Slide 1: Investor Presentation August 2022
Investor Presentation August 2022 Proprietary Information
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 and technology to make insurance simpler, more affordable and personalized, ultimately reducing cost and risk. Proprietary Information 3
Slide 4: Key Investment Highlights
Key Investment Highlights Insurance Marketplace Leader Extensive Distribution Leading multi-vertical online insurance marketplace providing Extensive distribution channels with third-party marketplace compelling benefits for consumers and insurance providers (carriers and local agents) and first-par
Slide 5: Company Snapshot
Company Snapshot One of the insurance industry’s largest online customer acquisition and distribution platforms 3rd party Marketplace with 100+ carriers and 8,500+ local agents; 1st party DTCA platform with 200+ agents Diversified model serving consumers and providers in the auto, home & renters, li
Slide 6: Large & Expanding TAM
Large & Expanding TAM US. Insurance Market: Projected Annual j Distribution & Ad Spend? Growth to 2024 Growth Drivers $154b 5% Continued shift of Total Market Market growth & consumer time spent online 16% Digital spending growth Continued shift of acquisition spend online digitization of insurance
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 acquire consumers more efficiently â–ª Single destination for insurance needs â–ª Large volume of high intent consumers â–ª Person
Slide 8: The Customer Journey
The Customer Journey Customer Acquisition Consumer Routing Marketplace Distribution Traffic Consumer Provider Provider EverQuote Channels Arrival Matching Engagement Monetization Marketplace (3rd Party) SEM Per Alignment Bidding Email Referral Carriers Local Agents Calls DTCA2 (1St Party) Partnershi
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 Platforms
Distribution Strength of our Platforms Representative Partners 100+ carriers available in the marketplace 8,500+ 3rd party local agents 200+ 1st party EverQuote agents Based on Company data & representative of the insurance provider partners on the platform as of August 1, 2022 Proprietary Informati
Slide 11: Creating a World-Class DTCA Platform
Creating a World-Class DTCA Platform EVER agents serve consumers in all of our insurance verticals $13.1m 13% $7.5m PSaaS model for Auto and Home verticals; EVER 2Q22 revenue 2Q22 revenue; 2Q22 Health agents dedicated exclusively to selling a specific % of total revenue carrier’s policies Independen
Slide 12: Building a Multi-Vertical Insurance Destination
Building a Multi-Vertical Insurance Destination We are executing on our vision and continue to build more diversified revenue streams 2011 2016 2019 2020 2021 Marketplace1 DTCA2 Marketplace DTCA Marketplace DTCA Marketplace DTCA Marketplace DTCA Health & Medicare Life Home & Renters Auto Non-Auto 0%
Slide 13: Track-Record of Successful Acquisitions
Track-Record of Successful Acquisitions Pursued opportunities that accelerate our strategy to be the leading online destination for insurance shopping Acquisition Criteria Recent Transactions Crosspointe Insurance, which we renamed Eversurance (closed Broaden market Accelerate DTCA September 2020) o
Slide 14: Multiple Levers Driving Future Growth
Multiple Levers Driving Future Growth Expand DTCA Platform Grow Existing Verticals Deepen Consumer & Provider Engagement Increase Attract Provider Coverage More & Budget Consumers Proprietary Information 14
Slide 15: Financial Overview
Financial Overview Proprietary Information 15
Slide 16: Second Quarter 2022 Highlights
SecondQuarter2022 Highlights â–ª Continued strong headwinds in auto insurance adversely impacted 2Q22 financial performance $102m 32% $33m â–ª Total revenues of $101.9m; a 3% decrease over 2Q21 Revenue VMM as a VMM % of revenue â–ª Variable Marketing Margin of $33.1m; a 1% increase over 2Q21 and rep
Slide 17: Strong Track Record of Growth
Strong Track Record Track Record of Growth of Strong Growth Revenue ($m) 450 28% 419 25% 400 CAGR 2016-2021 â–ª Total revenue grew 28% compounded annually 347 20% 350 2016 –2021 300 249 15% â–ª Other Insurance verticals grew 95% compounded 250 annually 2016 –2021 200 163 10% â–ª Revenue diversificat
Slide 18: Delivering Incremental Variable Marketing Margin
Delivering Incremental Variable Marketing Margin Variable Marketing Margin ($m) 32% 31% 31.3% 129.6 31.0% CAGR 2016-2021 31% 108.6 â–ª VMM grew 31% compounded annually 2016 –2021 30% 29.5% â–ª Proprietary platforms have driven increasing VMM as a percentage of revenue (VMM%) since 2016 73.3 29% 28.3
Slide 19: Focused on Delivering Long-term Profitability
Focused on Delivering Long-term Profitability Adjusted EBITDA ($m) 20.0 37% 18.4 14.6 15.0 CAGR 2016-2021 â–ª Adjusted EBITDA grew 37% compounded annually 2016 -2021 10.0 8.3 â–ª Strategic investments in proprietary technology and data platforms provide key driver for long-term growth 5.0 3.0 2018 â
Slide 20: Proprietary Information
NASDAQ: EVER Proprietary Information 20
Slide 21: Appendix
Appendix Proprietary Information 21
Slide 22: 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 23: Reconciliation of Adjusted EBITDA - 12 Months Ended
Reconciliation of Adjusted EBITDA -12 Months Ended 12 Months Ended ($ in Thousands) December 31, December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2018 2017 2016 Net loss ($19,434) ($11,202) ($7,117) ($13,791) ($5,070) ($930) Stock-based compensation $30,020 $12,721 $7,
Slide 24: Reconciliation of Adjusted EBITDA - 3 Months Ended
Reconciliation of Adjusted EBITDA -3 Months Ended 3 Months Ended ($ in Thousands) June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Net loss ($3,756) ($5,715) ($8,480) ($5,272) ($1,881) Stock-based compensation $7,600 $7,530 $7,063 $8,348 $7,089 Depreciation & amortizat