EVER - Earnings call transcript Q4 2020

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Operator

Welcome to the Fourth Quarter and Full Year EverQuote Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. And now, I will turn it over to Brinlea Johnson of The Blueshirt Group.

Brinlea Johnson

operator. you, Thank welcome XXXX and fourth and quarter Good call. to year earnings full afternoon, EverQuote's We'll results discussing after be the the issued press market today release closed. announced in our Mendal, Wagner, Chief Officer the afternoon call With Financial Executive me John is of on Jayme and Officer; EverQuote's this EverQuote. Chief

year our initiatives, quarter financial under strategy, ability our the Laws, our Federal on our XXXX, prospects. to statements the ability including to our call, goals and guidance acquire growth acquisition and be our new may the business, existing expect statements maintain execute make will recent that During levers acquire our other statements and for key Securities first the considered and full we concerning companies, we investments plans in and to integrations regarding strategy related our to customers, for business forward-looking our growth statements plans growth or to other interest drive our business, and our

may upcoming, Forward-looking views may, we intend, plan, we be such and our as our These we or anticipate, statements, statements believe, We as should only and be and as required by to not as date. expect, except today any of phrases. revise subsequent reflect specifically considered we obligation of phrases any similar we statements words and with forward-looking words disclaim views update these identified law.

and future our uncertainties are from results subject statements differ that actual Forward-looking the performance a are cause to variety expectations. promises of guarantees risks could or to of and not materially

at of on Form site Web Exchange the the our Investor those in most on actual file site section affect important Relations other Commission heading recent quarter factors Risk results, and XX-Q, Factors risks could our SEC's a and For investor.everquote.com material Web the discussion at please available to refer under sec.gov. of our report on on the and which Securities contained is and that with

today's GAAP section of measures, are release I’ll course is With Relations market site non-GAAP the our of it turn Finally, call, included believe during we'll non-GAAP the issued we to in of at press which close to was financial to the Investor on we available reconciliation to of today, which helpful Web measures A investors.everquote.com. over after refer investors. the that,

Jayme Mendal

Thank for us you, and Brinlea, thank you joining everyone today.

most in November the sudden of a our loss of CEO As passing Seth know, we you dear and tragic suffered prior friend. Birnbaum, with

company. work to to speak an lives CEO EverQuote Despite continue building While mourn in our today. focused where on legacy industry on I we defining future his Seth's humbled driving brought, XXXX you at role more well. am unprecedented that and adjusted challenges remain XX% laser with In passing, and we honored our the efficiency we team and reported rapidly to substantially growth. revenue reinvest greater flow in EBITDA remarkably We VMM year-over-year, expansion. grew QX, growth, revenue our positive XX% executed and while cash producing growth assume

growth EBITDA we year, record million, up XXXX. X.X million of year-on-year delivered growth, from $XX.X full and VMM the year-on-year XX% For adjusted in revenue XX%

XXXX, you and affirm and shared QX as I strategy previously. on our detail more with want into diving Before to vision

reducing Our data affordable and using become risk. costs of company's largest online and to make to vision insurance simpler, source insurance policies personalized, technology is the by more ultimately and

all data distribution the emerge Our and major that, assets platform the shopping by to destination choice of building and of includes ecosystem This consumers as unique lines technology, of strategy providers based on us insurance distribution the across will for insurance. is insurance ecosystem following. enable a for connected proprietary our

and through performance and which which a platform traffic partner growing marketing leverage sites the to our fast network, On benefit two insurance the is have consumer owned managing acquisition distribution. our can verified and from side we marketplace, Web platform our operated of our third for parties platforms;

two local which our and EverQuote first marketplace; health. on and of third We party XXXX focused in carriers party marketplace our on provider was also initiated and is network the with have agency the staffed agents, agents solely and of side direct-to-consumer life distribution platforms or DTC

experiences from are scale connections. Our each growth DTC policy. powers levers. data distribution but growing shopper. Between investments to these From in personalized policy to arrival path technology, all the of traffic agency proprietary provider connects experience to quickly. ad consumer is to and and individual and We our growing highest providers our to performing site getting via make to everything modest from sits This in sale, traffic which friction consumers to four increasingly assets lowest drive our

First, fourth, growing non-auto and consumer budget. deepening and shoppers; engagement; expanding third, second, verticals; insurance and provider attracting more coverage provider optimizing

