Online insurance comparison site EverQuote (NASDAQ:EVER) announced better-than-expected results in Q1 CY2024, with revenue down 16.6% year on year to $91.07 million. On top of that, next quarter's revenue guidance ($102.5 million at the midpoint) was surprisingly good and 30.8% above what analysts were expecting. It made a GAAP profit of $0.05 per share, improving from its loss of $0.08 per share in the same quarter last year.

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“We had a strong start to 2024, delivering first quarter results that exceeded the high end of our guidance range for revenue, Variable Marketing Margin, or VMM, and Adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote.

Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers

Online Marketplace

Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.

Sales Growth

EverQuote's revenue has been declining over the last three years, dropping on average by 7.5% annually. This quarter, EverQuote beat analysts' estimates but reported a year on year revenue decline of 16.6%.

Guidance for the next quarter indicates EverQuote is expecting revenue to grow 50.8% year on year to $102.5 million, improving from the 33.3% year-on-year decline it recorded in the comparable quarter last year. Ahead of the earnings results, analysts were projecting sales to grow 27.2% over the next 12 months.

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Key Takeaways from EverQuote's Q1 Results

We were impressed by how significantly EverQuote blew past analysts' revenue expectations this quarter. We were also glad next quarter's revenue guidance came in higher than Wall Street's estimates. On the other hand, its revenue growth regrettably slowed. Zooming out, we think this was a solid quarter that shareholders will appreciate despite the slowing topline. The stock is up 10.1% after reporting and currently trades at $23.5 per share.

EverQuote may have had a good quarter, but does that mean you should invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.