greater value for carriers and agents, supporting operational leverage and efficiency, per CFO Joseph Sanborn

• MARKETING SPEND - Variable marketing dollars increased to $55.9 mln from $46.9 mln, supporting revenue growth

Company press release: ID:nGNXjHCxb

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for EverQuote Inc is $25.00, about 72.5% above its May 1 closing price of $14.49

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 13 three months ago

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