☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 26-3101161 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
210 Broadway Cambridge, Massachusetts | 02139 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Class A Common Stock, $0.001 Par Value Per Share | EVER | The Nasdaq Global Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company | ☐ |
Page | ||||||
PART I. | 5 | |||||
Item 1. | 5 | |||||
5 | ||||||
6 | ||||||
7 | ||||||
8 | ||||||
9 | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
PART II. | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 6. | ||||||
March 31, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 46,128 | $ | 34,851 | ||||
Accounts receivable, net | 46,557 | 35,659 | ||||||
Prepaid expenses and other current assets | 14,319 | 14,184 | ||||||
Total current assets | 107,004 | 84,694 | ||||||
Property and equipment, net | 5,742 | 5,796 | ||||||
Goodwill | 21,501 | 21,501 | ||||||
Acquired intangible assets, net | 9,661 | 10,229 | ||||||
Operating lease right-of-use | 7,213 | 7,291 | ||||||
Other assets | 19,407 | 14,096 | ||||||
Total assets | $ | 170,528 | $ | 143,607 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 43,104 | $ | 29,599 | ||||
Accrued expenses and other current liabilities | 10,246 | 13,015 | ||||||
Deferred revenue | 1,984 | 2,096 | ||||||
Operating lease liabilities | 2,852 | 2,696 | ||||||
Total current liabilities | 58,186 | 47,406 | ||||||
Operating lease liabilities, net of current portion | 5,279 | 5,531 | ||||||
Other long-term liabilities | 4,621 | 5,545 | ||||||
Total liabilities | 68,086 | 58,482 | ||||||
Commitments and contingencies (Note 9) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding | 0— | 0— | ||||||
Class A common stock, $0.001 par value; 220,000,000 shares authorized; 24,949,939 shares and 23,544,995 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 25 | 24 | ||||||
Class B common stock, $0.001 par value; 30,000,000 shares authorized; 6,407,678 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 6 | 6 | ||||||
Additional paid-in capital | 245,751 | 222,730 | ||||||
Accumulated other comprehensive income | 20 | 10 | ||||||
Accumulated deficit | (143,360 | ) | (137,645 | ) | ||||
Total stockholders’ equity | 102,442 | 85,125 | ||||||
Total liabilities and stockholders’ equity | $ | 170,528 | $ | 143,607 | ||||
June 30, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 41,269 | $ | 34,851 | ||||
Accounts receivable, net | 36,581 | 35,659 | ||||||
Prepaid expenses and other current assets | 14,428 | 14,184 | ||||||
Total current assets | 92,278 | 84,694 | ||||||
Property and equipment, net | 5,923 | 5,796 | ||||||
Goodwill | 21,501 | 21,501 | ||||||
Acquired intangible assets, net | 9,093 | 10,229 | ||||||
Operating lease right-of-use | 7,096 | 7,291 | ||||||
Other assets | 25,098 | 14,096 | ||||||
Total assets | $ | 160,989 | $ | 143,607 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 32,937 | $ | 29,599 | ||||
Accrued expenses and other current liabilities | 10,941 | 13,015 | ||||||
Deferred revenue | 1,974 | 2,096 | ||||||
Operating lease liabilities | 3,011 | 2,696 | ||||||
Total current liabilities | 48,863 | 47,406 | ||||||
Operating lease liabilities, net of current portion | 4,955 | 5,531 | ||||||
Other long-term liabilities | 919 | 5,545 | ||||||
Total liabilities | 54,737 | 58,482 | ||||||
Commitments and contingencies (Note 9) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; | 0— | 0— | ||||||
Class A common stock, $0.001 par value; 220,000,000 shares authorized; 25,536,473 shares and 23,544,995 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 26 | 24 | ||||||
Class B common stock, $0.001 par value; 30,000,000 shares authorized; 6,169,774 and 6,407,678 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 6 | 6 | ||||||
Additional paid-in capital | 253,345 | 222,730 | ||||||
Accumulated other comprehensive income (loss) | (9 | ) | 10 | |||||
