Everquote, Inc. · NASDAQ:EVER
Everquote — Investor Presentation (February 2022)
24 slides from Everquote's investor presentation, Feb 16, 2022
Slide 1: Investor Presentation February 2022
Exhibit 99.2 Investor Presentation February 2022 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 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 Extensive Distribution Insurance Marketplace Leader 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 28% 31% 26 95% % acquisition and distribution platforms 2 3 Revenue VMM Non-Auto 1 1 1 CAGR (5yr) CAGR (5yr) CAGR (5yr) rd ▪ 3 party Marketplace with 100+ carriers and 8,500+ local st agents; 1 party DTCA platform with 200+ a
Slide 6: Large & Expanding TAM
Large & Expanding TAM U.S. Insurance Market: Projected Annual Growth Drivers 1 1 Distribution & Ad Spend Growth to 2024 $154b 5% Continued shift of Total Market Market growth consumer time spent online EVER share: <10% 16% $16.7b Continued shift of Total Advertising Digital spending growth acquisiti
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 ▪ Single destination for insurance needs ▪ Large volume of high intent consumers ▪ Personalized
Slide 8: The Customer Journey
The Customer Journey Marketplace Distribution Customer Acquisition Consumer Routing Provider Traffic Consumer Provider EverQuote Engagement Channels Arrival Matching Monetization rd Marketplace (3 Party) SEM Per Bidding Alignment Email Referral Local Agents Carriers Calls 2 St DTCA (1 Party) Partner
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+ rd 3 party local agents 200+ st 1 party EverQuote agents Based on Company data & representative of the insurance provider partners on the platform as of December 31, 2021 Proprietary Info
Slide 11: Creating a World-Class DTCA Platform
Creating a World-Class DTCA Platform ▪ EQ agents serve consumers in all of our insurance verticals $17.8m 17.4% $14.5m Q4 ‘21 revenue Q4 ‘21 revenue; Q4 ‘21 Health ▪ PSaaS model for Auto and Home verticals; EQ agents % of total revenue dedicated exclusively to selling a specific carrier’s policies ▪
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 2016 2011 2019 2020 2021 1 2 DTCA DTCA Marketplace DTCA DTCA DTCA Marketplace Marketplace Marketplace Marketplace Health & Medicare Life Home & Renters Auto Non-Auto
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 (closed September 2020) Broaden market Accelerate DTCA opportunity strategy ▪ A sales
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: Full Year 2021 Highlights
Full Year 2021 Highlights ▪ Total revenues of $418.5m; a 21% YoY increase ▪ Non-auto revenues of $87.6m; a 38% YoY increase and represents 21% of total revenue 19% 21% 31% ▪ Record quarter of DTCA revenues in Q4 of YoY revenue VMM as a VMM YoY $17.8m, or 17% of revenues, driven by strong growth % of
Slide 17: Strong Track Record of Growth
Strong Track Record of Growth Track Record of Strong Growth Revenue ($m) 450 25% 419 28% 400 CAGR 2016-2021 ▪ Total revenue grew 28% compounded annually 347 20% 2016 – 2021 350 300 249 ▪ Other Insurance verticals grew 95% compounded 15% 250 annually 2016 – 2021 200 163 10% ▪ Revenue diversification
Slide 18: Delivering Incremental Variable Marketing Margin
Delivering Incremental Variable Marketing Margin Variable Marketing Margin ($m) 32% 129.6 31.3% 31% 31.0% 31% CAGR 2016-2021 108.6 ▪ VMM grew 31% compounded annually 2016 – 2021 30% 29.5% ▪ Proprietary platforms have driven increasing VMM as a percentage of revenue (VMM%) since 2016 29% 73.3 28.3% 2
Slide 19: Focused on Delivering Long-term Profitability
Focused on Delivering Long-term Profitability Adjusted EBITDA ($m) 20.0 18.4 37% ▪ Adjusted EBITDA grew 37% compounded annually 2016 14.6 15.0 CAGR 2016-2021 - 2021 10.0 8.3 ▪ Positioned to deliver positive full year Adjusted EBITDA in CY22, despite continued auto headwinds 5.0 3.0 ▪ Strategic inves
Slide 20: Proprietary Information
NASDAQ: EVER Proprietary Information 20
Slide 21: Appendix
Appendix Proprietary Information 21
Slide 22: Key Metrics Definitions
Key Metrics Definitions We define variable marketing margin, or VMM, as revenue, as reported in our consolidated statements of operations and Variable comprehensive income (loss), less advertising costs (a component of sales and marketing expense, as reported in our statements of operations and comp
Slide 23: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA - 12 Months Ended 12 Months Ended December 31, December 31, December 31, December 31, December 31, December 31, ($ in Thousands) 2021 2020 2019 2018 2017 2016 Net income (loss) ($19,434) ($11,202) ($7,117) ($13,791) ($5,070) ($930) Stock-based compensation $30,020 $
Slide 24: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA - 3 Months Ended 3 Months Ended ($ in Thousands) December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Net income (loss) ($8,480) ($5,272) ($1,881) ($3,801) ($3,768) Stock-based compensation $7,063 $8,348 $7,089 $7,520 $6,189 Depreciati