Why EverQuote Shares Are Falling

EverQuote Inc EVER shares are trading lower by 17.7% at $14.27 after the company cut third-quarter sales guidance below estimates.

"Our third quarter performance was impacted by challenges in the auto insurance market; several of our key carrier customers experienced higher than expected claims losses, resulting in a sudden pull back of their marketing efforts in an attempt to restore their target levels of profitability," said Jayme Mendal, CEO of EverQuote.

"We believe that these industry dynamics are temporary in nature and will correct as carriers adjust their pricing policies to a new underwriting environment. We expect our non-auto verticals to be unaffected by these challenges, and we remain confident in the outlook that our health insurance vertical will have a successful fourth quarter," Mendal stated.

EverQuote is a US-based company engaged in the business activity of offering an online marketplace for insurance shopping. The online marketplace offers consumers to find the relevant insurance quotes based for car insurance, home insurance, and life insurance.

EverQuote has a 52-week high of $54.96 and a 52-week low of $16.95.