Accumulated deficit | (147,116 | ) | (137,645 | ) | ||||
Total stockholders’ equity | 106,252 | 85,125 | ||||||
Total liabilities and stockholders’ equity | $ | 160,989 | $ | 143,607 | ||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenue | $ | 110,681 | $ | 103,822 | $ | 101,915 | $ | 105,063 | $ | 212,596 | $ | 208,885 | ||||||||||||
Cost and operating expenses: | ||||||||||||||||||||||||
Cost of revenue | 5,984 | 5,953 | 6,059 | 5,811 | 12,043 | 11,764 | ||||||||||||||||||
Sales and marketing | 96,150 | 87,569 | 87,854 | 85,610 | 184,004 | 173,179 | ||||||||||||||||||
Research and development | 8,196 | 8,573 | 8,245 | 9,053 | 16,441 | 17,626 | ||||||||||||||||||
General and administrative | 6,941 | 5,596 | 7,357 | 6,200 | 14,298 | 11,796 | ||||||||||||||||||
Acquisition-related | (892 | ) | (79 | ) | (3,779 | ) | 265 | (4,671 | ) | 186 | ||||||||||||||
Total cost and operating expenses | 116,379 | 107,612 | 105,736 | 106,939 | 222,115 | 214,551 | ||||||||||||||||||
Loss from operations | (5,698 | ) | (3,790 | ) | (3,821 | ) | (1,876 | ) | (9,519 | ) | (5,666 | ) | ||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest income | 8 | 14 | 37 | 10 | 45 | 24 | ||||||||||||||||||
Other expense, net | (25 | ) | (25 | ) | ||||||||||||||||||||
Other income (expense), net | 28 | (15 | ) | 3 | (40 | ) | ||||||||||||||||||
Total other expense, net | (17 | ) | (11 | ) | ||||||||||||||||||||
Total other income (expense), net | 65 | (5 | ) | 48 | (16 | ) | ||||||||||||||||||
Net loss | $ | (5,715 | ) | $ | (3,801 | ) | $ | (3,756 | ) | $ | (1,881 | ) | $ | (9,471 | ) | $ | (5,682 | ) | ||||||
Net loss per share, basic and diluted | $ | (0.19 | ) | $ | (0.13 | ) | $ | (0.12 | ) | $ | (0.07 | ) | $ | (0.31 | ) | $ | (0.20 | ) | ||||||
Weighted average common shares outstanding, basic and diluted | 30,529 | 28,431 | 31,519 | 28,895 | 31,027 | 28,665 | ||||||||||||||||||
Comprehensive loss: | ||||||||||||||||||||||||
Net loss | $ | (5,715 | ) | $ | (3,801 | ) | $ | (3,756 | ) | $ | (1,881 | ) | $ | (9,471 | ) | $ | (5,682 | ) | ||||||
Other comprehensive income: | ||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Foreign currency translation adjustment | 10 | 15 | (29 | ) | 7 | (19 | ) | 22 | ||||||||||||||||
Comprehensive loss | $ | (5,705 | ) | $ | (3,786 | ) | $ | (3,785 | ) | $ | (1,874 | ) | $ | (9,490 | ) | $ | (5,660 | ) | ||||||
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | Class A | Class B | Additional | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Additional | Other | Total | Common Stock | Common Stock | Paid-in | Comprehensive | Accumulated | Stockholders’ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | Paid-in | Comprehensive | Accumulated | Stockholders’ | Shares | Amount | Shares | Amount | Capital | Income (Loss) | Deficit | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Income | Deficit | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | 23,544,995 | $ | 24 | 6,407,678 | $ | 6 | $ | 222,730 | $ | 10 | $ | (137,645 | ) | $ | 85,125 | 23,544,995 | $ | 24 | 6,407,678 | $ | 6 | $ | 222,730 | $ | 10 | $ | (137,645 | ) | $ | 85,125 | ||||||||||||||||||||||||||||||||||
Private placement of common stock | 1,004,016 | 1 | — | — | 14,999 | — | — | 15,000 | 1,004,016 | 1 | — | — | 14,999 | — | — | 15,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | 92,975 | — | — | — | 558 | — | — | 558 | 92,975 | — | — | — | 558 | — | — | 558 | ||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 307,953 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units | 307,953 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 7,464 | — | — | 7,464 | — | — | — | — | 7,464 | — | — | 7,464 | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 10 | — | 10 | — | — | — | — | — | 10 | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (5,715 | ) | (5,715 | ) | — | — | — | — | — | — | (5,715 | ) | (5,715 