EVER - Earnings call transcript Q1 2024

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Operator

Thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to the EverQuote First Quarter 2024 Earnings Call. [Operator Instructions]I would now like to turn the call over to Brinlea Johnson. Please go ahead.

Brinlea Johnson

you. Thank welcome quarter and earnings EverQuote's to afternoon, XXXX first call. Good in discussing closed. release the be our results market We'll the announced press after issued today the me and in our business, of insurance EverQuote.During statements other Mendal, growth call, is we our investments acquire prospects.Forward-looking and this our statements the we industry, on may levers the Sanborn, we our Chief related expect, make to maintain to may Joseph Officer to quarter laws, financial upcoming, and Executive of Officer; guidance our and that statements existing as and With with similar Jayme drive Financial we may, Chief growth be expectations believe, considered the will auto on business business, such phrases words be plan, our call ability words regarding EverQuote's XXXX, growth initiatives, our statements our including new our and forward-looking execute we plans statements under and concerning the plans customers, strategy we key strategy, intend, and the expect recovery our regarding anticipate, federal we afternoon identified second to phrases. securities for should our as reflect views of These statements any date. considered of not today only our and be subsequent as views and materially law.Forward-looking disclaim that results to to obligation subject uncertainties by promises expectations. the statements, from are actual statements to risks future are our required any of specifically as not performance We guarantees update cause forward-looking or these differ a except revise could and or variety of

to refer the Investor is recent refer quarterly SEC's heading the most or to and Factors those non-GAAP could and website and Exchange to at XX-K measures, course we in on material the factors report Commission Form report will file Relations available that our section turn annual on which with non-GAAP to of section Jayme. at contained certain sec.gov.Finally, which GAAP under XX-Q that, our Investor call, expectations, our risk we market after please investors.everquote.com Relations important of the today, discussion Form to website with reconciliation on that helpful Securities release was measures the on of For our financial of close from on the are cause in it on website results available over included during the our investors. actual at press materially other of differ is the Risk A issued of a investors.everquote.com.And we I'll to today's and believe

Jayme Mendal

to continued carriers greater to from majority indicate messaging that reopened budgets marketplace.Actions our restore their either all, and are and on operating a Thank income, EBITDA operating and today. exceeded to insurance growth. marketing carrier you, as range realign last you, of the for marketplace. have auto XXXX, achieved improving. Brinlea, persisting into thank profitability flow. XXXX we capital-efficient is adjusted results underwriting the by Since roots insurance our for made first record middle to results we the have trend In levels start. reactivate state emphasis footprints campaigns, end in of We quarter, and restored our to net adjusted of returned guidance starting high joining were and the margin planning revenue, variable and cash in the possible us strong steadily strategically or XXXX business year, actions These the this a to EBITDA. With took off observed digital carriers

new team fourth quarter. provider marketing improving in growth bottom by enable into execute achieved margin strong vertical development quarter. backdrop, to We line the marketing variable we our record fact, new future. technology customers time, greater as in underway.Against began infrastructure, industry extended volatility revenue, in speed as to insurance long numerous evidenced and market, recovery now our the year's for and continues first a our noting employee while and home budgets the caution revenue we and the a the bidding sustainable our platform.These carrier our auto our progress auto to agents productivity volume continued home maintained that marked effectively, in milestones our of migrated infrastructure future, believe new an migrating well to increased, have in will optimize QX real the Given and we growth.The revenue ML-powered most growth And driving site to as performance. had a in traffic faster to feature agent moved of rebuilding as we sequential majority compared bidding in Alongside performance platform, agent scale. is, also traffic changes

affordable this and energized achievement It's and led source advisers in insurance largest confidence to results the which beginning battle now through turn over knowledgeable become for but recent emerging sets hard challenging eventual the me cycle. ranging hardened this period vision are to period More call bidding unprecedented make which Joseph incredible market has policies through demonstrated to team agent by us financial dating AI-powered [ to discuss challenging extended more to site demonstrate up simpler, of the the for they to importantly, our market stronger.The to this stretch is us to team team new continue to gives EverQuote progress by tenacity results. in the and pursuit and EverQuote, data, accelerate using we online to conditions an areas we're experiences features.I This and and want thank of XXXX personalized.I'll EverQuote's back our insurance the of see. ] from to been has products technology

