Thank you for standing by. My name is Kella, and I will be your conference operator today. At this time, I would like to welcome everyone to the EverQuote Q3 2024 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. I would now like to turn the call over to Brinlea Johnson of The Blueshirt Group. You may begin.

Thank you. Good afternoon, and welcome to EverQuote's third quarter 2024 earnings call. We'll be discussing the results announced in our press release issued today after the market closed. With me on the call this afternoon is Jayme Mendal, EverQuote's Chief Executive Officer; and Joseph Sanborn, Chief Financial Officer of EverQuote. During the call, we will make statements related to our business that may be considered forward-looking statements under federal securities laws, including statements concerning our financial guidance for the third quarter of 2024. Forward-looking statements may be identified with words and phrases such as we expect, we believe, we intend, we anticipate, we plan, may, upcoming and similar words and phrases. These statements reflect our views only as of today and should not be considered views as of any subsequent date. We specifically disclaim any obligation to update or revise these forward-looking statements, except as required by law. 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 available on the Investor Relations section of our website. 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 was included in the press release we 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 Jayme.

Thank you, Brinlea, and thank you all for joining us today. EverQuote had a very strong third quarter. Operating results once again exceeded the high end of our guidance range for revenue, VMM, and adjusted EBITDA, and we once again achieved record levels across all three of these financial metrics, along with record net income. Our continued focus on the P&C market is paying off as we benefit from industry recovery and strong execution. As auto-carrier underwriting profitability remained healthy, carriers have continued to reactivate campaigns, restore budgets, and reopen state footprints in our marketplace. Our team has partnered deeply with carriers to find creative ways to support their reentry into the marketplace, helping accelerate progress for several important carriers. At the same time, we continue to grow our local agent distribution channel. With double-digit growth in this channel, it is approaching record high revenue levels. Into this strengthening carrier and agent demand, our customer acquisition teams continue to optimize effectively, and we continue to benefit from our AI-powered bidding solutions. Additionally, we grew our home insurance vertical 30% year-over-year. As our results show, our team is executing very well in this new environment. Progress in our technology evolution continues as well, as we advance toward more modernized and simplified platforms across all facets of the business. In Q3, we've finished the transition to our new site platforms and completed a major release of our new agent platform. These advances have already impacted development speed and will significantly accelerate our ability to roll out new features moving forward. In Q4, we are focused on maintaining operational momentum, planning for 2025, and starting to manage through our transition to one-to-one consent. As we noted in last quarter's call, we have been preparing to comply with a new FCC rule related to consent collected under the TCPA, the Telephone Consumer Protection Act. We are in the process of implementing the appropriate measures and expect to complete the process by the time it goes into effect in January 2025. In closing, I'd like to thank the EverQuote team for an exceptionally strong performance in Q3. With auto insurance carriers and agents increasingly focused on restoring growth, we find ourselves well positioned. We have sharpened our focus on the P&C market, allowing us to go deeper in serving the needs of this segment. Our execution has been improving quarter after quarter, and with increasingly streamlined technology platforms, we expect our rate of progress in terms of our ability to support providers' growth needs to accelerate moving forward. It's an exciting time for the EverQuote business. I'll now turn the call over to Joseph to discuss our financial results.

