The insurance platform continues an accelerated growth of its Health Insurance Vertical
As part of its plan to develop its growing Health Insurance Vertical within its online insurance platform, the online insurance platform, Everquote has announced the acquisition of Crosspointe Insurance & Financial Services, LLC of Evansville, Indiana. A leading health insurance agency, the company has over a decade of experience within the health insurance marketplace providing a high-quality, personalized shopping experience for its healthcare consumers.
In commenting on the acquisition in the release of its Q2-2020 Earnings, Seth Birnbaum, CEO and Co-Founder of EverQuote said the following.
“Today, we also announced the acquisition of Crosspointe Insurance & Financial Services, a leading health insurance agency, to accelerate growth in our health vertical and our own initiatives to offer direct to consumer agency experiences. Crosspointe is a data-driven, sales and decision support contact center that connects consumers to the highest quality healthcare insurance in a customer centric environment. This accretive acquisition positions us to significantly accelerate the growth of our health vertical, with more substantial carrier distribution and monetization potential, including a greater ability to access the $130 billion commission TAM component of the overall distribution spend in insurance.”
According to Everquote, health insurance, similar to other verticals, is going through a transformation from offline to online distribution. That transformation demands investment in AI and data-driven experiences that retain the care of a trusted agent while delivering the ease of purchase found with online and mobile platforms.
“EverQuote’s leading technology and strong reputation in the insurance market complements what we have built and grown at Crosspointe over the last decade,” said Josh Mushlock, Co-Founder of Crosspointe. “EverQuote shares our passion for driving innovation in the insurance industry by partnering with providers to deliver a better shopping experience to consumers.”
“Crosspointe is very excited about the opportunity to partner with EverQuote’s data and tech-centric culture to help bring our offerings to a broader range of consumers who are increasingly looking online for insurance,” continued Drew Shockley, Co-Founder of Crosspointe. “Together we are uniquely positioned to address the growing diversity of products in the individual and family health, Medicare, and ancillary health product categories, with consumers’ desire for thoughtful guidance in unified destination advisory and distribution platforms.”
The acquisition is expected to close by the end of the third quarter subject to customary closing conditions, and EverQuote intends to fund the acquisition through cash on its balance sheet. Please reference EverQuote’s Q2 2020 earnings release and conference call for more details regarding the transaction.
Revenue Increased 41% Year-Over-Year to $78.3 million
In addition to announcing the Crosspointe acquisition, Everquote also reported financial results for the second quarter 2020. Of note, the company says its consumer traffic initiatives saw a 50% year-over-year increase in online quoting requests while more than 94% of its revenue came from carrier participating on its platform for more than a year. The company also mentioned the following financial highlights:
- Total revenue of $78.3 million, an increase of 41%.
- Automotive insurance vertical revenue of $64.6 million, an increase of 30%.
- Revenue from our other insurance verticals, which includes home and renters, life, health, and commercial insurance, increased 133% to $13.7 million.
- Variable Marketing Margin of $23.5 million, an increase of 41%.
- GAAP net loss of $2.8 million, compared to a GAAP net loss of $2.0 million.
- Adjusted EBITDA of $4.0 million, compared to Adjusted EBITDA of $1.6 million.
“Our strong business model and expansion in our non-auto verticals, combined with our experienced and talented team, has enabled us to execute on our growth initiatives and scale our business. Our team is passionate about our goal to become the destination for insurance customers, both consumers and providers, by delivering high value experiences and broad product selection with low friction. We are benefiting from the seismic shift of insurance online and remain committed to our mission to empower insurance shoppers to better protect life’s most important assets—their family, property, and future. Looking ahead, we are raising full year 2020 guidance and are positioned for a strong second half. I am more excited than ever about our long-term journey and believe we are well positioned to capitalize on the expanding market opportunity,” concluded Mr. Birnbaum.