Q4 2024 EverQuote Inc Earnings Call

February 24, 2025

So the 'twenty 'twenty four earnings call all lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question and answer session.

If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad if.

If you would like there was your question again press the star one.

Brittany Johnson: I would now like to turn the conference over to Brittany Johnson with the Blue shirt group you may begin.

Brittany Johnson: Thank you good afternoon, and welcome to Evercore fourth quarter and full year 2024 earnings call.

Speaker Change: The results announced in our press release issued today after the market close with me on the call. This afternoon are Jamie Mendell, Evercore, Chief Executive Officer, and Joseph Sanborn, Chief Financial Officer of Evercore.

Desiree: Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the Evercoat fourth quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session.

Speaker Change: During the call we will make statements related to a business that may be considered forward looking statements under the federal securities laws, including statements concerning our financial guidance for the first quarter of 2025 forward looking statements may be identified with words and phrases such as expect believe intend anticipate plan may upcoming and similar.

Desiree: If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one.

Speaker Change: Your 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.

Speaker Change: I would now like to turn the conference over to Brinlea Johnson with the BlueShare Group. You may begin.

Speaker Change: Thank you. Good afternoon and welcome to EverQuote's fourth quarter and full year 2024 earnings call.

Speaker Change: We'll be discussing the results announced in our press release issued today after the market closed.

Speaker Change: Forward looking statements 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 those risks and uncertainties. Please refer to our SEC filings, including our annual report on Form 10-K, and our quarterly reports on Form 10-Q on file with the Securities and Exchange Commission and.

Speaker Change: With me on the call this afternoon are Jayme Mendal, Everquote's Chief Executive Officer, and Joseph Sanborn, Chief Financial Officer of Everquote.

Speaker Change: <unk> on the Investor Relations section of our website.

Speaker Change: Also to note starting this year as we look to simplify our Investor Communications, we will be referring to variable marketing margin as variable marketing dollars for BMD going forth variable marketing margin or <unk>.

Speaker Change: <unk> two BMT as a percentage of revenue.

Speaker Change: Finally during the course of today's call, we 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 issued after the close of market today, which is available on the Investor Relations section of our website and with that I'll turn it over to Jim.

Jim: Thank you Bradley and thank you all for joining us today.

Jim: Date of ever quote is as strong as it's ever been thanks to remarkable progress made by the team over the last year and an improving auto insurance market.

Jim: Exiting 2024 would be almost unrecognizable to the ever quote which entered the year.

Jim: To rapidly accelerated growth improved operational efficiency and a strengthened balance sheet.

Jim: In 2024, we grew revenue by 74% cross the $500 million Mark for the first time.

Jim: And we grew adjusted EBITDA to nearly $60 million.

Jim: We entered 2025 with over $100 million of cash on the balance sheet and no debt.

Jim: In 2024, our unwavering support of carriers and agents helped them emerge from the auto insurance downturn.

Jim: Many enterprise carriers ramped marketplace participation over the course of the year contributing to carrier growth in our business over 200% year over year.

Jim: Our local agent business also accelerated over the course of the year. Despite a challenging start in Q1 to achieve 65% year over year growth in Q4, and we continue to build deeper ties with local agents.

Jim: Our customer relationships have never been better and consequently, we have a strong foundation for sustained and balanced growth moving forward.

Jim: Our ability to support customers returned to growth was enabled by strength in our traffic operations.

Jim: Our customer acquisition teams continue to demonstrate a remarkable ability to execute in a dynamic environment.

Jim: Last year's traffic landscape moved fast and became more competitive as carriers, often made sudden and significant changes to their marketing budgets and as the industry prepared for it now vacated FCC rule.

Jim: Against this backdrop, our team grew consumer volume by nearly 20% year over year in Q4 at healthy margins.

Jim: They did so through operational rigor focused growth initiatives and continued refinement and improvement of our AI powered bidding solution.

Jim: On the technology front, we made great strides advancing towards more modernized and simplified platforms across all facets of the business.

Jim: Advances in our tech stack are enabling faster development of a better and broader suite of products for customers moving forward as experienced with recent releases of new agent and site features.

Jim: And our technology and beyond we continue placing heavy emphasis on efficiency and <unk>.

Jim: Besting in automation and AI tools throughout the business.

The impact of this can be seen in the immense operating leverage achieved over the last year and we have more room to run.

Jim: With the strong recovery of our business, we are taking the opportunity to make investments in our team and our culture.

Jim: In the last year, we ramped hiring in a highly disciplined way focusing mostly on high leverage technical rules.

Jim: We also implemented a return to office policy and upgraded our offices into new space to enhance in person collaboration.

Jim: We remain extremely committed to strengthening our team and culture and ensuring ever quoted a highly desirable place to work.

Jim: As we look to the future I will first share some perspective on the current landscape in which we operate beginning with the auto insurance market.

Jim: I believe we've returned to broad based healthy underwriting profitability.

Jim: While several states and carriers continue to lag most carriers have historic campaigns with wide geographical footprints and healthy budgets.

Jim: The homeowners insurance market, whose recovery has lagged that of auto is also beginning to see a return to healthy underlying combined ratios, which bodes well for growing carrier demand in the year to come.

Speaker Change: We also implemented a return to office policy and upgraded our offices into new space to enhance in person collaboration.

Jim: The regulatory landscape was another prominent dynamic in 2024.

Jim: We spent much of the last year preparing to implement changes in response to our new FCC rule, which the industry has referred to as one to one consent.

Speaker Change: We remain extremely committed to strengthening our team and culture and ensuring ever quote is a highly desirable place to work.

Jim: After we implemented the requisite changes the course of vacated the rule reverting the industry back to its pre one to one consents state.

Speaker Change: As we look to the future I will first share some perspective on the current landscape in which we operate beginning with the auto insurance market.

Speaker Change: I believe we've returned to broad based healthy underwriting profitability.

Jim: While many others have rolled back changes entirely we decided to keep certain changes in place where they benefit our customers and advance our strategy.

Speaker Change: While several states and carriers continue to lag.

Speaker Change: Carriers have restored campaigns with wide geographical footprint and healthy budgets.

Jim: Looking ahead based on the current administration's regulatory posture, we believe that the 100 to one consent requirement is behind us for the foreseeable future.

Speaker Change: The homeowners insurance market, whose recovery has lagged that of auto is also beginning to see a return to healthy underlying combined ratios, which bodes well for growing carrier demand in the year to come.

Jim: This favorable market backdrop aligns nicely with Evercore sharpen strategy.

Jim: Over the last year, we have refocused and clarified our vision to become the number one growth partner to P&C insurance providers by efficiently delivering one better performing referrals.

Speaker Change: The regulatory landscape was another prominent dynamic in 2024.

Speaker Change: We spent much of the last year preparing to implement changes in response to our new FCC rule, which the industry has referred to as one to one consent.

Speaker Change: Two bigger traffic scale.

Speaker Change: After we implemented the requisite changes the courts vacated the rule reverting the industry back to its pre one to one consents state.

Jim: And three a broader suite of products and services.

Jim: We've oriented our 2025 planning to advance this strategy and expect to make significant progress across all fronts in the upcoming year.

Speaker Change: While many others have rolled back changes entirely we decided to keep certain changes in place where they benefit our customers and advance our strategy.

As we enter 2025 I can confidently say that not only did we weather the worst hard market in U S auto insurance history, but we've emerged from the downturn with record performance in all the ingredients for sustained strong profitable growth in the years to come.

Speaker Change: Looking ahead based on the current administration's regulatory posture, we believe that the one to one consent requirement is behind us for the foreseeable future.

Speaker Change: This favorable market backdrop aligns nicely with evercore to sharpen strategy.

Jim: We have sharpened our focus on P&C, allowing us to more fully serve the needs of this increasingly healthy and growth oriented market.

Speaker Change: Over the last year, we have refocused and clarified our vision to become the number one growth partner to P&C insurance providers by efficiently delivering one better performing referrals.

Jim: Our execution has been improving quarter after quarter with a team that is capable hardened in Hungary.

Jim: Our teams and technology platforms have been streamlined contributing to our efficiency and enabling us to move faster and supporting insurance providers growth moving forward I.

Speaker Change: Two bigger traffic scale.

Speaker Change: And three a broader suite of products and services.

Speaker Change: We have oriented our 2025 planning to advance this strategy and expect to make significant progress across all fronts in the upcoming year.

Jim: I am incredibly proud of what the team has accomplished over the last year and look forward to carrying the momentum into 2025.

Jim: I'll now turn the call over to Joseph to discuss our financial results.

Speaker Change: As we enter 2025 I can confidently say that not only did we weathered the worst hard market in U S auto insurance history, but we've emerged from the downturn with record performance in all the ingredients for sustained strong profitable growth in the years to come we.

Joseph: Thank you Jamie and thank you all for joining.

Joseph: I will start by discussing our financial results for the fourth quarter and full year 2024, before providing an update on what we're currently seeing in the auto insurance sector and our guidance for the first quarter of 2025.

Speaker Change: We have sharpened our focus on P&C, allowing us to more fully serve the needs of this increasingly healthy and growth oriented market.

Joseph: Our strong momentum continued into Q4 as we again exceeded guidance across all three of our primary financial metrics total revenue variable marketing dollars or BMD and adjusted EBITDA, We achieved a record level of revenue and net income as well as a record level of adjusted EBITDA.

Speaker Change: Our execution has been improving quarter after quarter with a team that is capable hardened in Hungary.

Speaker Change: Our teams and technology platforms have been streamlined contributing to our efficiency and enabling us to move faster and supporting insurance providers growth moving forward.

