Q2 2022 EverQuote Inc Earnings Call
Good afternoon, ladies and gentlemen.
Thank you for attending today's ever quote Q2, 2022 earnings call. My name is Tia and I will be your moderator for today's call.
All lines will be muted during the presentation, you pushed up the call with an opportunity for questions and answers that because if you would like to ask a question. Please press star one on your telephone keypad.
I would now past accomplished over to your host Brendon Mead Johnson the blueprint you.
You May proceed.
Thank you good afternoon, and welcome to Evercore second quarter 2022 earnings call, we'll be discussing the results announced in our press release issued today after the market close with me on the call. This afternoon is Jamie Mendell, Everquest, Chief Executive Officer, and John Wagner, Chief Financial officer of ever quote during.
During the call we will make statements related to our business that may be considered forward looking statements under federal securities laws, including statements concerning our financial guidance for the third quarter and full year 2022, our growth strategy and our plans to execute on our growth strategy.
It is including our direct to consumer agency our investments in the business the growth levers, we expect to drive our business our ability to maintain existing customers and acquire new customers our expectations regarding recovery of the auto insurance industry. A recent acquisition our goals for integrations and other statements regarding our plans and prospects and the possible impact of <unk>.
<unk> forward looking statements, maybe 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 for a discussion of material risks and other important factors that could cause our actual results. Please refer to those contained under the heading risk factors in our most recent.
What are the 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 Investor <unk>, Evercore Dot com and on the SEC's website at SEC Gov.
Finally during the course of today's call refer to certain non-GAAP financial measures, which we believe are helpful to investors a reconciliation of GAAP to non-GAAP measures was 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 don't ever quote dot com and with that I'll turn it over to you Jamie.
Thank you Bradley and thank you all for joining us today.
In the second quarter, we exceeded guidance expectations across our three primary financial Kpis delivering revenue of $101 9 million.
Variable marketing margin or <unk>.
$33 1 million.
And adjusted EBITDA, a positive $1 $4 million.
We attribute our success in the quarter to agile management fueled by strong analytics as our operating teams demonstrated their ability to effectively navigate continued volatility and increased headwinds in the auto insurance industry.
On the consumer side of the marketplace strong traffic volume growth helped to offset lower carrier monetization with consumer quote requests up 28% year on year.
Our customer acquisition teams reacted swiftly.
Adjusting AD spend in near real time to maximize margin amidst volatile carrier demand throughout the quarter.
On the provider side of our marketplace, our agent oriented distribution channels continued to exhibit strength and resilience in Q2, even while the direct carrier channel contracted.
Local agent budget caps increased year over year within our marketplace.
Direct to consumer agency or D. TCA continued to perform well representing 13% of revenues in Q2 and exceeding our internal projections.
Over the course of Q2 amidst the challenging auto carrier environment and to lock in period for health and Medicare We drove meaningful improvement in the unit economic profitability and cost efficiency of our DTC operations as follows.
One.
We continue to improve adviser performance through continued coaching and tendering of agents as well as tech and traffic optimization to we increased ancillary attach rates and health and Medicare.
And three we shifted policy mix towards higher LTV products.
Meanwhile, the direct carrier channel continues to exhibit significant volatility.
The quarter carriers exited unprofitable states in segments.
As a result in Q2 direct carrier channel monetization reached new trough levels below the lows last seen in Q4 of 2021.
July demand from auto carriers showed continued deterioration and we are not expecting this dynamic to change meaningfully within Q3.
We also expect to experience lower health demand in Q3, reflecting the seasonally slower lock in period ahead of Q4's open enrollment period.
Turning to the broader environment auto carriers are now, citing the uncertainty caused by searching inflation as a key factor limiting their pace of recovery.
While we have seen loss and combined ratios improving for certain carriers. We believe that Q3 demand will likely remains significantly depressed and that a rebound previously expected to begin in the second half it's unlikely to occur before 2023.
Data that supports this outlook include one recent actions from a number of carriers to further limit their customer acquisition appetite and good levels and to direct feedback from a large partner of ours that uncertainty around the go forward loss environment caused by surging inflation is leading them to restrict budgets in the second half.
2022 more than previously expected.
When inflation stabilizes and carriers are able to increase rates to reflect the current underwriting environment. We expect they will return to normalized levels of customer acquisition spend while driving more insurance shopping as consumers react to higher renewal rates.