Thank you, Jayme, and thank you all for joining. I will start by discussing our financial results for the third quarter of 2024 before providing an update on what we are currently seeing in the auto insurance sector and our guidance for the fourth quarter. Our strong momentum that started in the beginning of the year continued into Q3 as we exceeded guidance across all three of our primary financial metrics, total revenue, Variable Marketing Margin, or VMM, and adjusted EBITDA. We produced a record level of revenue and net income as well as a record level of adjusted EBITDA and operating cash flow. These impressive financial results were due to continued strong execution for operating teams against an increasingly favorable auto carrier landscape. Total revenues in the third quarter were $144.5 million, up 163% from the prior year period. Revenue growth was primarily driven by stronger enterprise carrier spend, which increased over 40% sequentially and was up nearly eight times from the comparable period last year. Our agency operations, which were considerably more resilient during the downturn, grew 30% year-over-year. Revenue from our auto insurance vertical was $130 million in Q3, up over 200% year-over-year. Revenue from our home and renters insurance vertical grew to $14.1 million in Q3, up 30% year-over-year. VMM was $43.9 million for the third quarter, up approximately 125% from the prior year period. VMM, as a percentage of revenue in Q3, remains strong at 30.4%, as we benefited from our traffic team's ability to more effectively navigate a dynamic advertising environment and the investments we have made in our bidding technology platform. As reflected in our guidance for Q4, we expect modest downward pressure on VMM as a percentage of revenues. Turning to operating expenses and the bottom line, we continue to be disciplined in managing expenses and driving incremental efficiency across our operations, which is resulting in expanding operating leverage as we scale and drive top-line growth. In the third quarter, we reported record net income of $11.6 million. Adjusted EBITDA was also a record of $18.8 million in Q3, up 45% sequentially and an improvement from a loss of $1.9 million in the prior year period. Adjusted EBITDA as a percentage of revenues grew to 13% in the quarter, as we continue to benefit from our strong operating leverage as higher VMM flowed through to adjusted EBITDA. We delivered operating cash flow of $23.6 million for the third quarter, ending the period with no debt and cash and cash equivalents of $82.8 million, up from $60.9 million at the end of the second quarter of 2024. Cash operating expenses, which exclude advertising spend, and certain noncash and other one-time charges were $25.1 million in Q3. This includes approximately $500,000 of expenses related to moving our operations in Cambridge and Belfast to new offices in each city to better support in-person team collaboration and manage rent costs. As a result of changes in our real estate footprint, annualized rent expenses will fall by approximately 40% in 2025. Before turning to guidance, I wanted to provide an update on our current outlook for the auto insurance industry. As we have progressed through the first three quarters of the year, we have seen increasing indications that a more growth-oriented mindset is firmly taking hold among carriers as they have gained increasing confidence in their underwriting profitability. Recent hurricanes Helene and Milton resulted in temporary pauses in carrier spend in southeastern portions of the U.S. at the end of Q3 and early Q4 as carriers followed their customary practice of pausing customer acquisition in impacted areas just before and in the initial days after a major storm. Carriers quickly resumed spending in impacted areas, which gives us confidence that these hurricanes will not have a material lasting impact on our marketplace. Looking ahead to next year, we remain confident that carriers will continue to expand their customer acquisition footprint in our marketplace as they gain rate adequacy in additional states. While the specific timing and magnitude of such incremental spend in 2025 is not yet clear, we believe that the greater level of stability that is taking hold in the industry will likely result in carriers becoming relatively more aggressive in seeking to protect and expand market share after prioritizing profitability at the expense of growth during the downturn. As Jayme discussed, we've been preparing for the upcoming FCC changes that will take place in January 2025. In the first half of next year, we expect the transition to one-to-one consent will create short-term unpredictability and headwinds, primarily with our third-party agents as we recalibrate pricing to reflect what we believe will be the new normal with a lower volume of leads being monetized at a higher level. Over the past several quarters, we have demonstrated our ability to successfully execute through and quickly adapt to dynamic environments and as such, we believe we will emerge from this regulatory shift as a stronger company with a better product offering for our customers. Turning to guidance for the fourth quarter, we expect revenue to be between $131 million and $136 million, representing 140% year-over-year growth at the midpoint. We expect VMM to be between $38 million and $40 million, representing 89% year-over-year growth at the midpoint. And we expect adjusted EBITDA to be between $14 million and $16 million versus a loss of $900,000 in the prior year's period. For context in our Q4 guidance, we expect incremental spend by select carriers in the period to generally offset our continued preparation for the upcoming FCC changes taking place in January. On balance, we expect that seasonal sequential decline from Q3 to Q4 to be comparable to what we have experienced on average over the past five years in our auto vertical. Consistent with our commentary in our August earnings call, our guidance for Q4 also reflects adjusted EBITDA margins moderating to at or near Q2 levels. In summary, during the third quarter, we continue to execute well, further build upon the strong performance we had in the first half of 2024 and capitalize on the steadily improving auto carrier landscape. Our record results in the third quarter for revenue, VMM, adjusted EBITDA, and net income are evidence that our strategic focus on driving operational improvements, maintaining disciplined expense management, and emerging from the auto insurance downturn as a stronger company is working. Jayme and I will now take your questions.

Our first question comes from Mayank Tandon with Needham & Company.

Thank you. Good evening. Congrats, Jayme and Joseph, on the quarter. I wanted to just start with the new regulation. Could you just remind us how much of the business would be exposed to the impact, and is there any way to quantify what the impact would be? For example, if it went into effect this year, is there a way to maybe size what the impact would have been, just to give us a sense of how we can reflect that in our model going forward?