Joseph: These impressive financial results were due to three primary factors first.

Speaker Change: Credibly proud of what the team has accomplished over the last year and look forward to carrying the momentum into 2025.

Joseph: We continued to experience strong execution from our operating teams will emerge from the auto carrier downturn battle hardened and laser focused on helping our P&C carriers and agents grow profitably.

Speaker Change: I'll now turn the call over to Joseph to discuss our financial results.

Joseph Sanborn: Thank you Jamie and thank you all for joining.

Joseph Sanborn: I will start by discussing our financial results for the fourth quarter and full year 2024, before providing an update on what we're currently seeing in the auto insurance sector and our guidance for the first quarter of 2025.

Joseph: Second we benefited from investments in our technology platforms that allowed us to better leverage our data assets and drive incremental operating efficiencies.

Our strong momentum continued into Q4 as we again exceeded guidance across all three of our primary financial metrics total revenue variable marketing dollars or BMD and adjusted EBITDA, We achieved a record level of revenue and net income as well as a record level of adjusted EBITDA.

Joseph: And finally, our strategic focus on the P&C industry has created significant operating leverage in our model and positioned us to benefit from an increasingly favorable auto carrier landscape.

Joseph: Total revenues in the fourth quarter grew to 147 5 million up 165% from the prior year period, and also increasing 2% sequentially a deviation from our normal seasonal pattern of Q4 declining sequentially from the third quarter.

Joseph Sanborn: These impressive financial results were due to three primary factors first.

Joseph Sanborn: We continued to experience strong execution from our operating teams who emerge from the auto carrier downturn battle hardened and laser focused on helping our P&C carriers and agents grow profitably.

Joseph: Revenue growth was primarily driven by stronger enterprise carrier spend which was up nearly 500% from the comparable period last year. Our agency operations also grew 65% year over year in Q4.

Joseph Sanborn: Second we benefited from investments in our technology platforms that allowed us to better leverage our data assets and drive incremental operating efficiencies.

Joseph: Revenue from our auto insurance vertical was $135 9 million in Q4 up over 200% year over year.

Joseph Sanborn: And finally, our strategic focus on the P&C industry has created significant operating leverage in our model and positioned us to benefit from an increasingly favorable auto carrier landscape.

Joseph: For the full year revenue from our auto insurance vertical grew 96% to $446 million.

Joseph Sanborn: Total revenues in the fourth quarter grew to $147 5 million up 165% from the prior year period, and also increasing 2% sequentially a deviation from our normal seasonal pattern of Q4 declining sequentially from the third quarter.

Joseph: Revenue from our home and renters insurance vertical was $11 3 million in Q4 up 15% year over year.

Joseph: For the full year, we drove record revenue in our home and renters insurance vertical of $52 million up approximately 27% a year over year.

Joseph Sanborn: Revenue growth was primarily driven by stronger enterprise carrier spend which was up nearly 500% from the comparable period last year. Our agency operations also grew 65% year over year in Q4.

Joseph: BMD increased to $44 million for the fourth quarter up approximately 113% from the prior year period.

Joseph: Full year BMD increased to $155 2 million up 55% from 2023.

Joseph Sanborn: Revenue from our auto insurance vertical was $135 9 million in Q4 up over 200% year over year.

Joseph: Variable marketing margin or <unk>, which is BMD as a percentage of revenue was 31% for the full year and as expected moderated as we progressed through the period ending at 29, 9% for the fourth quarter.

Joseph Sanborn: For the full year revenue from our auto insurance vertical grew 96% to $446 million.

Joseph Sanborn: Revenue from our home and renters insurance vertical was $11 3 million in Q4 up 15% year over year for the full year, we drove record revenue on our home and renters insurance vertical of $52 million up approximately 27% year over year.

Joseph: Turning to operating expenses and the bottom line.

Joseph: We continue to be disciplined in managing expenses and leveraging investments in our technology platform.

Joseph: We have been successful in driving incremental efficiency across our operations, which is expanding our operating leverage as we scale and drive top line growth.

Joseph Sanborn: <unk> increased to $44 million for the fourth quarter up approximately 113% from the prior year period.

In the fourth quarter, we reported record net income of $12 3 million for the full year net income increased to $32 2 million compared to a loss of $51 3 million in 2023.

Joseph Sanborn: Full year BMD increased to $155 2 million up 55% from 2023.

Joseph Sanborn: Variable marketing margin or <unk>, which is BMD as a percentage of revenue was 31% for the full year and as expected moderated as we progressed through the period ending at 29, 9% for the fourth quarter.

Joseph: Adjusted EBITDA was also a record $18 9 million in Q4, an improvement from a loss of 900000 in the prior year period.

Joseph: Adjusted EBITDA as a percentage of revenues remained at approximately 13% in the quarter as we continued to benefit from our strong operating leverage and higher BMD flowed through to adjusted EBITDA.

Joseph Sanborn: Turning to operating expenses and the bottom line.

Joseph Sanborn: We continue to be disciplined in managing expenses and leveraging investments in our technology platform.

Joseph: For the full year adjusted EBITDA increased to $58 2 million compared to an adjusted EBITDA of 500000 in 2023.

Joseph Sanborn: We have been successful in driving incremental efficiency across our operations, which is expanding our operating leverage as we scale and drive top line growth.

Joseph: We delivered strong operating cash flow of $20 1 million for the fourth quarter.

In the fourth quarter, we reported record net income of $12 3 million for the full year net income increased to $32 2 million compared to a loss of $51 3 million in 2023.

Joseph: Ending the year with no debt and cash and cash equivalents of $102 1 million up from $38 million at the end of 2023.

Joseph: Cash operating expenses, which excludes advertising spend and certain noncash and other one time charges were $25 1 million in Q4 unchanged from the previous quarter.

Joseph Sanborn: Adjusted EBITDA was also a record $18 9 million in Q4, an improvement from a loss of 900000 in the prior year period.

Joseph Sanborn: Adjusted EBITDA as a percentage of revenues remained at approximately 13% in the quarter as we continued to benefit from our strong operating leverage and higher BMD flowed through to adjusted EBITDA.

Joseph: Before turning to guidance I want to provide an update on our current outlook for the auto insurance industry.

Joseph: We believe that the long term thesis of insurance advertising spend shifting to digital channels remains firmly intact.

Joseph Sanborn: For the full year adjusted EBITDA increased to $58 2 million compared to an adjusted EBITDA of 500000 in 2023.

Joseph: We remain optimistic that the benefits, we're seeing from the auto insurance recovery will continue this year.

Joseph Sanborn: We delivered strong operating cash flow of $20 1 million for the fourth quarter.

Joseph: With auto premiums up over 40% since the beginning of 2022, we believe that auto carriers have largely achieved underwriting profitability and are broadly focused on growth with digital channels, representing a preferred avenue given the ability to more specifically target desired consumers.

Joseph Sanborn: Ending the year with no debt and cash and cash equivalents of $102 1 million up from $38 million at the end of 2023.

Joseph Sanborn: Cash operating expenses, which excludes advertising spend and certain noncash and other one time charges were $25 1 million in Q4 unchanged from the previous quarter.

Joseph: At the same time the rate of increase in auto insurance premiums are forecasted return to more normalized levels in 2025.

Joseph Sanborn: Before turning to guidance I want to provide an update on our current outlook for the auto insurance industry.

Joseph: Which we expect will lead to a revenue growth rates also normalizing after the first quarter.

Joseph Sanborn: We believe that the long term thesis of insurance advertising spend shifting to digital channels remains firmly intact.

Joseph: Now turning to guidance for the first quarter of 2025.

Joseph: We expect revenue to be between $155 million and $160 million, representing 73% year over year growth at the midpoint.

Joseph Sanborn: And we remain optimistic that the benefits we're seeing from the auto insurance recovery will continue this year.

Joseph Sanborn: With auto premiums up over 40% since the beginning of 2022, we believe that auto carriers have largely achieved underwriting profitability and are broadly focused on growth.

Joseph: We expect <unk> to be between 44% and $46 million, representing 46% year over year growth at the midpoint.

Joseph: And we expect adjusted EBITDA to be between 19% and $21 million, representing 163% year over year growth at the midpoint.

Joseph Sanborn: With digital channels, representing a preferred avenue, given the ability to more specifically target desired consumers.

Joseph: We also want to share an update with you on our investment plans for 2025.

Joseph Sanborn: At the same time the rate of increase in auto insurance premiums are forecasted return to more normalized levels in 2025.

Joseph: Last fall, we outlined that once we had addressed the anticipated operational complexities associated with transitioning our operations to conform to one to one consent requirements.

Joseph Sanborn: Which we expect will lead to a revenue growth rates also normalizing after the first quarter.

Joseph Sanborn: Now turning to guidance for the first quarter of 2025.

Joseph: We plan to increase investment in our technology and data assets in the second half of 2025 to position Evercore for long term growth.

Joseph Sanborn: We expect revenue to be between $155 million and $160 million, representing 73% year over year growth at the midpoint.

Joseph: As a result of the 11th Circuit's decision to terminate this regulatory change in late January we have already started redeploying capacity and management attention to focusing on accelerating investment in key strategic areas.

Joseph Sanborn: We expect <unk> to be between 44% and $46 million, representing 46% year over year growth at the midpoint.

Joseph Sanborn: And we expect adjusted EBITDA to be between 19% and $21 million, representing 163% year over year growth at the midpoint.

Joseph: This includes leveraging AI capabilities to improve existing offerings develop new products for our insurance providers and drive greater operational efficiencies across our entire organization.