Our strong QX off in resulted financial from across all paying growth levers. four performance investments

each areas. I'll QX For share lever, and XXXX highlights focus

Let's shoppers. more begin first with our lever, attracting growth

Officer, executed XX%, revenue team acquisition our quote as and XX% request well in into growing year-over-year. expanding VMM to XX% consumer request quote Our per In volume enhanced in and we reflected volume QX tech a December, welcomed scaling NortonLifeLock increasing growing Marketing monetization in marketing performance brand powered in extensive and Chief a building new experience consumer with Lister. LTV-based context. from us Craig joins data Craig acquisition programs,

In continue growing scale marketplace. efficiency Looking user more our plan we plan lifetime to to of volume expand new performance tightly and shoppers consumer investments bidding both in and platform, personalize platforms in of including the ahead, channels, acquisition end-to-end our value TV. our marketing drive insurance by to our align pricing. investment further to to traffic and provider experiences consumer intent and and We will aligning

an out company partners network access different ways. verified network distribution to distribution in platform a making the in invest enable into ubiquitous our also to any plan Over industry. our to among time, we build for industry EverQuote its this new offering are intent partner We continuing rolling monetize verified platform for insurance audience, by that products standard to seeking

health late trajectory, open pleased with on We with exceeded second September. revenues increasing vertical, XX%. growth enrollment verticals. our rapid expanding nearly non-auto performance acquisition by non-auto initial The during the We with unit growth period, improving a policy health were our is and plan OEP. team's plan with their QX, DTC targets in developed verticals Crosspointe, XX% we our OEP lever or the a the year-over-year sale economics. in In In agency closed for of aggressive platform continued

In offerings. partners support policy agency addition, a three through the tech sales health insurance enabled for to leverage providers turned OEP DTC efforts, potential our as platform their sales service agency EverQuote's to illustrating to

the Our in dollars health budgets, directly marketing size from move commissioned DTC larger opportunity of substantially digital only increased addressable now not also our agency and carriers. access immediately life has and we of market, advertising as the into much but

and total the where We we change by Looking including enduring our health over plan leverage in agency teams can non-auto consumers, in invest us by shopping relationships life will aggressively which that our in ahead, developing to EverQuote the to to revenue. time, enable LTV. remain will we drive verticals excited greater experience, potential with capture believe verticals non-auto and DTC transformational XX% of grow multi-line platform to and

and for The deepening the third and shopping growth experience performance initiatives friction lever These is consumer providers. reduce engagement. optimizing from improve provider

friction to share to lower but better for all achieved are providers. We leading of that remaining with carriers, buying and our one pleased consumers for deep The performance our friction integrations shopping experiences we to number integration carrier EverQuote. with sale. is arrival of will their in further process a remove to In well along make XXXX, investments from also the completing deep policy we of

offline we more are by example, to shopping agents. behalf creating a more facilitating local unified of experience For on online connections

home, and We in are life verticals. policies also our enabling online health quoting and purchasing

growth fourth growing on lever, budget. our touch Finally, I'll coverage provider and

and carriers of high We non-auto we we marketplace in with continue we growth agency agents. marketplace delivered providers the QX, the third to third add expand party existing our grew local on platform party as verticals, relationships business. In carriers coverage in and and expanded number

also customer as digital emerge We a saw carriers segment. growing

makes data performance Our shopping for targeting more integration make EverQuote's a of fit D&A to features. leveraging consumer advanced innovation for efficient and enhancing well supporting leveraging established deep them natural new, capabilities, shared and testing and and insurance for technology more

first see customers foremost way. asked are We and within We if not and partners our provider are companies often do that They these ecosystem. them are competitors. inclusive

ahead, on market growth strong in on agency four increasing third levers improve focus We including growth, investments Looking we the and teams clarity all made consumer the drove side. the further with summary, platform to of our the back are party and record in out distribution close enter to marketplace across progress and to We network, development we QX In of investment growth the drive future our partner execution. agency strategy to delivered on a on product key and our performance. DTC side verified and efficiency in improving XXXX and acquisition year. agent in go strong business, a

get performance, and need experiences and platforms, experience, We invest coverage enhance people more will consumer they the provider friction. that to new ultimately shopping cost less improve the in continue capabilities will and with

$X shift ongoing of game anticipate online insurance be big enduring companies. EverQuote we the positioned one changing to those is believe born. be With well I companies the of industry, to trillion

the for getting strategy muscle started. we're the the the execution team, insurance, and and become We have destination to online just

call the turn more provide details on I'll financial results. our Now to over John to

