by Denny Jacob
EverQuote, the online insurance marketplace, experienced a sharp decline in its stock value following the release of its third-quarter outlook and second-quarter results. Aftermarket trading saw shares plummet by 20% to $5.26. This drop compounds the year-long decrease of 55%, as the stock closed 2.7% lower on Monday at $6.57.
The company's third-quarter revenue forecast is disappointing, with a range of $51 million to $56 million. Analysts had initially expected a higher figure of $74.1 million, according to FactSet.
In addition, EverQuote's second-quarter results were released, revealing a widened loss of $13.2 million, or 40 cents per share, for the three months ending June 30. This compares to a loss of $3.8 million, or 12 cents per share, during the same period last year. Analysts predicted a more moderate loss of 32 cents per share.
EverQuote's revenue also experienced a significant decline, dropping by 33% to $68 million from $101.9 million. Analysts had anticipated a higher revenue figure of $71.6 million.
Chief Financial Officer Joseph Sanborn remains optimistic about the company's future, stating: "By streamlining our operations and adopting a relatively more asset-light model, we believe EverQuote will be well positioned to capitalize on our market opportunity with the normalization of the auto insurance industry."