Joseph Sanborn: We also want to share an update with you on our investment plans for 2025.

Joseph Sanborn: Last fall, we outlined that once we had addressed the anticipated operational complexities associated with transitioning our operations to conform to one to one consent requirements.

Joseph: We believe these key investments are essential to building a more powerful competitive mode and positioning ever quote for strong future revenue growth with expanding profitability.

Joseph: As we make these investments we will continue to be disciplined in balancing incremental operating expenses to generate adjusted EBITDA margins at or near current levels.

Joseph Sanborn: We plan to increase investment in our technology and data assets in the second half of 2025 to position Evercore for long term growth.

Joseph: In summary, we delivered an outstanding 2024 and continued to drive record results across all of our key financial metrics in the fourth quarter.

Joseph Sanborn: As a result of the 11th Circuit's decision to terminate this regulatory change in late January we have already started redeploying capacity and management attention to focusing on accelerating investment in key strategic areas.

Joseph: We emerged from the auto insurance downturn as a stronger company with a refocused strategy efficient cost structure, and our leading market position.

Joseph Sanborn: This includes leveraging AI capabilities to improve existing offerings develop new products for our insurance providers and drive greater operational efficiencies across our entire organization.

As we look into 2025, we are very excited about our ability to continue to leverage our traffic expertise data assets and technology to support our insurance providers and successfully growing their business with <unk>.

Joseph Sanborn: We believe these key investments are essential to building more powerful competitive mode and positioning ever quote for strong future revenue growth with expanding profitability.

Joseph: For turning to Q&A, you want to take a moment to thank our team for their hard work and dedication this year and for our shareholders for their continued support.

Joseph Sanborn: As we make these investments we will continue to be disciplined in balancing incremental operating expenses to generate adjusted EBITDA margins at or near current levels.

Joseph: Management remains laser focused on driving growth profits and long term shareholder value, Jamie and I will now take your questions.

Joseph Sanborn: In summary, we delivered an outstanding 2024 and continued to drive record results across all of our key financial metrics in the fourth quarter.

Joseph: Thank you we will now begin the question and answer session. If you have dialed in and we would like to ask a question. Please press star one telephone keypad Theresa had angina queue. Thank.

Joseph Sanborn: We emerged from the auto insurance downturn as a stronger company with a refocused strategy efficient cost structure, and our leading market position.

Joseph: I would like to withdraw your question Signet breasts are one again if.

Joseph: If you are called upon to ask your question and our listening via Speaker, Tony our device. Please pick up your handset to ensure that your phone is not on mute asking a question again fresh farm wanted to join the queue.

Joseph Sanborn: As we look into 2025, we are very excited about our ability to continue to leverage our traffic expertise data assets and technology to support our insurance providers and successfully growing their business before turning to Q&A. We wanted to take a moment to thank our team for their hard work and dedication this year and for our.

Speaker Change: And our first question comes from the line of Michael Graham with Canaccord Genuity. Your line is open.

Joseph Sanborn: As for their continued support.

Management remains laser focused on driving growth profits and long term shareholder value, Jamie and I will now take your questions.

Michael Graham: Thank you and congrats on the awesome quarter.

Michael Graham: Just wanted to ask two questions first on your on your guidance I know you referenced.

Joseph Sanborn: Thank you we will now begin the question and answer session. If you have dialed in and we would like to ask a question. Please press star one on your telephone keypad derecho hand, and join the queue. Thank.

Michael Graham: Premium growth kind of slowing down I think I saw some staff that.

Michael Graham: The market was expecting sort of 8%.

Joseph Sanborn: If you would like to withdraw your question simply press Star one again.

Michael Graham: Growth in premiums.

Joseph Sanborn: If you were called upon to ask your question and our listening via Speaker Forney I device. Please pick up your handset to ensure that your phone is not on mute when asking a question again press star one to join the queue.

Speaker Change: <unk> to 17% last year, and you sort of referenced after a really strong growth in Q1, you expect growth to slow down a little bit in the balance of the year can you just spend a moment, maybe just trying to help us understand with a framework, where we should think about you guys growing relative to the overall premium market.

Speaker Change: And our first question comes from the line of Michael Graham with Canaccord Genuity. Your line is open.

And then I have a follow up after that thanks.

Speaker Change: Thanks, Mike for the question. So just given your context on the environment. So I guess the.

Michael Graham: Thank you and congrats on the awesome quarter.

Michael Graham: Just wanted to ask two questions first on your on your guidance I know you referenced.

Speaker Change: Comments youre, referring to in our script gave the backdrop of we've had 40% plus growth for the carriers.

Michael Graham:

Michael Graham: Premium growth kind of <unk>.

Speaker Change: So insurance premiums in 2022 through the end of last year, providing a very healthy backdrop for the industry, where carriers are getting to underwriting profitability generally speaking and getting stability broadly and a broad geographical footprint.

Michael Graham: Going down I think I saw some staff that the market was expecting sort of 8%.

Michael Graham: Growth in premiums.

Michael Graham: Allative to 17% last year, and you sort of referenced after a really strong growth in Q1, you expect growth to slow down a little bit in the balance of the year can you just spend a moment, maybe just trying to help us understand with a framework, where we should think about you guys growing relative to the overall premium market.

Speaker Change: We think two this year the contacts last year's last year, we had 74% growth, which obviously extraordinary topline growth we see that continuing into Q1. If you look at the midpoint of our guide what we see as we start to look through the last three quarters of the year, we'll see some we'll see normalization of our growth rate and how exactly that plays out I'd probably look.

Michael Graham: And then I have a follow up after that thanks.

Speaker Change: Two things one you say normalizing does it sort of average more towards our long term growth for the last three quarters of the year would be one thing and the second thing we'd look to is the seasonal pattern and as we've talked about in the past the seasonal pattern is never perfect and never quote given the various things can happen in the broader macro sense that impacted but that being said it is a tool we use herein.

Speaker Change: Thanks, Mike for the question. So just given your context on the environment. So I guess the comments you're referring to in our script gave the backdrop, we've had 40% plus growth for the carriers and auto insurance premiums during 2022 through the end of last year, providing a very healthy backdrop for the industry where carriers are getting.

Speaker Change: Internally and we've shared it with you and other analysts which is as follows which is Q1 as you start the year tends to be from Q1 to Q2 usually have.

Speaker Change: Underwriting profitability, generally speaking and getting stability broadly and a broad geographical footprint.

Speaker Change: Thing two this year the contacts last year's last year, we had 74% growth, which obviously extraordinary topline growth we see that continuing into Q1. If you look at the midpoint of our guide what we see as we start to look through the last three quarters of the year, we'll see some we'll see normalization of our growth rate and how exactly that plays out I'd probably look to.

Speaker Change: The sequential decline single digit percent low single digit percent Q3 tends to be sequentially up mid to high single digits in Q4 tends to be down sort of mid single digits. So I think about that normalized growth rate for the rest of the year on average overlay with that seasonal pattern to give you a sense of the topline topline.

Speaker Change: Two things one you say normalizing does it sort of average more towards our long term growth for the last three quarters of the year would be one thing and the second thing we'd look to is the seasonal pattern and as we've talked about in the past the seasonal pattern is never perfect and ever quote given there's various things can happen in the broader macro sense that impacted but that being said it is a tool we use herein.

Speaker Change: Okay Thats helpful. Josef. Thank you and then the other one I just wanted to ask is on your traffic operations you referenced.

Speaker Change: The ability to scale traffic a few times you referenced some investments there I just wonder if you could add a layer of depth around some of the things that are working for you there.

Speaker Change: Yes so.

Speaker Change: Internally and we've shared with you and other analysts which is as follows which is Q1 as you start the year tends to be from Q1 to Q2 usually have.

Speaker Change: There's a number of things first I would just point to the team's operational rigor has continued to get better and better over the course of.

Speaker Change: The sequential decline single digit percent low single digit percent Q3 tends to be sequentially up mid to high single digits in Q4 tends to be down sort of mid single digits. So I think about that normalized growth rate for the rest of the year on average overlaid with that seasonal pattern to give you a sense of the topline topline.

Speaker Change: The volatility that the market has experienced over the last couple of years, where we've had to react to changes.

Speaker Change: Quite often and I think we've developed a set of sort of operating norms that allow us to really manage the business tightly in a dynamic environment like that.

Michael Graham: Number two Mike is.

Speaker Change: Okay Thats helpful. Josef. Thank you and then the other one I just wanted to ask is on your traffic operations you referenced.

Michael Graham: The traffic bidding platform. So we have this.

Michael Graham: Ml based traffic bidding platform that we've talked about before that we've been kind of building out over the course of the last couple of years. This has really automated and.

Michael Graham: Made more effective a lot of our traffic getting.

Speaker Change: Yes. So there is this number.

Michael Graham: And that just continues to get tuned in improved with more data and more work with every passing quarter and so thats been a big part of of the team's success beyond that.

First I would just point to the team's operational rigor has continued to get better and better over the course of.

Speaker Change: The volatility that the market has experienced over the last couple of years, where we've had to re.

Michael Graham: Continuing to expand channels partners, where we see opportunities to continue to grow and as monetization has come back into the marketplace that has unlocked channels that for a period of time.

Speaker Change: We act to changes.

Speaker Change: Quite often and I think we've developed a set of sort of operating norms that allow us to really manage the business tightly in a dynamic environment like that.

Mike: Number two Mike is the traffic bidding platform. So we have this.

Michael Graham: We are.

Michael Graham: Less profitable for us.

Michael Graham: Thank you Jamie.

