EverQuote Announces Preliminary Third Quarter 2021 Financial Results
- Company to Report Third Quarter 2021 Financial Results on
November 1, 2021 - Company Implements Plan to Reduce Non-Marketing Operating Expenses
Third Quarter 2021 Preliminary Financial Results:
- Total revenue is expected to be in the range of
$106.5 –$107.5 million , compared to guidance of$109 -$111 million . - Variable marketing margin is expected to be in the range of
$32 -$32.5 million , compared to guidance of$33 -$34 million . - GAAP net loss is expected to be in the range of
$6.0 –$5.5 million . - Adjusted EBITDA is expected to be in the range of
$2.0 - 2.5 million, compared to guidance of$4.5 -$5.5 million .
“Our third quarter performance was impacted by challenges in the auto insurance market; several of our key carrier customers experienced higher than expected claims losses, resulting in a sudden pull back of their marketing efforts in an attempt to restore their target levels of profitability,” said
The Company announced today its plans to implement an approximately 10% structural reduction in its non-marketing operating expenses (excluding non-cash items), with the reductions coming principally from its auto marketplace operations.
“As a result of moving quickly to streamline our operations, we believe we will be well positioned for future growth when the auto insurance carriers return to their normal pattern of acquiring consumers through digital channels,” said
The preliminary, unaudited financial results included in this press release are based on information available as of
Company to Report Third Quarter 2021 Financial Results on
To access the call, please dial (877) 273-5005, or outside the
Use of Non-GAAP Financial Measure
Adjusted EBITDA is a non-GAAP measure. Please see “EverQuote, Inc. Reconciliation of Non-GAAP Measures to GAAP” below for more information.
Forward Looking Statements
Any statements in this press release about future expectations, plans and prospects for
About
For more information, visit everquote.com and follow on Twitter @everquotelife, Instagram @everquotepics, and LinkedIn https://www.linkedin.com/company/everquote/.
Investor Relations Contact:
Brinlea Johnson
212-331-8424
[email protected]
Preliminary Non-GAAP Financial Measures
To supplement the Company’s financial statements presented in accordance with GAAP and to provide investors with additional information regarding EverQuote’s financial results, the Company has presented Adjusted EBITDA as a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies.
The Company defines adjusted EBITDA as net income (loss), excluding the impact of stock-based compensation expense; depreciation and amortization expense; acquisition-related costs; interest income; and income taxes. The most directly comparable GAAP measure is net income (loss). The Company monitors and presents adjusted EBITDA because it is a key measure used by management and the board of directors to understand and evaluate operating performance, to establish budgets and to develop operational goals for managing EverQuote’s business. In particular, the Company believes that excluding the impact of these items in calculating adjusted EBITDA can provide a useful measure for period-to-period comparisons of EverQuote’s core operating performance.
The Company uses adjusted EBITDA to evaluate EverQuote’s operating performance and trends and make planning decisions. The Company believes that this non-GAAP financial measure helps identify underlying trends in EverQuote’s business that could otherwise be masked by the effect of the items that the Company excludes in the calculations of adjusted EBITDA. Accordingly, the Company believes that this financial measure provides useful information to investors and others in understanding and evaluating EverQuote’s operating results, enhancing the overall understanding of the Company’s past performance and future prospects.
The Company’s non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, other companies may use other measures to evaluate their performance, which could reduce the usefulness of the Company’s non-GAAP financial measures as tools for comparison.
The following table reconciles adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.
PRELIMINARY RECONCILIATION OF NON-GAAP MEASURES TO GAAP
| Preliminary Quarter Ended |
|||||||
| Low end | High end | ||||||
| in thousands | |||||||
| Net loss | $ | (6,000 | ) | $ | (5,500 | ) | |
| Stock-based compensation (1) | 8,400 | 8,400 | |||||
| Depreciation and amortization (1) | 1,300 | 1,300 | |||||
| Acquisition-related (1) | 900 | 900 | |||||
| Interest income (1) | - | - | |||||
| Income tax benefit (1) | (2,600 | ) | (2,600 | ) | |||
| Adjusted EBITDA | $ | 2,000 | $ | 2,500 | |||
(1) Management’s preliminary results do not reflect a range other than with respect to net loss.
Source:
AMERINST INSURANCE GROUP LTD FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Termination of a Material Definitive Agreement, Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement, Financial Statements and Exhibits
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