Slide 1: Investor Presentation May 2023
Investor Presentation May 2023 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding possible or assumed future results of operations, business strategies, development plans, regulatory activities, c
Slide 3: Our vision
Our vision Become the largest online source of insurance policies by using data, technology and knowledgeable advisors to make insurance simpler, more affordable and personalized, ultimately reducing cost and risk. 3
Slide 4: Key Investment Highlights
Key Investment Highlights Leading multi-vertical online insurance marketplace providing compelling Insurance Marketplace Leader benefits for consumers and insurance providers $171b in annual insurance distribution spend in the early phases of shifting Massive Market Opportunity online provides multi
Slide 5: Company Snapshot
Company Snapshot ▪ One of the insurance industry’s largest online customer acquisition and distribution platforms 26% 29% ▪ "Hybrid Marketplace” with extensive distribution: Revenue CAGR VMM2 (5yr)1 CAGR (5yr)1 Enterprise Marketplace (100+ carriers), 3rd Party Agency (~8,000 local agents), and DTC A
Slide 6: Large & Expanding TAM
Large & Expanding TAM U.S. Insurance Market: Highlights Growth Drivers Distribution Spend1 $171b <1% Total Market Continued shift of Estimated share of Total consumer time spent online Distribution Spend Market ~4% Continued shift of Estimated share of Digital acquisition spend online Advertising Sp
Slide 7: EverQuote Benefits Both Consumers & Providers
EverQuote Benefits Both Consumers & Providers Our platforms address challenges inherent in the highly-fragmented insurance market Consumers save time and money Providers efficiently acquire consumers ▪ Single destination for insurance needs ▪ Large volume of high intent consumers ▪ Personalized shop
Slide 8: The Customer Journey
The Customer Journey Customer Acquisition Marketplace Consumer Routing Distribution Traffic Consumer Provider Provider EverQuote Channels Arrival Matching Engagement Monetization Enterprise Marketplace SEM Per Alignment Bidding Referral Performance Media Carriers 3rd Party Agency Calls Per Clicks Re
Slide 9: Proprietary Platforms Strengthen Competitive Moat
Proprietary Platforms Strengthen Competitive Moat Highly integrated machine learning and data assets to support growth of all verticals Marketing Consumer Distribution B2B Omni-channel Personalized User Consumer Alignment Enterprise & Agency Automated Bidding Experiences Algorithms Campaign Manageme
Slide 10: Distribution Strength of our Platform
Distribution Strength of our Platform Representative Partners 100+ carriers available in the marketplace ~8,000 3rd party local agents ~150 1st party EverQuote agents Based on Company data & representative of the insurance provider partners on the platform as of March 31, 2023. 10
Slide 11: Diversification by Distribution Channel
Diversification by Distribution Channel We are continuing to build more diversified revenue streams Revenue ($m) 2017 2022 $404m $51 $28 $118 DTC Agency Enterprise Non-Auto $126m 3P Agency $6 Enterprise Auto $37 $207 $84 2017 2022 Non-Auto 5% 20% Revenue1 1. Non-Auto revenues as a percentage of over
Slide 12: The Current State of the Auto Insurance Market
The Current State of the Auto Insurance Market Late Summer 2021; Current Outlook Auto Insurance Downturn Begins Cost of claims rises rapidly due to Auto carriers continue raising rates to higher used car values, increased restore adequate profitability; cost to repair and overall accident progress v
Slide 13: Multiple Levers Driving Future Growth
Multiple Levers Driving Future Growth Potential Acquisition Opportunities Grow Existing Verticals Deepen Consumer & Provider Increase Engagement Attract Provider Coverage More & Budget Consumers 13
Slide 14: Financial Overview
Financial Overview EVERQUOTE
Slide 15: First Quarter 2023 Highlights
First Quarter 2023 Highlights ▪ Exceeded guidance across Revenue, Variable Marketing Margin, and Adjusted EBITDA $109m 32.6% Revenue VMM as a ▪ Total revenues of $109.2m; a 1.3% decrease compared to % of revenue 1Q22 ▪ Variable Marketing Margin of $35.6m; a 3.9% increase compared to 1Q22 and represe
Slide 16: Focused on Driving Revenue Growth
Focused on Driving Revenue Growth Revenue ($m) Auto insurance downturn (begins late summer 2021) 26% CAGR 2017-2022 ▪ Total revenue grew 26% compounded annually $419 $404 2017 – 2022 $347 ▪ Non-Auto verticals grew 63% compounded annually 2017 – 2022 $249 ▪ Building revenue diversification by growing
Slide 17: Delivering Incremental Variable Marketing Margin
Delivering Incremental Variable Marketing Margin Variable Marketing Margin ($m) Auto Insurance downturn (begins late summer 2021) 29% $130 $140 33% CAGR 2017-2022 $128 ▪ Variable Marketing Margin (VMM) grew 29% $120 $109 compounded annually 2017 – 2022 31.7% 32 % $100 31.3% 31.0% ▪ Proprietary traff
Slide 18: Focused on Delivering Long-term Profitability
Focused on Delivering Long-term Profitability Adjusted EBITDA ($m) Auto Insurance downturn (begins late summer 2021) $18 ▪ Steadily grew Adjusted EBITDA margin until auto 20 20% $15 downturn occurred in late summer 2021 15 15% ▪ Adjusted EBITDA margin expected to “snapback” to $8 pre-downturn levels
Slide 19: NASDAQ: EVER
NASDAQ: EVER EVERQUOTE
Slide 20: Appendix
Appendix EVERQUOTE
Slide 21: Key Metrics Definitions
Key Metrics Definitions Variable We define variable marketing margin, or VMM, as revenue, as reported in our consolidated statements of operations and comprehensive income (loss), less advertising costs (a component of sales and marketing expense, as reported in our statements of Marketing operation
Slide 22: Reconciliation of Adjusted EBITDA - 12 Months Ended
Reconciliation of Adjusted EBITDA - 12 Months Ended 12 Months Ended December 31, December 31, December 31, December 31, December 31, December 31, ($ in Thousands) 2022 2021 2020 2019 2018 2017 Net loss ($24,416) ($19,434) ($11,202) ($7,117) ($13,791) ($5,070) Stock-based $28,986 $30,020 $12,721 $7,1
Slide 23: Reconciliation of Adjusted EBITDA - 3 Months Ended
Reconciliation of Adjusted EBITDA - 3 Months Ended 3 Months Ended ($ in Thousands) March 31, December 31, September 30, June 30, March 31, 2023 2022 2022 2022 2022 Net loss ($2,529) ($8,494) ($6,451) ($3,756) ($5,715) Stock-based $6,509 $6,623 $7,233 $7,600 $7,530 compensation Depreciation & $1,407