Cambridge, Mass.-based online insurance agency EverQuote Inc. announced the pricing of its initial public offering of 4,687,500 shares of its Class A common stock at a public offering price of $18 per share. The shares are scheduled to begin trading on the Nasdaq Global Market today under the ticker symbol “EVER.”
EverQuote is offering 3,125,000 shares of Class A common stock and selling stockholders are offering 1,562,500 shares of Class A common stock. In addition, EverQuote has granted the underwriters a 30-day option to purchase up to 703,125 additional shares of Class A common stock from EverQuote at the public offering price, less underwriting discounts and commissions.
The firm announced its plan for the IPO on June 18.
The offering is expected to close on July 2, subject to customary closing conditions.
The company reported $126 million in revenues in 2017, up from $123 million in 2016 and $97 million in 2015. Since 2013 it has had a 29 percent annual growth rate. The company has not yet turned a profit— it lost $5.1 million in 2017 and $900,000 in 2016.
The offering is being made only by means of a prospectus. J.P. Morgan and BofA Merrill Lynch will act as lead book-running managers for the offering. Canaccord Genuity, JMP Securities, Needham & Co., Oppenheimer & Co., Raymond James and William Blairwill are co-managers for the offering.
Founded in 2011, EverQuote utilizes proprietary technology and data to match insurance shoppers with carriers and agents, both online and offline. The software recommends carriers based on the consumer’s risk profile and information on which carriers consumers with similar profiles have chosen in the past.
EverQuote calls itself the “largest online insurance marketplace” with 10 million consumer visits per month. More than 90 percent of its sales are of auto insurance; in 2016 it also began selling life and home insurance and launched a safe driving app, EverDrive.
The company says it sees future growth ahead from expanding its current auto, home and life sales; entering the renters insurance and commercial insurance markets; and exploring international insurance markets similar to the U.S..
Its current network has more than 160 insurance carriers, including the 20 largest property/casualty carriers by premium volume, more than 100 regional carriers and startups, as well as more than 7,000 insurance agencies. Insurance carriers in its network include Allstate, Farmers, State Farm, Nationwide, Mercury, Liberty Mutual, Travelers, Hartford, American Family, Progressive and MetLife. EverQuote receives a fee when a consumer buys a policy.
In October, 2016 EverQuote closed a $23 million Series B investment led by Maryland-based Savano Capital Partners, with participation from Stratim Capital, Oceanic Partners and T Capital Partners.
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