EverQuote Plans To Exit Its Health Insurance Vertical, Beginning June 30, 2023; Begins Implementing Workforce Reduction Plan
Portfolio Pulse from Benzinga Newsdesk
EverQuote has announced plans to exit its health insurance vertical, which includes its marketplace and direct to consumer agency serving the Medicare and 'Under 65' health insurance market, and represented about 10% of the company's revenue in 2022. The company has also begun implementing a workforce reduction plan, which will result in severance charges of approximately $2.0 million to $3.0 million, primarily recognized in Q2 2023. EverQuote is also reviewing the potential impact of this decision on its balance sheet.
July 06, 2023 | 8:13 pm
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EverQuote's decision to exit its health insurance vertical, which represented 10% of its 2022 revenue, and implement a workforce reduction plan could have significant financial implications for the company. The severance charges of $2-3 million will impact its Q2 2023 earnings.
Exiting a business vertical that contributed to 10% of the company's revenue in 2022 could lead to a significant reduction in future revenues. Additionally, the severance charges associated with the workforce reduction plan will increase the company's expenses in the short term, potentially negatively impacting its Q2 2023 earnings.
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