Investor Presentation June 2019 Disclaimer This presentation - PowerPoint PPT Presentation

Investor Presentation June 2019

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, competitive position, potential growth opportunities, and the effects of competition are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements of EverQuote, Inc. (“the Company”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expect,” “plan,” “project,” “estimate,” or “potential” or the negative of these terms or other similar expressions. The forward-looking statements in this presentation are only predictions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect the Company’s business, financial condition and results of operations. These forward-looking statements speak only as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, some of which cannot be predicted or quantified and some of which are beyond the Company’s control. The events and circumstances reflected in the Company’s forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements, including as a result of the risks described in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and the other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, new risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties that the Company may face. Except as required by applicable law, the Company does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. The Company’s presentation also contains estimates, projections, and other information concerning the Company’s industry, the Company’s business and the markets for certain of the Company’s products and services, including data regarding the estimated size of those markets. Information that is based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, the Company obtained this industry, business, market and other data from reports, research surveys, studies and similar data prepared by market research firms and other third parties, from industry, general publications, and from government data and similar sources. We present adjusted EBITDA as a non-GAAP measure, which is not a substitute for or superior to, other measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of adjusted EBITDA to the most directly comparable GAAP measure is included in the Appendix to these slides. Proprietary & Confidential Information 2

Key Investment Highlights Largest online marketplace for insurance shopping in the U.S. 1 $123bn in annual industry advertising and distribution spend, with spend shifting online Efficient solution to structural market challenges, with benefits for consumers and providers Compelling marketplace business model with broad insurance carrier and agent participation Unique data and technology driving significant network effects and competitive moat Leveraged platform enabling rapid expansion into new verticals Compelling history of revenue growth and financial performance 1 Based on number of visits to EverQuote.com compared to other non-carrier specific insurance websites according to SimiliarWeb during first quarter 2019. Proprietary & Confidential Information 3

Market Opportunity & Business Model

Large and Expanding TAM Growth drivers $ 123bn U.S. Non-health insurance sales, marketing and distribution spend Continued shift of Continued shift of Continued shift to consumer time acquisition spend digitization of $ 9.3bn spent online online insurance products and U.S. Total Insurance workflows advertising spend $200mn 1 EverQuote 2019 revenue guidance midpoint Source: Company data, S&P Global Market Intelligence SNL Insurance Data, IIABA. 1 EverQuote is not reaffirming this guidance as of the date of this presentation and makes no statement with respect this guidance other than such guidance was provided by EverQuote as of May 6, 2019. Proprietary & Confidential Information 5

Marketplace Aligns Consumers & Providers Standard 2017 Nissan Leaf Zip 90210 6K miles / year Typical coverage $100K / $300K Premium Provider 2017 BMW (premium) Zip 20012 8K miles / year Typical coverage $500K injury Non-standard 2013 Honda Civic Zip 10016 2 tickets Coverage State minimum Proprietary & Confidential Information 6

Online to Offline Sales Journey 70% of insurance consumers But, 80% of policies still shop online closed offline Consumers cite the desire to speak to an agent as top reason for not buying online Source: 2015 comScore survey Proprietary & Confidential Information 7

Business Model: Benefits Consumers Insurance Providers Consumers Save Time and Money More Efficient Acquisition for Providers • Single starting point • Large volume of high intent consumers • Match and connect for multiple quotes • Target based consumer attributes • Average Savings $610 per year 1 • Consistent new acquisition ROI 1 - Estimated average annual premium savings of $610 based on a countrywide survey between November 2018 and April 2019 of EverQuote users that reported old and new premiums. Proprietary & Confidential Information 8

Consumer Journey from Ad to Provider Matching Auto Home & Renters Bidding Alignment Life Auction Targeted, bid-informed, Adaptive workflow Alignment algorithms dynamic creatives minimizes steps and match optimal referral attract consumers increases conversion partners from our Future Verticals rates network of providers Proprietary & Confidential Information 9

Provider Campaign Setup to Policy Sales Sophisticated Enterprise Campaign Management Online & Offline Results Matched to Each User Bidding Multiplicative, Multi-factor Models OR ML Driven CPA Targeting Alignment Simplified Agency/SMB Campaign Wizards Auction Pre-configured Segments & Easy to use Geographic Optimization Tools Proprietary & Confidential Information 10

Powerful Data Driven Platform & Growth Opportunities

Data and Tech Stack Drives Growth and Leverage Auto Search Home Display EverBid PRO Renters * Social Proprietary Acquisition Platform Multi-Vertical Provider Platform Life Organic • Direct Ad Platform Integrations • Click, Lead & Call Products • Bid & Creative Automation EverBase • Granular Consumer Segmentation Health * Email • Adaptive Workflows • Click2Quote & Pre-fill Integrations • ML Driven Personalization Commercial * Video • ML Driven Yield Management Valuables ** Affiliates RV, Boat & MC ** Mobile Growth of Consumer Volume, Provider Diversity and Product Verticals * Planned Verticals ** Example Verticals Proprietary & Confidential Information 12

Data Assets Create Significant Competitive Moat 158bn 48mm Cumulative Cumulative 1 billion Ad Impressions Served Quote Requests Consumer Submitted Data Points R.T.B. $512mm 300+ Cumulative Acquisition Channels Digital Ad Spend Note: Cumulative figures since launch through 2/20/2019 Source: Company data, Facebook, Statista, comScore & OperaMedia Proprietary & Confidential Information 13

Levers Driving Future Growth Leverage Secular Shift Online Expand Consumer and Carrier Engagement Launch New Verticals Increase Provider Coverage Attract More Consumers Proprietary & Confidential Information 14

EverDrive: Social Safe-Driving Mobile App • Uses smartphone sensors and telematics to assess driving performance • Provides drivers with actionable feedback on becoming a safer driver • Social features enable positive competition with family and friends Proprietary & Confidential Information 15

EverDrive Seamlessly Connects Drivers with Savings • Users opt-in to anonymously receive safe driving offers • Seamless integrations connect them Carrier Partner #1 to carriers for purchase • Policy details and consumer relationship remain within EverDrive experience • Launched with first carrier in Contact Carrier #1 September 2018, expanded to 12 states in 1Q’2019 and 24 states in 2Q’2019 Proprietary & Confidential Information 16

Financial Overview

Track Record of Strong Growth Revenue ($mm) 180 $163.3 160 29% Total Revenue 140 $126.2 CAGR 2013-2018 $122.8 120 $96.8 100 80 $61.9 60 $45.6 40 20 0 2015 2013 2014 2016 2017 2018 Proprietary & Confidential Information 18