Joseph Sanborn

execution to XXXX. quarter in first net level metrics variable total of and EBITDA. percentage quarter of marketing We and the VMM as as we guidance Thank experienced advertising expected, XX.X%, previous all record by investments sequential period million revenue, as or thank XXXX.Revenue currently XX% fourth level were roughly strong These as auto the our an benefits insurance was adjusted of financial carrier auto financial quarter of $XX.X QX, XXXX second update of continued strong stronger for in and and the fourth of XXXX costly X improving VMM bottom by by results against of our from of representing from renters teams $XX.X and sector seeing revenues across sequential record line. start adjusted the income the of exceeded what in environment, more insurance start $XX.X you, in well than a quarter before were of fourth increase the I the vertical spend more insurance will bidding which our XX% we of and was our the enterprise a auto the strong The results carrier a a home record quarter as vertical up traffic of XXXX. the QX, of partially million revenues a Jayme, declined and of of for million, from had a landscape.Total levels. driven quarter, of increase first margin, all in the on to offset you first our our our and continued joining. guidance for driven the first discussing an our expenses is nearly providing VMM, and are operating was from for from quarter technology.Turning our quarter.We operating million from quarter EBITDA. was level teams Revenue produced execution in quarter XXX% in by QX revenues the from the XX% $XX.X ongoing a XX% by primary

to operations. expenses continue and disciplined be across efficiency We incremental in very managing driving our

a greater to of confidence operating to to XXXX.In of with in Cash quarter in model through which EBITDA increase charges realignment. our operating certain to revenues, in record our that our gain QX, sustainability our tight million quarter, and overperformance exclude in a since recovery million.Adjusted June streamline net reached strategic Our and business XXXX, auto reflecting expenses a other of we And modestly were lower expense discipline growth. to led strong carrier adjusted revenues improved to third the execution Adjusted reached created first the a with investments operating leverage VMD in quarter the led coupled the EBITDA.We line steadfast milestone efforts in positive of income we first a percentage we our as QX of XX% the first XX% increase rapid support decline to in a quarter since future reporting onetime the X.X% quarter XX% on we as have first efficient from have expect GAAP recovery, reached the XXXX record expectations high as in noncash $XX.X year-over-year of the in greater or $X.X EBITDA million generating the improvement time for operations. a $X.X the flowing of leverage. remain commitment

As adjusted progress the above and as pre-downturn million, million levels.We first delivered but are provide the ending of to will likely half equivalents want forward, adjustments.Before the for the margins second in seeing working cash at $XX.X on this operating XXXX. $XX.X the fourth million auto up from an close industry subject of quarter the cash a of year, remain cash what continue normal proxy operating this end $XX be EBITDA result, to through we to turning to Adjusted EBITDA going quarter, moderate year. period are flow we cash of of update I flow a for insurance to capital with guidance,

many the more return of led during of us are prior beginning strong to to return of growth-oriented our call, During their we has XXXX.We this new carrier marketplace. year comments recently acquiring to shared see insurers course our a which partners taking with pleased to is wanting more the reiterated start have mindset hold, February for to auto that to our consumers to

are auto sustainable We this be increasingly around. that more time recovery will optimistic

will are challenging it dynamics, downturn.Given in expect look increasingly seasonal at there how no persist partners we executives is playbook outlook cognizant once-in-a-generation for a carrier historical the which as the emerge to unpredictability our that have our for what from of to term, near several to year. to patterns these referred we the predict insurance However, makes remainder

operations in generate levels in accomplish out year last cash the realignment. flow year.Turning above to achieved return following to for execute expectations. remain flow We that the we the adjusted a within am our of first or our and quarterly pleased at margins the by XXXX.I laid to to the EBITDA first our expect these both of our to continue share and to guidance. cash this quarter pre-downturn margins of ahead operations goals we of consistent adjusted from we remainder goals restoring quarterly pre-downturn June our year, Furthermore, strategy to We half committed continue followed EBITDA the on strategic to