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | 24,949,939 | $ | 25 | 6,407,678 | $ | 6 | $ | 245,751 | $ | 20 | $ | (143,360 | ) | $ | 102,442 | 24,949,939 | 25 | 6,407,678 | 6 | 245,751 | 20 | (143,360 | ) | 102,442 | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | 6,602 | 1 | — | — | 49 | — | — | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net issuance of common stock upon vesting of restricted stock units | 342,028 | — | — | — | (51 | ) | — | — | (51 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 7,596 | — | — | 7,596 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer of Class B common stock to Class A common stock | 237,904 | — | (237,904 | ) | — | �� | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (29 | ) | — | (29 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (3,756 | ) | (3,756 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | 25,536,473 | $ | 26 | 6,169,774 | $ | 6 | $ | 253,345 | $ | (9 | ) | $ | (147,116 | ) | $ | 106,252 | ||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Additional | Other | Total | Class A | Class B | Additional | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | Paid-in | Comprehensive | Accumulated | Stockholders’ | Common Stock | Common Stock | Paid-in | Comprehensive | Accumulated | Stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Income (Loss) | Deficit | Equity | Shares | Amount | Shares | Amount | Capital | Income (Loss) | Deficit | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | 20,784,065 | $ | 21 | 7,429,502 | $ | 7 | $ | 189,172 | $ | (7 | ) | $ | (118,211 | ) | $ | 70,982 | 20,784,065 | $ | 21 | 7,429,502 | $ | 7 | $ | 189,172 | $ | (7 | ) | $ | (118,211 | ) | $ | 70,982 | ||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | 213,317 | — | — | — | 1,272 | — | — | 1,272 | 213,317 | — | — | — | 1,272 | — | — | 1,272 | ||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 332,311 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units | 332,311 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 7,520 | — | — | 7,520 | — | — | — | — | 7,520 | — | — | 7,520 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfer of Class B common stock to Class A common stock | 1,021,824 | 1 | (1,021,824 | ) | (1 | ) | — | — | — | — | 1,021,824 | 1 | (1,021,824 | ) | (1 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 15 | — | 15 | — | — | — | — | — | 15 | — | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (3,801 | ) | (3,801 | ) | — | — | — | — | — | — | (3,801 | ) | (3,801 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | 22,351,517 | $ | 22 | 6,407,678 | $ | 6 | $ | 197,964 | $ | 8 | $ | (122,012 | ) | $ | 75,988 | 22,351,517 | 22 | 6,407,678 | 6 | 197,964 | 8 | (122,012 | ) | 75,988 | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | 56,786 | — | — | — | 452 | — | — | 452 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units | 260,340 | 1 | — | — | (1 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 7,089 | — | — | 7,089 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 7 | — | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (1,881 | ) | (1,881 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | 22,668,643 | $ | 23 | 6,407,678 | $ | 6 | $ | 205,504 | $ | 15 | $ | (123,893 | ) | $ | 81,655 | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (5,715 | ) | $ | (3,801 | ) | $ | (9,471 | ) | $ | (5,682 | ) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization expense | 1,511 | 1,174 | 2,916 | 2,310 | ||||||||||||
Stock-based compensation expense | 7,530 | 7,520 | 15,130 | 14,609 | ||||||||||||
Change in fair value of contingent consideration liabilities | (892 | ) | (79 | ) | (4,672 | ) | (289 | ) | ||||||||
Provision for (recovery of) bad debt | 75 | (46 | ) | 77 | (50 | ) | ||||||||||
Unrealized foreign currency transaction losses | 7 | 15 | ||||||||||||||
