What Happened?

Shares of online insurance comparison site EverQuote (NASDAQ:EVER) jumped 14.4% in the pre-market session after the company reported strong third-quarter earnings. EverQuote provided an optimistic revenue and EBITDA forecast for the next quarter, which blew past analysts' expectations. The quarter's revenue and EBITDA also beat Wall Street's estimates following a recovery in the auto industry. Notably, revenue in the automotive insurance vertical tripled year on year and accounted for 90% of overall revenue. This highlights Everquote's strong positioning and improving dominance in the auto vertical. 

Moving to the bottom line, there was a turnaround as the improved top line helped the company transition from losses recorded in the same period last year to positive operating income. Zooming out, we think this was a good print with some key areas of upside. After the initial pop the shares cooled down to $18.12, up 4.6% from previous close.

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What The Market Is Telling Us

EverQuote’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. But moves this big are rare even for EverQuote and indicate this news significantly impacted 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 19.3% on the news that 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.

EverQuote is up 52.3% since the beginning of the year, but at $18.12 per share, it is still trading 32.4% below its 52-week high of $26.80 from August 2024. Investors who bought $1,000 worth of EverQuote’s shares 5 years ago would now be looking at an investment worth $648.96.

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