EverQuote announces second quarter results
EverQuote announced financial results for Q2 2023.
- Total revenue of $68 million, a decrease of 33% compared to Q2 2022.
- Automotive insurance vertical revenue of $49.7 million, a decrease of 39% compared to Q2 2022.
- Revenue from other insurance verticals (home and renters, life, and health insurance) was $18.2 million, a decrease of 11% compared to Q2 2022.
- GAAP net loss increased to $13.2 million, compared to a GAAP net loss of $3.8 million in Q2 2022.
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. The company expects to take a non-cash charge in Q3 related to the sale of these assets.
In August 2020, EverQuote announced the acquisition of Crosspointe Insurance Advisors, a health insurance agency headquartered in Evansville, Indiana. EverQuote paid $14.9 million to acquire Crosspointe.
“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.” – Jayme Mendal, CEO of EverQuote.
