EverQuote Q1 Earnings Top Estimates, Revenues Fall Y/Y

EverQuote EVER delivered first-quarter 2024 earnings per share of 5 cents in contrast to the Zacks Consensus Estimate of a loss of 7 cents as well as the year-ago quarter's loss of 8 cents per share.
Though the top line of $91 million declined 16.5% year over year, it beat the Zacks Consensus Estimate by 12.8%.
Both the metrics exceeded expectations, likely reflecting the early stages of auto carrier recovery.

EverQuote, Inc. Price, Consensus and EPS Surprise

Behind the Headlines

Revenues from the Automotive insurance vertical were $77.5 million, down 13.6% year over year. The Zacks Consensus Estimate was pegged at $67 million. Our estimate was $64.6 million.
Revenues in the Home and Renters insurance vertical totaled $12.7 million, which increased 34.2% year over year. The Zacks Consensus Estimate was pegged at $13.3 million. Our estimate was $15.3 million.
Revenues in the Other insurance vertical totaled $0.1 million, which plunged 16.3% year over year.
Total costs and operating expenses decreased 20% to $89.3 million, mainly due to the cost of  revenues and lower sales and marketing, general and administrative and research and development expenses. Our estimate was $77.5 million.
EverQuote's variable marketing margin decreased 13.4% year over year in the quarter under review to $30.8 million. Our estimate was $27.6 million, while the Zacks Consensus Estimate was pegged at $26.4 million.
Adjusted EBITDA was $7.6 million, up 41.2% year over year. Our estimate was $4.5 million.

Financial Update

EverQuote exited the first quarter of 2024 with cash and cash equivalents of $48.6 million, up 28% from 2023-end. Total assets were $135.4 million, up 22.1% from 2022-end. Total stockholders' equity increased 9.2% to $88.3 million.
Cash from operations was $10.4 million in the reported quarter versus an outflow of $1.2 million in the year-ago quarter.

Q2 Guidance

EverQuote estimates revenues in the range of $100-$105 million, a variable marketing margin of $31-$33 million and adjusted EBITDA in the range of $7 million-$9 million.

Zacks Rank

EVER currently carries a Zacks Rank #2 (Buy).

Performance of Other Insurers

MGIC Investment Corporation MTG reported first-quarter 2024 operating net income per share of 65 cents, which beat the Zacks Consensus Estimate by 8.3%. The better-than-expected earnings were driven by higher net investment income and lower underwriting and other expenses. The insurer continues to benefit from favorable credit trends and the resiliency of the housing market.  The bottom line improved 20.3% year over year.
MGIC Investment recorded total operating revenues of $303 million, which increased 3.8% year over year on higher net investment income. The top line, however, missed the consensus mark by 0.4%.
Insurance in force declined 0.5% from the prior-year quarter to $290.9 billion. The company missed our estimate of $292.6 billion. The insurer witnessed a 2.5% decrease in primary delinquency to 24,142 loans. New insurance written was $9.1 billion, up 11% year over year, benefiting from favorable credit trends and the resiliency of the housing market.
Radian Group Inc. RDN reported first-quarter 2024 adjusted operating income of $1.03 per share, which beat the Zacks Consensus Estimate by 24%. The bottom line increased 5.1% year over year. The results reflected improved persistency and a rise in premiums and insurance written, partially offset by higher expenses.
Operating revenues rose 4.8% year over year to $318.9 million, primarily due to higher net premiums earned, services revenues and net investment income.
MI New Insurance Written rose 2.4% year over year to $11.5 billion. Primary mortgage insurance in force was $271 billion as of Mar 31, 2024, up 4% year over year. The expense ratio was 25, which improved 90 bps from the year-ago quarter.
Everest Group, Ltd.'s EG first-quarter 2024 operating income of $16.32 per share beat the Zacks Consensus Estimate by 2.1%. The bottom line jumped 44.3% year over year. Everest Group's total operating revenues of $4.14 billion climbed 26% year over year on higher premiums earned and net investment income. The top line missed the consensus mark by 1.4%.
Pre-tax underwriting income was $409 million, which soared 50% year over year. Pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums were $85 million, narrower than the loss of $110 million in the year-ago quarter. The loss was due to the Francis Scott Key Bridge Collapse in Baltimore. The combined ratio improved 240 basis points year over year to 88.8 in the reported quarter. The figure matched the Zacks Consensus Estimate, while our estimate was 85.5.

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