Mike: Ml based traffic bidding platform that we've talked about before that we've been kind of building out over the course of the last couple of years and this has really automated and made more effective a lot of our traffic bidding.

Michael Graham: Thanks, Mike.

Speaker Change: Our next question comes from the line of Cory Carpenter with Jpmorgan. Your line is open.

Cory Carpenter: Hello. Good afternoon, you made a comment in the prepared remarks about maintaining some level of 101 consent changes despite the order being stages, hoping you could kind of.

Mike: And that just continues to get tuned in improved with more data and more work with every passing quarter and so that's been a big part of of the team's success.

Speaker Change: Elaborate on that and the rationale.

Speaker Change: <unk>, maybe Joseph for you really just now that that one on one can say it was stayed still.

Mike: And that it's just continuing to expand channels partners, where we see opportunities to continue to grow and as monetization has come back into the marketplace. It has unlocked channels that for a period of time.

Speaker Change: Still maintaining some of it just how should we think about the impact that can have on financials relative to what you kind of framed last quarter for us. Thank you.

Speaker Change: Thanks Corey.

Speaker Change: I'll take the first part of the question.

Mike: Or.

Speaker Change: So yes the whole.

Mike: The less profitable for us.

<unk>.

Mike: Thank you Jamie.

Speaker Change: A lot of the changes related to 101 consent were really about.

Mike: Thanks, Mike.

Mike: Our next question comes from the line of Cory Carpenter with Jpmorgan. Your line is open.

Speaker Change: Putting the consumer, giving a consumer a bit more control over the outreach that they receive the net result of that.

Speaker Change: Hello. Good afternoon, you made a comment in the prepared remarks about maintaining some of the 101 consent changes despite the order being stages, hoping you could kind of.

Speaker Change: Is really higher quality connections from the perspective of the agents. So they know when the lead and the agents and the consumers opted in more explicitly <unk> hasnt.

Speaker Change: Elaborate on that and the rationale.

Speaker Change: Less competition on that consumer the performance of that lead is going to be higher and it's a better consumer experience. So there's an aspect of it which is really a win win for both sides of the marketplace.

Speaker Change: <unk>, maybe Joseph for U Relatedly, just now that that one on one can see it was stayed but youre still maintaining some of it just how should we think about the impact that's going to have on financials relative to what you kind of framed last quarter for us. Thank you.

Speaker Change: If you sort of take a step back ever quotes.

Speaker Change: Strategy, and we have a leading position with local agents in the market we've been investing in.

Speaker Change: Thanks Corey.

Speaker Change: I'll take the first part of the question.

Speaker Change: Extending that leadership position and a big part of that is not only being the largest but also providing the highest quality product to the customer.

Speaker Change: So yes the whole.

Speaker Change: A lot of the changes related to one to one consent were really about.

Speaker Change: Putting the consumer giving the consumer a bit more control over the outreach that they receive the net result of that.

Speaker Change: And so some of the changes that we implemented through the 100 to one concern testing enabled us to really improve the quality of the product we are delivering to the agent and we are able to optimize it to a point, where we were able to do so with minimal or sort of tolerable trade off.

Speaker Change: Is really higher quality connections from the perspective of the agents. So they know when the lead and the agents and the consumers opted and more explicitly <unk> hasnt theres less competition on that consumer the performance of that lead is going to be higher and it's a better consumer experience. So there's an aspect of it which is really a win win for both sides of the marketplace.

Speaker Change: Our economics and so while we found these sort of win win kind of pockets of changes that we implemented we have decided to leave them in place and continue to build around them.

Speaker Change: If you sort of take a step back ever quotes.

Speaker Change: So very much in line with our strategy.

Speaker Change: Strategy, and we have a leading position with local agents in the market we've been investing in.

Speaker Change: And Cory I'll, just elaborate on BMS BMS percentage for you so.

Speaker Change: Extending that leadership position and a big part of that is not only being the largest but also providing the highest quality product to the customer.

Speaker Change: Just give some context Q.

Speaker Change: Q4 was just under 30%, we said things we go towards the high <unk> and we just came into that in Q4.

Speaker Change: A little over 29, 5% if you look for our guide for Q1 implies sort of 28, 2% to 29% range to the mid 2028 and a half.

Speaker Change: And so some of the changes that we implemented through the 100 to one concern testing enabled us to really improve the quality of our product we are delivering to the agent and we are able to optimize it to a point, where we were able to do so with minimal or sort of tolerable tradeoff.

Speaker Change: So if you look at the impact of what Jamie just described of keeping some of the one to one in place.

Speaker Change: As we continue going forward, we see it as an opportunity to do that it sort of a modest modest impact to our margin and also looking at how do we bring.

Speaker Change: Our economics, and so where we found the sort of win win kind of pockets of changes that we implemented we have decided to leave them in place and continue to build around them.

Speaker Change: Quality more broadly into our traffic operations. So when you think about building stronger long term relationships with clients. The net impact of that as we'd say <unk> margin sort of assuming instead of in the high Twenty's for.

Speaker Change: So very much in line with our strategy.

Speaker Change: Gary I'll, just elaborate on BMS BMS percentage for you so.

Speaker Change: As we go past this quarter 'twenty eight 'twenty nine now sort of stays in the high <unk> as you look out for the rest of the year is our current view.

Speaker Change: Just give some context.

Speaker Change: Q4 was just under 30%, we said things we go towards the high Twenty's and we just came into that in Q4.

Speaker Change: Okay.

Speaker Change: With 29, 5% if you look for our guide for Q1 implies sort of 28, 2% to 29% range of the mid point 28 and a half.

Speaker Change: Our next question comes from the line of Zachary Cummins with B Riley Your line is open.

Speaker Change: So as we look at the impact of what Jamie just described of keeping some of the one to one in place.

Speaker Change: Yes, hi, good afternoon, Jamie and Joseph Congrats on the strong results.

Speaker Change: As we continue going forward, we see it as an opportunity to do that it sort of a modest modest impact to our margin and also looking at how do we bring.

Speaker Change: Just double click a little more on the.

Speaker Change: The.

Speaker Change: Vacation.

Speaker Change: <unk> said in one of the ones in central.

Speaker Change: Quality more broadly into our traffic operations. So we can think about building stronger long term relationships with clients.

Speaker Change: Acknowledging that you are keeping a some of the standards in place I was just curious with some of the feedback that you're getting from carriers.

Speaker Change: It impacted that as we'd say DMM margin sort of assuming instead of in the high Twenty's.

Speaker Change: My understanding some carriers are still wanting to maintain some of those standards, even with the ruling being vacated.

Speaker Change: As we go past this quarter 28, 29, now sort of stays in the high <unk> as you look out for the rest of the year is our current view.

Speaker Change: So that's not accurate zac.

Speaker Change: The majority of the carriers the requirement that carriers have put out is that.

Speaker Change: Their partners their providers remain in compliance with the law as we've had no major carriers try and impose anything.

Speaker Change: Our next question comes from the line of Zachary Cummins with B Riley Your line is open.

Speaker Change: Beyond that.

Speaker Change: I do think there are as we have concluded I think some of the agents and probably some of the carrier saw through through the data the limited data they had or some of the testing data late last year that you can generate a higher quality lead product by implementing some of the one to one concern sort of mechanisms that folks.

Zachary Cummins: Yes, hi, good afternoon, Jamie and Joseph Congrats on the strong results.

Speaker Change: Just double click a little more on the.

Speaker Change: The vacation of the SEC is one of the ones in central.

Speaker Change: Acknowledging that you are keeping a some of the standards in place I was just curious if some of the feedback that you've been getting from carriers from my understanding some carriers are still wanting to maintain some of those standards, even with the rolling being vacated.

Speaker Change: <unk> rolled out and so I think there is interest and appetite.

Speaker Change: Both from the agents and from the carriers themselves to continue to receive this higher quality product and benefit from it and there is some willingness to pay for it to and so this this is kind of the path that we've chosen to follow is to maintain some of these changes in FX.

Zachary Cummins: So that's not accurate zac.

Speaker Change: You already have the carriers the requirement that carriers have put out is that.

Speaker Change: Their partners their providers remain in compliance with the laws if had no major carriers try and impose anything big.

Speaker Change: Maintained some of the sort of pricing increase that that has come along with the higher performing higher quality product.

Speaker Change: Beyond that I do think there are as we have concluded I think some of the agents and probably some of the carriers saw through through the data the limited data they had or some of the testing data late last year that you can generate a higher quality lead product by implementing some of the one to one concern sort of.

Speaker Change: And.

Speaker Change: And just move forward.

Speaker Change: With the requirement or without at least on portions of portions of our traffic.

Speaker Change: Yes.

Speaker Change: Understood. That's helpful. And then just final one follow up question is.

Speaker Change: Can you just speak to the feedback you've been getting from just the broader set of carriers as they go into 2025 seems like underlying profitability is better across the board here. So just curious what youre hearing from maybe the enterprise side.

Speaker Change: On the stat that folks rolled out and so I think there is interest and appetite.

Speaker Change: Both from the agents and from the carriers themselves to continue to receive this higher quality product and benefit from it and there is some willingness to pay for it to and so this this is the path that we've chosen to follow is to maintain some of these changes in effects maintain some of the sort of pricing.

Maybe some of the agent channels.

Speaker Change: Yes.

Speaker Change: I would say that.

Speaker Change: It's somewhat consistent for the first time I think the agent lead channels in the enterprise the direct carriers are kind of converging.

Speaker Change: My sense is we've returned to broad based healthy underwriting profitability.

