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EverQuote Is Bottoming Out, And Now Is The Right Time To Step In

Aug. 03, 2021 1:31 PM ETEverQuote, Inc. (EVER)21 Comments
Gary Alexander profile picture
Gary Alexander


  • Shares of EverQuote sank ~10% after reporting Q2 results, despite a print that beat Wall Street's expectations on the top and bottom lines.
  • This is the second quarter in a row that EverQuote is down after strong results. Year to date, EverQuote is down ~30%.
  • The company managed to accelerate revenue growth to 34% y/y in Q2, on top of a mid-single digit adjusted EBITDA margin.
  • Trading at less than <2x forward revenue, EverQuote is a prime opportunity to invest in value in an otherwise expensive market.
  • I do much more than just articles at Daily Tech Download: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Insurance claim form and insurance policy
DNY59/E+ via Getty Images

Over the past year, shares of EverQuote (NASDAQ:EVER) have seemingly known how to go in only one direction: down. The Massachusetts-based insurance company, best known for attempting to give consumers a more transparent and digital-first experience in

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This article was written by

Gary Alexander profile picture
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of EVER either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (21)

Worst stock ever, thanks for the awesome suggestion
Right… about… now …? *craters to 15*
bengalesq profile picture
28% ago.....
You love to recommend these shit companies just because they are "cheap" compared with high quality companies, this is why your track record is so bad.
What’s going on with Ever? It is fallen by 30% in a month and there is significant short interest even though results were respectable last quarter.
Wall Street doesn't believe their revenues
Gary, do you understand how EVER calculates its revenue
@realsummers2 Serious question, how?
Guess my concern is that the business model is not profitable. Ok, they are growing revenue, but by now they should begin putting some of the revenue on the bottom line. Especially since its a software company, so scaling should be gravy, instead it doesn’t seem to matter how much they grow, profits are not.
@mac ron I give them a pass on that. Investment for tech companies shows up on the income statement, not balance sheet. 6% EBITDA margin with 34% rev growth is pretty good, no? Amazon famously have zero profitability for over a decade as every excess dollar over breakeven was reinvested in the business.
Business Master profile picture
Customer reviews suck, why is that?
@Business Master Insurance in general has very low NPS scores. The problem with EVER is that they can't produce a real online quote comparison and buying experience because carriers contractually limit them from doing so.... but that applies across the board to all insuretechs. It's an insurance industry problem, not an EVER specific problem.
My only issue with everquote is their product sucks. Their balance sheet is solid, but man ever quotes customer reviews are so so bad.
@Rleaton Agree that product sucks, but you know what they say in enterprise businesses - distribution beats product 10/10 times.
@dvreverg but they are selling to users no?
@Rleaton No, they make their money from insurance carriers (GEICO, Statefarm, etc.). The users are the ones being sold.

The users might complain that it's a crappy user experience, but what are the alternatives? Going to your local insurance agent? Going to each carrier's website and getting a quote one-by-one?

The EVER product experience is bad, but good enough compared to the alternatives.
Who are EverQuote's competitors and what is EVER's competitive advantage?
@jxiao8423 I'd say their main competitors are QNST and MAX in the legacy business. With this move into DTCA, they're beginning to compete against SLQT, EHTH, GOCO.

Competitive adv is distribution (good relationships with top insurance carriers) and adtech (consistently at or near the top of Google searches, etc.)
I took a position on the dip. 🤞
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