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EverQuote 2025 Q1 Earnings Strong Performance with Net Income Growth of 319%
Generated by AI AgentAinvest Earnings Report Digest
Thursday, May 8, 2025 4:24 am ET2min read
EverQuote (EVER) reported its fiscal 2025 Q1 earnings on May 07th, 2025. exceeded expectations with an 83% year-over-year revenue increase, reaching $166.63 million. The company also raised its guidance for Q2 revenue, projecting $155.0 million to $160.0 million, surpassing analyst estimates. This strong performance demonstrates EverQuote's solid market positioning and operational efficiency, bolstered by strategic investments and technology integration. The enhanced financial outlook reflects continued confidence in future growth, driven by increasing demand and expanded partnerships.
Revenue
EverQuote's total revenue rose by an impressive 83.0% to $166.63 million in Q1 2025, compared to $91.06 million in Q1 2024. Notably, the automotive insurance segment was the primary driver, generating $152.72 million, while home and renters insurance contributed $13.90 million. With other segments adding $13,000, the company showcased a diversified revenue stream, supported by strong performance across its core offerings.
Earnings/Net Income
EverQuote's EPS surged 266.7% to $0.22 in Q1 2025 from $0.06 in Q1 2024, highlighting significant earnings growth. The company's net income also saw substantial improvement, reaching $7.99 million in Q1 2025, a 319.0% increase from $1.91 million in Q1 2024. This reflects a strong financial position and effective cost management.
Price Action
The stock price of EverQuote has edged down 2.05% during the latest trading day, has dropped 3.54% during the most recent full trading week, and has climbed 5.72% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing EverQuote shares after revenue increases and holding for 30 days has resulted in no return over the past five years, with a recorded return of 0.00% compared to an 84.08% return from the benchmark. This indicates that the strategy has significantly underperformed the benchmark, with an excess return of -84.08%. Additionally, both the Sharpe ratio and maximum drawdown were 0.00%, suggesting that the strategy involved no risk. However, the lack of returns renders it unfeasible as an investment approach. This analysis highlights the challenges faced by investors relying solely on revenue growth as a predictor of stock performance, emphasizing the need for a comprehensive evaluation of market conditions and company fundamentals.
CEO Commentary
“2025 is off to a strong start, building on our momentum from last year, and we once again achieved record financial performance across our key financial metrics of revenue, Variable Marketing Dollars or VMD, and Adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote. He emphasized that the company's scale and technology are creating a competitive advantage as they integrate AI into their systems, which enhances performance for carriers and agents. This has resulted in increased budgets from partners, supporting ongoing traffic growth. Mendal expressed confidence in EverQuote's aim to become the leading growth partner for property and casualty insurance providers.
Guidance
For the second quarter of 2025, EverQuote expects revenue between $155.0 million and $160.0 million, reflecting approximately 34% year-over-year growth at the midpoint. The company anticipates Variable Marketing Dollars will be between $45.0 million and $47.0 million, representing a 26% increase year-over-year at the midpoint. Adjusted EBITDA guidance is set at $20.0 million to $22.0 million, indicating 62% year-over-year growth at the midpoint.
Additional News
EverQuote has announced its management's participation in several upcoming investor conferences in May and June 2025. These events include the Needham Technology, Media & Consumer Conference on May 9th, the B. Riley Securities Investor Conference on May 21st, and the William Blair Growth Stock Conference on June 4th, where EverQuote will present at 1:00 p.m. ET. Additionally, the company will participate in the Wolfe Research Small and Mid-Cap Conference on June 5th and the BMO Insurance Summit on June 12th. These conferences present opportunities for EverQuote to engage with investors and discuss its strategic initiatives and market positioning.
Revenue
EverQuote's total revenue rose by an impressive 83.0% to $166.63 million in Q1 2025, compared to $91.06 million in Q1 2024. Notably, the automotive insurance segment was the primary driver, generating $152.72 million, while home and renters insurance contributed $13.90 million. With other segments adding $13,000, the company showcased a diversified revenue stream, supported by strong performance across its core offerings.
Earnings/Net Income
EverQuote's EPS surged 266.7% to $0.22 in Q1 2025 from $0.06 in Q1 2024, highlighting significant earnings growth. The company's net income also saw substantial improvement, reaching $7.99 million in Q1 2025, a 319.0% increase from $1.91 million in Q1 2024. This reflects a strong financial position and effective cost management.
Price Action
The stock price of EverQuote has edged down 2.05% during the latest trading day, has dropped 3.54% during the most recent full trading week, and has climbed 5.72% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing EverQuote shares after revenue increases and holding for 30 days has resulted in no return over the past five years, with a recorded return of 0.00% compared to an 84.08% return from the benchmark. This indicates that the strategy has significantly underperformed the benchmark, with an excess return of -84.08%. Additionally, both the Sharpe ratio and maximum drawdown were 0.00%, suggesting that the strategy involved no risk. However, the lack of returns renders it unfeasible as an investment approach. This analysis highlights the challenges faced by investors relying solely on revenue growth as a predictor of stock performance, emphasizing the need for a comprehensive evaluation of market conditions and company fundamentals.
CEO Commentary
“2025 is off to a strong start, building on our momentum from last year, and we once again achieved record financial performance across our key financial metrics of revenue, Variable Marketing Dollars or VMD, and Adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote. He emphasized that the company's scale and technology are creating a competitive advantage as they integrate AI into their systems, which enhances performance for carriers and agents. This has resulted in increased budgets from partners, supporting ongoing traffic growth. Mendal expressed confidence in EverQuote's aim to become the leading growth partner for property and casualty insurance providers.
Guidance
For the second quarter of 2025, EverQuote expects revenue between $155.0 million and $160.0 million, reflecting approximately 34% year-over-year growth at the midpoint. The company anticipates Variable Marketing Dollars will be between $45.0 million and $47.0 million, representing a 26% increase year-over-year at the midpoint. Adjusted EBITDA guidance is set at $20.0 million to $22.0 million, indicating 62% year-over-year growth at the midpoint.
Additional News
EverQuote has announced its management's participation in several upcoming investor conferences in May and June 2025. These events include the Needham Technology, Media & Consumer Conference on May 9th, the B. Riley Securities Investor Conference on May 21st, and the William Blair Growth Stock Conference on June 4th, where EverQuote will present at 1:00 p.m. ET. Additionally, the company will participate in the Wolfe Research Small and Mid-Cap Conference on June 5th and the BMO Insurance Summit on June 12th. These conferences present opportunities for EverQuote to engage with investors and discuss its strategic initiatives and market positioning.
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Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
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