In closing we are successfully navigating a very turbulent market in Q2, we reacted quickly to changes in market conditions by managing our AD spend and altering our cost structure to deliver more revenue and profitability.
We also benefited from our strategy to diversify our distribution into agent channels.
We remain in an unstable market and the actions required in the third quarter are likely to be different than the second.
However, with a strategy and a team that has demonstrated its capacity to adapt quickly and execute we are confident we will continue to deliver strong financial results through the uncertainty ahead, while continuing to make progress towards our long term vision to become the largest online source of insurance policies by combining data technology and knowledgeable advisor.
To make insurance simpler more affordable and personalized.
We remain laser focused on building an industry defining company.
To be incredibly proud of our team's ability to navigate changes in the industry as.
As auto carrier demand recovers, we expect that evercore will be well positioned to return to our historic trend strong revenue growth and expanding adjusted EBITDA now I'll turn the call over to John to provide more details on our financial results.
Thank you Jamie and good afternoon, everyone I'll start by discussing our financial results for the second quarter, and then provide guidance for the third quarter and updated guidance for the full year of 2022.
Our total revenue for Q2 of $101 9 million a.
A decline of 3% year over year exceeded our guidance range provided last quarter as growth in consumer volume and demand from non carrier customers, partially offset reductions and monetization.
The reductions in monetization were related to the industry wide pullback in auto insurance carrier in advertising.
<unk> demand and pricing from our direct carrier customers within our auto insurance vertical.
As anticipated our auto insurance vertical decreased 6% year over year to 81 4 million.
While the auto insurance industry has challenges were evident in our significant year over year reduction in carrier revenue and pricing we benefited from a 28% year over year growth is overall consumer quote requests this quarter.
This reflects our success in generating consumer traffic.
The potential to increase our share of insurance shopping consumers now and position us well for the time when the auto insurance carrier market challenges are overcome.
Apart from our direct carrier customers revenue from all other insurance distribution channels increased year over year, including DTC, which grew over 300% to $13 1 million.
Within our marketplace distribution third party local agents continued to show resilience with revenue growing slightly year over year and contributing 40% of revenue.
Revenue from our other insurance verticals, which includes home and renters life and health insurance grew 10% year over year to $25 million for the second quarter. These non auto insurance verticals represented 20% of second quarter revenue with a notable contribution from our direct to consumer agency.
Within our health insurance vertical.
Variable marketing margin or <unk> defined as revenue less advertising expense was $33 1 million for the second quarter up slightly year over year and above our guidance range provided last quarter.
<unk> in absolute dollars and as a percentage of revenue.
Near record levels due to reductions in acquisition cost and contribution from DTC.
We benefited from a competitively more favorable advertising landscape and by aggressively applying our analytical and operational advantage to lower cost per consumer quote requests by 26% year over year, while also driving higher volumes.
Although we had fully anticipated pricing reductions and our own monetization the upside in our margin performance reflects rapid adjustments made by our traffic teams to uncover opportunities and efficiencies and to recalibrate, our marketplace acquisition in a rapidly changing advertising environment.
Turning to our bottom line GAAP net loss was $3 8 million in the second quarter and adjusted EBITDA was a positive $1 4 million exceeding our guidance range provided last quarter are.
Our favorable DMM performance translated directly into adjusted EBITDA as we continue to manage operating expenses tightly and look for opportunities to reduce expenses.
We ended the quarter with cash and cash equivalents on the balance sheet of $41 3 million.
During the quarter, we consumed $3 5 million in operating cash primarily to fund growth in DTC.
While our auto insurance vertical is facing reduced demand from carriers, we expect to continue to use cash in operations as we grow DTC.
Just after the quarter ended we announced the renewal of our debt facility expanding our line of credit by $10 million to $35 million extending the maturity by three years, and adding a $10 million of deferred draw term loan.
We have no funds drawn against this facility and believe our cash balance combined with this facility renewal continues to provide us sufficient liquidity.
Turning to our outlook and building on Jamie's comments regarding the market conditions within the auto insurance industry.
We believe carriers are cautiously forecasting continued increases in claims losses, given recent reporting on inflation as a result carrier pricing remains down and continues to be volatile. This volatility has included recent pullbacks and pauses in marketplace bids from some carriers we.