John Wagner

good the margin healthy revenue our Fourth our year a full financial year XXXX to providers. XXXX reflecting of quarter. increased year financial guidance I'll for and quarter $XX.X then discussing XX% of year by agent for strong year-over-year, the insurance We our from customer metrics, continued and XX% first quarter insurance and all year-over-year and of delivered industry results start new fourth rate revenue acquisition to XX% XXXX. variable revenue full XXXX and year. appetite marketing million, our fourth and afternoon, guidance very auto exceeding everyone. quarter key insurance and million, previous from up vertical in last and strong growth adjusted provided full full Thank EBITDA $XXX.X quarter pleased the you, $XX.X We're revenue, report auto up fourth million, carrier and quarter of results a Jayme, provide our across for

vertical our Looking includes of $XX.X revenue XX% verticals, increased health a and XX% revenue. other at insurance and million, the a $XXX.X to renters, increased record and commercial up insurance, total home previous revenue life, XX% the from represented which over to year. from rate year-over-year quarter our million, full of year, insurance auto growth Fourth

of insurance was total the our growth health and insurance year, partner Medicare the growth our the In acquisition results our business. Crosspointe driven rate accelerate period. direct-to-consumer expertise to our acquired the full a Crosspointe’s XX% of doubling For QX proof verticals within insurance included of to revenue. a This representative from consumer acquired relative strategy QX, vertical. than verified contribution the what of enrollment health performance represented other enrollment sequential with point of health of other year-over-year and driven historic integrating the XX% by and recently Crosspointe an platforms more pattern a benefited revenue leveraging be insurance provide our sales $XX.X of open revenue of DTC new The of our was acquisition in marketing agency. million QX, acceleration expect QX operations. This season growth early of we acquisition to open verticals to from by increased our

Turning our to Quote contributions with increased from request request the requests quarter higher performance year million from last valued of by our providers. XX%, provider advertising and per end record performing These our on less most open in year-over-year variable focus with for quarter. VMM Defined provided metric in to auto marketing fourth enrollment attracting agency in in quote our of XX% our associated as year platforms. reflecting increased is managing and the budget operations lead quote unusually end or exceeded favorable improvements marketplace. the Revenue primary expense, vertical period. Revenue revenue both volumes growth capacity QX, verified DTC monetization and consumers, metrics. profitable growth for our margin, per partner to coming traffic marketing our high health continued which to benefited the insurance also monetization X.X VMM our guidance

increase of XX% was an quarter, million, This VMM year-over-year. $XX.X

open VMM of percentage budget last up for VMM to QX improvements enrollment This provider a XX% and record period capacity XX%, quarter the and aforementioned was from of the year. monetization a revenue, health from reflection as well of Medicare As demand in fourth expanded autos, policies. strong in as QX

while do Given level we but continue maintain we for dollars terms. percentage expansion these QX, VMM manage time, expect in were in absolute VMM of specific to QX, not to that to would marketing percentage variable we'll see and this margin incremental believe drivers target over

full year, million. For VMM year-over-year the to grew XX% $XXX.X

in XX% up As expanded revenue, a year. year percentage of from VMM the to full previous XX%,

was our $X.XX on loss average based diluted million, net quarter’s VMM profitability. weighted improving our XX shares million, during of fourth better $XX.X EBITDA spending $X.XX of Turning quarter, to adjusted quarter and approximately delivering or revenue Fourth loss revenue outstanding. Fourth or to foundation share loss reflected of $X.X for per or performance. performance account for GAAP performance per GAAP non-cash by $X.X improved share. to X.X% delivered the range. accelerated operational for while the GAAP million a guidance favorable our was loss acquisition net we quarter, expected change growth a million driven of and the loss Crosspointe resources XXXX, Due X.X on lay We performance the of against million of record value charge in than in on still Full the a year that to the based business. the net earn-out fair outlook

of the from year. For the up X percentage of X.X% million, revenue, delivered $XX.X EBITDA year, previous or adjusted points full nearly we

sheet, equivalents, by year On and end. million in of a quarter timing $XX.X $X.X receivables of the operating the and the the cash with cash payables during use balance ended in we million quarter cash driven at reflecting flow cash

year XXXX, operating a was million. positive $XX.X For the flow full cash

Turning outlook for to XXXX. our

continue to growth of exceed verticals. growth long-term model revenue our insurance higher XX% other continued expect our to We with from

and market of investments the we outlined, our These driven build in massive accelerate to to partner we marketplace Jayme investments technology moat. making our verified network growth platforms DTC opportunity agency, long-term growth and support our continue in initiatives by As our data in significant competitive are and that see. operational business,