Unrealized foreign currency transaction (gains) losses | (16 | ) | 23 | |||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||||||||||
Accounts receivable | (10,973 | ) | (2,942 | ) | (999 | ) | 297 | |||||||||
Prepaid expenses and other current assets | (136 | ) | 172 | (250 | ) | (92 | ) | |||||||||
Operating lease right-of-use | 645 | 791 | 1,287 | 1,400 | ||||||||||||
Other assets | (5,561 | ) | (733 | ) | (11,252 | ) | (340 | ) | ||||||||
Accounts payable | 13,296 | (702 | ) | 3,413 | (7,123 | ) | ||||||||||
Accrued expenses and other current liabilities | (2,857 | ) | 2,810 | (2,059 | ) | 7,538 | ||||||||||
Deferred revenue | (112 | ) | (57 | ) | (122 | ) | (33 | ) | ||||||||
Operating lease liabilities | (663 | ) | (638 | ) | (1,355 | ) | (1,337 | ) | ||||||||
Other long-term liabilities | — | 36 | — | 4 | ||||||||||||
Net cash provided by (used in) operating activities | (3,845 | ) | 3,520 | (7,373 | ) | 11,235 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of property and equipment, including costs capitalized for development of internal-use software | (681 | ) | (777 | ) | (1,989 | ) | (1,310 | ) | ||||||||
Net cash used in investing activities | (681 | ) | (777 | ) | (1,989 | ) | (1,310 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from exercise of stock options | 558 | 1,272 | 608 | 1,724 | ||||||||||||
Proceeds from private placement of common stock | 15,000 | — | 15,000 | — | ||||||||||||
Tax withholding payments related to net share settlement | (51 | ) | — | |||||||||||||
Net cash provided by financing activities | 15,558 | 1,272 | 15,557 | 1,724 | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5 | ) | 1 | (27 | ) | 1 | ||||||||||
Net increase in cash, cash equivalents and restricted cash | 11,027 | 4,016 | 6,168 | 11,650 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 35,101 | 43,120 | 35,101 | 43,120 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 46,128 | $ | 47,136 | $ | 41,269 | $ | 54,770 | ||||||||
Supplemental disclosure of non-cash investing and financing information: | ||||||||||||||||
Acquisition of property and equipment included in accounts payable | $ | 309 | $ | — | $ | 32 | $ | 114 | ||||||||
Operating lease liabilities arising from obtaining right-of-use | $ | 567 | $ | 240 | $ | 1,096 | $ | 240 | ||||||||
Reconciliation of cash, cash equivalents and restricted cash: | ||||||||||||||||
Cash and cash equivalents | $ | 46,128 | $ | 46,886 | $ | 41,269 | $ | 54,520 | ||||||||
Restricted cash (included in other assets) | — | 250 | — | 250 | ||||||||||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ | 46,128 | $ | 47,136 | $ | 41,269 | $ | 54,770 | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Direct channels | 88 | % | 90 | % | ||||
Indirect channels | 12 | % | 10 | % | ||||
100 | % | 100 | % | |||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Direct channels | 86 | % | 91 | % | 87 | % | 90 | % | ||||||||
Indirect channels | 14 | % | 9 | % | 13 | % | 10 | % | ||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Automotive | $ | 87,675 | $ | 84,481 | $ | 81,375 | $ | 86,358 | $ | 169,050 | $ | 170,839 | ||||||||||||
Other | 23,006 | 19,341 | 20,540 | 18,705 | 43,546 | 38,046 | ||||||||||||||||||
Total Revenue | $ | 110,681 | $ | 103,822 | $ | 101,915 | $ | 105,063 | $ | 212,596 | $ | 208,885 | ||||||||||||
June 30, | December 31, | |||||||||||||||
2022 | 2021 | |||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||
Commissions receivable, current portion (included in prepaid expenses and other current assets) | $ | 9,134 | $ | 9,285 | $ | 9,488 | $ | 9,285 | ||||||||
Commissions receivable, non-current portion (included in other assets) | 18,947 | 13,415 | 24,637 | 13,415 | ||||||||||||
$ | 28,081 | $ | 22,700 | $ | 34,125 | $ | 22,700 | |||||||||
March 31, | June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Options to purchase common stock | 1,569,865 | 1,965,185 | 2,003,197 | 1,903,499 | ||||||||||||
