Everquote, Inc. · NASDAQ:EVER
Everquote — Investor Presentation (June 2019)
28 slides from Everquote's investor presentation, Jun 11, 2019
Slide 1: EverQuote Investor Presentation June 2019
EVERQUOTE Investor Presentation June 2019
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: Key Investment Highlights
Key Investment Highlights Largest online marketplace for insurance shopping in the U.S. $123bn in annual industry advertising and distribution spend, with spend shifting online Efficient solution to structural market challenges, with benefits for consumers and providers Compelling marketplace busine
Slide 4: Market Opportunity & Business Model
Market Opportunity & Business Model
Slide 5: Slide 5
Slide 6: Large and Expanding TAM
$ 123bn U.S. Non-health insurance sales, marketing and distribution spend Large and Expanding TAM $200mn EverQuote 2019 revenue guidance midpoint Source: Company data, S&P Global Market Intelligence SNL Insurance Data, IIABA. EverQuote is not reaffirming this guidance as of the date of this presenta
Slide 7: Marketplace Aligns Consumers & Providers
Marketplace Aligns Consumers & Providers Premium 2017 BMW Zip 20012 8K miles / year Typical coverage $500K injury Standard 2017 Nissan Leaf Zip 90210 6K miles / year Typical coverage $100K / $300K Non-standard 2013 Honda Civic Zip 10016 2 tickets Coverage State minimum Provider (premium)
Slide 8: Online to Offline Sales Journey
70% of insurance consumers shop online But, 80% of policies still closed offline Source: 2015 comScore survey Consumers cite the desire to speak to an agent as top reason for not buying online Online to Offline Sales Journey
Slide 9: EverQuote
EVERQUOTE
Slide 10: Consumer Journey from Ad to Provider Matching
Consumer Journey from Ad to Provider Matching Targeted, bid-informed, dynamic creatives attract consumers Adaptive workflow minimizes steps and increases conversion rates Alignment algorithms match optimal referral partners from our network of providers Auto Home & Renters Life Future Verticals Auct
Slide 11: Provider Campaign Setup to Policy Sales
Provider Campaign Setup to Policy Sales Multiplicative, Multi-factor Models OR ML Driven CPA Targeting Pre-configured Segments & Easy to use Geographic Optimization Tools Sophisticated Enterprise Campaign Management Simplified Agency/SMB Campaign Wizards Online & Offline Results Matched to Each User
Slide 12: Powerful Data Driven Platform & Growth Opportunities
Powerful Data Driven Platform & Growth Opportunities
Slide 13: Data and Tech Stack Drives Growth and Leverage
Data and Tech Stack Drives Growth and Leverage Proprietary Acquisition Platform • Direct Ad Platform Integrations • Bid & Creative Automation • Adaptive Workflows • ML Driven Personalization Multi-Vertical Provider Platform • Click, Lead & Call Products • Granular Consumer Segmentation • Click2Quote
Slide 14: Data Assets Create Significant Competitive Moat
Data Assets Create Significant Competitive Moat 300+ Acquisition Channels 158bn Cumulative Ad Impressions Served $512mm Cumulative Digital Ad Spend 48mm Cumulative Quote Requests 1 billion Consumer Submitted Data Points Note: Cumulative figures since launch through 2/20/2019 Source: Company data, Fa
Slide 15: Levers Driving Future Growth
Levers Driving Future Growth Increase Provider Coverage Attract More Consumers Launch New Verticals Expand Consumer and Carrier Engagement Leverage Secular Shift Online
Slide 16: EverDrive: Social Safe-Driving Mobile App
EverDrive: Social Safe-Driving Mobile App • Uses smartphone sensors and telematics to assess driving performance • Provides drivers with actionable feedback on becoming a safer driver • Social features enable positive competition with family and friends
Slide 17: EverDrive Seamlessly Connects Drivers with Savings
EverDrive Seamlessly Connects Drivers with Savings • Users opt-in to anonymously receive safe driving offers • Seamless integrations connect them to carriers for purchase • Policy details and consumer relationship remain within EverDrive experience • Launched with first carrier in September 2018, ex
Slide 18: Financial Overview
Financial Overview
Slide 19: Track Record of Strong Growth
Track Record of Strong Growth Revenue ($mm) $163.3 $163.3 $126.2 $122.8 $96.8 $61.9 $45.6 29% Total Revenue CAGR 2013-2018
Slide 20: Shift to Direct Has Driven Growth
$0mm $20mm $40mm $60mm $80mm $100mm $120mm $140mm $160mm Direct revenue ($mm) 26% 58% 65% 81% 85% 90% 74% 42% 35% 19% 15% 10% Direct Indirect Direct vs. indirect distribution share Shift to Direct Has Driven Growth 65% CAGR 2013-2018 146.6 107.3 99.5 62.9 35.9 11.9
Slide 21: Variable Marketing Margin
Variable Marketing Margin 6.9 11.9 23.4 33.8 37.6 48.0 15.2% 19.2% 24.2% 27.5% 29.7% 29.4% 0% 5% 10% 15% 20% 25% 30% 35% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 Historic online acquisition efficiency Variable Marketing Margin ($mm) 47% CAGR 2013-2018
Slide 22: Home & Life: Efficient Upside and Future Diversification
Traffic leverage : Target advertising opportunities leveraging expertise and technology Home & Life: Efficient Upside and Future Diversification Home & Life Revenue ($mm) $4.8 $7.2 Q1'18 Q1'19 $3.1 $22.2 Significant operating leverage, having already achieved attractive economics and high growth wit
Slide 23: First Quarter 2019 Highlights
Note: Adjusted EBITDA is a non-GAAP metrics, refer to financial reconciliation for additional detail First Quarter 2019 Highlights Revenue increased 28% year-over-year to $52.2 Million GAAP Net Loss of $4.4 Million Adjusted EBITDA of $(1.3) Million Increased Full Year 2019 Revenue, VMM & Adjusted EB
Slide 24: Key Investment Highlights
Key Investment Highlights Largest online marketplace for insurance shopping in the U.S. $123bn in industry advertising and distribution spend that is shifting online Efficient solution to structural market challenges, with benefits for consumers and providers Compelling marketplace business model wi
Slide 25: NASDAQ: EVER
NASDAQ: EVER
Slide 26: EverQuote
EVERQUOTE
Slide 27: Key Metrics Definitions
Key Metrics Definitions Metric Definition Quote Requests Quote requests are consumer-submitted website forms that contain the data required to provide an insurance quote, quote requests we receive through offline channels such as telephone calls, quote requests via our EverDrive app, and quote reque
Slide 28: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Three Months Ended March 31 Twelve Months Ended December 31 Net loss (4,382) (1,328) (13,791) $(5,071) Stock-based compensation 2,750 7,121 1,860 Depreciation and amortization 1,341 1,360 Interest (income) expense, net (184) (121) Adjusted EBITDA (1,335) (374) (5,45