We growing consistent able a to year still EBITDA while be end investments expect adjusted low basis, these full of our to the make model. on with long-term

follows. For QX, as our is guidance

and between year-over-year midpoint. XX% a to revenue expect $XXX be million We at of $XXX million, increase the

expect year-over-year be at million year-over-year EBITDA a between midpoint. XX% margin to expect We the increase adjusted million, the and million, $XX.X of a midpoint. $X marketing million improvement XX% between of $XX.X we variable $X be to And at and

For guidance the year is as XXXX, full our follows.

increase We and year-over-year expect revenue the be $XXX of million between XX% a at to million, $XXX midpoint.

be performance year-over-year at capped of million, of We between million, expect a of of adjusted expect year-over-year off momentum at a million XX% And the midpoint. $XXX fourth increase at and the financial to and we In $XX margin million XX% increase variable midpoint. increasing marketing EBITDA a $XXX between year results summary, $XX quarter and strong EverQuote.

positioned focused as stayed growth in forward Our questions. results, well in team evident Jayme us with has has for XXXX. to continued our answering on look and that, execution And your and I

Operator

Instructions]. [Operator

comes Canaccord. question from of line Graham first Michael Your the from

Your line is open.

Michael Graham

guidance. a appreciate then ask wanted results. Thanks about big congrats a the I the one lot. to the and I and on one picture question

I that's like state your On I just on guidance grew twice that's U.S., wanted the tailwind the and think it and I could ago fast a consumer it the compressed was go, think can little the you wasn't feel lot compressing. for but business? other just years growth carrier shopper? been average comment a in auto this picture, switching and verticals. touched other on of QX. insurance to auto between how time an relative in auto long then of real do with of seems as ask have big because typical stayed you like more I your the the much much versus expecting a like you're And that verticals on But the the good you several think a IPO the And a before sort bit, just there for how

Thanks. put would or helpful. be quantification you’d care more that any to around color Just

Jayme Mendal

data increasing don't we seen have behaviors. general. any certainly take Thanks, I'll Mike. have shopping or into the is switching channels of patterns But the first shift question. This on We Jayme. digital in

for and that part X% we've of insurance. we XX% reduce got of for increase, ability will process of focused insurance accessible spend; as them the think the a and over online shoppers is will through so about for easier moves we've distribution re-shop it to billion digital And which got continuing go $XXX we becomes of that lot about more shop of buy the to consumers, channels. a are big And today, friction Meanwhile, to time. becomes that who of only buying what on, online

have but yes, is expectation our specific don't data you. behavior that So shopping will any I points increase for

John Wagner

the on insurance Michael, we continue very -- see guidance question, first, we expect a auto to market. healthy

will to And continue that so vertical auto we expect insurance grow.

grow of at pace for auto us. the relative say other faster the than We will verticals insurance that verticals tenure due continue simply those a to to

move growth as through a think the pattern we probably of I that's as bit emerging a year.

that would results as had we have within we're We probably a will rate health QX, the toward other enrollment I but vertical the in that building now into open more good pattern against expect So the starting And now of the due QX modest end insurance to year of year. others of off that's certainly this growth move influence and we -- of that that build is the vertical. sequentially and as going part We a to expect up seasonal QX be our will to QX. health. recognize go quarter be we're

auto. major to We continues think we strong in other going grow think year changes into auto think a major it growing But to we don't We healthy and have on XXXX. faster any auto see that is also the be difference, continues any insurance So than to landscape. XXXX.

Michael Graham

you, That’s Jayme. helpful. John. you, Thank Thank

Operator

Josey JMP comes of question from Securities. next Ron Your from line the

line is open. Your

Ron Josey

to well the I things taking so want about integration. question see for Thanks internally. carrier Great. to going and ask glad

then are are RPQ, with in now increased how having about up. the of could that's an -- some revenue the Thanks year we will almost to any come great on viewing Jayme, I Can in as opportunity, integrated? I'm didn't you you call year major it talk and carriers health look ROI think per I one it integrated hear I bundling from quote and carrier how be but all into think you this mentioned back were And and think, it, just about the teens mid RPQ call, would perspective, on that than a forward XQ, sure the it quarter, quarter. request, I helpful? growing, of much talked half if we talk launched Ever your and and And home XXXX. But autos again life you, opportunity bundling right? about just call carriers a high more progress here. about

Jayme Mendal

Thank you.

