EverQuote (NYSE:EVER) Q3 2019 Earnings Conference Call Transcript

Nov 04, 2019 • 04:30 pm ET

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EverQuote (NYSE:EVER) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to EverQuote's Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Allise Furlani of The Blueshirt Group. Please go ahead.

Executive
Allise Furlani

Thank you. Good afternoon, and welcome to EverQuote's third quarter 2019 earnings call. We'll be discussing the results announced in our press release issued today after the market closed. With me on the call this afternoon is Seth Birnbaum, EverQuote's Chief Executive Officer and Co-Founder; and John Wagner, Chief Financial Officer of EverQuote.

During the call, we will make statements related to our business that may be considered forward-looking statements under the federal securities laws including statements concerning our financial guidance for the fourth quarter and full-year 2019; our growth strategy and our plans to execute on our growth strategy; key initiatives; the growth levers we expect to drive our business; our ability to maintain existing and acquire new customers; our interest or ability to acquire other companies; our planned expansion into international markets; and other statements regarding our plans and prospects.

Forward-looking statements may be identified with words and phrases such as we expect, we believe, we intend, we anticipate, we plan, may, upcoming, and similar words and phrases. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We specifically disclaim any obligation to update or revise these forward-looking statements except as required by law. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. Please refer to these contained under the heading Risk Factors in our most recent Quarterly Report on Form 10-Q, which is on file with the Securities and Exchange Commission and available on the Investor Relations section of our website at investors.everquote.com and on the SEC's website at sec.gov.

Finally, during the course of today's call, we'll refer to certain non-GAAP financial measures, which we believe are helpful to investors. A reconciliation of GAAP to non-GAAP measures is included in the press release we issued after the close of market today, which is available on the Investor Relations section of our website at investors.everquote.com.

With that, I'll turn it over to Seth.

Executive
Seth N. Birnbaum

Thank you, Liz. Good afternoon and thank you everyone for joining us today. We are pleased to report strong third quarter results across all our key financial metrics. We delivered revenue growth of 61% year-over-year with variable marketing margin of 67% over the prior year period. The strength of our data-driven marketplace coupled with improving operating leverage resulted in another quarter of expanding adjusted EBITDA.

Importantly, we achieved a major milestone and reported our first quarter of GAAP profitability as a public company. In the quarter, we saw a