XXXX, we QX between to For be $XXX million million. and $XXX expect revenue

to We adjusted expect and be entered between we is summary, million we and conviction expect And $X extremely EverQuote deep EBITDA VMM to million.In XXXX to that [ with between million exceeded carrier $XX quarter, $XX million. auto We $X positioned be recovery adjusted performance in benefit and ] revenue, guidance us delivered and strong well ] first VMM as persists. directly [ EBITDA. takes the sustainable hold for

to for first achieve efficient the in will net levels EverQuote and remain steadfast to execution strong and ability record Our of income will while our quarter answer strategically positioning commitment our now your growth EBITDA success.Jayme adjusted in business questions. to focus I continue efficiency, and on model.We demonstrates and future investing and

Operator

with the from William And Instructions] comes [Operator question line Blair. Schackart of first Ralph your

Ralph Schackart

you Jayme, how able increasing maybe have of broad-based obviously, Just to of strong to terms perspective, any just the in quarter? the the in sort provide really like you in add follow-up if if terms for of a you're please, might of Joseph. number carriers, seeing recovery Then, number I states? metrics could could, you outperformance be operational of some

Jayme Mendal

Sure. Thanks, Ralph.

of step you're a So sort improvement the profitability. board take if seeing broad-based underwriting think across in you back, carrier I

So that's been steadily improving.

expected broad-based carriers itself is of all Over guess, XX-ish back are we the that in I the reopening year. And year XX re-entry QX. carriers of we've broad carriers auto double-digit faster a we've across indicator their seen -- recovery raise we're is reactivating so stepped leading number the of providing improvements performance has seen in position of taken percentage data back there just our have the what look are industry a I from to combined than budgets, to the demonstrates primary into is getting year point seeing health, base we that second certainly at restoring a that more this our is QX the marketplace, ratios.So point if points think far you which carriers of marketplace.Within spend for and this share in footprints top the up can a last campaigns, guidance quite state happened have I think into I part the is quarter, their you're first the marketplace.Now, and

front-loaded think leaned broad-based year so And a and we're somewhat seeing carrier I how certainly there by relative time play has this seeing that in one to large, bit a very good year. out.And the we is to that we major But more recovery expected aggressively. is were last recovery than of

Ralph Schackart

is like down just up really strong seasonally QX, historically, recovery That's you then, historically, unpredictable, Okay. QX talked about the helpful. a path. down. know on maybe And But maybe you'd I it's QX, see QX,

[ the of XXXX? as help can routine of think us we sort recovery sort about ] of shape you kind of modeling Just think about the

Joseph Sanborn

Sure, and too, happy Ralph.

this maybe about how me thing relative it as expectations. unfolds today, let start said, So Jayme

patterns had QX So down. year, seasonal QX of we to the start a QX thought start up, you the down, described, the good just we normal year,

a Given having of their I as what's led actually really much QX start And saw Jayme and returning resulting by near expanding carriers QX been when handful a auto it's is aggressively year, the peak levels we But stronger who've footprint transpired, in QX. QX implies mentioned. it's XXXX. been to state mean, that you our a been, at guide more strong obviously quickly.And peak of look to guide,

being result, a expected see XXXX as loaded. this we front-end So growth we as for more

think the half -- second for about think that what year, so what we we does of the the -- how imply. And

getting carriers part more be this because those of coming into carriers QX XXXX. relatively are some at is opportunities, uncertain.So specificity the have have aggressively.There's it is second So half way about [indiscernible] of then, to we we plans we some -- marketplace back larger together. the second we out put the And in the some saying this states, there, for additional point, The challenging to states some year-on-year about so front-end until they've pattern year we more just of certainly far. range the are currently the But [ improvement sequential we the TBD we to recovery and growth But timing strong ] of to enthusiasm of still their all will think look half the -- QX seasonal year. been of not of apply of of more the at of the think as few expecting sort the open in nature the the mode. is this from growth for loaded states, but the see the still expect given it broader then

what can on So give now that's we're we seeing. based you right

Operator

Your Canaccord. next line of comes question with Michael from Graham the

Michael Graham

to Congrats on question. just follow Maybe the Ralph's up results. strong on

was this industry but One phases volumes in pricing had of recovering, strong players the other of the here early the in suggested recovery. were especially that