Ron, So, Seth set year of for of we goal the integrations, and the on that first audacious the last question proud at we're an the incredibly and beginning team's efforts us delivered. results of

have of our completed we now but all one integrations. carrier So deep

but expect last it's The shopping also as have lower friction in of form form is that experience. and the you that completed the by consumer in in impact the We one improved to the felt shortly. performance, with of of provider felt, their noted,

As look bit a we providers, and to about continue I'd integrate the of can how a there's ahead and we in more it. of next say performance for think improve that the way deeply in what's I terms bifurcation

people. the this online. wants that day, another want of to the is a on do you've got someone, the subset and because their phone most that shopping relatively in general end auto got -- to And complex for You've their financial insurance shoppers instrument to at of talk of subset get shoppers then that

for doing lined move you'll closer to us against we both of and purchase to lot last online we experience appear connection connection, or as of products up offline the what will behalf so the agent. began see the we I for performance much non-auto some get be to unified and down practices consumer. to year and have quoting verticals. that the consumers continue able are create we're then And planning push to focusing EverQuote some even year the apply And downstream Online, this offline and to buying on taking to And so for rate technology investment best initiatives more also think but provider, paths. first over online path in the further as can well a that on in and quote the so local some local is online expect purchasing improve certain a specifically

those tailwinds the over to of so And performance revenue as provide and scale think are they per some the I quote course things provider improve both and materialize for request. of year

the products. bundling. asked you question roll some bundled out Now Last about did we year,

revenue the the connections. our be those you And If per up, request, think downstream each that the connections driven referrals. value consumer it's it's RPQ, can -- it's of and of value about number per of the of what drives quote by the performance both

a shopper integrations So improve by can out LTV be performance. bundled product higher that of a be an driven that It providers. higher also type. referral LTV sending -- example was or would shoppers us to And

So our out DTC over our an in And in more a bundled have we've life. roll where in sell those in and to their made have agency us. say think and progress train I across that both and health really cross same continuing we'll specifically with agents course as auto and home is to have life health the health life and some opportunities come customers cross we as to the we're of and last where they on and customer I'll the in some thing we do P&C, life opportunity platform, products

Ron Josey

it. you. Got Thank

Operator

from question of Kelly next line the Your Jed comes from Oppenheimer.

Your open. line is

Jed Kelly

questions. Thanks for my taking

think And you the make Crosspointe more Just TV? One, experience to you little you agencies is grew to its that more a earlier that Have then mentioned into that and revenue dive just you are customer does tech enabled? pretty double around interesting. into more guess XQ. want more want acquire Can which in it? mentioned I a this strategy TV couple. the gotten what's I leaning where you you

Jayme Mendal

Sure. Jed. Thanks,

is do first have ways TV, to that, respect our new by expanding which with think a you and -- we of number So lever more is about we shoppers, channels. that into if one growth of attracting

testing we've TV. done some So in

sort the specific to that a think as we relative finding experience You're And performance. into. in about sending pockets we TV are TV to of have consumer which -- we're are I would experiences, which the say of right channel into

So in us now. as I DTC EverQuote TV, that wedge mentioned, performance and who that marketing also and Craig point and our specifically, the life Lister, a something so only has driving that background, channels to extensive we're excited specifically, proof we in radio we're right in by which We're not up, the of an that's through the plan which a is addition and distribution for expand agency to -- in sort channels grew in but including OTC, of the others. future,

so channels. Craig the up those QX in respect period. in us scale on and we Crosspointe, and profitably with are And the take expand open I closed enrollment think the pleased and to in September. acquisition We in late help the will banner With certainly results

job And exceeded effort. in integrate We has just so it a aggressive open And was for pretty plan. an ourselves. and set And plan the tremendous that team the fantastic. been did that We tight to fit enrollment. ready for cultural get

I so And OEP I take Crosspointe, away QX things. reflect as two and on

XX growth our I progress with confidence first occurred their into the health forward. months. traffic in Crosspointe, XX moving operational knowledge probably I transfer increased platform teams, the The product of think but as in only teams, having And our is health to accelerated think not that a platform a our good by experience that

key So a that was takeaway.

that which as us have M&A the question, success a core though, to been validated has your is for second more toolkit. its tool may The in

look will M&A we ahead, an of opportunity execution to as count So as strategy. our we accelerate