Unvested restricted stock units | 3,234,894 | 2,842,867 | 3,483,873 | 2,737,475 | ||||||||||||
4,804,759 | 4,808,052 | 5,487,070 | 4,640,974 | |||||||||||||
Cash paid, net of cash acquired | $ | 15,955 | ||
Fair value of contingent consideration to be settled in stock | 3,784 | |||
Settlement of existing relationship | 233 | |||
Total purchase price consideration, net of cash acquired | $ | 19,972 | ||
Assets Acquired and Liabilities Assumed: | ||||
Accounts receivable | $ | 283 | ||
Commissions receivable (current and long-term) | 2,761 | |||
Prepaid expenses and other current assets | 12 | |||
Customer relationships | 6,600 | |||
Developed technology | 1,700 | |||
Other identifiable intangible assets | 300 | |||
Goodwill | 11,532 | |||
Total assets acquired | 23,188 | |||
Accounts payable and accrued expenses (current) | (706 | ) | ||
Deferred tax liability | (2,510 | ) | ||
Total allocation of purchase price consideration, net of cash acquired | $ | 19,972 | ||
Fair Value Measurements at June 30, 2022 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 20,537 | $ | — | $ | — | $ | 20,537 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration liability associated with acquisition of Eversurance included in other long-term liabilities | $ | — | $ | — | $ | 519 | $ | 519 | ||||||||
Contingent consideration liability associated with acquisition of PolicyFuel included in accrued expenses and other current liabilities | — | — | 583 | 583 | ||||||||||||
Contingent consideration liability associated with acquisition of PolicyFuel included in other long-term liabilities | — | — | 400 | 400 | ||||||||||||
$ | — | $ | — | $ | 1,502 | $ | 1,502 | |||||||||
Fair Value Measurements at March 31, 2022 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 20,503 | $ | 0 | $ | 0 | $ | 20,503 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration liability associated with acquisition of Eversurance included in other long-term liabilities | $ | 0 | $ | 0 | $ | 951 | $ | 951 | ||||||||
Contingent consideration liability associated with acquisition of PolicyFuel included in accrued expense s and other current liabilities | 0 | 0 | 661 | 661 | ||||||||||||
Contingent consideration liability associated with acquisition of PolicyFuel included in other long-term liabilities | 0 | 0 | 3,670 | 3,670 | ||||||||||||
$ | 0 | $ | 0 | $ | 5,282 | $ | 5,282 | |||||||||
Fair Value Measurements at December 31, 2021 Using: | Fair Value Measurements at December 31, 2021 Using: | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 20,502 | $ | 0 | $ | 0 | $ | 20,502 | $ | 20,502 | $ | — | $ | — | $ | 20,502 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent consideration liability associated with acquisition of Eversurance included in other long-term liabilities | $ | 0 | $ | 0 | $ | 920 | $ | 920 | $ | — | $ | — | $ | 920 | $ | 920 | ||||||||||||||||
Contingent consideration liability associated with acquisition of PolicyFuel included in accrued expense s and other current liabilities | 0 | 0 | 629 | 629 | ||||||||||||||||||||||||||||
Contingent consideration liability associated with acquisition of PolicyFuel included in accrued expenses and other current liabilities | — | — | 629 | 629 | ||||||||||||||||||||||||||||
Contingent consideration liability associated with acquisition of PolicyFuel included in other long-term liabilities | 0 | 0 | 4,625 | 4,625 | — | — | 4,625 | 4,625 | ||||||||||||||||||||||||
$ | 0 | $ | 0 | $ | 6,174 | $ | 6,174 | $ | — | $ | — | $ | 6,174 | $ | 6,174 | |||||||||||||||||
Contingent Consideration Liabilities | ||||
Fair value at December 31, 2021 | $ | 6,174 | ||
Change in fair value of contingent consideration related to Eversurance acquisition | 31 | |||
Change in fair value of contingent consideration related to PolicyFuel acquisition | (923 | ) | ||
Fair value at March 31, 2022 | $ | 5,282 | ||
Contingent Consideration Liabilities | ||||