Sure. Thanks, Mayank. I'll take the first part, and then I'll let Joseph address the sort of how to think about it from a modeling standpoint. So just as a reminder, the new rule effectively requires one-to-one consent that gives the consumer a bit more control over how they get their quotes. And so on the one hand, the effect of that will be that some consumers will opt into fewer provider options, resulting in fewer leads being sold. This specifically affects outreach that occurs telephonically, so that's mainly our agency business, the offline leads that we're selling, which is about 25% to 30% of the business. But on the other hand, it's going to improve the quality of that product, specifically the performance of those leads for those agents because you have fewer agents reaching out to a consumer, and that consumer will have opted in more explicitly. So net-net, what will happen is the pricing will adjust, and agents will end up paying more for what is ultimately a better, higher quality lead product. So that's kind of how it affects us in terms of how you should think about that from a modeling standpoint. I'll let Joseph address that piece.

Yes, to contextualize it for you, Mayank, the leads business is about roughly 25% of the revenues we've talked about in our last call and continues to be around that percentage. It primarily affects our agents, as Jayme mentioned. So when we think about this into the start of the year, there's a lot of puts and takes on it right now. As we've talked about, there’s some unpredictability in terms of exactly how it'll play out because it ultimately depends upon how agents will respond to better performing leads with higher priced consumers being referred to. As we think about Q4 to Q1, you typically have a seasonal step up from Q4 to Q1 when you have budget resets across the entire business, and that's a double-digit type increase. If you look historically where we've been in terms of step up from Q4 to Q1, you would see what we see expected with this, with the impact of the FCC change leading to a much more muted growth step up from Q4 to Q1. We'll still see growth, but you'll see a more muted growth. We expect, as you think through modeling, VMM margin will sort of work through a little bit in the first quarter. You may see some pressure as rates stabilize, but we think that will sort of normalize as you get into the middle of the year.

That's a very helpful color. As my follow-up question, I wanted to just go back to your comments, Jayme and Joseph around carriers opening up in new states. How long does that continue? In other words, what I'm getting at is how long will that be a tailwind before you sort of are at a point where that's not the incremental driver, but really, it's more about just capturing more of the budget from your carrier partners?

Yes. Thanks Mayank. We're pleased with the recovery thus far. It's been a strong recovery so far this year. That being said, it's been driven, I would say mostly, by a relatively limited number of carriers so far. And so if you take a step back and look at the market, what you've got is an auto insurance industry that is increasingly healthy from an underwriting standpoint. So you're seeing mid-90s to low-90s combined ratios almost across the board. But you've got effectively all but one carrier kind of losing share and one carrier gaining a lot of share. And so I think the table is sort of set for the conditions right now are such that the carriers are profitable, they're losing share with one exception, and they are talking more about and leaning more into growth as we turn the corner into next year. Our general point of view is, we've started to see more carriers reenter the marketplace, more carriers expanding their footprint, and we would expect that to persist into next year. We also know that next year you’ve got one or more large states that could significantly come back in a more meaningful way, California being the most notable one. So our expectation is that there will be some more recovery as we progress into next year, and that will come from more carriers, more geographical footprints. But I think we're definitely more than halfway through the recovery at this point. It’s hard to pin exactly where we are, but I would say sort of mid to late innings.

And your next question comes from the line of Gregory Peters with Raymond James.

Well, good afternoon, everyone. I guess my first question is can you just take a step back and talk to us about the new bidding technology and the new agent platform? And from a technical perspective, I'm just curious how that interfaces with the existing agency management systems that so many of these agents have in place already.

Sure. So for some time now, Greg, we've been working to realign and sort of simplify our technology platforms to really support the future scale, velocity of new feature development, and specifically going deep into specific use cases within the P&C market as we really focus on going deeper here. We've rolled out a number of new or enhanced platforms over the last year that span our site traffic, which is now all running through a new platform, our traffic bidding platform, which effectively uses AI bidding. We have machine learning that does the vast majority of our traffic bidding today. And then we have an agent platform, which was just released, where we had a significant release of it to thousands of agents, which will really accelerate our ability to deliver new features to agents. So we're making good progress there and we're seeing the benefits of it. With respect to how it interacts with agent management systems, our agent platform today is primarily focused on the delivery of our referral products. So it's setting up campaigns to help them target specific risk profiles and accept lead delivery or live call delivery of those referrals. We do integrate with various agency management systems or lead management systems out there, but our technology platform lives almost one step up funnel from that. That being said, the re-platforming is setting the stage for us to continue to add more features to it and really develop richer relationships with those agents that begin to span more of their needs over time. Is that answer your question?