I on it in less comment had be then and means such this leverage. playing through you you a quarter. sustainable?And role recovery good are sustainable, the whether about flow-through you remarks, prepared to that operating just you the is wonder that ability if keep thinking ask on during year? know just to question wanted your mentioned quick could delivering more that the flow How I the but might I So pricing

Jayme Mendal

the the take I'll leverage Mike. first Joseph I'll it Thanks, Sure. turn operating question. over to on Then question.

volume, the unfolds, QX. to -- would see continue continue persist -- levels see elevated are higher renewal expect it meaningfully that we people And and to we notices. that what in we coming relates really of paying into So course the with notices cycle behavior. are shopping over year.As that renewal get Those triggered have persisting as to than rates are of to people shopping we this rate

shopping renewal to cycle rate XX-month remains when a out got these as effect So X for as long levels into go behavior. elevated to that of the the may notice to remember, as effect, and in long customer.So from there's the you to expect rate unfolding, see goes a as increase we to lag is when

meaningfully kind to levels is more shopping pricing, shopping has -- for gradual planning we're activity.As and levels normalized of to XXXX pricing And so pricing in by healthy return up we'd at stepped relates then in QX XXXX higher foothold. operating standards. It auto stability heightened levels, of is of assuming it expect continues levels QX. recovery And to from in historical some the its maintain to

pricing. sequentially higher So higher benefiting of a from certainly and combination we're volume

Joseph Sanborn

let me you to So operating leverage give a with little just regards color.

what focused business think QX EBITDA of done. -- actually level So what strategic level in in got adjusted X.X% And a income.The have in was adjusted saw record record in the leverage margin following of a the driving We realignment operating June, our net of was we I and in also you really summer we've last QX. business. representative on EBITDA

progress the about do improving for base we margin QX, and them levels expense adjusted adding us maintaining that have as And disciplined think around where we'll is side the of that.They'll the -- will talked OpEx the tied in pre-downturn the be the we above be expand maintain how in of make for as referred operating to get was and we a we'll through they be future a think very couple them, in that expenses that cash As same continuing half manage of EBITDA We as things. performance investment of I'd operating levels incremental to the just we're we it we disciplined And the position year. second year as about which time, margin ] at we've thing to increase through growth.But pre-downturn going say point margin, expenses, EBITDA the as overview to we and EBITDA modest modest [ a to sure like on have X.XX% sort way. and goal. QX. X% We're year the were were progress X.X% in we'll to we implication

Operator

Your next with question from of comes the JPMorgan. Cory Carpenter line

Cory Carpenter

I had two.

planning making? in in? vertical hoping incremental the could more What little just that investing home are about on talk you then, And XX%. secondly, maybe on you you specificity the First, plan what investments growing -- a more

how you're you sustainability can that talk and think growth what just the of there forward? going seeing about If about you

Jayme Mendal

Thanks, Sure. Cory.

will Two get investments areas and in you, in targeted some we traffic highlight So -- exhaustive, across meant as -- of ML the the have but as and patient levels, with persist. areas to as mentioned, Cory. begin year. It back management we EBITDA our through for not we be will ramping we But science, Joseph the expense course discipline probably over carrier from the of some adjusted progress comfortable concentrated I'd improving we data AI performance. where there'll investment business performance, applications the

other to investment.And going in agents. So will to extend local be is one of with our be that advantage area continuing

year spent lot local last agent time the we've Over of the customer base. a with

sense begun meet better have with developing in improving and new I think their and products needs to existing needs good and our their base. products that we've of relationship expand deepen making a our of got both pretty agent investments sort to

had profitability revenue homeowners area market home in the underwriting standpoint. It homeowners, second We're first direct auto. that where some improvement be in question was would record some from resources.To an quarter. similarly we starting challenged So your to the another we'll in home see to -- about

period lot carriers of ] and a helped through was period think CAT CAT results, of [ relatively year of of ] by I losses.But this better [ quarter underwriting the losses. that gone light first a produced in a it's

year. shifted will vertical through focus expect vertical the home. So maintain some grow we that expect it comps as healthy. and to grow do as the year.I'll on course over of progress note the our to to bit to to And of XXXX. growth become from step been continued as some that to the continue we a markets home higher that focus continue we progress we has of previous back the through we But We've