Fair value at December 31, 2021 | $ | 6,174 | ||
Change in fair value of contingent consideration related to Eversurance acquisition | (401 | ) | ||
Change in fair value of contingent consideration related to PolicyFuel acquisition | (4,271 | ) | ||
Fair value at June 30, 2022 | $ | 1,502 | ||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Weighted Average Useful Life | Gross Amount | Accumulated Amortization | Carrying Value | Weighted Average Useful Life | June 30, 2022 | |||||||||||||||||||||||||||
(in years) | Gross Amount | Accumulated Amortization | Carrying Value | |||||||||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||||||||||
Customer relationships | 7.6 | $ | 10,200 | $ | (2,211 | ) | $ | 7,989 | 7.6 | $ | 10,200 | $ | (2,592 | ) | $ | 7,608 | ||||||||||||||||
Developed technology | 3 | 1,700 | (359 | ) | 1,341 | 3 | 1,700 | (501 | ) | 1,199 | ||||||||||||||||||||||
Other identifiable intangible assets | 2.8 | 570 | (239 | ) | 331 | 2.8 | 570 | (284 | ) | 286 | ||||||||||||||||||||||
$ | 12,470 | $ | (2,809 | ) | $ | 9,661 | $ | 12,470 | $ | (3,377 | ) | $ | 9,093 | |||||||||||||||||||
Weighted Average Useful Life | December 31, 2021 | |||||||||||||||
Gross Amount | Accumulated Amortization | Carrying Value | ||||||||||||||
(in years) | ||||||||||||||||
Customer relationships | 7.6 | $ | 10,200 | $ | (1,830 | ) | $ | 8,370 | ||||||||
Developed technology | 3 | 1,700 | (217 | ) | 1,483 | |||||||||||
Other identifiable intangible assets | 2.8 | 570 | (194 | ) | 376 | |||||||||||
$ | 12,470 | $ | (2,241 | ) | $ | 10,229 | ||||||||||
December 31, 2021 | ||||||||||||||||
Weighted Average Useful Life | Gross Amount | Accumulated Amortization | Carrying Value | |||||||||||||
(in years) | ||||||||||||||||
Customer relationships | 7.6 | $ | 10,200 | $ | (1,830 | ) | $ | 8,370 | ||||||||
Developed technology | 3 | 1,700 | (217 | ) | 1,483 | |||||||||||
Other identifiable intangible assets | 2.8 | 570 | (194 | ) | 376 | |||||||||||
$ | 12,470 | $ | (2,241 | ) | $ | 10,229 | ||||||||||
Year Ending December 31, | ||||||||
2022 (remaining nine months) | $ | 1,709 | ||||||
2022 (remaining six months) | $ | 1,141 | ||||||
2023 | 2,001 | 2,001 | ||||||
2024 | 1,715 | 1,715 | ||||||
2025 | 960 | 960 | ||||||
2026 | 685 | 685 | ||||||
Thereafter | 2,591 | 2,591 | ||||||
$ | 9,661 | $ | 9,093 | |||||
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
Commissions receivable, current portion | $ | 9,488 | $ | 9,285 | ||||
Prepaid expenses and other current assets | 4,940 | 4,899 | ||||||
$ | 14,428 | $ | 14,184 | |||||
March 31, | December 31, | |||||||
2022 | 2021 | |||||||
Commissions receivable, current portion | $ | 9,134 | $ | 9,285 | ||||
Prepaid expenses and other current assets | 5,185 | 4,899 | ||||||
$ | 14,319 | $ | 14,184 | |||||
June 30, | December 31, | |||||||||||||||
March 31, 2022 | December 31, 2021 | 2022 | 2021 | |||||||||||||
Commissions receivable, non-current portion | $ | 18,947 | $ | 13,415 | $ | 24,637 | $ | 13,415 | ||||||||
Other assets | 460 | 681 | 461 | 681 | ||||||||||||
$ | 19,407 | $ | 14,096 | $ | 25,098 | $ | 14,096 | |||||||||
June 30, | December 31, | |||||||||||||||
March 31, 2022 | December 31, 2021 | 2022 | 2021 | |||||||||||||
Accrued employee compensation and benefits | $ | 3,695 | $ | 4,115 | $ | 4,845 | $ | 4,115 | ||||||||
Accrued advertising expenses | 2,674 | 5,669 | 2,817 | 5,669 | ||||||||||||
Other current liabilities | 3,877 | 3,231 | 3,279 | 3,231 | ||||||||||||
$ | 10,246 | $ | 13,015 | $ | 10,941 | $ | 13,015 | |||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cost of revenue | $ | 59 | $ | 91 | ||||
Sales and marketing | 3,210 | 3,391 | ||||||
Research and development | 2,411 | 2,327 | ||||||
General and administrative | 1,850 | 1,711 | ||||||
$ | 7,530 | $ | 7,520 | |||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cost of revenue | $ | 95 | $ | 83 | $ | 154 | $ | 174 | ||||||||