Jed Kelly

you. Thank

Operator

question line comes Ralph next from Your the Schackart of William from Blair.

open. is line Your

Ralph Schackart

for question. the Good evening. Thanks taking

sort as only the a instrumental I for in areas you've be strategy refocus, just how in reevaluate the existing you setting side, about I chance previously of the know tweaks, were it, there of maybe Jayme. are first I would of but a do you terms you’ve in or any a been months changes the had for now one major sort strategy of shift Then on First are as know role want the couple to have around you to marketing and thinking follow up. CEO, question. anything there

Jayme Mendal

Ralph. Thanks, Okay.

answer is So the short no, Ralph.

just planning We fortuitous come a are through we long-term that somewhat had cycle.

And Seth with XXXX. so last strategy we end team. towards it was and authored the our I This of through document. co-developed And strategy that the the a year. extends solidified I out

sort at as part point, And and this I meant strategic have to so of believe long-term sort remains year a very this heads many decisions in high year strategy to and the we a process. of as be of the And result, that our execution, advantage was made our that big strategy. on competitive focus market. of it's always in I a of case. build right confidence And this we're down execution. much

Ralph Schackart

guess And just bit is up follow that law the coming then you what seen Great. slower then performance in we've maybe some curious, Thanks, and investments. a then investments a I quite like And about into And TV guide. in exceptional in larger historically. play, Jayme. VMM on Looks the rate growth of and be health sort XXXX. life of numbers just than talked dollars will

anticipated your marketing to year. if next changes any Thanks. know to curious there's strategy Just

John Wagner

different kind and I'll look back; Yes, dynamics provider that Ralph. VMM second first, a regard budgets. our couple with in of we is the within take from sure. things areas. of to of couple is and had and an With QX. we in health enrollment from to a as exceptional One QX year-end vertical open We quarter recognize favorable had

QX, to open of we the And has also, got little a ended. we obviously, we'll end of enrollment, the open see provider as year. go saw bit budgets a into we then enrollment year So as bump from this

actually year, This turn you. against run favorably us. can provider unfavorably actually Sometimes that we saw budgets for

we're providers I within open normalization exiting the reflected seeing out we've of guide budgets factors. enrollment We're think and those And both also VMM normalize. of the a so of

seen what of is reflected And over QX there you've I still growth think solid so XXXX.

So XXXX. QX a rate about about And we're XX% we're VMM X.X. as reflecting expecting VMM on a still then of percentage dollars, revenue growth of over up

of aspects that that So won't a QX was solid certainly some guide, in repeat QX. there's exceptional and but

Ralph Schackart

makes That Thanks, John. Thanks, Jayme. sense.

John Wagner

Ralph. Thanks,

Operator

Your Tandon the from next of Needham. comes line Mayank from question

line open. is Your

Mayank Tandon

want Thank wallet share do today your evening. what the just growth share first, one follow a talk sense you I have, the sort your what are after you. Good it you up a of sense in from other Jayme, get in have have more that a mature you, you call of a that. about to terms penetration auto get core, again the the just mind currently Could since the clients. the want opportunity verticals of customer you just base, than within then bit auto’s little of for the level? that's to And existing

Jayme Mendal

Thanks, Mayank. Sure.

So of it sort sort would there's I'm subjective of our at it share on the and agents. agent the budget. surprising of two complete us we of data local then expense to have wallet levers and for of the I And I of wallet is for not carriers about have And guessing, coverage have there's what I'll don't growth provider take is, have one view expand all be because the share But agents. XX% to levels, local of the that among base.

the the of our And that program called programs through years. of successful level growing higher our number expand agent local them. very tools, wallet accelerated have program. over and is last place, service specifically And to, use so of growth this base of couple with we our some in been a It’s with share we've meant

So whatever has believe couple the growing is, number over years. of last do the it been I

I such we large it's target meaning to is operate providers to budget harder fixed answer KPIs, their carriers, of for no them. are that Within our in us. allocated question because unconstrained other to the a traffic long a budget the as presume case as of there's carriers environment, hitting many

bit that to harder little So a is one answer.

Mayank Tandon

helpful. for Got the And in it. want That's in a of John, John. then to get just terms maybe sense 'XX. growth

that mentioned, that should of models? outside had revenue So change obviously that healthcare the bit also some during you what build the year be how patterns the volumes into quote? including you just to maybe track growth in just how about pandemic? that XXXX, tied course and would over a So Is the quote relative the And factors the tougher comment balanced more you the been between should spending to that in of volume? as because request we think on going the were seasonal that comp has there our little would any you saw per be say of a we affected sense the

John Wagner

Thanks, Sure. Mayank.