Operator

with B. line question Your Zach the Riley next of from Cummins Securities. comes

Zach Cummins

just on start the up advertising ramp here in demand. strong as in see around you question really had results in a QX. And to channels versus improvements the the Congrats talk about that ramp you seeing the to some expenses you start I really as you in pricing which carrier see environment? you're could others ad maybe demand Can up? be prioritizing of

Jayme Mendal

Yes.

search has too specific has So back, we of as example. in in the paid some vertical sort come advertising the carrier an more -- as demand environment, competition so particularly channels, like

Zach, results us. VMM can marketing -- the into get so, we we may And incremental way mean where but which margin so dollars.And bid to incremental more we're managing margin think business dollars, volume variable compression, cause margin or the variable always percentage maximize our I some dollars we'll marketing for that, in

in we've advertising a up seen volume higher bit environment cost changed little as in VMM, in category than makes seen So that pricing, than what it's some up more increases it the competitive we've channel competitive, the and of more made more but for made become standpoint compression channels. -- the as insurance the a for is, -- more more from has broad-based of by a now pricing.With are

so channels margin, months to incremental come reactivate over run the at able but monetization the there's So dollars and a or back industry-specific, number year. may channels of of been has of of They things get, slightly go we've to to this back volume of those that life have year. first as sort really like lower and first a in X aren't social the part or display come lot that

Joseph Sanborn

could margins. give add on you a VMM little just to context of I sort maybe And

means you what about progressed it think the year. to business, through If we the

as expected, QX, think of in is, so on we down it guess environment was sort the -- guide it help into XX% our balance. XXs the about for you we we had XX%. So but -- understand And of for -- very saw it.One I depressed.As about in had is was as of the X think to which factors see from driving you under the implies We was we be foremost, an VMM progress QX levels give just year was sort QX, sort We will first what's margin. costs. and advertising that I low

we is auto up -- especially the we're of demand driving is rising. costs the There's more acquiring that's get recovery, for around from we it as auto and advertising.The point view As which our -- cost advertising the is binding second back is, efficient traffic, we're that as doing have that scale less is And as you -- testing QX certain [ into them. effectively you're channels. ] until then our in ramping

So is that's the from impacting that's a high part a QX.And business. third the just level at

higher we in driven As we the resulting than in enterprise as more relatively the mix margin is I business. driving get bringing the much at enterprise tariff, -- agency margin being a that ramp to down generally the in enterprise. VMM the which ramping higher a QX have VMM mean, shift seen carrier in by carrier, rate, we've -- speaking, on whole

Operator

Raymond with from Greg Peters of next the comes question line James. Your

Sidney Schultz

Sid on for Greg. is This

recovery restored the it were achieving budgets. to auto you carriers, your revenue the like run guidance quarterly imply XXXX. near second in fully with But in Just feel rate their they've seems the doesn't quarter

that discuss So just increased to share and the years? for meet it's how your curious it's if last us market you couple of fair you in if could assume

Jayme Mendal

Yes.

that marketplace by just we largest So digital are look you the insurance if at revenue. P&C today

targeting still, on to better cases focused back whether through years customers, and remain improving over P&C. last Now environment, that's we're constrained been at marketplace volume.But we been delivering largest mostly value maximizing heightened our the traffic. a means insurance that budget the very profitability couple digital even on in environment. pulling actually that the we've And some in we've In of

we we And to of -- position the continue the so, periods? expect versus talk to revenue benchmarking terms Do historical continue like strengthen. our that, as about these to investments, we do want to as we make in you relative expect

Joseph Sanborn

Yes, sure.

prior So 'XX. auto health QX the had auto about revenues for we of of you think for for Remember, June about business and peak revenues, mean XXXX when total was I think auto, auto. to not our

