What Happened:
Shares of online insurance comparison site EverQuote (NASDAQ:EVER) jumped 19.3% in the pre-market session after the company reported second-quarter earnings results. EverQuote blew past analysts' revenue expectations. In addition, next quarter's revenue guidance came in higher than Wall Street's estimates. Zooming out, we think this was a great quarter that shareholders will appreciate.
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What is the market telling us:
EverQuote's shares are a little volatile and over the last year have had 44 moves greater than 5%. Moves this big are very rare for EverQuote and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the stock gained 16.3% on the news that the company reported first quarter results that blew past analysts' revenue, adjusted EBITDA, and EPS expectations. Next quarter's revenue guidance also came in higher than Wall Street's estimates. Notably, free cash flow improved significantly, turning positive compared to recent quarters.
On the other hand, its revenue growth regrettably slowed. Zooming out, we think this was a solid quarter that shareholders will appreciate despite the slowing topline.
EverQuote is up 119% since the beginning of the year, and at $26.04 per share it is trading close to its 52-week high of $26.48 from July 2024. Investors who bought $1,000 worth of EverQuote's shares 5 years ago would now be looking at an investment worth $1,323.
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