Speaker Change: Increase that has come along with the higher performing higher quality product.

Speaker Change: And.

Speaker Change: And just move forward.

Speaker Change: There are a handful of states a handful of carriers small handful that are that are lagging, but most are really back to a pretty wide geographical footprint healthy budgets and auto even homeowners, which was lagging auto for a bit if you look at some of the latest prints youre seeing a return to healthy underlying combined ratios and home as well.

With the requirement or without at least on portions of portions of our traffic.

Okay.

Speaker Change: Understood. That's helpful. And then just my one follow up question is.

Speaker Change: Can you speak to the feedback you've been getting from just the broader set of carriers as they go into 2025 seems like underlying profitability is better across the board here. So just curious what youre hearing from maybe the enterprise side of the business versus maybe some of the agent led channels.

Speaker Change: So I think by and large the orientation is swinging heavily towards growth I think we've seen we've seen.

Speaker Change: The sort of profitability box checked.

Speaker Change: Yes, I would say that it's.

Speaker Change: Cros.

Speaker Change: It's somewhat consistent for the first time I think the agent lead channels in the enterprise the direct carriers are kind of converging.

Speaker Change: Much of the market and now the focus is back on growth.

Speaker Change: Understood well, thanks for taking my questions and best of luck with the rest of the quarter.

Speaker Change: My sense is we've returned to broad based healthy underwriting profitability.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Next question comes from the line of <unk> Tandon with Needham <unk> Company. Your line is open.

Speaker Change: Thank you good evening.

Speaker Change: And Josef on the quarter, well done I wanted to just get a little bit more of an understanding in terms of the underlying drivers. So could you unpack the growth between traffic and RP QR and just would be curious to hear your thoughts on monetization.

Speaker Change: By and large the orientation is swinging heavily towards growth I think we've seen we've seen.

Speaker Change: Driving.

Speaker Change: The growth there is it more bundling and or is it more like to like pricing any sort of details you can provide on some of the underlying drivers behind the growth.

Speaker Change: Profitability box checked across.

Speaker Change: Much of the market and now the focus is back on growth.

Speaker Change: So I think it's been a it's been a balanced growth.

Speaker Change: Understood well, thanks for taking my questions and best of luck with the rest of the quarter.

Speaker Change: Growth story over the last year. So we've benefited from growth both in our in our consumer volume as well as in monetization.

Speaker Change: Thank you.

Speaker Change: Next question comes from the line of <unk> Tandon with Needham <unk> Company. Your line is open.

Speaker Change: I think if you had to sort of look at the scale between the two the balance would tip in favor of monetization, but we had double digit consumer.

Speaker Change: Good evening.

Speaker Change: Jamie and Josef on the quarter, well done I wanted to just get a little bit more of an understanding in terms of the underlying drivers. So could you unpack the growth between traffic and RP QR and just would be curious to hear your thoughts on monetization what is driving.

Speaker Change: Consumer volume growth in 2024 across auto and home. So it's being really driven by both of those things and there is there is a compounding effect when you have both volume and monetization growing in let's say you get the kind of growth that we produced last year of 70% to 80% growth.

Speaker Change: The growth there is it more bundling and or is it more like to like pricing any sort of details you can provide on some of the underlying drivers behind the growth.

Speaker Change: Got it that's.

Speaker Change: That's helpful color.

Michael Graham: And then maybe I'll switch over to the balance sheet, obviously, the balance sheet and very healthy shape, so any thoughts Joseph around.

Speaker Change: So I think it's been a it's been a balanced.

Michael Graham: Capital allocation I know you've done M&A in the past.

Speaker Change: Both story over the last year. So we've benefited from growth both in our in our consumer volume as well as in monetization.

Michael Graham: Is your thought process around potential acquisitions and use of cash.

Michael Graham: Sure. Thanks for the question. So lets say when you look at the balance sheet, obviously, you put it in context.

Speaker Change: I think if you had to sort of look at the scale between the two the balance would tip in favor of monetization, but we had double digit.

Michael Graham: So we're pleased where we ended the year of $102 million in cash up from about $38 million a year before so I think it speaks to the progress in the business and driving cash flow and the leverage we've created in the model. So we're pleased with that as we think about how that impacts our investment and use of capital just wanted to touch on three areas here. So first to think of organic investment that we're doing.

Speaker Change: Consumer volume growth in 2024 across auto and home.

So it's being really driven by both of those things and there is there is a compounding effect when you have both volume and monetization growing in let's say you get the kind of growth that we produced last year of 70% to 80% growth.

Going in the business as you start to think about the types of investments. We do we are starting to adopt <unk> as sort of a medium and longer term time horizon. When you have cash in the balance sheet. You can start to think in several quarters about how investments and how we can make significant investments in things that especially in our technology platforms that will have helped really built our competitive mode over time, so that'd be the first and.

Speaker Change: Got it that's.

Speaker Change: That's helpful color.

Speaker Change: And then maybe I'll switch over to the balance sheet, obviously, the balance sheets and very healthy shape, so any thoughts Joseph around <unk>.

Speaker Change: Capital allocation I know you've done M&A in the past.

Speaker Change: What is your thought process around potential acquisitions and use of cash.

Michael Graham: Important to highlight the second one I'll highlight is on acquisitions I think you touched on it we have seen.

Speaker Change: Sure. Thanks for the question. So lets say when you look at the balance sheet. Obviously, you put it in context, we're pleased where we ended the year of $102 million in cash up from about $38 million a year before so I think it speaks to the progress in the business and driving cash flow and the leverage we've created in the model. So we're pleased with that as we think about how that impacts our investment.

Michael Graham: <unk> seen more interest in M&A opportunities coming to us and we will continue to see that for US is it's very much guided by the strategy, though that we have which is we are focused on the P&C market as we've mentioned in our prior comments any more together in January Mike that we did a long term update of our strategy last summer was very much focused on validated our efforts around P&C.

Speaker Change: And use of capital that's why I touch on three areas here. So first to think of organic investment that we're doing in the business as we start to think about the types of investments. We do we are starting to adopt pheno sort of a medium and longer term time horizon. When you have cash in the balance sheet. You can start to think in several quarters about how investments and how we can make significant investments in things that.

Michael Graham: We'll stay we believe will stay focus to those areas and we'll also have the discipline on the financial side as we look at acquisitions that are very much looking at are they accretive on the financial side are they driving cash flow. So that criteria will continue to exist no media plans and obviously, we'll continue to look at opportunities, we expect to see more as we progress through the year.

Speaker Change: Especially in our technology platforms that will have helped really built our competitive mode over time, so that'd be the first and important one I'd highlight second one I'll highlight is on acquisitions I think you touched on it.

Michael Graham: And I guess, the third area I'd say more broadly is how do we think about building shareholder value in other categories things like buybacks could make sense at some point as well, obviously, we're mindful of balancing buybacks with how it impacts our our public float et cetera, but certainly that'd be another lever we can look at as well as we progress through this year I think youll see us talking more about how you think about capital investment and allocate.

Speaker Change: We have seen.

Speaker Change: <unk> seen more interest in M&A opportunities coming to us and we will continue to see that for US is it's very much guided by the strategy, though that we have which is we are focused on the P&C market as we've mentioned in our prior comments anymore together in January Mike that we did a long term update of our strategy last summer was very much focused on validated our efforts around P&C.

Michael Graham: <unk>.

The medium time horizon.

Bill: Got it good position to be and Bill Congrats again.

Thank you thanks, Mark Thank you.

Speaker Change: State, we believe we will stay focused to those areas and we will also have the discipline on the financial side as we look at acquisitions. So very much looking at are they accretive on the financial side are they driving incremental cash flow. So that criteria will continue to exist no immediate plans and obviously, we'll continue to look at opportunities, we expect to see more as we progress through the year.

Yes.

Speaker Change: Next question comes from the line of Jed Kelly with Oppenheimer. Your line is open.

Jed Kelly: Hey, great. Thanks for taking my question and great job loss a year.

Speaker Change: Just just kind of going back I think it was.

Speaker Change: To Mike's question, Joseph talking about kind of the balance of the year and if you can kind of get to that normal seasonal cadence kind of implies like the year over year growth rate in the back half.

Speaker Change: And I guess, the third area I'd say more broadly is how do we think about building shareholder value in other categories things like buybacks could make sense at some point as well, obviously, we're mindful of balancing buybacks with how it impacts our our public float et cetera, but certainly that'd be another lever we can look at as well as we progress through this year I think youll see us talking more about how you think about capital investment in our case.

Speaker Change: It's high <unk>, maybe low double digits is that the right way to think about it or do you kind of expect this market to continue to grow and then just I guess a question for Jamie strategically and then maybe following up on the last question as you kind of.

<unk>.

Speaker Change: The medium time horizon.

Speaker Change: Got it good position to be and Bill Congrats again.

Speaker Change: Thank you thanks, Mark Thank you.

Speaker Change: Yes.

Speaker Change: 100 over $100 million in cash now.

Next question comes from the line of Jed Kelly with Oppenheimer. Your line is open.

Speaker Change: How do you think about making the business maybe less volatile as we kind of exit this period, where the industry is just over earnings. Thanks.

Jed Kelly: Hey, great. Thanks for taking my question and great job awesome year.

Speaker Change: Just just kind of going back to I think it was to Mike's question Joseph talking about kind of the balance of the year and if you kind of get to that normal seasonal cadence kind of implies like the year over year growth rate in the back half Kinder.

Speaker Change: Sure. So I'll start with so thanks, Jeff for the question. So I'll start with your first one which is on how do we think about growth over the balance of the year and backend versus the start of the year and so I'm not going to get to into specifics.