Okay, that's your question. Yes, that's interesting detail and there's some follow-ups I have on that but we can take that offline. The other important question I wanted to ask is just given the success you've had this year; I'm intrigued by the cash build that you have on the balance sheet and I'm just curious how management and the board are thinking about the cash build because if we look forward it seems like with the recovery in the auto market, you're going to continue to accumulate cash. So what are the uses of cash at this point as we think about the outlook?

Sure, so thanks Greg for the question. We are pleased that we've been building cash; I think it reflects that over the past year we've taken the business from really focusing on how do we drive not just adjusted EBITDA, but cash flow and how that represents building value over time. So it's been a big part of our strategy, so thank you for noticing it. In terms of how we think about cash, we do expect it to continue to build as well. We do not see cash needed to grow, specifically to grow the business. It's a cash flow positive business. We expect that to continue with nice conversion from adjusted EBITDA to free cash flow. As we look at potential uses for cash; I think a couple of things we’ll consider. One is obviously maybe we might think about M&A as a potential way to accelerate our existing strategy. As we've mentioned to you this summer, we did our annual strategy review process, and coming out of that, we have our five-year plan on how we're going to drive long-term growth and profitability at EverQuote. And it's very much focused on the P&C vertical, but we can see opportunities to augment things we're going to do organically with potentially inorganic activities that could accelerate it. The landscape has changed a lot in terms of the private insurer tech market. Many have been challenged at raising additional rounds of capital, and there's an opportunity for us potentially to accelerate things for us and bring on additional folks who want to be part of a winning team in what we're trying to do here at EverQuote. I think, of course, if we look at those opportunities, they'll be in the context of the same way we view things internally right now, which is how does it drive our core strategy of P&C? How does it focus on driving additional cash or EBITDA and help our clients succeed and win? So I think that's the primary focus, and then beyond that, we'll think of other things that help continue to drive growth in the business overall.

And your next question comes from the line of Jason Kreyer with Craig-Hallum.

Great. Thank you. Nice work, guys. Just want to ask about VMM. We've seen that just come under a little bit of pressure over the last couple of quarters. I wonder if you could give some perspective on where you think that trend's going forward and then what do you think would need to happen in the market to see that figure start to expand?

So thank you, Jason, for the question. In terms of VMM margin, I think one of the things that we highlighted in our prepared remarks is, how does it result for us in Q3? As we talked about since the start of the year, we expected, as we went to a more normalized environment that we would have VMM margins come down from where they were at their heights of late last year and early this year, reflecting that as we got into a more normalized environment with carriers looking to grow their business. And as that has continued, we expected some downward pressure on VMM margin. What we were able to do in the course of Q3 is really through the two things. I think the effect of our teams really adapting very nicely in the traffic side to the environment, coupled with our bidding technology, we were able to maintain a very strong VMM margin, very close to where we were in Q2, and that I think speaks to the investments we've made in the data and the technology that are really starting to pay off for us. We think that will be sustainable over time. As we've talked about with the FCC changes coming up, we think there'll be some modest pressure. We reflect that in our guidance for Q4, which suggests some downward pressure, but very modest. We expect there'll be some pressure in the start of the year as well, but we think we'll normalize around these levels as we get into the middle of next year, and we think that is really a level that is sustainable over time for us. Again, as we think about VMM margin, we look at it in the context of the efficiency of our traffic operations. Ultimately, we think it's important that we're not just driving revenue, we're driving margins, so we have a sustainable financial model over time.

That's super helpful. Just on the FCC, the TCPA change, I'm assuming you've done some testing in the market. Just curious if there's any details you can provide on what you've learned in testing that is framing your opinion on what's going to happen come that January changeover.

