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1. Company Snapshot

1.a. Company Description

EverQuote, Inc.operates an online marketplace for insurance shopping in the United States.The company's online marketplace offers consumers shopping for auto, home and renters, life, and health insurance.


It serves carriers and agents, as well as indirect distributors.The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc.in November 2014.


EverQuote, Inc.was incorporated in 2008 and is based in Cambridge, Massachusetts.

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1.b. Last Insights on EVER

EverQuote's recent performance is driven by strong Q3 earnings, beating estimates with $0.5 per share, and a 20% year-over-year revenue growth. The company's auto insurance demand remains robust, with a large $7 billion TAM in digital insurance advertising. Analysts expect a 41.8% upside potential, citing an upward trend in earnings estimate revisions. EverQuote's upgraded Strong Buy rating and growing optimism about its earnings prospects also contribute to its positive momentum. Additionally, its solid institutional ownership and improving efficiency further bolster its outlook.

1.c. Company Highlights

2. EverQuote Delivers Record Q3 Results, Driven by Strong Carrier Spend and AI-Powered Growth

EverQuote reported record top and bottom line performance in Q3, with total revenues growing 20% year-over-year to $173.9 million, exceeding expectations. Adjusted EBITDA also reached a new quarterly high, driven by stronger enterprise carrier spend, up 27% year-over-year. The company's actual EPS came out at $0.5, beating estimates of $0.37. Revenue from auto insurance increased to $157.6 million, up 21% year-over-year, while revenue from home and renters insurance increased to $16.3 million, up 15% year-over-year.

Publication Date: Nov -18

📋 Highlights
  • Record Q3 Performance: Achieved $173.9M revenue (up 20% YoY) and $21.5M net income, with VMD reaching $50.1M (+14% YoY).
  • Auto Insurance Growth: Revenue surged to $157.6M (+21% YoY), while home/renters insurance hit $16.3M (+15% YoY).
  • Q4 Guidance: Projects revenue of $174–$180M (+20% YoY growth at midpoint) and adjusted EBITDA of $21–$23M (+16% YoY growth at midpoint).
  • Market Cycle Outlook: Anticipates 5+ years of sustained profitability, with carriers maintaining strong underwriting margins and continued customer acquisition.
  • Strategic Tech Investments: $200 bps increase in VMM from new traffic channels (social, video, AI search) and AI-driven products like Smart Campaigns, targeting $1B revenue in 2–3 years.

Growth Drivers

The company's growth is driven by its evolution from a lead vendor to a one-stop growth partner for local agents, with over 35% of its local agent customers using more than one of EverQuote's 4 agent products. The company is also investing in AI-powered products like Smart Campaigns, which has seen meaningful performance improvements as customers adopt the product. As Jayme Mendal mentioned, "We've seen meaningful performance improvements as customers adopt Smart Campaigns and upgrade to newer versions."

Outlook and Guidance

EverQuote expects revenue to be between $174 million and $180 million in Q4, representing 20% year-over-year growth at the midpoint. The company also expects adjusted EBITDA to be between $21 million and $23 million, representing 16% year-over-year growth at the midpoint. Analysts estimate next year's revenue growth at 13.9%, indicating a slight slowdown in growth.

Valuation

EverQuote's current valuation metrics indicate a P/E Ratio of 16.74, P/B Ratio of 5.16, and P/S Ratio of 1.39. The company's EV/EBITDA ratio stands at 12.99, indicating a reasonable valuation. With a ROE of 34.19% and a Net Debt / EBITDA ratio of -1.09, the company demonstrates strong profitability and a healthy balance sheet.

Investment Thesis

EverQuote is transforming its model from a lead generation vendor to a multiproduct provider, delivering more value to carriers and agents through AI products like Smart Campaigns. The company is expanding into more traffic channels to increase its traffic share and is confident in achieving its $1 billion revenue goal in 2-3 years. With a strong track record of growth and a reasonable valuation, EverQuote remains an attractive investment opportunity.

3. NewsRoom

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Nov -21

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Wall Street Analysts Believe EverQuote (EVER) Could Rally 41.77%: Here's is How to Trade

Nov -20

Source: zacks.com

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Contrasting Sompo (OTCMKTS:SMPNY) and EverQuote (NASDAQ:EVER)

Nov -17

Source: defenseworld.net

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EverQuote to Present at Upcoming Investor Conferences

Nov -05

Source: globenewswire.com

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EverQuote (EVER) Upgraded to Strong Buy: Here's What You Should Know

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.47%)

6. Segments

Automotive

Expected Growth: 8.23%

EverQuote's 8.23% growth in Automotive is driven by increasing online research and purchasing of auto insurance, rising demand for digital insurance platforms, and strategic partnerships with leading automotive companies. Additionally, the company's data-driven approach and proprietary technology enable it to provide accurate quotes and personalized recommendations, further fueling growth.

Home and Renters

Expected Growth: 8.3%

EverQuote's Home and Renters segment growth of 8.3% is driven by increasing online quote requests, expansion into new states, and strategic partnerships. Additionally, rising homeownership rates, growing demand for renters insurance, and the company's investments in digital marketing and data analytics capabilities also contribute to this growth.

Other

Expected Growth: 11.53%

EverQuote's 11.53% growth is driven by increasing adoption of online insurance marketplaces, expansion into new insurance verticals, and strategic partnerships. Additionally, the company's investments in data analytics and AI-powered insurance matching technology have improved customer acquisition and retention rates, contributing to its rapid growth.

7. Detailed Products

Insurance Marketplace

A platform that connects consumers with insurance providers, allowing them to compare and purchase insurance policies

Data & Analytics

A suite of data and analytics tools that provide insights to insurance providers and other stakeholders

Digital Funnels

A platform that helps insurance providers to create customized, data-driven marketing campaigns

Agency Platform

A platform that provides independent insurance agents with tools and resources to manage their business

8. EverQuote, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

EverQuote, Inc. operates in a niche market, providing online insurance marketplace, which reduces the threat of substitutes.

Bargaining Power Of Customers

Customers have some bargaining power due to the availability of multiple insurance providers, but EverQuote's platform provides a convenient way to compare and purchase insurance, reducing customer bargaining power.

Bargaining Power Of Suppliers

EverQuote, Inc. has a diverse supplier base, including multiple insurance carriers, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

While there are barriers to entry in the online insurance marketplace, new entrants can still disrupt the market, but EverQuote's established brand and partnerships with insurance carriers provide a competitive advantage.

Intensity Of Rivalry

The online insurance marketplace is highly competitive, with multiple players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.60%
Debt Cost 3.95%
Equity Weight 97.40%
Equity Cost 8.12%
WACC 8.01%
Leverage 2.67%

11. Quality Control: EverQuote, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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EverQuote

A-Score: 5.6/10

Value: 5.9

Growth: 8.3

Quality: 8.4

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

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Arena Group Holdings

A-Score: 5.0/10

Value: 8.5

Growth: 4.7

Quality: 6.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

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Liberty TripAdvisor Holdings

A-Score: 3.8/10

Value: 10.0

Growth: 2.9

Quality: 6.4

Yield: 0.0

Momentum: 2.0

Volatility: 1.3

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Thryv

A-Score: 3.4/10

Value: 7.7

Growth: 1.3

Quality: 7.1

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

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Outbrain

A-Score: 3.3/10

Value: 7.8

Growth: 3.2

Quality: 2.2

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

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TechTarget

A-Score: 2.9/10

Value: 9.2

Growth: 2.1

Quality: 3.6

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.8$

Current Price

27.8$

Potential

-0.00%

Expected Cash-Flows