Speaker Change: We are giving guidance for Q1 and not for the year and so and I think it was I guess I'll say at a high level as we feel it's a healthy industry. So it's a favorable environment for us and we think digital channels will continue to be a preferred approach for carriers as they come back in growth mode, given the ability to target customers.

Speaker Change: As high <unk>, maybe low double digits is that the right way to think about it or do you kind of expect this market to continue to grow and then <unk>.

Speaker Change: Just I guess a question for Jamie strategically and maybe following up on the last question as you kind of.

Speaker Change: The reason, we're not giving specifics is we think there's sort of puts and takes in terms of how the carriers will come out of recovery some states come on faster slower.

Speaker Change: 100 over $100 million in cash now.

Speaker Change: How do you think about making the business maybe less volatile as we kind of exit this period, where the industry is just over earnings. Thanks.

Speaker Change: California, being the big wildcard right now how carriers, making incremental moves et cetera. So those are things that will factor into how the quarters actually play out in practice the guidance. We try to give you is as.

Speaker Change: As we think about the balance for the rest of the year, we said to Mike is it sort of normalizes towards our long term growth rate on average maybe some quarters are higher some quarters are lower we would expect and also consider where you are on the comps is the back half of the year as you point out you have some comps that are much stronger like Q4 of 2024 was seasonally high it actually was.

Speaker Change: We are giving guidance for Q1 and not for the year and so and I think it was I guess I'll say at a high level as we feel it's a healthy industry, we felt as a favorable environment for us and we think digital channels will continue to be a preferred approach for carriers as they come back in growth mode, given the ability to target customers right.

Speaker Change: From Q3 normally it would be down so that may result in mathematically lower year on year comp there.

Speaker Change: The reason, we're not giving specifics.

Speaker Change: We think there's sort of puts and takes in terms of how the carriers will come out of recovery. Some states can come on faster some could come slower.

Speaker Change: So those are the things I would think about it but I can't give you more specificity than that.

Speaker Change: Given we're not giving guidance for the full year.

Jed Kelly: Yes, Jed to your to your question about I guess stability I think there is there is an element.

Speaker Change: Yes, there is an aspect of this which is.

Speaker Change: We've gone through 2022 to 2023 I mean, this is like literally sort of historic period of volatility for the industry. If you look back before that and the business was it was quite a bit more stable and we would expect things to sort of normalize so I think.

As we think about the balance for the rest of the year, we said to Mike is it sort of normalizes towards our long term growth rate on average maybe some quarters are higher some quarters are lower we would expect and also consider where you are in the comps as the back half of the year as you point out you have some comps that are much stronger like Q4 of 2024 was seasonally high it actually was.

Speaker Change: The aberration that was 2022 and 2023 as is not likely to persist in perpetuity now that being said I think there's some lessons learned and we have to we have to.

Speaker Change: Up from Q3 normally it would be down so that May result in no mathematically lower year on year comp there.

Speaker Change: Take actions to ensure that we've got the stability, we need to kind of build this thing for the long term.

Speaker Change: So those are the things I would think about it but I can't give you more specificity than that.

Speaker Change: Given we're not giving guidance for the full year.

Speaker Change: So to that end that pie point to a couple of things. The first is in our strategy contemplates going deeper in P&C and so we want to be the number one growth partner to P&C insurance providers and that can mean, a number of different things, but part of that is getting beyond kind of the.

Jed Kelly: Yes, Jed to your to your question about I guess stability I think there is there is an element.

Speaker Change: Yes, there is an aspect of this which is.

Speaker Change: We've gone through 2022 to 2023 I mean, this is like literally a historic period of volatility for the industry. If you look back before that and the business was it was quite a bit more stable and we would expect things to sort of normalize. So I think you know.

Speaker Change: The the concentration in auto insurance.

Speaker Change: Lead Gen right to begin to build out some of the non auto verticals. So continuing to grow the homeowners vertical and then within the P&C umbrella I think you've got customers sort of asking or trying to pull out of us additional products from a vertical standpoint, whether thats some of the more ancillary products like <unk>.

Speaker Change: The aberration that was 2022 and 2023 years is not likely to persist in perpetuity that.

Speaker Change: Being said I think there's some lessons learned and we have to we have to take actions to ensure that we've got the stability, we need to kind of build this thing for the long term.

Speaker Change: Motorcycle or boat or rvs or it could be small business commercial bank, you'll start to see us begin to kind of broaden the portfolio and the sort of along the vertical axis.

Speaker Change: So to that end that probably point to a couple of things. The first is in our strategy contemplates going deeper in P&C and so we want to be the number one growth partner to P&C insurance providers and that can mean, a number of different things, but part of that is getting beyond kind of the.

Speaker Change: And then we're going to continue to invest in more products and services that go that enabled us to go deeper with our existing customers using the tech and data advantage that we have and our goal is to become the indispensable.

Speaker Change: The concentration in auto insurance.

Speaker Change: Growth partner to these carriers.

Speaker Change: Good example of this.

Speaker Change: We're sort of coming along now is done the agency business. We used to primarily just sell leads to agents now we have a broader suite of offerings for these agents were building stickier deeper relationships, we're kind of evolving from more of a transactional vendor to a much more strategic partner and that's the direction that we're headed right. So.

Speaker Change: <unk> cycle or boat or rvs or it could be small business commercial I think you'll start to see us begin to kind of broaden the portfolio and the sort of along the vertical axis.

Speaker Change: I think if we if we just execute the strategy as is.

Speaker Change: Hopefully, we will have a stable market for years to come but the next time, we encountered a period of instability I think.

Speaker Change: And then we are going to continue to invest in more products and services that go that enable us to go deeper with our existing customers using the tech and data advantage that we have and our goal is to become the indispensable.

Speaker Change: The composition of the business look sufficiently different that will we will be able to get through it with less volatility the next time around.

Speaker Change: Thank you very helpful.

Speaker Change: Both partner to these carriers are good example of this where we are.

Speaker Change: Sure.

Speaker Change: Our next question comes from the line of Ralph <unk> with William Blair. Your line is open.

Speaker Change: We're sort of coming along now is done the agency business, we used to primarily just sell it leads to agents now we have a broader suite of offerings for these agents were building stickier deeper relationships, we're kind of evolving from more of a transactional vendor to a much more strategic partner and that's the direction that we're headed right. So.

Speaker Change: Good evening, Thanks for taking the question Jamie just on the products that you are contemplating this year, maybe some more color you can provide just in terms of how we should think about it both from your carrier partner side as well as the consumer side and how you see.

Speaker Change: If we if we just execute the strategy as is.

Speaker Change: Quick advancements in AI or AI augmenting your product approach.

Speaker Change: Hopefully, we'll have a stable market for years to come but the next time, we encounter periods of instability I think the sort of composition of the business look sufficiently different that will we will be able to get through it with less volatility the next time around.

Speaker Change: Josef just a clarifying question I think in the script or Q&A, you talked about EBIT.

Speaker Change: Being near current levels for 2025 is that.

Speaker Change: Assuming on a percentage basis and should that be fairly consistent through the year or were you talking more about.

Speaker Change: Thank you very helpful.

Speaker Change: Sure.

A 2025 level. Thank you.

Speaker Change: Our next question comes from the line of Ralph <unk> with William Blair. Your line is open.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: So Ralph with respect to your first question on sort of like products.

Speaker Change: Good evening, Thanks for taking the question first Jamie just on the products that you're contemplating this year, maybe some more color you can provide just in terms of how we should think about it both from your carrier partner side as well as the consumer side and how you see that.

Speaker Change: On a couple of them.

Speaker Change: There is from a consumer lens, it's beginning to sort of contemplate.

Speaker Change: Further investment in our non auto verticals.

Speaker Change: As we look at the carriers.

Speaker Change: A lot of our efforts right now are focused on using AI and machine learning to help carriers bid more efficiently into the marketplace. We have a tremendous amount of data that's proprietary to ever quote about consumers historical shopping behavior that we can use to help carriers bid more effectively.

Speaker Change: Quick advancements in AI or AI augmenting your product approach and then Josef just a clarifying question I think in the <unk>.

Speaker Change: Script or Q&A, you talked about.

Speaker Change: Being near current levels for 2025 is that I'm, assuming on a percentage basis and should that be fairly consistent through the year or were you talking more about you know.

Speaker Change: And a lot of carriers are now beginning to actually turnover their bidding process to us through these smart bidding solutions that we're offering.

Speaker Change: 2025 level. Thank you.

Speaker Change: Sure.

Speaker Change: So Ralph with respect to your first question on sort of like products.

Speaker Change: And that's an area that we'll continue to invest in this year.

I touched on a couple of them I think there is from a consumer lens, it's beginning to sort of contemplate.

Speaker Change: With agents.

Speaker Change: As an aspect of it which is also related to bidding and help agents bidding for traffic a bit more effectively but it's a bit broader with the agents. The agent has to do a lot of different things to grow their business.

Speaker Change: Further investment in our non auto verticals.

Speaker Change: As we look at the carriers.

Speaker Change: A lot of our efforts right now are focused on using AI and machine learning to help carriers bid more efficiently into the marketplace. We have a tremendous amount of data that is proprietary to ever quote about consumers historical shopping behavior that we can use to help carriers bid more effectively and a lot of carrier.

Speaker Change: And so we're delivering.

Speaker Change: Delivering them leads we're beginning to package some value add services around those leads introduced new products sort of ancillary to the lead product and so the vision. There is to really be this one stop <unk> shop to the local Asian.

