Online insurance marketplace EverQuote (EVER 1.54%) was a star stock on Tuesday, with its shares leaping 21.5% higher on the day. This followed the release of its results for the first quarter of fiscal 2020, featuring headline numbers that easily beat analyst estimates, and a guidance hike.
In Q1, EverQuote grew revenue by 56% year over year to $81.4 million. The company posted an adjusted (non-GAAP) net loss, but at $1.4 million ($0.05 per share) it was much narrower than Q1 2019's deficit of nearly $4.4 million. Both headline figures topped analyst expectations.
This was fueled by a 50% rise in revenue for the automotive insurance vertical, but the company is becoming less dependent on that category. Combined, other forms of insurance (such as health and life) rose by 90%.
For the full year, EverQuote is guiding for revenue of $318 million to $327 million; formerly it estimated $315 million to $325 million. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is now expected to hit $12.5 million to $17.5 million (previously $10 million to $15 million).
The company's annual revenue in 2019 was nearly $249 million, while adjusted EBITDA came in at $8.3 million.
EverQuote clearly knows how to attract customers and bring in revenue; that Q1 growth figure was impressive, and while the rate might come down, it seems there's plenty of fuel left in the tank. This feels like a company that has found its niche, and will remain a compelling growth story.