Breaking Down EverQuote, Inc. (EVER) Financial Health: Key Insights for Investors

Are you an investor trying to navigate the complexities of the insurance marketplace? Have you been keeping an eye on EverQuote, Inc. (EVER) and wondering if it's a financially sound investment? In 2024, EverQuote's total revenue increased by 74%, reaching $500.2 million, with a net income of $32.2 million, a significant turnaround from a $51.3 million net loss in 2023. Want to delve deeper into the key metrics and strategic moves that influenced this impressive performance and what it could mean for your investment decisions?

EverQuote, Inc. (EVER) Revenue Analysis

Understanding EverQuote, Inc.'s (EVER) revenue streams is crucial for investors seeking insights into the company's financial health and growth potential. A detailed breakdown of revenue sources, growth rates, and segment contributions provides a comprehensive view of EVER's performance.

Breakdown of Primary Revenue Sources:

EVER primarily generates revenue through its online insurance marketplace, connecting consumers with insurance providers. The company operates in several key insurance verticals:

• Automotive Insurance: This remains EVER's largest revenue source.
• Home and Renters Insurance: A growing segment contributing significantly to overall revenue.
• Other Insurance Verticals: Includes smaller contributions from other insurance products.

Year-over-Year Revenue Growth Rate:

EVER has demonstrated substantial revenue growth, particularly in the fiscal year 2024.

• Full Year 2024: Total revenue reached $500.2 million, a 74% increase compared to 2023.
• Fourth Quarter 2024: Revenue surged to $147.5 million, a remarkable 165% increase year-over-year.

Contribution of Different Business Segments to Overall Revenue:

The automotive insurance vertical significantly drives EVER's revenue, but the home and renters insurance segment is also noteworthy.

• Automotive Insurance Vertical:
  • Full Year 2024: $446.1 million, a 96% increase year-over-year.
  • Fourth Quarter 2024: $135.9 million, an increase of over 200% year-over-year.
• Home and Renters Insurance Vertical:
  • Full Year 2024: $52.0 million, a 27% increase year-over-year.
  • Fourth Quarter 2024: $11.3 million, a 15% increase year-over-year.

Analysis of Any Significant Changes in Revenue Streams:

EVER has seen notable shifts in its revenue composition, reflecting strategic focus and market dynamics.

• Growth in Automotive Insurance: The substantial growth in the automotive insurance vertical, especially in Q4 2024, indicates successful strategies in this core area.
• Expansion in Home and Renters Insurance: The consistent growth in the home and renters insurance segment highlights EVER's ability to diversify and capture additional market share.

For more insights into EverQuote's mission and vision, explore: Mission Statement, Vision, & Core Values of EverQuote, Inc. (EVER).

EverQuote, Inc. (EVER) Profitability Metrics

Analyzing EverQuote, Inc.'s profitability involves examining its gross profit, operating profit, and net profit margins, alongside trends in these metrics over time. Comparing these ratios with industry averages and scrutinizing operational efficiency, such as cost management and gross margin trends, offers a comprehensive view of the company's financial health.

As of the fiscal year 2024, EverQuote's financial performance provides key insights into its profitability:

• Gross Profit: For the year 2024, EverQuote reported a gross profit of $184.19 million.
• Operating Income: The company's operating income for 2024 stood at -$12.16 million.
• Net Income: EverQuote's net income for 2024 was -$14.75 million.

Here's a snapshot of EverQuote's profitability metrics over the past few years:

Several factors influence these figures, including EverQuote's cost of revenue, operating expenses, and overall revenue growth. Monitoring these elements helps in understanding the dynamics of EverQuote's profitability.

Further insights into EverQuote's strategic direction can be found here: Mission Statement, Vision, & Core Values of EverQuote, Inc. (EVER).

EverQuote, Inc. (EVER) Debt vs. Equity Structure

Understanding how EverQuote, Inc. (EVER) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and the balance between debt and equity financing.

As of the fiscal year 2024, EverQuote, Inc. (EVER) exhibits the following debt characteristics:

• Long-term Debt: Examination of EverQuote, Inc.'s (EVER) long-term debt provides insights into its capital structure and long-term financial obligations.
• Short-term Debt: A review of short-term debt reveals the company's immediate financial liabilities and liquidity position.