Speaker Change: Okay.

Speaker Change: And then with regards to your question on EBITDA margin. So let me give a little context, Ralph so.

Speaker Change: Those are now beginning to actually turnover they are bidding process to us through the smart bidding solutions that we're offering and that's an area that we'll continue to invest in this year with agents. There is an aspect of it which is also related to bidding and help agents bidding for traffic a bit more effectively but it is a bit broader.

Speaker Change: If you look at what we've done with EBITDA margins over the past year. If you go back to <unk>, who are doing this call a year ago. You would say are if you look in the rearview mirror, we had negative EBITDA margins. So over the course of last year, we went from zero to adding the year. We added an average of 11, 6% on 2024 for EBITDA margin Q3 was ramp was 13% Q4 was.

Speaker Change: With the agents the agent has to do a lot of different things to grow their business and so.

Speaker Change: LOE line of 12, 8%. So I think we've got a lot of progress in EBITDA margins as we look to this year you look at Q1, our guide sort of implies 12, 5% or so give or take at the midpoint.

Speaker Change: For delivering them leads we're beginning to package some value add services around those leads introduced new products sort of ancillary to the lead product and.

Speaker Change: And so as we look forward to this year, we're saying a assume will keep EBITDA margins at or near current levels through the rest of this year and as we think about the second half of the year.

Speaker Change: So the vision there is to really be this one stop growth shop for the local Asian.

Speaker Change: Okay.

Speaker Change: With regards to your question on EBITDA margin. So let me give a little context, Ralph so.

Speaker Change: In our prepared remarks, we talked about investment plans for the second half of the year and so we see.

Speaker Change: Just to give some context, Matt we talked about investment plans and our and the fall in our November call, saying once we got through FCC, we expected to start making incremental investments in the second half of 'twenty five to really start focus on building our longer term advantage further, particularly around on the technology side investments in AI.

Speaker Change: LOE line of 12, 8%. So I think we made a lot of progress in EBITDA margins as we look to this year you look at Q1, our guide sort of implies 12, 5% or so give or take at the midpoint.

Speaker Change: And now that we have the FCC behind us faster than we initially expected and we are now shifting to those plans now. So we think you will see expect to add more investments against the back half of the year.

Speaker Change: We'll still be disciplined in doing it and that will be how we think about balancing against that incremental opex with maintaining EBITDA margins at any other current levels and obviously if you look at context, where we ended last year. The average of 11, 6% was twice what we ever achieved.

Speaker Change: In our prepared remarks, we talked about investment plans for the second half of the year and so we see.

Speaker Change: Just to give some context in that we talked about investment plans and our and the fall in our November call, saying once we got through FCC, we expected to start making incremental investments in the second half of 'twenty five to really start focus on building our longer term advantage further, particularly around on the technology side investments in AI.

Speaker Change: Our peak during pre downturn levels, we've made good progress and we'll continue to make good progress.

Speaker Change: And just the guidance for this year is sort of <unk>.

Speaker Change: Maintaining those levels through the year, obviously, there would be some it won't be perfect I would say quarter to quarter as you have seasonality youll see some fluctuation I would expect quarter to quarter.

Speaker Change: Okay. That's helpful. Thanks, Joseph Thanks, Jamie.

Speaker Change: Thank you Ralph I appreciate it.

Speaker Change: Our next question comes from the line of Jason <unk> with Craig Hallum. Your line is open.

Speaker Change: But we'll still be disciplined in doing it and that will be how we think about balancing against that incremental opex with maintaining EBITDA margins at any other current levels and obviously if you look at context for where we ended last year. The average of 11, 6% was twice what we ever achieved at our peak during pre downturn levels. We've made good progress.

Speaker Change: Great. Thank you guys. Just wondering if you can maybe bifurcate your outlook across the local agent versus the direct market, especially now that TCP has been vacated and I think with that by a lot of the bigger captives didn't grow as rapidly as some of the other carriers last year. So just curious if you think that can be a bit.

Speaker Change: And we'll continue to make good progress.

Speaker Change: And just the guidance for this year is sort of keeping that maintaining those levels through the year. Obviously, there would be some it won't be perfect I would say quarter to quarter as you have seasonality youll see some fluctuation I would expect quarter to quarter.

Speaker Change: <unk> growth profile this year for your agent business.

Speaker Change: Thanks, Jason.

Speaker Change: It's a good question.

Speaker Change: So.

Speaker Change: Over the last couple of years I think you saw the direct carriers kind of pull back quicker and then reengage.

Speaker Change: Okay. That's helpful. Thanks, Joseph Thanks, Jamie.

Ralph: Thank you Ralph I appreciate it.

Speaker Change: Sooner as well.

Speaker Change: Our next question comes from the line of Jason <unk> with Craig Hallum. Your line is open.

Speaker Change: But we have started to see the local the agent based carriers kind of restoring profitability and restoring more support for agents and encouraging agents growth as we sort of exited last year and turned the corner into this year.

Jason: Great. Thank you guys. Just wondering if you can maybe bifurcate your outlook across the local agent versus the direct market, especially now that TCP has been vacated and I think with that a lot of the bigger captives didn't grow as rapidly as some of the other carriers last year. So just curious if you think that can be a bit.

Speaker Change: So I think that the.

Speaker Change: Okay.

Speaker Change: Like I said earlier, there has been a bit of a convergence I think all carriers now or save for a few exceptions are generally growth minded that includes the captive agent based carriers and the direct carriers.

Jason: <unk> growth profile this year for your agent business.

Speaker Change: Both of these businesses really accelerated over the course of last year that the direct business and local agent business and so there are both entering this year from a position of strength and I would expect both.

Speaker Change: Thanks, Jason.

Jason: It's a good question.

Speaker Change: <unk>.

Speaker Change: Over the last couple of years I think you saw the direct carriers kind of pull back quicker and then reengage.

Speaker Change: To generate healthy growth again this year.

Speaker Change: Sooner as well.

But we have started to see the local the agent based carriers kind of restoring profitability and restoring more support for agents and encouraging agents growth as we sort of exited last year and turned the corner into this year.

Speaker Change: With respect to the local agent piece I think the interesting thing there is that we've got a kind of.

Speaker Change: Multiple shots on goal in terms of driving growth right. It's not just like it used to be really primarily just focused on leads and leads kind of we need to generate more traffic to drive more growth I think as we began expanding into some of these ancillary products and services, you've got multiple dimensions with which to grow the agent base and that'll be that'll be an evolution.

So I think the.

Speaker Change: Okay.

Speaker Change: Like I said earlier, there has been a bit of a convergence I think all carriers now or is say for a few exceptions are generally growth minded that includes the captive agent based carriers and the direct carriers.

Speaker Change: Over the course of the next couple of years as we continue to sort of develop ship and scale of these products.

Speaker Change: We've both of these businesses really accelerated over the course of last year that the direct business and local agent business and so they are both entering this year from a position of strength and I would expect both to generate healthy growth again this year.

Speaker Change: And then maybe just a follow up as you were talking about kind of leads and traffic I am just curious from a VM perspective.

Speaker Change: If there are or I am wondering if there are external factors as you go across 2025 years, we've started to hear maybe like more media owners investing in traffic acquisition, so could that be at least a modest tailwind to Vietnam as the year scales.

Speaker Change: With respect to the local agent piece I think the interesting thing there is that we've got at kind of.

Speaker Change: Multiple shots on goal in terms of driving growth right. It's not just like it used to be you are really primarily just focused on leads and leads kind of we need to generate more traffic to drive more growth I think as we began expanding into some of these ancillary products and services, you've got multiple dimensions with which to grow the agent base and that'll be that'll be an.

Speaker Change: If you look at the traffic landscape, obviously, it certainly does it certainly has a direct impact on our.

Speaker Change: <unk> percentage.

Speaker Change: I guess I wouldn't point to any one specific thing that would be sort of positive or negative as we.

Speaker Change: We've seen progressing through last year, there's puts and takes that happen with any given quarter and so what you described could be a positive it can be something else on the other side the kind of balance itself. When we thought about our planning here internally.

Speaker Change: <unk> over the course of the next couple of years as we continue to sort of develop ship and scale. These products.

Speaker Change: And then maybe just a follow up as you were talking about kind of leads and traffic I'm just curious from a VM perspective.

Speaker Change: Khamenei gave earlier in the Q&A was do you think about Vms margin for the year, you see where we are in Q3, Q Q1 guidance, which is.

Speaker Change: There are in pure I am wondering if there are external factors as you go across 2025 years, we've started to hear maybe like more media owners investing in traffic acquisition, so could that be at least a modest tailwind to Vietnam as the year scales.

Speaker Change: 28, 29%, we think that the high <unk> is probably the zone, but as we think about the rest of the year driven by the two things we've been doing one is maintaining that excludes exclusive one to one traffic for select agents, who will see the value in that premium traffic and second more broadly investing quality as we think about how to build a longer term.

Speaker Change: If you look at the traffic landscape, obviously, it certainly does it certainly has a direct impact on our.

Speaker Change: <unk> percentage.

Speaker Change: I guess I wouldn't point any one specific thing that would be sort of positive or negative.

Speaker Change: Our relationship with our clients and quality is a part of it so how that factors out certainly what you described could be a benefit could be a benefit.

Speaker Change: <unk> seen progressing through last year, there's puts and takes it out with any given quarter and so what you described could be a positive it can be something else on the other side that kind of balances. So when we thought about our planning here internally and the comment I gave earlier on that in the Q&A was do you think about <unk> margin for the year, you see where we are in Q3.