Sales and marketing | 2,964 | 2,459 | 6,174 | 5,850 | ||||||||||||
Research and development | 2,650 | 2,321 | 5,061 | 4,648 | ||||||||||||
General and administrative | 1,891 | 2,226 | 3,741 | 3,937 | ||||||||||||
$ | 7,600 | $ | 7,089 | $ | 15,130 | $ | 14,609 | |||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2022 | 2021 | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Automotive | $ | 87,675 | $ | 84,481 | $ | 81,375 | $ | 86,358 | $ | 169,050 | $ | 170,839 | ||||||||||||
Other | 23,006 | 19,341 | 20,540 | 18,705 | 43,546 | 38,046 | ||||||||||||||||||
Total Revenue | $ | 110,681 | $ | 103,822 | $ | 101,915 | $ | 105,063 | $ | 212,596 | $ | 208,885 | ||||||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Net loss | $ | (5,715 | ) | $ | (3,801 | ) | $ | (3,756 | ) | $ | (1,881 | ) | $ | (9,471 | ) | $ | (5,682 | ) | ||||||
Stock-based compensation | 7,530 | 7,520 | 7,600 | 7,089 | 15,130 | 14,609 | ||||||||||||||||||
Depreciation and amortization | 1,511 | 1,174 | 1,405 | 1,136 | 2,916 | 2,310 | ||||||||||||||||||
Acquisition-related | (892 | ) | (79 | ) | (3,779 | ) | 265 | (4,671 | ) | 186 | ||||||||||||||
Interest income | (8 | ) | (14 | ) | (37 | ) | (10 | ) | (45 | ) | (24 | ) | ||||||||||||
Adjusted EBITDA | $ | 2,426 | $ | 4,800 | $ | 1,433 | $ | 6,599 | $ | 3,859 | $ | 11,399 | ||||||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||
Revenue(1) | $ | 110,681 | $ | 103,822 | $ | 101,915 | $ | 105,063 | $ | 212,596 | $ | 208,885 | ||||||||||||
Cost and operating expenses(2): | ||||||||||||||||||||||||
Cost of revenue | 5,984 | 5,953 | 6,059 | 5,811 | 12,043 | 11,764 | ||||||||||||||||||
Sales and marketing | 96,150 | 87,569 | 87,854 | 85,610 | 184,004 | 173,179 | ||||||||||||||||||
Research and development | 8,196 | 8,573 | 8,245 | 9,053 | 16,441 | 17,626 | ||||||||||||||||||
General and administrative | 6,941 | 5,596 | 7,357 | 6,200 | 14,298 | 11,796 | ||||||||||||||||||
Acquisition-related | (892 | ) | (79 | ) | (3,779 | ) | 265 | (4,671 | ) | 186 | ||||||||||||||
Total cost and operating expenses | 116,379 | 107,612 | 105,736 | 106,939 | 222,115 | 214,551 | ||||||||||||||||||
Loss from operations | (5,698 | ) | (3,790 | ) | (3,821 | ) | (1,876 | ) | (9,519 | ) | (5,666 | ) | ||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest income | 8 | 14 | 37 | 10 | 45 | 24 | ||||||||||||||||||
Other expense, net | (25 | ) | (25 | ) | ||||||||||||||||||||
Other income (expense), net | 28 | (15 | ) | 3 | (40 | ) | ||||||||||||||||||
Total other expense, net | (17 | ) | (11 | ) | ||||||||||||||||||||
Total other income (expense), net | 65 | (5 | ) | 48 | (16 | ) | ||||||||||||||||||
Net loss | $ | (5,715 | ) | $ | (3,801 | ) | $ | (3,756 | ) | $ | (1,881 | ) | $ | (9,471 | ) | $ | (5,682 | ) | ||||||
Other Financial and Operational Data: | ||||||||||||||||||||||||
Variable marketing margin | $ | 34,264 | $ | 31,438 | $ | 33,091 | $ | 32,830 | $ | 67,355 | $ | 64,268 | ||||||||||||
Adjusted EBITDA(3) | $ | 2,426 | $ | 4,800 | $ | 1,433 | $ | 6,599 | $ | 3,859 | $ | 11,399 |
(1) | Comprised of revenue from the following distribution channels: |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
Direct channels | 88 | % | 90 | % | 86 | % | 91 | % | 87 | % | 90 | % | ||||||||||||
Indirect channels | 12 | % | 10 | % | 14 | % | 9 | % | 13 | % | 10 | % | ||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
(2) | Includes stock-based compensation expense as follows: |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Cost of revenue | $ | 59 | $ | 91 | $ | 95 | $ | 83 | $ | 154 | $ | 174 | ||||||||||||
Sales and marketing | 3,210 | 3,391 | 2,964 | 2,459 | 6,174 | 5,850 | ||||||||||||||||||
Research and development | 2,411 | 2,327 | 2,650 | 2,321 | 5,061 | 4,648 | ||||||||||||||||||
General and administrative | 1,850 | 1,711 | 1,891 | 2,226 | 3,741 | 3,937 | ||||||||||||||||||
$ | 7,530 | $ | 7,520 | $ | 7,600 | $ | 7,089 | $ | 15,130 | $ | 14,609 | |||||||||||||