So per the with start I'll in of fuel portion of in our guess mix, to expect better regard the into to quote QX. kind revenue QX, QX. Coming we request growth revenue I the

revenue not to So levels, but at certainly expect full average the quote quote year QX above be continue we probably levels per per strong, revenue at to of request request.

though So of growth QX. growth up monetization in in tough XX% contribution continues to pretty fuel requests last QX in see we against also had we Even in quote request we're QX. from quote But QX, year. comps

through So year. the as QX. through of requests is a it larger volume story quote grow role in year, as the plays we mixed And and move we consumers a

we year, of this seasonally increase have up in I of this actually did pattern, year. than we've seasonal sequential In the And QX reinforced to quarters terms But seen is a been historically. vertical. think certainly the that quarter quarter as of a due contribution we P&C in an the mostly QX. is health down larger with QX of seen kind

we'll vertical. little really a as well that the So through more as by a health buoyed move sequential as of we see think contributions strong growth we the the QX, year, insurance

Mayank Tandon

the Thanks, Great. Congrats John. and Jayme quarter. on

Jayme Mendal

Thanks, Mayank.

John Wagner

Mayank. Thanks,

Operator

from Doug question from next of JPMorgan. Anmuth comes Your the line

line Your open. is

Dae Lee

of for Dae Doug. be question. will And is on your This Thanks He I’m Lee loss the taking firstly, missed. for Great. Seth. sorry for

Jayme Mendal

Thanks, Dae.

Dae Lee

about is verticals. talked question first improving non-auto on My and economics unit you

how all you So changes economics you those two then given more changes and acquisition on target on the non-auto could privacy, are your any how happening the channels are other the your traffic your online verticals? to compared focused And more you potential monetization to on color And secondly, vertical? in to acquire about or unit that ability views customers? your to anticipating provide just wanted then do long-term between hear think

John Wagner

In why direct-to-consumer revenue the terms QX with per that, influence unit request. we I So certainly the part quote don’t of of take improved business economics, improving of Dae? agency first see in the

and monetize better monetization we on general to agency as the consumers that direct So in go business commission. we has

record QX. kind VMM levels continue So record we we generally of to that's in and that that's in per part something the request saw reason expansion levels why And quote expect of of QX. nearly or revenue in

Jayme Mendal

we're we respect And -- to risks with imminent John. not or concerns privacy, Thanks, don't see any front. on that

the to like We that channels. verified personalized experience I we volume. to future. network site continue and we're in partner been us year, new and types expect the improve This a products to our growth on partners publishers in the conversion incrementally mentioned into our more party have a media traffic of make rate. number distribution more two, levers or to to we're available year already network The of investing more different for expansion things good third has grow last focused over driver

see course that year. for of expect build promising growth prospects the so the And and to we over

So right that we're about concerned not particularly now.

Operator

line next from Battle Your question the Rose of from Ben comes Road Research.

Your line is open.

Ben Rose

maybe Jayme evening, Jayme, the speak of that of a portion monetization be future? in whether couple of will growing strategy could longer to commissions, of kind Good revenue John. and term you Yes. the and A of base the questions.

Jayme Mendal

absolutely. Yes,

life direct-to-consumer platform launched in live we insurance and we So our the have verticals. agency and XXXX those in health now in insurance, in two efforts

marketing we which form almost in we larger As directly marketplace. to budgets, third carriers the addition commissions direct-to-consumer party into addressable of accessed the the immediately moved the space, unlocked agency overnight through a TAM in we have from

revenue in to commission the order. relatively majority so short our comprise I specifically, those And in verticals expect of would revenue a

of P&C. because in is across the the marketplace in immediately look have Now platform we party less obvious P&C, such value to the robust DTC distribution as third we

coverage Now, percent answer aren't adding not of made to dictate benefit of your agency, revenue. been would or where of a that might pockets that to there through overall we sort our not think that and layer of as the that's consumers segments has I long-term decision question from say a but direct-to-consumer

Ben Rose

are question about at coming if and of there you. within item, look be marketing VMM to helpful. some for other talk programs may very leverage that's will, out that what the or portion opportunities you overall, so of And line of that advertising, budget Thank you could stripping my you year the if it, whether over larger Okay, and coming exclusive months? is the XX sales with some respect were to the

