Has anyone ever looked at this company? $EVER is up 425% over last 12 months. The company’s online marketplace offers consumers shopping for auto, home, and life insurance quotes. It serves carriers, agents, financial advisors, and indirect distributors and aggregators.
Most of their revenue is automobile based. Revenue in their insurance vertical increased to $49.8 million reflecting an accelerated growth rate of 40% year-over-year.
GM% is 93.7%. Whoa. Balance sheet in great shape.
Their revenue guidance for the year is $200M and they believe they operate in a $123Bn marketplace.
Given their accelerating revenue growth rate, and diversification in home, life, etc., it sounds interesting.
I’m not familiar w the competitive landscape, but I immediately think of Esurance. And a simple google search shows a lot of competition.
Again, not very familiar w the insurance space. Anyone have a view to this company/space?
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I used to sell insurance but that was a long time ago.
Going by the Owler website, Everquote leads the pack by revenue by over an order of magnitude and Esurance is not a real competitor because it is an insurance company, private, a subsidiary of Allstate, meaning the revenue numbers are not comparable
Owler Everquote: https://www.owler.com/company/everquote
Owler Esurance: https://www.owler.com/company/esurance
Their revenue guidance for the year is $200M and they believe they operate in a $123Bn marketplace.
I wonder what that $123Bn is… insurance premiums or referral fees in their marketplace? The marketplace business can be very good like TTD and Booking.com but I have also bee burned by others.
GM% is 93.7%. Whoa. Balance sheet in great shape.
For practical purposes Gross margin in this business is meaningless, essentially running a website. Notice that they don’t break it out. Look at Operating margin, it’s a loss. Over the past six months Cost and Expenses grew by 35.5% while revenue grew by less, 31.9%. That needs to invert.
A small cap at a P/S of 2.4 I think it’s OK to buy a few shares.
Denny Schlesinger
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