EverQuote Inc: 700% Gains in 2019 for This One-Time Penny Tech Stock

EverQuote Inc

EverQuote Inc Remains Bullish After 700% Gains in 2019

EverQuote Inc (NASDAQ:EVER) is a great example of what can happen to a well-run penny stock.

At the end of 2019, EverQuote stock is up 700% year-to-date. Why?

This once-overlooked penny stock has been reporting strong financial results all year long. In addition to reporting strong third-quarter results, the company also reported its first quarter of profitability as a public company and raised its full-year guidance.

EVER Stock Overview

Who knew shopping for insurance online could be so fun?

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According to recent statistics, 70% of consumers shop for insurance online, but 80% of policies are closed offline. That’s mainly because people like speaking to an actual agent. (Source: “Investor Presentation November 2019,” EverQuote Inc, last accessed December 23, 2019.)

EverQuote operates the largest online marketplace for insurance in the U.S., connecting consumers looking for car, home, and life insurance with insurance providers.

In October 2019, the company partnered with Bold Penguin to launch its commercial insurance line.

Some of the company’s representative partners include American International Group Inc (NYSE:AIG), Allstate Corp (NYSE:ALL), Farmers Insurance Group, Liberty Mutual Group, Mutual of Omaha, and State Farm.

Judging by the company’s strong performance in 2019, it’s succeeding in providing consumers with a streamlined experience that saves them time and money. And saving money is at the top of the list for many of us. Through EverQuote, the average consumer saves $610.00 a year.

EverQuote Stock Information
Market Cap $870.3 Million
52-Week Change 700.5%
52-Week High $38.43
52-Week Low $4.05
Shares Outstanding 12.61 Million
Float 9.1 Million
50-Day Moving Average $32.61
200-Day Moving Average $21.53

(Source: “EverQuote, Inc. (EVER)Yahoo! Finance, last accessed December 23, 2019.)

EverQuote Achieves First Quarter of Profitability & Raises Guidance

On November 4, 2019, EverQuote announced its financial results for the third quarter ended September 30, 2019.

Third-quarter revenue increased 61% year-over-year to $67.1 million. This big increase was fueled by strong demand in its consumer quote request volume. (Source: “EverQuote Announces Third Quarter 2019 Financial Results,” EverQuote Inc, November 4, 2019.)

Revenue from automotive insurance was up 60%, at $57.3 million, while revenue from the company’s other insurance verticals (home, renters, life, and health) increased 68%, hitting $9.8 million.

EverQuote reported third-quarter net income of $0.2 million, or $0.01 per share, compared to a third-quarter 2018 net loss of $3.8 million, or $0.15 per share.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $3.9 million, versus an adjusted EBITDA loss of $1.0 million in the same prior-year period.

Outlook

For the fourth quarter, EverQuote expects its revenue to be in the range of $67.0 to $69.0 million and its adjusted EBITDA to be in the range of $2.0 to $3.0 million

For fiscal 2019, it expects revenue in the range of $242.0 to $244.0 million, up from a previous guidance range of $215.0 to $219.0 million. It also expects adjusted EBITDA in the range of $6.1 to $7.1 million, a massive improvement from the previous range of $1.0 million to $2.5 million.


Chart courtesy of StockCharts.com

Analyst Take

To say EverQuote Inc has had an excellent year is an understatement. EVER stock soared 700% on the heels of strong financial results and a robust outlook.

EverQuote stock made massive gains in 2019…and its outlook remains bullish for 2020.