Everquote, Inc. · NASDAQ:EVER
Everquote — Investor Presentation (November 2020)
27 slides from Everquote's investor presentation, Nov 2, 2020
Slide 1: Investor Presentation November 2020
Exhibit 99.2 Investor Presentation November 2020 Proprietary Information Proprietary Information 1Exhibit 99.2 Investor Presentation November 2020 Proprietary Information Proprietary Information 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 mission
Our mission Empower insurance shoppers to better protect life's most important assets—their family, property, and future. Proprietary Information 3Our mission Empower insurance shoppers to better protect life's most important assets—their family, property, and future. Proprietary Information 3
Slide 4: Key Investment Highlights
Key Investment Highlights Leading online insurance marketplace providing compelling benefits for Insurance Marketplace consumers & insurance providers $146bn in annual industry advertising & distribution spend, with spend Massive Market Opportunity shifting online Unique data assets & technology, co
Slide 5: EverQuote Company Snapshot
EverQuote Company Snapshot Founded* IPO 2011 June 28, 2018 * First year of revenue LTM Variable Marketing LTM LTM Quote Margin Growth Revenue Growth Request Growth 60% 51% 51% Headquarters Employees Cambridge, MA 425+ Insurance Verticals Commercial Auto Home & Renters Health Life Proprietary Informa
Slide 6: Large & Expanding TAM
Large & Expanding TAM U.S. Insurance Market: Projected Annual Growth Drivers Distribution & Ad Spend Growth to 2024 Continued shift of Total Market Growth: ~3% $146.1bn consumer time spent EVER Share: <1% Total Market online Continued shift of $15.6bn acquisition spend Total Advertising online Spend
Slide 7: Increasing Carrier Digital Marketing Spend
Increasing Carrier Digital Marketing Spend 2016 Digital Ad Spend by Industry (% of Total Advertising Spend) Carriers moving to match digital spend of other industries 45%: Non-insurance average 16+% Projected annual growth of carrier digital marketing budgets over the next 5 years 70% Percentage of
Slide 8: Compelling Model Benefits Both Consumers & Providers
Compelling Model Benefits Both Consumers & Providers Insurance Consumers Providers Consumers Save Time & Money More Efficient Acquisition for Providers Match & connect for multiple quotes Large volume of high intent consumers 1 Average Savings $610 per year Target based consumer attributes tied to R
Slide 9: Marketplace Consumer Journey
Marketplace Consumer Journey Traffic Arrives at the Requests Quote Request Gets Quotes / Channels Marketplace Insurance Matched with Buy Insurance Quotes Providers Display SEM Email Partnerships Profile Consumer: Profile Consumer: Social ~ 20% of Consumers Varied Shopping High intent shoppers that C
Slide 10: Distribution Strength of our Marketplace
Distribution Strength of our Marketplace 100+ carriers available via the marketplace 19 of 20 top auto insurance carriers 8,000+ agents 72% of carriers have “deep” technology integrations Based on Company data and representative of the insurance provider partners on the platform as of September 30,
Slide 11: Data Assets Create Significant Competitive Moat
Data Assets Create Significant Competitive Moat 185bn 86mm Cumulative Cumulative Ad Impressions Served Quote Requests ~2 billion Consumer Submitted R.T.B Data Points . $834mm 300+ Leverage proprietary machine learning Cumulative Acquisition Channels Digital Ad Spend & automated infrastructure Note:
Slide 12: Data Science & Machine Learning Support Growth
Data Science & Machine Learning Support Growth Create Operating Drive Incremental VMM Enhance Agility Leverage Build generalizable & Design Machine Learning Able to quickly evolve to scalable solutions for data products to create changing market problem classes across performance lift with dynamics
Slide 13: Data & Tech Stack Drives Growth & Leverage
Data & Tech Stack Drives Growth & Leverage Optimize Conversion Rate Email Largest Multi-Provider Dataset Multi-Channel Consumer Bid Automation Alignment Algorithms Algorithms Partnerships Minimize Cost per Maximize Bind Rate Acquisition Growth of Consumer Volume, Provider Diversity & Product Vertica