Yes, we've been doing testing on it, for quite some time now. We've tested many variants of different treatments that would be compliant. What we've come to appreciate is, as I said earlier, by giving consumers a bit more control, what happens is you'll end up with slightly fewer consumers opting in to various provider options. The results of that will be fewer leads sold. But the encouraging bit is that those consumers who do opt in convert at significantly higher levels. We expect lead volume to come down a bit, but we also are going to reflect the improved performance, the improved quality in the form of higher pricing. The net effect will be a better product for our customers because they will have a higher conversion rate, creating a better experience for consumers. So we feel confident in our plan. We've been working closely with carriers, agents, and other partners to adapt. We're in the process of executing our transition plan right now. It’s all in flight, and we look forward to getting through it and coming out in a better place on the other side.

And maybe I'll just add on, Jason, if you think about the FCC changes, we came out with a note on this as well. Our view on it is that this is a change that is a challenge for the industry broadly. We have been putting a lot of effort into it from early on. We think, as Jayme said, we're not going to come out weaker; in fact, we think we're coming out of this stronger strategically, while many others will not. We feel very good about what we're doing in positioning us for this change. The silver lining is that we'll come out in, I think, a better spot, which will be better for our customers, as well as consumers, and ourselves.

And the next question comes from the line of Jed Kelly with Oppenheimer.

Thank you for taking my question. I have two inquiries. First, your guidance suggests that you're expecting to finish this year with EBITDA as a percentage of VMM at 35% to 36%. With the anticipation of lower rent expenses next year, could you provide some insights on how we should consider your EBITDA margins for VMM? My second question concerns the Q4 guidance, which appears to indicate a quarter-over-quarter revenue decline. However, based on the historical performance of the business during up cycles, revenues typically increase quarter-over-quarter. Could you share your thoughts on this? Thank you.

Sure. So, maybe I'll take the second one, just sort of seasonality. If you look at our business, since we've divested health, health tends to be a very strong Q4 performer—a second quarter performer—it skews the data. So, you've got to sort of isolate that business from our financials. When we look at this, we analyze the auto business and going back over the past half dozen years, what does it look like from Q3 to Q4? There’s been a sequential decline, typically around 7% to 8%. You can see this over five or six years on average, and I will acknowledge that there have been years when it’s been up double digits, and years when it has been down even more materially. Averages, by their nature, have some limitations given the volatility we've had in our business overall. That being said, it is certainly something we look at with EverQuote. The other point I'd make about seasonal trends is that agents tend to take holidays during Q4, which impacts the agent business. On the carrier spend side, carriers usually pull back relatively speaking on spend because they don’t want to compete against the holidays. Incorporating all of these factors, we do believe there will be some carriers that will come from Q3 into Q4, and there are select carriers actually increasing spend in Q4, but there are also carriers that have made clear they will pull back seasonally in Q4, and they’ve been explicit about that to us. So there are both of those aspects. The next piece I’d speak on is VMM margins. I think it’s an interesting way to look at the business. When I look at EBITDA margins, I guess to give you context, right, we were at 5.5% to 6% pre-downturn. We were at 8.5% in Q1. So we had record levels in Q1. It continued into Q2 with 11%. We had stated at the time that we were pleased with double-digit EBITDA margins, reflecting the operating leverage built into our model. Given the changes that we’ve seen, we anticipated that margins would stabilize, returning to compositional levels similar to what we saw in Q2 for Q4. As we look ahead to next year, our margins remain a focal point because we will have to work through exactly how the market will play out. But moving forward, we will certainly be disciplined in adding incremental operating expenses, but we do expect those investments to drive growth in the future. Ultimately, our goal is to gradually increase margin to levels above 20%.

And your next question comes from the line of Ralph Schackart with William Blair.

Good afternoon. Thanks for the question. Two questions, please. Maybe just returning back to the FCC change that's coming at the beginning of next year. Jayme, perhaps give some perspective. Has the feedback that you've been receiving and sort of the actions that the agents and the customers are taking been in line with your expectations, or have there been any, I guess, major shifts versus what your thesis was going in? That's the first question. Second question is for Joseph, more philosophical. I know you talked about some pull-through and the huge step up margins in 2024, but given the return to growth and the leaner cost structure that you've implemented, philosophically, how are you thinking about expanding margins versus reinvesting in the business? Thank you both.