Believe carriers are on the defensive footing and we are not seeing signs of an early recovery within the auto insurance industry.
As a result, we continue to manage intently to the current environment to optimize our marketplace business.
As we enter the second half of the year, we anticipate that auto carrier pricing, we will continue to place pressure on margin and revenue as it has since Q3 of last year.
Our reaction is to continue to focus on execution and opportunities to leverage our advantages we are driving growth from distribution channels less affected by auto carrier pricing such as third party and first party agents and our health insurance vertical.
We are managing for efficiency in our advertising and operating costs, which has allowed us to remain adjusted EBITDA positive.
And we are increasing our share of consumer shopping for insurance by growing consumer volumes, despite a difficult market.
We expect to manage in a similar manner in the second half of the year, there are placing a greater focus on efficiency and bottom line results as it becomes more apparent in the auto insurance recovery will stretch into 2023.
Turning to guidance for Q3.
We expect revenue to be between 90% to $95 million a year over year decrease of 14% at the midpoint.
We expect <unk> in the quarter to be between 24 and $27 million a year over year decrease of 21% at the midpoint.
And we expect adjusted EBITDA to be between negative six and negative $3 million.
This guidance reflects depressed auto insurance carrier pricing continuing to impact our largest vertical.
For the full year, we are narrowing our guidance for revenue and improving our Vietnam and adjusted EBITDA guidance as a result of our stronger than expected Q2 performance and our margins.
We expect revenue to be between 400 and $410 million a year over year decrease of 3% at the midpoint.
We expect <unk> to be between 116 and $122 million a year over year decrease of 8% at the midpoint.
And we expect adjusted EBITDA of between negative seven and negative $1 million.
In summary, we delivered results better than our guidance for the second quarter. Despite continued pressure from the current auto insurance cycle, reflecting our ability to dynamically manage the economics of our marketplace to capture growth from areas of diversification and resilience.
We continue to execute well in a difficult market and are poised to capitalize on areas of strategic focus and are well positioned to the time when the auto insurance carriers begin to normalize their acquisition spending.
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We will pause briefly to allow questions to generate in Q.
The first question is from the line of Jed Kelly with Oppenheimer You May proceed.
Great. Thanks.
Thanks for taking my question.
Two if I may just in terms of managing the back half can you talk about how you're sort of managing the business for share gains.
Because I imagine some of your other competitors are.
We're facing a difficult challenge and then number two just as it comes for guidance in the back half I mean can you give us a sense on how conservative you're being.
Are you, saying that recovery might not start till 'twenty three it makes sense, but I guess, given where the carriers are in sort of resetting their rates and driving more profitable business works where can that go.
Until they can start.
I guess resetting the rates to be profitable good. Thank you.
Thanks, Ed.
So with respect to share gains I think that.
The data we look at.
We look at.
Our growth of our insurance business relative to that of others.
In recent periods and then obviously we have.
Glean some information from from the traffic landscape as well.
Do believe were taking share during this period.
That diversification in our distribution network, which is.
Certain assets that are more unique to ever quote.
The size of the scale of our local agent network, which continues to demonstrate resilience and growth through this period as well as the growth of our direct to consumer agency.
And so you know what.
We'll see.
What what.
Entirety of the landscape looks like as we come through the earnings season, but certainly.
If you look back.
We've managed to continue to post sort of outsized results relative to our peers in terms of our all of our growth.
The first part of this year.
Yes, Jeff.
It's John here I'll take I'll add to that on the share gains I just pointed out that our.
The strength, we had in traffic. This quarter was also on an increase in Vietnam in absolute dollars and as a percentage of revenue.
So that is very consistent with our management philosophy, which is to grow as fast as we can as long as we are adding traffic that is that is incrementally beneficial to the NIM. So it is kind of a very wholesome.
Increase in quote request volume in this quarter and that's why we decided to share that metric with you.
In terms of the guidance on the back half of the year and you know the question of how conservative it is.
The guidance methodology has not changed there is always that we strive to give you guidance that that is share some insight as to what we see in the business. It gives you an idea of what we think is a high confidence plan.
Our guide and so that has not changed what we have included in there is this idea that the auto insurance.
Carrier pricing, we expect to stay down through the end of the year and that's a that's a.
Slight revision in terms of our outlook in terms of what was previously.
Ms. Li a slight improvement in the second half of the year, we're seeing that is kind of flat and that's how we factored that in.
