EverQuote, Inc. (NASDAQ:EVER) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The US$826m market-cap company posted a loss in its most recent financial year of US$51m and a latest trailing-twelve-month loss of US$47m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which EverQuote will turn a profit, with the big question being "when will the company breakeven?" We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

According to the 9 industry analysts covering EverQuote, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$1.3m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 108% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of EverQuote's upcoming projects, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that EverQuote has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of EverQuote which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at EverQuote, take a look at EverQuote's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Valuation: What is EverQuote worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether EverQuote is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on EverQuote's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com