So QX near at in sort with auto, $XX implied in the what look our guide, guide we're just if QX QX look was of what's million 'XX. levels -- 'XX.And or that it QX we just peak at that that and under of at saw we're QX of implied in you

half the to when we're second will So half we we're still of 'XX -- what outlook on of exactly though look auto second year, what think happen on is yet recovery don't for in highlighting believe the auto very the know. factors we the that depends bullish recovery.I we

So one other to the carriers market. coming is

states leaned in and of been marketplace, are increases. for carriers Some those -- large these end term so in aggressive aggressively, in getting of to who've very our handful aggressively some as will in these point the of you in The rate large handful but the states. been expect of few they've They've opened carriers there's large -- many. carriers QX.As for can beginning a QX, remain in to have in relatively states get more market they QX we very that open at this continue of

environment. those And more open will -- it's how regulatory So relatively more open question. is an -- challenging when

way XXXX. until be meaningful a won't saying are in Some

think year, the you I piece growth we're half second to piece of year think about 'XX expecting to the 'XX. in half of I'd at look a second So say, if second strong second it.The year-on-year half that's of the

relative the how thing now, will expected. think got we a to play highlighted front-end loaded the we've we And is, it recovery, right we look out. Ralph's think as at in very question seasonality response I I

very you sequential we normal the environment.But to hard apply the what based see the on given in will long-term. bullish QX to know are it's QX from So just increase we're seeing today,

But As of measuring market measure we'll -- as marketplace in. in a a P&C we today. about trying and look I there's largest Jayme talking are more more predictability to you're market be get the as ], over said, carriers that market [ more time to a of at We coming the turning think -- you where more broad-based seeing

Operator

Your line the Craig-Hallum with of Capital Group. from Jason Kreyer next question comes

Unknown Analyst

[indiscernible] on Jason. is This for

on had following some start to that just on you agents. of up So commentary the

of from you're kind there? the may of that in any captive And Just if channel? be agent pockets would what green curious upswing the shoots there's What carriers that seeing seeing you're strength? the indicate

Jayme Mendal

Sure.

We So well in performed the our return agent the did quarter. some see carrier first business subsidies. of

of by Now spent how favorable the fairly the similar But carriers kind direct mentioned we've dollars it's market the been time seen state happening lot way, re-enter by last subsidy we've right, been as market targeted a overall, a I in year. re-enter over state. it's earlier, state We're a of forward, trend.Going with seeing to state. agents

-- to going it's we're extend think our an invest continue area advantage. to I to we'll

agent we grow base think opportunity and to the I in independent agent with agents. deepen our relationships channel that specifically have an

spend relationships agent, improving growth as services as the more extending into sticky them offering and well adjacent of more to needs. products their services help by products for So solve them we're and per sort existing

Unknown Analyst

about And the to wanted guys bidding side. then just on doing tech kind the I just follow are this you second one from of things on me the of earlier some up some comments quick. of some new of technology,

any upside I roll where out you these VMM seen particularly continue has there's lies, improvements? guidance it of kind historic as As you getting towards mean QX to do kind tech as of we've the back think levels, been that historically. to

Jayme Mendal

Joseph explained on Yes. the over-index -- front. one contributed from one a any basis compression quarter I over the to to on the of factors have percentage next. VMM VMM quarter the wouldn't the that some

the we about longer competing improved -- of which period just now, a our business.We're some to of advertising in our a transition. as generate landscape in has real time and channels. structurally have in the the the And are granular more been time structural effectively of about take time, are profit into data of apply percentage.Right for certainly, a more distribution, that investments making, a now in maximizing about responsible able to the bids. think We're particularly auctions data over -- period a the platform more expansion new bidding where is back of testing VMM the in ML I consumer, we we're over level at VMM

is mix distribution Our shifting.

of And a we so but there's fluctuation, bit a do.

where some between and the that rolled were their where be structural they settle increase our historically. the to expect peak to can out to We levels out. there technology somewhere at continue somewhere And attributed largely bidding of they've we've been probably VMM

Joseph Sanborn

I numbers maybe on can the And specifically. expand more just

you comments So of public of talked had call to VMM some margins this quarter. we prior But you going at that on. had lots and look our on when XXXX, last our things

You had puts and takes not of DTCA, DTCA.

