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EverQuote, Inc. (NASDAQ:EVER) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company’s loss has recently broadened since it announced a US$7.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$8.4m, moving it further away from breakeven. Many investors are wondering about the rate at which EverQuote will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for EverQuote
According to the 8 industry analysts covering EverQuote, the consensus is that breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$1.6m in 2022. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 57% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of EverQuote's upcoming projects, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that EverQuote has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of EverQuote to cover in one brief article, but the key fundamentals for the company can all be found in one place – EverQuote's company page on Simply Wall St. We've also put together a list of important aspects you should further research:
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Valuation: What is EverQuote worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether EverQuote is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on EverQuote’s board and the CEO’s background.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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