And so that's factored in there, but that's truly what we believe and then I'd say this past quarter in terms of the guidance versus the actuals. What you did see was a favorable reaction and how we could.
How we could benefit from.
Our promise on the traffic side and also a more favorable advertising landscape and actually provide some upside in terms of Vietnam and that flowed down to adjusted EBITDA.
So something like that is not included in the guidance because we just don't have the high confidence to say how will that play out on the landscape, but we know that what we're seeing for pricing pressure is not unique this is an industry.
Wide phenomenon that supply to all of the acquisition partners within auto insurance.
Thank you.
Thanks Chip.
Thank you.
The next question is from the line of <unk> <unk> with Needham you May proceed.
Hey, good afternoon, guys, it's actually Kyle Peterson on for my own thanks for taking my questions.
Just wanted to touch on some of the traffic an improvement from both the quote request and efficiency perspective, how much of it.
Some of the gain and an improvement here was due to just you know stronger consumer demand engagement and interests.
As you know potential AD costs coming down and I know, there's been a lot of talk on potential.
Advertising recession and such so just wanted to see if you guys could could tease out.
Those two factors to the best you can.
Sure I think it's a combination of things.
We are in a typically when you're in a.
And upward rate cycle the.
Increasing rates will induce shopping behavior people get their renewal notices the renewal.
Renewal premiums go up and that will induce shopping behavior and so I think.
The overall.
The landscape is benefiting from more consumer shopping behavior, but I think within that you will see us taking share as our sort of relative monetization kind of going back to my answer to jeffs question, driven by the continued strength and stability.
We have some of our unique distribution channels and our direct to consumer agency and in our local Asian network have enabled us to compete more effectively into growing.
A rising tide of consumer shopping volume.
Okay. That's helpful. And then I guess just a quick quick follow ups just quickly on the potential M&A pipeline and scaling the D. T C. A piece of the business, it's great to see that growing out nicely and helping diversify the business.
Are you guys seeing any potential opportunities to grow potentially inorganically in that channel.
Hi, quicker, it's good to see the growth but.
Obviously still pretty sensitive to some of the auto budget. So just.
Any any color, how our opportunities or talks progressing with potential partners or targets would be helpful.
Yes. So we we made two acquisitions in the last two years or so health insurance brokerage cross point and.
Medicare and then P&C brokerage just a policy fuel we spent the better part of the last year.
Yeah, really integrating that in those acquisitions into our operations and together into a unified direct to consumer agency platform, which.
Now serves consumers across all the major personal lines of insurance. So our view is that within the TCA we have.
We have the foundational building blocks to grow that organically the way that we would like to do so.
Over the near term, but we are.
All is well.
Active just keeping an eye on the market and looking for opportunities to accelerate our strategy, though I'll say, that's not that's not high on our list of priorities in the near term.
Understood. Thanks, guys.
Thanks, Scott Thanks, Scott.
Thank you.
The next question comes from the line of Michael Graham Canaccord.
Proceed.
Thank you.
Hey, guys congrats on the on the DTC growth.
It was like.
Like 13% of revenue this quarter and I'm just wondering.
If you see any kind of a natural limit to sort of how big it could get in your revenue mix and then.
I just wanted to ask you know relative to the.
Pushing out the rebound until 2023.
Have they have the carrier partners.
Kind of verbalize, what they would need to see to get more aggressive and is there anything about.
Historical seasonal patterns that you think might influence.
Assuming a recovery does happen. The next year is there anything about the seasonality of spend that might influence when it happens.
Okay.
I'll take this one but at least I'll start Mike I'll start with your second question first.
The.
If you look at the carrier data.
There's a number of carriers that are reporting that report there there.
Boston combined ratios publicly at different Varian cadences, but those that report more frequently if you look at the most recent data we do see their profitability coming in in line right.
Meaning they are they are.
<unk> combined ratios coming down there are large carriers, who are seeing combined ratio is coming down kind of at or below their target levels.
And the expectation was that as soon as that happened.
The growth Spigot would open back up and what has changed and sort of what we're hearing now is just increasing.
Uncertainty around the overall inflationary environment is causing carriers to take a moment to really make sure. They understand how to go forward loss environment before they lean back into growth.
And as a result in early Q3, we continued to see carriers sort of ebbing and flowing.
