Business
EverQuote Announces Second Quarter 2023 Financial Results
Second Quarter Revenue of $68.0 millionSecond Quarter Variable Marketing Margin of $24.7 millionCompany Announces Sale of Health Insurance Vertical Assets
About this update from Everquote, Inc.
[{"type":"text","content":"Second Quarter Revenue of $68.0 millionSecond Quarter Variable Marketing Margin of $24.7 millionCompany Announces Sale of Health Insurance Vertical Assets CAMBRIDGE, Mass., Aug. 07, 2023 (GLOBE NEWSWIRE) -- EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the quarter ended June 30, 2023. “In the second quarter, EverQuote reported revenue of $68.0 million and Variable Marketing Margin, or VMM, of $24.7 million, a record high as a percentage of revenue,” said Jayme Mendal, CEO of EverQuote. “During the quarter, we made a number of strategic decisions to position EverQuote to emerge from a prolonged auto insurance downturn in a clear leadership position. We restructured our operations, eliminating approximately 30% of positions company-wide, decided to exit our health insurance vertical and its associated direct to consumer agency (DTCA), and scaled-down our DTCA serving our auto and home insurance markets. “While the restructuring was catalyzed by the ‘lower-for-longer auto insurance outlook,’ the decisions we made were the result of a deeper assessment of our operations, markets and feedback from carrier and agent partners. As we streamline our business, we are also investing in the most capital efficient and high ROI portions of our operations. We are placing greater emphasis on leveraging our most differentiated assets to accelerate our path to providing compelling value for insurance provider partners, consumers and shareholders,” concluded Mr. Mendal. Subsequent to the close of the second quarter, EverQuote sold certain assets of its health insurance vertical to MyPlanAdvocate Insurance Solutions Inc., for $13.2 million in cash, subject to customary post-closing adjustments, and MyPlanAdvocate’s assumption of certain liabilities relating to the health insurance vertical. The transaction closed on August 1, 2023. Included in the sale was the $32.2 million commissions receivable as of June 30, 2023, which were expected to be collected over the next seven years. We expect to take a non-cash charge in Q3 related to the sale of these assets. “Our team continues to focus on what we can control by taking decisive action to judiciously manage expenses and strengthen our balance sheet,” said Joseph Sanborn, CFO of EverQuote. “By streamlining our operations and adopting a rel...