John Wagner

Thanks, Ben. role I larger guess a I'll start that sales off marketing by initiative and plays our in saying expense. the DTC agency certainly

the So policies you'll and directly, coming add to some line we consumers talk sell that directly. on as see item investment to ability through

item already you'll sales to relative So scale and marketing. that to line starting see

Jayme Mendal

I Yes. leverage party across but And then only to teams think you'd third there, see sales well. expect marketing not and the as

innovating we’re So products. on

likewise, management operational which enhanced on carrier that out platform, will party teams. an the and account our management operational rolling I sales agency some remove And up product our some load and enhanced and network marketing BXB campaign third we're Specifically, the agents, the marketing of teams. from think also enterprise sales initiatives should load reduce marketing scaling within

Ben Rose

Okay. Thank you. That's very helpful.

Operator

question Your from line of Nat comes next America. of Bank Schindler from the

line Your is open.

Nathaniel Schindler

QX exactly fair was fully like that like long-term you was are a it exact acquisition-related versus in that earn-out Maybe figure Is guessing. Yes. if acquisition marketing various in a to if your out the home Hi, a I'm just health, verticals? others equal trying -- closed of telling or those expected September, I'm current? bit in margin auto Crosspointe about looks that but that of to than the value and in terms, change costs Also, a consideration did if trends right? those the significantly can generalities; continuing there are talk variable looks and Crosspointe you but guys. I'm little better me the change not in

John Wagner

I'll of take So part Nat. the first that,

a of represents or evaluation of is for our around and value of results a The that of the based market in really market to us what the on you traffic the more entity. got yes, earn-out of of right. marking adjustment it of mark marking The so So you've kind early Crosspointe is terms that see less seen standalone that to as we -- addition result Crosspointe Crosspointe. the initial expertise coming the have through

go and Crosspointe Crosspointe So to adjustment as our mark based that forecast the in that the within forward. a of our quarter, insurance is performance effectively health for market on vertical we

that stock-based a is continue to basis. simply out paid in So component mark market you'll a generally that on And the see of then it's because change to that milestone QX. we'll

Crosspointe and the So But stock as the is part, charges. fluctuates, related the our performance of for – that business. for outlook our that improved additional we to could most see of adjustment and performance

Jayme Mendal

life, by P&C the break to moving is together of is what vertical, verticals, VMM share respect of the I with again, a exhibiting to out has VMM we higher as vertical it And relative lines. of bit profile but so sort various don’t other now, home health matured can and and the commercial auto or more some two nascent a is and verticals three;

to the were three them traffic at our build comfortable would point over while time. data acquisition operating a those and operating efficiency scale, so amass of up to And expect lower come inform VMM we

Nathaniel Schindler

Okay.

can vertical point, on specifically Just up or -- quarter’s acquisition? to that the you that was attributed growth Crosspointe the follow to just even much roughly how of

John Wagner

on off of pleased a terms certainly but revenue we platform results QX, with in the guess with acquired Crosspointe. in very -- of building we're we're So I relatively Crosspointe, small we're really what

As a of $X reminder, was XXXX worth million Crosspointe of in about all revenue.

So of of majority revenue that result off the the we growth really saw QX of that in was platform. a

So tripled terms that what we a bit of of we base, growth terms about that. we're revenue in we is really, excited the we adding about what not fact what with our doubled, the the talked initiative. little of in that Crosspointe more but And can distribution think add nearly that's than what We we to saw. acquired

majority vast of growth was so And really that organic. the

Nathaniel Schindler

you. Thank sense. Makes

John Wagner

Thanks, Nat.

Jayme Mendal

Nat. Thanks,

Operator

questions are turn I'll the time. further remarks. closing Jayme There call for back no Mendal at this to over

Jayme Mendal

Thank you.

today. joining everyone appreciate I So

spend a in shifts record and here early in this is execution EverQuote continue QX record online born. enduring our year. of companies in that and another like billion of We’re are seismic industry shift insurance the of innings performance with strong track marketplace leading and of distribution a the we $XXX big

our long building to making continue moat for confident age. the that growth will team, for Thank distribution time that a us digital execution muscle insurance the emerge today. distribution competitive you the the as I'm have for allow company Our traffic, strategy really to we in strategy, is in your and across experience clear term. are defining targeted and platforms investments we the all

Operator

Ladies and today's participating. you concludes for Thank gentlemen, this call. conference

now disconnect. may You

EverQuote (EVER) 23 Feb 212020 Q4 Earnings call transcript