Everquote, Inc. · NASDAQ:EVER
Everquote — Investor Presentation (August 2020)
27 slides from Everquote's investor presentation, Aug 4, 2020
Slide 1: Investor Presentation August 2020
Investor Presentation August 2020 Exhibit 99.2
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.
Slide 4: Key Investment Highlights
Key Investment Highlights Leading online insurance marketplace providing compelling benefits for consumers & insurance providers Revenue CAGR of 32%1, strong re-occurring revenue model & operating discipline resulting in expanding adjusted EBITDA and path to profitability Insurance Marketplace $146b
Slide 5: EverQuote Company Snapshot
EverQuote Company Snapshot Founded* 2011 LTM Revenue Growth 59% LTM Quote Request Growth 71% Employees 300+ IPO June 28, 2018 LTM Variable Marketing Margin Growth 69% Headquarters Cambridge, MA Auto Home & Renters Life Health Commercial Insurance Verticals * First year of revenue Last Twelve Months
Slide 6: Large & Expanding TAM
Large & Expanding TAM Total Digital Spending Growth: ~ 16% EVER Share: <10% Projected Annual Growth to 2024 Continued shift of consumer time spent online Continued shift of acquisition spend online Continued shift to digitization of insurance products & workflows Growth Drivers U.S. Insurance Market
Slide 7: Increasing Carrier Digital Marketing Spend
2016 Digital Ad Spend by Industry (% of Total Advertising Spend) Increasing Carrier Digital Marketing Spend Source: Stax, Inc. eMarketer, Web Survey & Analysis (December 2019), comScore survey. Carriers moving to match digital spend of other industries 16+% Projected annual growth of carrier digital
Slide 8: Compelling Model Benefits Both Consumers & Providers
Compelling Model Benefits Both Consumers & Providers More Efficient Acquisition for Providers Large volume of high intent consumers Target based consumer attributes tied to ROI Consumers Save Time & Money Match & connect for multiple quotes Average Savings $610 per year1 Consumers Insurance Provider
Slide 9: Marketplace Consumer Journey
Marketplace Consumer Journey Profile Consumer: High intent shoppers Display Email Partnerships Social SEM VPN / Other1 Gets Quotes / Buy Insurance Traffic Channels Quote Request Matched with Providers Profile Consumer: Varied Shopping Intent Arrives at the Marketplace Requests Insurance Quotes ~ 20%
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 66% of carriers have “deep” technology integrations Based on Company data and representative of the insurance provider partners on the platform as of June 30, 2020.
Slide 11: Data Assets Create Significant Competitive Moat
Data Assets Create Significant Competitive Moat R.T.B. 300+ Acquisition Channels 182bn Cumulative Ad Impressions Served $770mm Cumulative Digital Ad Spend 80mm Cumulative Quote Requests ~2 billion Consumer Submitted Data Points Leverage proprietary machine learning & automated infrastructure Note: C
Slide 12: Data Science & Machine Learning Support Growth
Data Science & Machine Learning Support Growth Build generalizable & scalable solutions for data problem classes across the organization Able to quickly evolve to changing market dynamics Create Operating Leverage Enhance Agility Drive Incremental VMM Design Machine Learning products to create perfo
Slide 13: Data & Tech Stack Drives Growth & Leverage
Consumer Alignment Algorithms Multi-Channel Bid Automation Algorithms Optimize Conversion Rate Email Largest Multi-Provider Dataset Partnerships Data & Tech Stack Drives Growth & Leverage Minimize Cost per Acquisition Maximize Bind Rate Growth of Consumer Volume, Provider Diversity & Product Vertica
Slide 14: Levers Driving Future Growth
Levers Driving Future Growth Attract More Consumers Leverage Secular Shift Online Increase Provider Coverage Expand Consumer & Carrier Engagement Launch New Verticals
Slide 15: EverQuote to Acquire Leading Health Insurance Agency
EverQuote to Acquire Leading Health Insurance Agency Crosspointe is a sales and decision support contact center that connects consumers to high quality health insurance in a customer-centric environment. Founded in 2008; based in Evansville, Indiana. Crosspointe has ~30 full-time employees, the majo
Slide 16: Our World-Class, Founder-Led Team
Proven track record of innovation & team building Our World-Class, Founder-Led Team Drawn from top universities… 150+ employees working in engineering / applied math1 Analysts, Data Scientists, Engineers working in our Engineering, Analytics, and Product & Design divisions. … & from tech & professio
Slide 17: Strong performance demonstrates resiliency of our model
Strong performance demonstrates resiliency of our model and the insurance market Fewer auto claims as consumer stay-at-home Carriers continue to invest with a focus on high ROI, online customer acquisition Carriers Acceleration in shift to online shopping Providing an opportunity to save on non-disc
Slide 18: Financial Overview
Financial Overview EVERQUOTE
Slide 19: Second Quarter 2020 Highlights
Obtained “deep” technology integrations with 66% of carriers Note: Adjusted EBITDA is a non-GAAP metric, refer to financial reconciliation for additional detail. Second Quarter 2020 Highlights Revenue increased 41% YoY to $78.3mm 41% Quote requests increased 50% YoY 50% VMM increased 41% YoY to $23.
Slide 20: Track Record of Strong Growth
Revenue ($mm) 32% CAGR 2014-2019 Track Record of Strong Growth Track Record of Strong Growth 41% Q2’20 YoY Growth
Slide 21: Delivering Incremental Variable Marketing Margin
Delivering Incremental Variable Marketing Margin 44% CAGR 2014-2019 Variable Marketing Margin ($mm) Beginning in the first quarter of 2019, we revised our definition of variable marketing margin, or VMM. The VMM displayed above reflects our revised definition of VMM for all years presented. Refer to
Slide 22: Rapid Expansion into New Verticals with Scalable Model
Non-auto verticals include our home and renters, life, heath and commercial insurance verticals. Rapid Expansion into New Verticals with Scalable Model Revenue from Non-Auto Verticals ($mm) Traffic leverage: Target advertising opportunities leveraging expertise & technology Sales leverage: Ability t
Slide 23: Driving Growth & Profitability
Driving Growth & Profitability Adjusted EBITDA ($mm) Note: Adjusted EBITDA is a non-GAAP metrics, refer to financial reconciliation for additional detail.
Slide 24: EverQuote
NASDAQ: EVER EVERQUOTE
Slide 25: Appendix
Appendix EVERQUOTE
Slide 26: Key Metrics Definitions
Key Metrics Definitions 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 & quote requests submitted directl
Slide 27: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Three Months Ended 12 Months June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 December 31, 2019 December 31, 2018 Net income (loss) ($2,808) ($1,442) ($934) $173 ($1,974) ($7,117) ($13,791) Stock-based compensation $6,250 $4,540 $3,464