was had we're of comments, you get cheaply.What to normalized said XXs settle XXs, we those progress able is would between year the starting VMM We some last what the excluding it DTCA under on we low the said high it environment and we very we through You normalized look just did if also would margin had -- that the relatively for just year. into QX for say, we sort said for to back depressed marketplace, expect as And range. going up this under landed just year improvement in be XX%. the marketplace.And XX% we XX% advertising XX%,

look what's with to this driving relative look VMM every where as with I But sustainable behaviors improvement But we'll we'll not over in advertising story normalize bidding year Especially of margin on. if -- hard about to recovery quarter-to-quarter those in and right land we'll you'll we our watch. year talk incremental more percentage, you the see like the is the investments progress this very believe think range.So bidding to I we have as technology Maybe it's now. at time, year technology be year. the a sort last to XX% that really and build incremental auto it the and will the through you year. we to articulated. continue perfect it's you XX% dynamic see XX%, appreciate continue We much

Operator

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

Jed Kelly

at like looking industry in the seems whole, is well. it everyone Just doing pretty

your So about assessing How we're assess performing view at? the that think is quarter you right your relative in balance And like million key how what we we you're ended talk other competitors. balance metrics of should kind forward carriers relative look how then you or you cash. to I going the sheet? $XX and with Can should to

Jayme Mendal

Sure. Jed. Yes. Thanks,

mean, year. you on to we're -- as we've I start right? say, strong gotten a So very think And I off focused us, this

of cash that actions operating by digressing really P&C-focused as are we we business focused, marketplace. to. capital-efficient, of range We've high bit Jed, digital metrics think adjusted in our the the focus an like our flow, we is that there's possible view pure-play have results all some a are insurance end a on into I look element on which year EBITDA, net managed levels that it, the income. of -- of out the we the like We simply across from record P&C. took of that that peers to got more made all a market, we model is ourselves increasingly of exceeded last refocus of is And we --

carriers, of to this consumers time that the and world using we off the the that are this tremendous that pay in And that to with the extend in leading with where amount of we mind are a agents, advantage. data player with deeper access in in a deeper have and in proprietary market data going We market over going space. think will allow us space.We

So find know really And that P&C hard metrics comp value for market. delivering exactly that focused our We're similarly a the point to I insurance you us to. in what focused. more think I to is it's to don't customers on

measure what against So going to we we do how us I just would and we're on do say that.

Joseph Sanborn

Jed, allocation. Maybe which on capital second I'll take your question, are

we saying think that We summer XXXX.I what forward $XX do and right, positive doing and need with balance the expect not do in we ended upon We said, [indiscernible] and the cash is -- under -- as a improvement And executing leverage where be a we're and a X million couple QX significant of in cash, Jayme see. in context, just were obviously, and So $XX were it in let year things million me of to put as ago, where from reflects, close we just cash operating we're the we cash going to we're have company. it. we're going flow to -- to that managing driven more sheet.

we the So it's ability to organically. -- increasingly market to to to we'd position, by cash within differentiated in believe we drive year.What is make help as need mentioned, participants. say value at P&C, we actually broader going add we going we're our see we're are Jayme long-term growth are pleased to from us relative think confident as where about that deeper the last And clients will

And selectively continue so our that's -- we cash why we feel we'll But opportunities with there regards confident And what will drive be call to we about a to to organically. time acquisition team growth.And consider for evaluate expenses. will driving be inorganic believe over the the are And we long-term have very, to we we'll have used our should we'll we've M&A. sense use the consolidated, make over in that with something same M&A, approach this that and be disciplined long-term. the prior approach said win the process sector of at same time.As M&A we've acquisitions. think more leader And we positioned to we'll we operating in manage disciplined this. certainly looking space find that We well that's about But growth believe long-term. will our sort

Operator

line the of from Mayank Needham. comes question last Tandon with Our

Mayank Tandon

through this, the seen just I giving be you for to just on seeing Congrats X clarifying not but sorry, seasonality I holds the missed maybe in think not as some half, a recovery some guidance. that half the couple though on A the you're you're of growth strong quarter. market that in if questions. the of walked back and the historically, Jayme back same XQ, But growth, right would right to even Joseph but what assumptions you're based and sequential clear, see formal Joseph, now, now? seeing you you sequential you've said, still expect

