EverQuote’s first quarter results were met with a significant negative market reaction, despite revenue and profits exceeding Wall Street expectations. Management attributed the quarter’s performance to strong enterprise carrier spending and ongoing investments in AI-powered traffic management, which CEO Jayme Mendal said has enabled the company to “leverage a data advantage through the use of AI throughout our traffic and distribution systems.” The company also noted that its agency operations and core auto insurance vertical saw substantial growth, supported by improved referral quality and the rollout of Smart Campaigns for carriers.
Is now the time to buy EVER? Find out in our full research report (it’s free).
EverQuote (EVER) Q1 CY2025 Highlights:
- Revenue: $166.6 million vs analyst estimates of $158.3 million (83% year-on-year growth, 5.2% beat)
- Adjusted EBITDA: $22.51 million vs analyst estimates of $19.97 million (13.5% margin, 12.7% beat)
- Revenue Guidance for Q2 CY2025 is $157.5 million at the midpoint, above analyst estimates of $149.5 million
- EBITDA guidance for Q2 CY2025 is $21 million at the midpoint, above analyst estimates of $18.59 million
- Operating Margin: 4.8%, up from 1.9% in the same quarter last year
- Market Capitalization: $858 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions EverQuote’s Q1 Earnings Call
- Maria Ripps (Canaccord Genuity) asked about the potential impact of auto tariffs in the second half of the year; CEO Jayme Mendal and CFO Joseph Sanborn responded that carrier profitability remains strong enough to absorb higher claims costs if tariffs take effect, with no significant change to growth expectations at this time.
- Jason Kreyer (Craig Hallum) questioned the timing and impact of AI and machine learning on variable marketing margin (VMM); Mendal explained that benefits are being realized through improved traffic bidding and operational efficiency, but more impact is anticipated as tool adoption grows.
- Zach Cummins (B. Riley) inquired about the health and expansion of the agent channel; Mendal highlighted deeper agent relationships, new value-added products, and a strategy to build a “one-stop growth shop” for agents as key growth levers.
- Ralph Schackart (William Blair) asked about adoption and results of the Smart Campaigns product; Mendal shared that customer performance improved by over 40% in some cases and that broader adoption is beginning to impact overall platform performance.
- Mayank Tandon (Needham) explored the headroom for budget growth among top customers and capital allocation priorities; Mendal noted that growth is limited more by operational execution than budget constraints, while Sanborn outlined a focus on organic technology investment, selective M&A, and a potential share buyback.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the pace of AI-driven product adoption and its measurable impact on carrier and agent performance, (2) EverQuote’s ability to maintain margin expansion while increasing technology and data investments, and (3) developments in the auto insurance market, including macroeconomic volatility and potential effects from auto parts tariffs. The evolution of the agency channel and success in home and renters insurance verticals will also be key signposts.
EverQuote currently trades at $23.89, down from $26.36 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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