- Needham Analyst Mayank Tandon reiterated the buy recommendation EverQuote Inc ALWAYS with a target price of $21.
- EVER reported Q4 ’22 revenue of $88.3 million, below Tandon’s estimate of $89.3 million and the consensus of $90.2 million.
- Sales declined 12.5% year over year as auto sales fell 4.6% year over year, and the “other” industry declined 33.3% year over year on weak trends in the healthcare industry , as EVER withdrew its growth efforts.
- But VMM and Adjusted EBITDA came in better than expected as management managed costs effectively.
- Emphasizing that the marketing level of auto transporters has improved through 2023, management gave an upbeat outlook for 1Q23 and FY23.
- While Q4 results were mixed, the analyst estimated updates such as auto transporter marketing trends are on the mend and improving into 2023, reflected in the upbeat outlook for 1Q23 and FY23.
- Tandon raised its FY23 estimates to reflect the optimistic outlook (ie, steadily improving auto transporter marketing budgets) and to reflect the incremental strength in its FY24 guidance.
- While the analyst expects a gradual recovery, he views the risk/reward trade-off as favorable as EVER returns to “trend” revenue growth of over 20% by the end of FY23 and improved levels of profitability into FY23 and through FY20 24 addition can show.
- Price promotion: EVER shares traded 18.71% lower at $14.25 on the last check Tuesday.
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