But a bit more contraction than expansion on balance.
One major carrier has indicated their intent to continue to manage to a budget a fixed budget through the end of the year as a way of mitigating risk against that uncertain inflationary backdrop. So if you're looking for something like leading indicators the things that we watch our carrier obviously carrier performance.
But right now beyond that I think you kind of want to look to inflation.
And you look at some of the price indices for used.
Used cars for new vehicles for motor vehicle parts and equipment things like that.
Wages for automotive repairs and things like that those are some of the leading indicators that you would probably take together with the carrier data that would give you some indication of.
Of our best expectations for what's to come beyond what the carriers are telling us directly.
Seasonally.
We know Q3 tends to be.
Our seasonally.
Stronger quarter.
And then Q4 and so you would expect to see.
A bit more strength in Q3 than in Q4, which is the seasonally weakest quarter for auto insurance.
That answer that question.
It does yeah. Thank you I appreciate that Jamie and the other quick one was just you know DTC a like is there any natural limit to how big that can get in the mix of your revenue.
So.
I'll take that one Michael I'll say no none notification.
In terms of how big that could get it is worth noting that in terms of that business. We're very pleased with the growth. We're also making sure that we're managing that business for improved unit economics, So again Steve.
Steam of we want to make sure we are scaling and we're growing that business, but doing so profitably with improved economics, so I'd say that the bigger governor to the growth of DTC as making sure that we get the return on the business that we're looking to scale.
Okay.
Okay makes sense. Thank you John Thank you Jamie.
Thanks Max.
Thank you.
The next question comes from the line of Ravi Shankar.
William Blair you May proceed.
Good evening, thanks for taking the question.
First question relates to in the release you talked about modifying your bidding strategy.
The volatility in on the call you talked about Recalibrating. The acquisition teams just curious how much of that is short term in nature to respond to the current environment versus things that you're doing today that will make the platform stronger when the macro environment improves.
Hello.
Yeah. Thanks, Jeff. Good question, there are elements of it which are just short term, making sure that we're.
Responding in real time as as changes flow through.
But there are also elements.
Changes that we are rolling out that are more structural changes with respect to how we acquire consumers. So we're doing a lot of.
There's a lot of data science modeling work, that's meant to predict things about consumers' shopping behavior.
And we're pulling in more and more data into these predictions were using them to inform how we bid for customers and the acquisition landscape and how we distribute customers and the distribution landscape and those models are improving and I would say in the last quarter, they've taken a significant step forward.
It'll be a continued area of focus for us to build on that momentum as we progress through the back half of the year.
And Rob I'll, just probably add.
Certain times when Glen.
When the growth one of our business the growth has been fueled by monetization there's been times when it's been fueled by by volume. If you look at those periods from which we've taken volume we tend to hold onto that volume. So a material like this where we're growing the business through volume. If you look it's almost like loading up the spring when that monetization comes.
Back we generally hold on to those advertising positions and so that's why.
The idea of taking volume now.
It gives us an opportunity and as things start to normalize.
Auto insurance industry.
Great Jim.
Question for you and follow up here just in terms of the EBITDA Guide I think you know roughly about done about $4 million or so of EBITDA year to date for the first half and I think our full year outlook at the midpoint about culture about minus $4 million. Just curious are there any sort of deferred projects or is that sort of the pricing environment flowing through the model just kind of wanted to get a little bit more color on that thanks.
Yeah, that's that's really.
It's really pricing and demand flowing through.
Not so much any kind of deferred projects or any type of new investments.
We're still making investments in the business, but I think we've had a theme now for the since since Q3 of making sure that we are.
Calibrating, our resources, our investments to the market that we're seeing and we're putting.
Kind of a focus on making sure that we.
Uh huh.
That we managed to bottom line I think we came into this year looking to maintain positive EBITDA for the full year, we had to step away from that.
But we're certainly making sure that we manage to bottomline, so you'd see us applying new resources very frugally.
Two new projects, so thats, mostly just pricing slowing.
<unk> flowing through in the model.
Okay. Thanks, John Thanks, Jamie.
Yeah.
Thanks, Rob.
Thank you.
The next question is from the line of Cory Carpenter with Jpmorgan you May proceed.