(3) | See “ non-GAAP financial measure and a reconciliation of adjusted EBITDA to its comparable GAAP financial measure. |
Three Months Ended March 31, | Change | |||||||||||||||
2022 | 2021 | Amount | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenue | $ | 110,681 | $ | 103,822 | $ | 6,859 | 6.6 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | |||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||||||||||
Revenue | $ | 101,915 | $ | 105,063 | $ | (3,148 | ) | -3.0 | % | $ | 212,596 | $ | 208,885 | $ | 3,711 | 1.8 | % |
Three Months Ended March 31, | Change | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | $ | 5,984 | $ | 5,953 | $ | 31 | 0.5 | % | $ | 6,059 | $ | 5,811 | $ | 248 | 4.3 | % | $ | 12,043 | $ | 11,764 | $ | 279 | 2.4 | % | ||||||||||||||||||||||||
Percentage of revenue | 5.4 | % | 5.7 | % | 5.9 | % | 5.5 | % | 5.7 | % | 5.6 | % |
Three Months Ended March 31, | Change | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing expense | $ | 96,150 | $ | 87,569 | $ | 8,581 | 9.8 | % | $ | 87,854 | $ | 85,610 | $ | 2,244 | 2.6 | % | $ | 184,004 | $ | 173,179 | $ | 10,825 | 6.3 | % | ||||||||||||||||||||||||
Percentage of revenue | 86.9 | % | 84.3 | % | 86.2 | % | 81.5 | % | 86.6 | % | 82.9 | % |
Three Months Ended March 31, | Change | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development expense | $ | 8,196 | $ | 8,573 | $ | (377 | ) | -4.4 | % | $ | 8,245 | $ | 9,053 | $ | (808 | ) | -8.9 | % | $ | 16,441 | $ | 17,626 | $ | (1,185 | ) | -6.7 | % | |||||||||||||||||||||
Percentage of revenue | 7.4 | % | 8.3 | % | 8.1 | % | 8.6 | % | 7.7 | % | 8.4 | % |
Three Months Ended March 31, | Change | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Amount | �� | % | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expense | $ | 6,941 | $ | 5,596 | $ | 1,345 | 24.0 | % | $ | 7,357 | $ | 6,200 | $ | 1,157 | 18.7 | % | $ | 14,298 | $ | 11,796 | $ | 2,502 | 21.2 | % | ||||||||||||||||||||||||
Percentage of revenue | 6.3 | % | 5.4 | % | 7.2 | % | 5.9 | % | 6.7 | % | 5.6 | % |
Three Months Ended March 31, | Change | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | 2022 | 2021 | Amount | % | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 110,681 | $ | 103,822 | $ | 6,859 | 6.6 | % | $ | 101,915 | $ | 105,063 | $ | (3,148 | ) | -3.0 | % | $ | 212,596 | $ | 208,885 | $ | 3,711 | 1.8 | % | |||||||||||||||||||||||
Less: total advertising expense (a component of sales and marketing expense) | 76,417 | 72,384 | 68,824 | 72,233 | 145,241 | 144,617 | ||||||||||||||||||||||||||||||||||||||||||
Variable marketing margin | $ | 34,264 | $ | 31,438 | $ | 2,826 | 9.0 | % | $ | 33,091 | $ | 32,830 | $ | 261 | 0.8 | % | $ | 67,355 | $ | 64,268 | $ | 3,087 | 4.8 | % | ||||||||||||||||||||||||
Percentage of revenue | 31.0 | % | 30.3 | % | 32.5 | % | 31.2 | % | 31.7 | % | 30.8 | % |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (3,845 | ) | $ | 3,520 | $ | (7,373 | ) | $ | 11,235 | ||||||
Net cash used in investing activities | (681 | ) | (777 | ) | (1,989 | ) | (1,310 | ) | ||||||||
Net cash provided by financing activities | 15,558 | 1,272 | 15,557 | 1,724 | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5 | ) | 1 | (27 | ) | 1 | ||||||||||
Net increase in cash, cash equivalents and restricted cash | $ | 11,027 | $ | 4,016 | $ | 6,168 | $ | 11,650 | ||||||||
† | The certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q, are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of EverQuote, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form10-Q, irrespective of any general incorporation language contained in such filing. |
EVERQUOTE, INC. | ||||
Date: | By: | /s/ Jayme Mendal | ||
Jayme Mendal Chief Executive Officer and President (Principal Executive Officer) | ||||
Date: | By: | /s/ John Wagner | ||
John Wagner Chief Financial Officer and Treasurer (Principal Financial Officer) |