Joseph Sanborn

is seeing the or the we've we've we I'll much expected the is be our something gradual QX auto QX to up, going start near year, the implied different, we've at and down. into group, progress which pattern said had we would recovery, What out guide QX just a we QX here quite actually to QX is, good XXXX. Yes. into I go is down, a QX.And guess guide earlier, in by the this QX, is levels QX Mayank and that have go comment seasonal as peak seen is seen auto I repeat -- and would go our for you're them of saw which in that into progressing play stronger -- will

going We of second look the we that as happen at half say, to the we year. backdrop. what's So into progress

advanced unpredictable wanting as bullish the in carriers until the states.If some see, do look of not carriers The environment. we the those we getting certainly in hard hold about first broader of couple on think And know you that would who've second carriers environment.So didn't to are landscape. back see half pattern what we pattern that same of QX. come going a carrier who continue result, right increase -- that the are based to QX as have rates broader are -- efficiency to We seasonal not from now, effectively overlay into as QX. the -- their context, mode. reason, we're are we know specificity large expecting in, in seeing didn't get QX in in It's to a the not we're piece, the not at we plans an it what the sequential growth to about in QX. and sequential QX as of handful And we more -- a it's rate very year lot is the this that XXXX year. challenging open first, regulatory we for may the loaded, will leaned of we front-end So be of have driving states think to or in think through They and going and making been aggressively it in they're more may to may the states it and end because contingent more half these half it's second they've progressed increases more they what's to carriers open the upon QX know they growth handful this and QX certainly and large who've not be and opportunity of even based year, a this in of we of limited the year larger carriers opening on aggressively, that leaned states large the more into been expect of progressing continue.As QX we how

So think based know. we in right expecting see.I be faster. But will we other it we're carriers wild said, the come what the growth card as on I not progresses, now as sequential back will

remains this half in year. of it's relative the it a -- a this So well still adequacy, year. about really, to seen we here. it drive auto the they get And will it progresses question just is will remain 'XX how and move. fast through be rate how the they'll XXXX. And and multiyear recoveries as second many to how confidence and growth -- year-on-year But it year beyond of strong we view as comps But fast in recovery bullish have as

Mayank Tandon

were as a No, about the clear. asked then, pricing. just go underlying I of you key wanted think quick drivers. And that's I to Jayme, follow-up, very some And to back

the are the could provide just that underlying through carriers? RPQ? Is But it don't the in driving are the details it what So you like offering? What you just know I with trends you? bundled past. driving better [indiscernible] maybe integration more some walk is factors of is for

Jayme Mendal

Yes.

the request recovery. bit revenue quote So recent I largely think in driven per it's more auto straightforward a The than by are upticks that. actually

more to pay had into got a form, going pay.So means their And we're really that more have the marketplace this of is year, which state then resulting their on for generating. stepping and increasing So we willing and back pricing you've willingness their carriers competitive similar side. and beginning carriers the expanding traffic and footprints dynamic in that a their carriers the the participating, since have bids, beginning up to you to dynamic agent budgets

seeing sequentially request larger volume this increase into quote a in meaningful increase even request an QX.So sequentially quote year. volume, seen from seeing we've in demand an revenue come we in per into step-up in although we are we're QX -- as So

Operator

That turn now the for conference Q&A I concludes will over our the management closing to session. remarks. back

Jayme Mendal

joining strong and everyone to here. again call the start on The us today. want for thank had energized how we've once Thank you. the I by just year a I are team to

as and those to number produced the Over income, very now EBITDA we've clear net the realign benefits made of future.And record a years, business the decisions brighter flow of adjusted of a to of operating solid battle building towards couple than a we decisions opportunity and market digital of hardened more last difficult are with cash levels distribution QX. foundation, a ] all. this insurance a in business the great ever into And into continue excited bringing we're age. [ before, incredible team focused Thanks, now

Operator

and for that today's gentlemen, Ladies concludes call. joining. all you Thank

now disconnect. may You

EverQuote (EVER) 6 May 242024 Q1 Earnings call transcript