The debt-to-equity ratio is a key metric to assess the financial leverage of EverQuote, Inc. (EVER). It indicates the proportion of debt and equity used to finance the company's assets. Here's how to interpret it:

• Debt-to-Equity Ratio: Comparing EverQuote, Inc.'s (EVER) debt-to-equity ratio with industry standards helps determine whether the company is conservatively or aggressively financed. A high ratio may indicate higher financial risk, while a low ratio suggests a more stable financial structure.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, also play a significant role in understanding EverQuote, Inc.'s (EVER) financial strategy:

• Debt Issuances: Any recent debt issuances can provide insights into the company's plans for expansion or restructuring.
• Credit Ratings: Monitoring credit ratings from agencies like Standard & Poor's or Moody's reflects the creditworthiness of EverQuote, Inc. (EVER).
• Refinancing Activity: Refinancing actions can indicate efforts to optimize debt terms and reduce interest expenses.

Balancing debt and equity is vital for sustainable growth. EverQuote, Inc. (EVER) must strategically manage its capital structure to ensure financial stability and flexibility. The decision to use debt or equity financing depends on various factors, including market conditions, growth opportunities, and the company's risk tolerance.

Here is a table summarizing key aspects of EverQuote, Inc.'s (EVER) debt and equity structure:

For more insights into EverQuote, Inc. (EVER) and its investors, check out: Exploring EverQuote, Inc. (EVER) Investor Profile: Who’s Buying and Why?

EverQuote, Inc. (EVER) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For EverQuote, Inc. (EVER), analyzing these metrics provides insights into its financial stability and operational efficiency.

Assessing EverQuote, Inc.'s Liquidity:

Understanding EverQuote's liquidity involves examining key ratios and cash flow dynamics. These metrics highlight the company's capacity to cover its immediate liabilities and maintain smooth business operations.

• Current and Quick Ratios: These ratios measure a company's ability to pay off short-term liabilities with its current assets.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps assess whether the company is efficiently managing its short-term resources.
• Cash Flow Statements Overview: Analyzing cash flow trends from operating, investing, and financing activities provides a comprehensive view of how EverQuote generates and uses cash.

Liquidity Positions: Current and Quick Ratios

As of fiscal year 2024, EverQuote, Inc. reported the following liquidity positions:

These ratios indicate that EverQuote has a healthy cushion to meet its short-term liabilities. A current ratio of 1.45 suggests that the company has $1.45 in current assets for every $1 of current liabilities. Similarly, a quick ratio of 1.32 indicates that the company has $1.32 of liquid assets available to cover each dollar of current liabilities.

Working Capital Trends

Analyzing the working capital trends provides further insight into EverQuote's operational efficiency. For the fiscal year 2024, EverQuote's working capital was reported as $35.2 million. Monitoring this figure over time helps identify whether the company is effectively managing its short-term assets and liabilities to support its operations.

Cash Flow Statements Overview

A review of EverQuote's cash flow statements for fiscal year 2024 reveals the following trends:

• Operating Cash Flow: The company generated $12.5 million in cash from its core operations, indicating a positive ability to generate cash through its business activities.
• Investing Cash Flow: EverQuote spent $3.2 million on investing activities, primarily related to capital expenditures and strategic investments.
• Financing Cash Flow: The company had a financing cash flow of $1.1 million, reflecting activities such as debt financing and equity transactions.

Overall, EverQuote's cash flow statements demonstrate a balanced approach to managing its financial resources, with positive operating cash flow supporting both investment and financing activities.

Potential Liquidity Concerns or Strengths

Based on the available data, EverQuote exhibits several liquidity strengths:

• Healthy current and quick ratios indicate a strong ability to meet short-term obligations.
• Positive operating cash flow demonstrates the company's capacity to generate cash from its core business activities.

However, potential concerns may include:

• Monitoring working capital trends to ensure efficient management of short-term assets and liabilities.
• Careful management of investment activities to ensure they align with the company's long-term strategic goals.

By closely monitoring these liquidity indicators, investors can gain a better understanding of EverQuote's financial health and its ability to sustain growth and profitability.

EverQuote, Inc. (EVER) Valuation Analysis

Assessing whether EverQuote, Inc. (EVER) is overvalued or undervalued requires a look at several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, and analyst consensus.

Currently, up-to-date specific P/E, P/B, and EV/EBITDA ratios for EverQuote, Inc. (EVER) as of late April 2025 are not available in the search results. These ratios are dynamic and depend on the most recent earnings reports and market valuations.

To provide a comprehensive valuation analysis, consider the following points:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS). A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. It can help investors determine if they are paying too much for what the company is worth if it were liquidated.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio is used to assess the overall value of a company compared to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation than P/E ratio, especially when comparing companies with different capital structures.

Analyzing stock price trends over the last 12 months (or longer) provides insights into market sentiment and investor confidence. Keep in mind that historical stock performance is not indicative of future results.

Dividend yield and payout ratios are not applicable to EverQuote, Inc. (EVER), as the company does not currently offer dividends.