Slide 14: Levers Driving Future Growth
Levers Driving Future Growth Launch New Verticals Expand Consumer & Carrier Engagement Increase Provider Attract Coverage More Leverage Consumers Secular Shift Online Proprietary Information 14Levers Driving Future Growth Launch New Verticals Expand Consumer & Carrier Engagement Increase Provider At
Slide 15: EverQuote Acquired Leading Health Insurance Agency
EverQuote Acquired Leading Health Insurance Agency Our Acquisition Rationale • Accelerates the growth of EVER’s health • Crosspointe is a sales and decision Scales insurance vertical with additional carrier support contact center that connects Health Vertical distribution and monetization opportunit
Slide 16: Our World-Class, Founder-Led Team
Our World-Class, Founder-Led Team Drawn from top universities… … & from tech & professional services powerhouses Seth Tomas Birnbaum Revesz CEO & CTO & Co-Founder Co-Founder Headquartered in ~ 200 employees working in Proven track record Cambridge, MA 1 engineering / applied math of innovation & tea
Slide 17: Strong performance demonstrates resiliency of our model
Strong performance demonstrates resiliency of our model and the insurance market Carriers Consumers Agents Team Fewer auto claims as Acceleration in shift Greater adoption by agents Maintaining high productivity consumer stay-at-home to online shopping of digital channels throughout pandemic Carrier
Slide 18: Financial Overview
Financial Overview Proprietary Information 18Financial Overview Proprietary Information 18
Slide 19: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights Revenue VMM Achieved increased increased Adjusted 34% YoY to 41% YoY to EBITDA of 34% 41% $90.0mm $29.4mm $5.2mm Obtained VMM Quote “deep” expanded to Requests technology a record 33% increased integrations 33% 14% of revenues 14% YoY with 72% of carriers Company raised
Slide 20: Track Record of Strong Growth
Track Record of Strong Growth Track Record of Strong Growth Revenue ($mm) 34% 33% Q3’20 YoY Growth $341.0 CAGR 2014A-2020P $91.4 Q4 Guidance Mid-point $90.0 $81.4 $78.3 $249.6 $248.8 $73.8 Q1-Q3 $67.1 Actuals $163.4 $126.2 $122.8 $96.8 $61.9 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 2014 2015 2016 201
Slide 21: Delivering Incremental Variable Marketing Margin
Delivering Incremental Variable Marketing Margin Variable Marketing Margin ($mm) 41% Q3’20 YoY Growth Variable Marketing Margin % 31.2% 29.5% $120 28.3% 28.2% 27.4% $29.4 $106.5 24.2% $100 $29.8 Q4 33% $23.8 Guidance $23.5 Mid-point 19.3% $21.8 $80 CAGR 2014A-2020P $20.9 $76.7 $73.3 Q1-Q3 $60 Actual
Slide 22: Rapid Expansion into New Verticals with Scalable Model
Rapid Expansion into New Verticals with Scalable Model Traffic leverage: Target advertising Sales leverage: Ability to cross-sell Non-Auto Verticals opportunities leveraging expertise traffic to existing customers & technology Home & Renters Revenue from Non-Auto Verticals ($mm) 127% 55% CAGR 2016-2
Slide 23: Driving Growth & Profitability
Driving Growth & Profitability Adjusted EBITDA ($mm) $17.5 $4.5 Q4 Guidance Mid-point $13.0 Q1-Q3 Actuals $8.3 2018 2018 2019 2020 $5.2 -$5.5 $4.2 $4.0 $3.9 $3.8 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Note: Adjusted EBITDA is a non-GAAP metrics, refer to financial reconciliation for additional deta
Slide 24: NASDAQ: EVER
NASDAQ: EVER Proprietary Information 24NASDAQ: EVER Proprietary Information 24
Slide 25: Appendix
Appendix Proprietary Information 25Appendix Proprietary Information 25
Slide 26: Key Metrics Definitions
Key Metrics Definitions Quote requests are consumer-submitted website forms that contain the data required to provide an insurance quote, quote requests we receive through offline channels such as telephone calls, & quote requests submitted directly to third-party partners. As we Quote attract more
Slide 27: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Three Months Ended 12 Months ($ in Thousands) September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 December 31, 2019 December 31, 2018 Net income (loss) ($3,184) ($2,808) ($1,442) ($934) $173 ($7,117) ($13,791) Stock-based $7,200 $6,2