Everquote, Inc. · NASDAQ:EVER
Everquote — Investor Presentation (February 2020)
26 slides from Everquote's investor presentation, Feb 24, 2020
Slide 1: Investor Presentation February 2020
Investor Presentation February 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 Be the largest online source of insurance policies by using data & technology to make insurance decisions simpler, more affordable & personalized
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 profitability Insurance Marketplace $146bn in annual industry adverti
Slide 5: EverQuote Company Snapshot
EverQuote Company Snapshot Founded 2011 FY’19 Revenue Growth 52% FY’19 Quote Request Growth 56% Employees 250+ IPO June 28, 2018 FY’19 Variable Marketing Margin Growth 59% Headquarters Cambridge, MA Auto Home & Renters Life Health SMB Commercial Insurance Verticals
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 1.8MM+ Monthly Display Email Partnerships Social SEM VPN / Other1 Gets Quotes / Buy Insurance Traffic Channels Quote Request Matched with Providers Profile Consumer: Varied Shopping Intent ~ 11MM+ Monthly Arrives at the Marketplace
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 ~ 7,000 agents 67+% of referrals are to providers that have tech integrations Based on Company data and representative of the insurance provider partners on the platform as of De
Slide 11: Data Assets Create Significant Competitive Moat
Data Assets Create Significant Competitive Moat R.T.B. 300+ Acquisition Channels 178bn Cumulative Ad Impressions Served $664mm Cumulative Digital Ad Spend 65mm Cumulative Quote Requests ~2 billion Consumer Submitted Data Points Leverage proprietary machine learning & automated infrastructure Note: C
Slide 12: Data Science & Machine Learning Supports Growth
Data Science & Machine Learning Supports 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 perf
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 Bring back higher rez logos for providers Maximize Bind Rate Growth of Consumer Vo
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: Our World-Class, Founder-Led Team
Proven track record of innovation & team building Our World-Class, Founder-Led Team Drawn from top universities… 140+ employees working in engineering / applied math1 Analysts, Data Scientists, Engineers working in our Engineering, Analytics, and Product & Design divisions. … & from tech & professio
Slide 16: Financial Overview
Financial Overview EVERQUOTE
Slide 17: Highlights on Full Year 2019
Note: Adjusted EBITDA is a non-GAAP metric, refer to financial reconciliation for additional detail. Highlights on Full Year 2019 Revenue increased 52% YoY to $248.8M +52% Quote requests increased 56% YoY +56% VMM increased 59% YoY to $73.3M +59% Launched renters, commercial and health verticals Hir
Slide 18: Track Record of Strong Growth
Revenue ($mm) 32% CAGR 2014-2019 Track Record of Strong Growth Track Record of Strong Growth +86% Q4’19 YoY Growth
Slide 19: Delivering Incremental Variable Marketing Margin
Delivering Incremental Variable Marketing Margin 44% CAGR 2014-2019 Variable Marketing Margin ($mm) Beginning in the first quarter of 2019, we revised our definition of variable marketing margin, or VMM. The VMM displayed above reflects our revised definition of VMM for all years presented. Refer to
Slide 20: Rapid Expansion into New Verticals with Scalable Model
Non-auto verticals include our home and renters, life, heath and recently launched commercial insurance verticals. Rapid Expansion into New Verticals with Scalable Model Revenue from Non-Auto Verticals ($mm) Traffic leverage: Target advertising opportunities leveraging expertise & technology Sales l
Slide 21: 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 22: 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 profitability Insurance Marketplace $146bn in annual industry adverti
Slide 23: EverQuote
NASDAQ: EVER EVERQUOTE
Slide 24: Appendix
Appendix
Slide 25: 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 26: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Three Months Ended 12 Months December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Net income (loss) ($934) $173 ($1,974) ($4,382) ($6,925) ($7,117) ($13,791) Stock-based compensation $3,464 $3,269 $3