EverQuote spiked 7.8% in pre-market trading on Feb. 23 after the online insurance company posted a lower-than-expected loss in the fourth quarter. Results were driven by 32% rise in revenues and strong operating efficiency.
EverQuote (EVER) incurred a loss of $0.13 per share in 4Q, compared with the $0.15 loss per share estimated by analysts. Total sales generated in the quarter amounted to $97.3 million topping analysts' expectations of $91.79 million.
The company's automotive insurance vertical revenue increased 27% year-over-year to $76.2 million. The variable marketing margin was $31.9 million, up 46%. Adjusted EBITDA came in at $5.4 million, up from $4.2 million recorded in the prior-year period.
EverQuote CEO Jayme Mendal said, "Our team remains focused on EverQuote's vision to become the largest online source of insurance policies by using data and technology to make insurance simpler, more affordable and personalized, ultimately reducing cost and risk."
For 2021, the company projects total revenue in the range of $430 million to $440 million. The variable marketing margin is expected to bring in between $135 to $140 million. Adjusted EBITDA is anticipated to range between $25 million and $30 million. (See EverQuote stock analysis on TipRanks)
For 1Q, total revenue is forecasted to generate between $100 million to $102 million with a variable marketing margin in the range of $30.5 to $31.5 million. Adjusted EBITDA is expected to come in at $4 million to $5 million.
On Dec. 16, JPMorgan analyst Doug Anmuth lowered the stock's price target to $48 (7.8% upside potential) from $54 and maintained a Buy rating "in conjunction with his 2021 internet outlook."
Anmuth expects "to see some rotation away from at-home winners and toward reopening beneficiaries on vaccine distribution."
The analyst believes internet companies "are well positioned to deliver strong sustainable growth at reasonable valuation."
The consensus rating among analysts is a Strong Buy based on 4 unanimous Buys. The average analyst price target stands at $59.33 and implies upside potential of more than 33% to current levels. Shares have gained almost 20% over the past six months.
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