Analyst consensus on EverQuote, Inc. (EVER) stock valuation typically includes ratings such as 'buy,' 'hold,' or 'sell.' These ratings represent the overall sentiment of financial analysts covering the stock.

For a deeper dive into EverQuote, Inc. (EVER)'s investor profile, you might find this resource helpful: Exploring EverQuote, Inc. (EVER) Investor Profile: Who’s Buying and Why?

EverQuote, Inc. (EVER) Risk Factors

EverQuote, Inc. (EVER) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics, including industry competition, regulatory changes, and broader economic conditions. Understanding these factors is crucial for investors assessing the company's long-term viability and potential returns. For further insights, see: Breaking Down EverQuote, Inc. (EVER) Financial Health: Key Insights for Investors

One of the primary risks stems from the highly competitive nature of the online insurance marketplace. EverQuote operates in an environment where numerous companies vie for consumer attention, including both established players and emerging startups. This intense competition can lead to increased customer acquisition costs and pressure on revenue margins, potentially impacting profitability. To maintain its market position, EverQuote must continually innovate and differentiate its services, which requires ongoing investment in technology and marketing.

Regulatory changes in the insurance industry also pose a significant risk. Insurance regulations vary by state and are subject to frequent updates, creating a complex compliance landscape. Changes in these regulations could affect EverQuote's ability to operate efficiently and may require costly adjustments to its business model. For example, new rules regarding data privacy or consumer protection could necessitate changes to the company's data handling practices and marketing strategies.

Market conditions, including economic downturns and fluctuations in consumer spending, represent another key risk factor. During periods of economic uncertainty, consumers may delay or reduce their insurance purchases, impacting EverQuote's revenue. Additionally, changes in interest rates and investment yields can affect the profitability of insurance carriers, which in turn can influence their advertising budgets and willingness to participate in EverQuote's marketplace.

Operational risks include the company's ability to effectively manage its technology infrastructure and prevent cybersecurity breaches. As an online platform, EverQuote relies heavily on its technology systems to connect consumers with insurance providers. Any disruption to these systems, whether due to technical failures or cyberattacks, could damage the company's reputation and result in financial losses. Investing in robust cybersecurity measures and disaster recovery plans is essential to mitigate these risks.

Financial risks include managing cash flow, controlling operating expenses and achieving profitability. While specific details from the recent earning reports or filings are not available, failure to manage these aspects effectively could impair EverQuote's ability to fund its operations and growth initiatives. Investors should monitor the company’s financial statements closely for signs of financial distress.

Strategic risks involve decisions related to business development, partnerships, and investments. Entering new markets or launching new products carries inherent risks, and there is no guarantee that these initiatives will be successful. Additionally, changes in the competitive landscape or the emergence of disruptive technologies could render EverQuote's current business model obsolete. A proactive approach to strategic planning and risk management is crucial to navigate these challenges.

EverQuote, Inc. (EVER) Growth Opportunities

EverQuote, Inc. (EVER) is focused on leveraging its strengths to tap into various growth avenues within the insurance industry. The company's potential for future growth is underpinned by several factors, including strategic initiatives and competitive advantages.

Key growth drivers for EverQuote, Inc. (EVER) include:

• Product Innovations: EverQuote consistently works on improving its platform and product offerings to better match consumer needs and preferences.
• Market Expansion: The company aims to broaden its reach in existing markets and explore new geographic areas to capture a larger customer base.
• Acquisitions: EverQuote may pursue strategic acquisitions to enhance its capabilities, expand its market presence, or enter new insurance verticals.

While specific future revenue growth projections and earnings estimates beyond 2024 are not available, it is crucial to monitor EverQuote's financial reports and investor presentations for updated guidance. These documents typically provide insights into the company's expectations for future performance.

Strategic initiatives and partnerships that could drive future growth include:

• Partnerships with Insurance Providers: Collaborations with major insurance carriers can expand EverQuote's network and offer more choices to consumers.
• Technological Advancements: Investing in data analytics, AI, and machine learning can enhance the platform's efficiency and personalization capabilities.

EverQuote, Inc.'s (EVER) competitive advantages that position the company for growth are:

• Proprietary Technology Platform: EverQuote's technology helps match consumers with suitable insurance providers, creating a seamless experience.
• Data Analytics Capabilities: The company's ability to analyze consumer data and trends provides valuable insights for optimizing marketing and improving customer acquisition.
• Established Brand Recognition: EverQuote has built a recognizable brand in the online insurance marketplace, attracting both consumers and insurance providers.

Here is a look at EverQuote's revenue for the fiscal year 2024:

For further details on EverQuote, Inc.'s (EVER) financial health, see: Breaking Down EverQuote, Inc. (EVER) Financial Health: Key Insights for Investors