With respect to how the customer engagement has gone relative to our expectations, I would say it's been very much in line with our hopes, which may be exceeded expectations in that effectively all the carriers and agents with whom we've been interacting have been very receptive to the data that we've been sharing and the actions that we plan to take. You’ve got to remember; all these carriers and agents are moving back into a growth mindset. They are willing to work with us to do what is needed to support our ability to continue to help them grow. A lot of data sharing has occurred with the large carriers that are most effective. We’ve shared data from some of the testing we've been doing to help them understand the performance improvement, which is the basis for the pricing changes that we plan to roll through. Upon reviewing that data, they are more than willing to support the changes we hope to implement. More broadly, I think we've seen carriers more open-minded to supporting a broader range of things we can do, whether it's new services or new products to support their growth in the future. So overall, I would say the process has somewhat exceeded our expectations, but we’ve received very little in the way of pushback.

Yes. So maybe turning to the margin philosophy. At a high level, our philosophy continues to be that we're focused on expanding growth and profitability over time. We see our long-term growth averaging 20-plus percent in the top line, with adjusted EBITDA margins getting to 20-plus percent as well. That said, we have experienced significant margin expansion in a short period, and we will be disciplined with any additional OpEx we add next year. The investments will be driven by our outlook for returns in 2026 and beyond. It’s also important to note that we had substantial margin expansion this year, reaching approximately 1300% since we saw Q3 moving from negative to a healthy level.

And your next question comes from the line of Cory Carpenter with JP Morgan.

Thanks, and good afternoon. Why don’t you go back to the agency channel of 30% year-over-year this quarter. Jayme, could you just expand on what you're seeing in that channel? Is the recovery similar to the carrier channel where it's driven by maybe a small number of large cases? Or just expand a bit on what you're seeing there. And then, Joseph, I know you've been asked this a few times, but just on the Q4 outlook, is there any way to kind of assess how significant of an impact the FCC changes are having? Maybe another way of asking it would be: would auto revenue in Q4 be flat or even sequentially without the FCC impact? Thank you.

Thanks, Cory. So with respect to the agent channel, the agent business is performing very well. It's approaching record high revenue levels. What we are seeing is that the captive carriers, who were a bit slower to respond to the hard market cycle, are beginning to feel better about their underwriting profitability. They are encouraging growth among their agent base through changes in underwriting and increases in marketing support, which flows directly to us. We’re seeing these carriers really begin to push the agents for growth again, which is helping to drive recovery in the agent base. That being said, the rate of change with agents is always a bit slower than that with direct carriers. However, I think the recovery is here for the agents and it has been building up late, and we expect that trend to continue into next year. This excites us because of our leadership position with local agents.

With regard to your question on Q4 outlook, if it was not for FCC changes, would we be closer to flat Q3 to Q4? I think that's a reasonable assumption. I think closer to flat is indeed conceivable, but I'm not quite ready to assert that it would be flat from Q3 to Q4. As we indicated in our prepared remarks, there are select carriers that are increasing spend going into Q4, but there are also carriers that have indicated they will pull back seasonally in Q4.

And your final question comes from the line of Zach Cummins with B. Riley Securities.

Yes. Hi, thanks for taking my questions. I appreciate it. Just two for me. First, Jayme, I was curious about the feedback you've been getting for the broader set of carriers and their intentions around potentially ramping up spend going into next year. And then my second question is just within the home and renters vertical. And nice to see the strong growth again this quarter. Just curious what's driving the solid performance in that vertical and expectations we should be assuming moving forward?

Sure. Yes. On the broader auto recovery, we hear directly from carriers and also monitor leading indicators. We've established a good understanding of how their underwriting profitability today translates into their growth appetite tomorrow. Broadly speaking, underwriting profitability looks healthy, with mid-90s to low-90s combined ratios across carriers. More carriers are leaning in, expanding their footprint, and increasing their budgets, which has been part of the growth we’ve seen this year. There is not a single carrier we've interacted with that isn’t focused on growth for next year, setting the stage for increased competition. Now regarding home performance, we started refocusing last year on our home segment. We’re benefitting from growth in both traffic and monetization, sustaining a healthy growth rate. That said, the homeowner’s market is still dealing with elevated cat losses; however, we anticipate continued strong performance moving forward. All right, well, thanks all for joining us today. Just to reiterate, we delivered an exceptional third quarter, surpassed our expectations, and it's been a strong year-to-date for EverQuote. We're pleased with the team's continued execution, and now as auto insurance carriers and agents restore focus on growth, we feel very well positioned as a leader in the market and a sole pure play P&C-focused marketplace. We look forward to continuing to make progress and keeping you updated on our progress as we go. Thanks for your time.

This concludes today's conference call. You may now disconnect.