Hello. Thanks for the question just wanted to ask outside the current hard insurance market. How would you expect evercore to perform in a recessionary environment. It sounded like on the call in some ways, you're benefiting with lower AD competition and higher quote request, but just curious if you could talk different in boxes and on the economy and how that May impact you guys.
Overtime. Thank you.
Yeah.
Typically think of the business as being relatively counter cyclical.
At least it would perform relatively well.
The down economy.
The reason for that is insurance auto insurance, specifically it tends to be a top three to five line items.
Three to five line items of non discretionary spend and People's personal income statement and so as they need to look for personal savings I think most people have been conditioned at this point to sharpen and safe insurance.
And as a result, you would see.
Continued growth in insurance shopping volume as consumers begin to feel more and more pressure.
And then at the same time, you combine that with with the cycle that we're in which is one in which insurance carriers are continually increasing rates and you'd kind of expect that effect to be somewhat amplified.
The other consideration, particularly at this moment in time is if you think about what's driving the profitability issues for the carriers.
The predominant factor is accident severity, meaning the cost to repair and replace vehicles.
And so as the economy softens.
You would expect to see some of the drivers of that subside.
The used car market may loosen up as interest rates go up.
Our payments become more expensive people pull back on.
On the demand for vehicles goes down.
Fuel prices stay up the way that they are right, which is somewhat associated with the weaker economy.
That could have a downward impact.
The downward driver of accident frequency as miles driven comes down so theres a number of things in a soft economy that actually look like.
Favorable contributors for Everquest business.
And we'll see how things materialize, both with the economy.
And the impact that those drivers have on.
Auto insurance industry over the next over the coming quarters months.
Okay. Thank you.
Thank you.
Our last question will come from the line of Aaron Kessler Raymond James.
You May proceed.
Hey, guys. This is Alex Bolton on for Aaron Kessler.
Maybe just a point of clarity on being and guidance.
And youre not expecting carrier pressure to outweigh the favorable advertising environment.
I guess I'm, just asking the favorable advertising environment does not within guidance and if it remains that.
It could be favorable to guidance.
Yes, So I think when you look at the guidance and you say what is factored in there certainly what we're seeing and as Jamey alluded to Q2 was was.
Is low if not lower.
Carrier pricing.
In Q2 as compared to Q4.
We've seen some pullback even getting into July so we're reflecting that.
In our outlook, what we saw in Q2 was a similar scenario, where we saw some pull back some.
We were able to adjust and calibrate and maybe take advantage of some of the.
The overall.
The environment for advertising coming down in order to outperform our own expectations in terms of margins.
That is not factored in as we look at Q3. So we are we're looking at Q3, we're looking at the environment that we have right now we will see that if all of those changes ripple through and we get some additional benefit on the advertising side that could be.
Source.
Upside in terms of margin, but again.
When we look at our guidance, where we are.
We are guiding to what we are confident that we can deliver.
And that's that's how we're setting guidance for so so the amortization reduction is priced in.
Necessarily recalibrating traffic and opportunities on the advertising.
It is not.
Okay, Great and then maybe you can touch on.
Investments for annual enrollment period.
Two Q and any investments that Youre planning for three Q in the.
The hiring environment, you know it could be a headwind at all.
So I think Youre certainly when we look at investments in the near future, we're thinking about ATCA as we head into the AEP period in Q4.
Yeah.
We are looking at hiring as you would expect this time of year I think our plans, though are again kind of.
Governor by our expectation of improving economics within the D. TCA. This is really kind of our second.
Full AEP in which we're able to plan for last year, we had.
Growth that we saw is very exciting and we were able to prove out the model. This year were a little more focused on unit economics.
All of the other players in this space.
And so that will temper our investments into <unk>.
As we go through Q3 and into Q4.
Okay, Great I appreciate the answers.
Thanks, Alex.
Thank you.
There are no additional questions at this time I will pass it back to the management team for any closing remarks.
Well, thanks, everyone for joining us today.
It's a challenging period for the auto insurance carriers, but we continue to benefit from our strategy to diversify our distribution channels and we're continuing to manage the business well amidst heightened levels of volatility.
So as we look ahead and as auto carrier demand recovers. We expect that Evercore has is going to be very well positioned to return to strong revenue growth to expanding adjusted EBITDA as we remain laser focused here on building an industry defining company.
Thank you all for your time.
That concludes today's conference call. Thank you you may now disconnect your line.
Yeah.
Okay.