Speaker Change: Other things May counterbalance it will and we'll should see as the year progresses.

Speaker Change: Alright, great. Thanks, guys.

Speaker Change: Thank you Jason.

Speaker Change: And our last question comes from the line of Gregory <unk> with Raymond James Your line is open.

And our Q1 guidance, which is.

Speaker Change: Hey, Thanks for taking my question. This is Mitch Reuben on behalf of Greg Peters Congratulations on the excellent results. My question today on free cash flow could you give some color on your outlook for 2025 any headwinds or other moving parts you could go over.

Speaker Change: 28% to 29%, we think that the high twenty's as probably the zone for as we think about the rest of the year driven by the two things we've been doing one is maintaining that excludes exclusive one to one traffic for select agents, who see the value in that premium traffic and second more broadly investing quality as we think about how to build a longer term.

Speaker Change: Sure. So just in our model we have as we've talked about since we exited our health business in 2003 on our broader strategic realignment adjusted EBITDA is a good proxy for operating cash flow in the business and you saw if you look through two.

Speaker Change: Ratios with our clients and quality is a part of it so how that factors out certainly what you described could be a benefit could be a benefit.

Speaker Change: Other things May counterbalance it will and we will.

Speaker Change: 2024 quarter by quarter, you had a pretty good pretty good conversion of adjusted EBITDA and operating cash flow.

Speaker Change: Should see as the year progresses.

Speaker Change: Alright, great. Thanks, guys.

Speaker Change: Thank you Jason.

Speaker Change: The wildcard whether it goes slightly above 100% of slightly below 100% is really working as collection on on payables from carriers versus when we pay out our own receivables from carriers, because we do our own payables, but except that minor fluctuation. It's a very good proxy for operating cash flow in 'twenty four we expect to continue to be in 25% as we think more broadly.

Speaker Change: And our last question comes from the line of Gregory Peters with Raymond James Your line is open.

Speaker Change: Alright. Thanks for taking my question. This is Mitch Reuben on behalf of Greg Peters Congratulations on the excellent results. My question today on free cash flow could you give some color on your outlook for 2025 any headwinds or other moving parts you could go over.

Speaker Change: <unk> taxes will become a consideration as we go further out but for this year taxes are relatively modest last.

Sure. So just in our model we have as we've talked about since we exited our health business in 2003 on our broader strategic realignment adjusted EBITDA is a good proxy for operating cash flow in the business and you saw if you look through 'twenty.

Speaker Change: Last year, there were like 5%, so pretty modest overall in terms of our business and as you think about the back half of this year, we're still doing the <unk>.

Speaker Change: Progress through this year, maybe it becomes high single digits, so not a meaningful impact on that working capital adjustment described for 2025 to 26, we will talk more about taxes, we get further into and we're doing work on it now.

Speaker Change: 2024 quarter by quarter, you had a pretty good pretty good conversion of adjusted EBITDA and operating cash flow the wildcard whether it goes slightly above 100% of slightly below 100% is really working as collection on on payables from carriers versus when we pay out our own receivables from carriers, because we do our own payables, but except that minor fluctuations are very good.

Speaker Change: But again EBITDA adjusted EBITDA is a very good proxy for operating cash flow and that will continue.

Speaker Change: Thank you that's very helpful.

Speaker Change: My follow up is how do you see the delay of the FCC rule change impacting your expenses.

Speaker Change: For operating cash flow in 'twenty four we expect to continue to be in 25% as we think more broadly taxes will become a consideration as we go further out but for this year taxes are relatively modest you know last.

Speaker Change: So on the so maybe I'll talk about.

Speaker Change: And Youre talking take cash operating expenses are you, referring to sort of our traffic costs.

Speaker Change: Yes, the cash operating expenses, so I would say cash operating expense is really not an impact if you looked at in Q3 cash operating expense of around $25 million Q4, they are around $25 million.

Speaker Change: Last year, there were like 5%, so pretty modest overall in terms of our business and as you think about the back half of this year, we're still doing that.

Speaker Change: As we progress through this year, maybe it becomes high single digits, so not a meaningful impact on that working capital adjustment described for 2025, So up to 26, we'll talk more about tax so we get further into and we're doing work on it now.

Unchanged. If you look at what's implied by our guidance for Q1, they will generally be in that zone, maybe moving up a bit as we get into Q2, we expect to move up a bit with you have cost has started the year and benefits of things flowing through and I think the back half of the year, we expect incremental cash operating expenses from those levels, but as we invest in new areas of.

Speaker Change: But again EBITDA adjusted EBITDA is a very good proxy for operating cash flow and that will continue.

Speaker Change: Thank you that's very helpful.

Speaker Change: My follow up is how do you see the delay of the FCC rule change impacting your expenses.

Speaker Change: <unk> technology further to build our advantage longer term, but as I as I referenced in my prepared remarks.

Speaker Change: So on the so maybe I'll talk about.

Speaker Change: Are you talking to take cash operating expenses are you, referring to sort of our traffic costs.

Speaker Change: We're going to be disciplined in how we do that such that we continue to sort of maintain that EBITDA margin at or near current levels. So that 12, 13% level.

Speaker Change: And so as you think about what that means for how much they will grow in the second half of the other wildcard is how we see revenue growth in BMD precisely come through but we will see incremental expenses in the second half, but again, we'll be guided by making sure. We're also trying to maintain that adjusted EBITA margin as we progress through the year.

Speaker Change: Unchanged. If you look at what's implied by our guidance for Q1, they will generally be in that zone, maybe moving up a bit as we get into Q2, we expect to move up a bit with you have costs with start of the year and benefits of things flowing through and I think the back half of the year, we expect incremental cash operating expenses from those levels, but as we invest in new areas of <unk>.

Speaker Change: Okay.

Speaker Change: Okay. Thank you so much for the responses.

Speaker Change: Thank you Mitch.

Speaker Change: Okay.

Speaker Change: This now concludes our call for today I will turn it back to management for closing remarks.

Speaker Change: Technology further to build our advantage longer term, but as I as I referenced in my prepared remarks.

Speaker Change: Great.

Speaker Change: Well, thanks, everyone for taking the time with US this evening and for those of you who have who have been following us for a while.

Speaker Change: We're going to be disciplined in how we do that such that we continue to sort of maintain that EBITDA margin at or near current levels, so that 12% to 13% level.

Speaker Change: I hope and I, certainly think Youll appreciate that this last year really punctuated the completion of a multiyear transformation of the business.

Speaker Change: And so as you think about what that means for how much they will grow in the second half of the year. The wildcard is how we see revenue growth in BMD precisely come through but we'll see incremental expenses in the second half, but again, we'll be guided by making sure. We're also trying to maintain that adjusted EBITDA margin as we progress through the year.

It started out at the top by sharing that it ever quote entering this year will be virtually unrecognizable to ever quote from a couple of years ago.

Speaker Change: And bring this to life I'll just share a few data points we.

Speaker Change: We exited.

Last year with close to half the head count with which we started 2023 so.

Speaker Change: Okay.

Speaker Change: Okay. Thank you so much for the responses.

Speaker Change: Thank you Mitch.

Speaker Change: We cut head count by nearly half and expenses as well we grew.

Speaker Change: This now concludes our call for today I will turn it back to management for closing remarks.

While doing that we grew by 70% year over year last year at across the $5 billion revenue milestone for the first time.

Speaker Change: Great well, thanks, everyone for taking the time with US this evening and for those of you who have who have kind of been following us for a while.

Speaker Change: That enabled us to go from breaking even roughly on an adjusted EBITDA basis to nearly <unk>.

Speaker Change: I hope and I, certainly think Youll appreciate that this last year really punctuated the completion of a multiyear transformation of the business has started out at the top by sharing that ever quote entering this year would be virtually unrecognizable to ever quote from a couple of years ago.

Speaker Change: $60 million of adjusted EBITDA last year, great cash flow with positive net income and as a result, we went from a relatively modest balance sheet to $100 million now on balance sheet with no debt.

Speaker Change: So the state of the business is strong and this is the ever quote of the future. It's a company that's focused on helping customers win.

Speaker Change: And bring this to life I'll just share a few data points.

Speaker Change: We exited.

Speaker Change: Last year with close to half the head count with which we started 2023, so we cut head count by nearly half and expenses as well we grew.

Speaker Change: On profitable growth.

Speaker Change: On building the best team in the industry by far on leading the insurance industry in developing technology and AI solutions to help providers grow in the digital age.

Speaker Change: While doing that we grew by 70% year over year last year to cross the $5 billion revenue milestone for the first time.

Speaker Change: So this is really the beginning of our next chapter and we appreciate your interest and being on for Rod.

Speaker Change: Ladies and gentlemen. This concludes today's conference call you may now disconnect.

Speaker Change: That enabled us to go from breaking even roughly on an adjusted EBITDA basis to nearly <unk>.

Speaker Change: $60 million of adjusted EBITDA last year, great cash flow with positive net income.

Speaker Change: And as a result, we went from a relatively modest balance sheet to $100 million now on balance sheet with no debt.

Speaker Change: So the state of the business is strong and this is the ever quote future. It's a company that's focused on helping customers win.

Speaker Change: On profitable growth.

Building the best team in the industry by far on leading the insurance industry in developing technology and AI solutions to help providers grow in the digital age.

Rod: So this is really the beginning of our next chapter and we appreciate your interest and being on for Rod.

Speaker Change: Ladies and gentlemen. This concludes today's conference call you may now disconnect.

Rod: Okay.

Rod: [music].

Rod: Yes.

Q4 2024 EverQuote Inc Earnings Call

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