EverQuote, Inc. Q4 FY2024 earnings call

• EverQuote had strong revenue growth in 2024, growing revenue by 74% to cross the $500 million mark and adjusted EBITDA to nearly $60 million.
• The auto insurance market has returned to broad-based healthy underwriting profitability, and the homeowners’ insurance market is also beginning to see a return to healthy underlying combined ratios.
• Made progress in technology stack, enabling faster development of better products and investing in automation and AI tools for efficiency.
• Ramped hiring in high leverage technical roles and upgraded offices to enhance in-person collaboration.
• Strategic focus on the P&C industry created operating leverage and positioned the company to benefit from a favorable auto carrier landscape.

For the fourth quarter of 2024, total revenues grew to $147.5 million. Revenue from the auto insurance vertical was $135.9 million, up over 200% year-over-year. For the full year, auto insurance vertical revenue grew 96% to $446 million. Revenue from the home and renters’ insurance vertical was $11.3 million in Q4 2024, up 15% year-over-year, and for the full year, it drove record revenue of $52 million, up approximately 27% year-over-year.

• Expect Q1 2025 revenue to be between $155 and $160 million, representing 73% year-over-year growth at the midpoint.
• Expect VMD to be between $44 million and $46 million, representing 46% year-over-year growth at the midpoint.
• Expect adjusted EBITDA to be between $19 million and $21 million, representing 163% year-over-year growth at the midpoint.
• Plan to increase investment in technology and data assets in the second half of 2025 to position for long-term growth.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Refer to SEC filings for detailed risks.
• Regulatory changes like the FCC rule and its impact on operations and financials are potential risks.

Q: On guidance, how should we think about growth relative to the overall premium market?

A: Joseph Sanborn explained about the auto insurance premium growth context, seasonal patterns, and normalization of growth rate.

Q: On traffic operations, what are the things working?

A: Jayme Mendal mentioned operational rigor, ML-based traffic bidding platform, and expanding channels/partners.

Q: On maintaining one-to-one consent changes, rationale?

A: Jayme Mendal said it's a win-win for consumers and agents, improving product quality and aligning with EverQuote's strategy.

Q: On capital allocation, thoughts on acquisitions?

A: Joseph Sanborn said organic investment, potential acquisitions guided by strategy, and consideration of buybacks in the future.

Q: On free cash flow outlook for 2025?

A: Joseph Sanborn said adjusted EBITDA is a good proxy for operating cash flow, with taxes being a minor consideration in 2025.