EverQuote Announces Decision To Exit Health Insurance Vertical
06 Juillet 2023 - 10:05PM
EverQuote, Inc. (Nasdaq: EVER), a leading online insurance
marketplace, today announced that it will exit its health insurance
vertical, beginning June 30, 2023. The health insurance vertical
includes EverQuote’s marketplace and direct to consumer agency
(DTCA) serving the Medicare and “Under 65” health insurance market,
and represented approximately 10% of the Company’s revenue in
fiscal year 2022.
“We are making the strategic decision to exit an
area that requires significant capital investment and scale to
effectively compete amid an increasingly unpredictable regulatory
environment,” said Jayme Mendal, CEO of EverQuote. “We are
confident that by increasing strategic focus on our core verticals
and streamlining operations, we will position EverQuote to improve
financial performance and build a stronger competitive position in
our chosen markets.”
EverQuote’s decision with regard to its health
insurance vertical is part of the Company’s plans announced last
month to streamline its business and reduce annual non-marketing
operating expenses by over 15%. In connection with this structural
reduction, EverQuote began implementing a workforce reduction plan
that will result in the Company incurring aggregate severance
charges of approximately $2.0 million to $3.0 million, which will
be recognized primarily in the second quarter of 2023. In addition,
the Company is reviewing the potential impact of its decision to
exit its health insurance vertical on its balance sheet and will
provide an update on its second quarter earnings call.
“Our team remains laser-focused on closely managing
costs and driving operating efficiencies in the business,” said
Joseph Sanborn, CFO of EverQuote. “We believe that the actions we
are taking to streamline our operations will better position
EverQuote to drive more sustainable growth and deliver a greater
return on capital investment.”
Company to Report Second Quarter Financial
Results on August 7, 2023
EverQuote will report its financial results for the
second quarter ended June 30, 2023, after the market closes on
Monday, August 7, 2023. Following the release of its financial
results, management will host a conference call at 4:30 p.m. ET/
1:30 p.m. PT.
To access the call, please dial +1 (800) 599-2055,
or outside the U.S. +1 (646) 362-9671 with Conference ID 1374717 at
the 4:30 p.m. ET start time. A live webcast will be available at
http://investors.everquote.com. A replay of the webcast will be
available on the website approximately two hours after the
completion of the live call.
Safe Harbor Statement
Any statements in this press release about future
expectations, plans and prospects for EverQuote, Inc. (“EverQuote”
or the “Company”), including statements about future results of
operations or the future financial position of the Company,
including financial targets, business strategy, plans and
objectives for future operations and other statements containing
the words “anticipates,” “believes,” “expects,” “plans,”
“continues,” “will” and similar expressions, constitute
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those indicated by such forward-looking statements
as a result of various important factors, including: (1) the
Company’s ability to attract and retain consumers and insurance
providers using the Company’s marketplace; (2) the Company’s
ability to maintain or increase the amount providers spend per
quote request; (3) the effectiveness of the Company’s growth
strategies and its ability to effectively manage growth; (4) the
Company’s ability to maintain and build its brand; (5) the
Company’s reliance on its third-party service providers; (6) the
Company’s ability to develop new and enhanced products and services
to attract and retain consumers and insurance providers, and the
Company’s ability to successfully monetize them; (7) the impact of
competition in the Company’s industry and innovation by the
Company’s competitors; (8) the expected recovery of the auto
insurance industry; (9) developments regarding the insurance
industry and the transition to online marketing; (10) the possible
impacts of inflation; and (11) other factors discussed in the “Risk
Factors” section of the Company's most recent Annual Report on Form
10-K and the Company’s most recent Quarterly Report on Form 10-Q,
which are on file with the Securities and Exchange Commission. In
addition, the forward-looking statements included in this press
release represent the Company's views as of the date of this press
release. The Company anticipates that subsequent events and
developments will cause the Company's views to change. However,
while the Company may elect to update these forward-looking
statements at some point in the future, the Company specifically
disclaims any obligation to do so. These forward-looking statements
should not be relied upon as representing the Company's views as of
any date subsequent to the date of this press release.
About EverQuote
EverQuote operates a leading online insurance
marketplace, connecting consumers with insurance providers. The
company's mission is to empower insurance shoppers to better
protect life's most important assets—their family, health,
property, and future. Our vision is to become the largest online
source of insurance policies by using data, technology, and
knowledgeable advisors to make insurance simpler, more affordable
and personalized, ultimately reducing cost and risk.
For more information, visit everquote.com and
follow on Twitter @everquotelife, Instagram @everquotepics, and
LinkedIn https://www.linkedin.com/company/everquote/.
Investor Relations Contact
Brinlea JohnsonThe Blueshirt Group415-489-2193
EverQuote (NASDAQ:EVER)
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