Everquote, Inc. · NASDAQ:EVER
Everquote — Investor Presentation (November 2019)
26 slides from Everquote's investor presentation, Nov 13, 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 2019 Exhibit 99.1
Slide 2: Forward-looking statements
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, competitive
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 Largest online marketplace for insurance shopping in the U.S.1 $123bn in annual industry advertising & distribution spend, with spend shifting online Highly efficient solution to structural market challenges, with compelling benefits for consumers & insurance providers Leve
Slide 5: Large & Expanding TAM
Large & Expanding TAM * Source: Company data, S&P Global Market Intelligence SNL Insurance Data, IIABA. EverQuote is not reaffirming this guidance as of the date of this presentation & makes no statement with respect this guidance other than such guidance was provided by EverQuote as of November 4,
Slide 6: 70% of insurance consumers shop online, but 80% of policies close offline
70% of insurance consumers shop online But, 80% of policies still closed offline Online to Offline Sales Journey Consumers cite the desire to speak to an agent as top reason for not buying online Source: 2015 comScore survey.
Slide 7: Business Model: Benefits
Estimated average annual premium savings of $610 based on a countrywide survey between November 2018 & April 2019 of EverQuote users that reported old & new premiums. More Efficient Acquisition for Providers Consumers Save Time & Money Business Model: Benefits Large volume of high intent consumers T
Slide 8: 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 9: 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 & increases conversion rates Alignment algorithms match optimal referral partners from our network of providers Representative Partners Verticals Auction Alignm
Slide 10: Market Opportunity & Business Model
Market Opportunity & Business Model
Slide 11: ROI-Driven Provider Campaign Management
ROI-Driven Provider Campaign Management Auction Alignment Bidding Multiplicative, Multi-factor Models OR Machine Learning Driven CPA Targeting Sophisticated Campaign Management Online & Offline Results Matched to Each User
Slide 12: Powerful Data Driven AI-Platform & Growth Opportunities
Powerful Data Driven AI-Platform & Growth Opportunities
Slide 13: Data & Tech Stack Drives Growth & Leverage
Data & Tech Stack Drives Growth & Leverage * Example of potential new verticals. Growth of Consumer Volume, Provider Diversity & Product Verticals BROAD CUSTOMER ACQUISITION Search Display Organic Email Video Affiliates Mobile EXTENSIVE PROVIDER DISTRIBUTION Auto Home Renters Life Health Commercial
Slide 14: Data Assets Create Significant Competitive Moat
Data Assets Create Significant Competitive Moat R.T.B. 300+ Acquisition Channels 158bn Cumulative Ad Impressions Served $512mm Cumulative Digital Ad Spend 48mm Cumulative Quote Requests 1billion Consumer Submitted Data Points Note: Cumulative figures since launch through 2/20/2019. Source: Company d
Slide 15: 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 16: Financial Overview
Financial Overview EVERQUOTE
Slide 17: Third Quarter 2019 Highlights
Third Quarter 2019 Highlights Note: Adjusted EBITDA is a non-GAAP metrics, refer to financial reconciliation for additional detail. Revenue increased 61% YoY to $67.1 Million +61% Quote requests increased 81% YoY +81% Variable Marketing Margin (VMM) increased 67% YoY to $20.9 Million +67% Adjusted E
Slide 18: Track Record of Strong Growth
Revenue ($mm) 31% CAGR 2014-2019E Track Record of Strong Growth Based on 2019 revenue guidance midpoint. EverQuote is not reaffirming this guidance as of the date of this presentation & makes no statement with respect this guidance other than such guidance was provided by EverQuote as of November 4,
Slide 19: Shift to Direct Has Driven Growth
Shift to Direct Has Driven Growth Direct Revenue ($mm) 42% CAGR 2014-2018 Q3’19 Highlights on Direct Revenue 95% of platform revenue 98% from established providers those who have been on our platform for at least a year Illustrates the re-occurring nature of our revenue Direct Revenue is defined as
Slide 20: Driving Incremental Variable Marketing Margin
Driving Incremental Variable Marketing Margin 43% CAGR 2014-2019E Based on 2019 VMM guidance midpoint. EverQuote is not reaffirming this guidance as of the date of this presentation & makes no statement with respect this guidance other than such guidance was provided by EverQuote as of November 4, 2
Slide 21: Scalable Model Allows Rapid Expansion into New Verticals
Non-auto verticals include our home and renters, life, heath and recently launched commercial insurance verticals. Scalable Model Allows Rapid Expansion into New Verticals Revenue from Non-Auto Verticals ($mm) Traffic leverage: Target advertising opportunities leveraging expertise & technology Sales
Slide 22: Key Investment Highlights
Key Investment Highlights Largest online marketplace for insurance shopping in the U.S.1 $123bn in annual industry advertising & distribution spend, with spend shifting online Highly efficient solution to structural market challenges, with compelling benefits for consumers & insurance providers Leve
Slide 23: NASDAQ: EVER
NASDAQ: EVER
Slide 24: Appendix
Appendix EVERQUOTE
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 direct
Slide 26: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Three Months Ended September 30 Twelve Months Ended December 31 2019 2018 2018 2017 Net income (loss) $173k ($3,808k) ($13,791k) ($5,071k) Stock-based compensation $3,269k $2,586k $7,121k $1,860k Depreciation & amortization $588k $342k $1,341k $1,360k Interest (inco