EverQuote (EVER) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered record results with revenue of $117.1 million, up 72% year-over-year, net income of $6.4 million, and Adjusted EBITDA of $12.9 million, reversing prior losses.

• Growth was driven by a strong recovery in the auto insurance segment, disciplined expense management, and streamlined operations following the exit from the health insurance vertical.

• The company is preparing for new FCC TCPA consent rules, expected to impact 25%-30% of business in 2025.

• Heightened expense discipline, reduced headcount (~37% YoY), and streamlined tech platforms are driving operating leverage and profitability.

• Strong execution amid an improving auto insurance market, with carriers reactivating campaigns and increasing budgets.

Financial highlights

• Q2 2024 total revenue was $117.1 million, up 72% year-over-year; auto insurance revenue was $102.6 million (+106%), home and renters $13.9 million (+29%).

• Variable Marketing Margin (VMM) was $36.5 million, up 48% year-over-year, but decreased as a percentage of revenue to 31%.

• Adjusted EBITDA was $12.9 million, up from a $2.1 million loss a year ago; net income was $6.4 million.

• Operating cash flow was $12.4 million; cash and equivalents ended at $60.9 million, up from $48.6 million in Q1.

• No outstanding borrowings under the $25 million revolving credit line at quarter end.

Outlook and guidance

• Q3 2024 revenue expected between $137–$143 million; VMM between $38.5–$41.5 million; Adjusted EBITDA between $14–$17 million.

• Adjusted EBITDA margins expected to remain at or near Q2 levels (11%) for the rest of the year; long-term EBITDA margin goal remains 20%+.

• Guidance reflects a competitive advertising environment and investments for regulatory compliance.

• Management expects overall revenue growth in 2024, particularly in automotive and home/renters verticals.

• The company believes existing cash will fund operations and capital needs for at least the next 12 months.