EverQuote (EVER) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with revenue of $144.5M, up 163% year-over-year, driven by auto industry recovery, increased carrier and agent demand, and operational execution.

• Net income reached $11.6M, reversing a net loss of $29.2M in Q3 2023; Adjusted EBITDA improved to $18.8M from a $1.9M loss.

• Technology modernization advanced with new site and agent platforms, enhancing development speed and feature rollout.

• Exited the Health insurance vertical in 2023, streamlining operations around Auto and Home/Renters markets and reducing headcount by 25% year-over-year.

• Asset-light model and strong operating leverage position the company for scalable growth and improved profitability.

Financial highlights

• Q3 2024 revenue reached $144.5M, with Auto revenue up 202% year-over-year and Home/Renters revenue up 30% to $14.1M.

• Variable Marketing Margin (VMM) was $43.9M (30.4% of revenue), up 126.8% year-over-year.

• Adjusted EBITDA hit $18.8M (13% of revenue), up from a $1.9M loss last year.

• Net income was $11.6M, and operating cash flow was $23.6M; cash balance rose to $82.8M with no debt.

• Basic EPS for Q3 2024 was $0.33, compared to $(0.87) in Q3 2023.

Outlook and guidance

• Q4 2024 revenue expected between $131M–$136M, up 140% year-over-year at midpoint.

• VMM guidance for Q4 is $38M–$40M, up 89% year-over-year at midpoint; adjusted EBITDA expected at $14M–$16M.

• Seasonal sequential revenue decline from Q3 to Q4 expected, consistent with historical trends.

• FCC regulatory changes in January 2025 anticipated to create short-term unpredictability, especially in the agency channel.

• Management expects overall revenue growth in 2024, particularly in automotive and home/renters verticals, with a significant decrease in other verticals due to the health insurance exit.