Investor Presentation September 2018 1 Proprietary and confidential
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 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. 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. This presentation also contains estimates, projections, and other information concerning our industry, our business and the markets for certain of our 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. This presentation includes certain non-GAAP financial measures, including variable marketing margin and adjusted EBITDA. Such non-GAAP financial measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is included in the Appendix to these slides. This presentation may not be reproduced, forwarded to any person or published, in whole or in part. 2 Proprietary and confidential
Key Investment Highlights Key Investment Highlights • Largest insurance marketplace in the US • Capitalizing on the $120 billion market shifting online • Data driven platform and technology driving network effects • Opportunity for rapid expansion into new verticals • Strong revenue growth with track record of capital efficiency 3 Proprietary and confidential
The EVERQUOTE Story 35M Seven Years of Innovation and Growth Quote Requests Company 2018 Home IPO & Life June 28, 2018 marketplace 10M launch Quote Requests 1M 500K Agent 2017 EverDrive Platform Quote Downloads Launch Requests $100M Revenue Carrier Run Rate Platform 2016 EverDrive Auto Launch Safe Driving Marketplace App Launch Launch 2015 Boston Globe 2014 Voted One of Boston's Best Places to Work 2011 Inc. 5000 Fastest Growing Companies Cumulative Quote Requests Note: Quote request data are cumulative as of each date indicated 4 Proprietary and confidential
Market Opportunity & Business Model 5 Proprietary and confidential
Market: Opportunity Growth drivers $120bn Continued shift of consumer time spent online U.S. Non-health insurance sales, marketing and distribution spend Shift in acquisition spend online $9.3bn Digitization of insurance products and workflows U.S. Total Insurance advertising spend Significant online penetration upside % of distribution spent online by category Mature market 57% $126mn average: 40% 37% EverQuote 27% 2017A revenue 2% 1 Insurance Travel Lodging Auto marketing Source: Company data, S&P Global Market Intelligence SNL Insurance Data, IIABA, 7, Kantar Media, IDC, Phocuswright, Visa Global Travel, Borrell associates 1 Based on $2.6bn online insurance provider advertising spending 6 Proprietary and confidential
Market: Trends 70% of insurance consumers shop online But, 80% of policies still closed offline Consumers cite the desire to speak to an agent as top reason for not buying online Source: 2015 comScore survey 7 Proprietary and confidential
Market: Challenge Standard 2017 Nissan Leaf 90210 6K miles / year Typical coverage $100K / $300K Premium 2017 BMW 20012 Provider 8K miles / year (premium) Typical coverage $500K injury Non-standard 2013 Honda Civic 10016 2 tickets Coverage State minimum 8 Proprietary and confidential
Business Model: Monetizing the Online Insurance Marketplace Save Time and Money Attract Quote request Match CLICKS Insurance Consumers CALLS providers DATA 250+ traffic 20-50 consumer Monetization sources submitted data points at Referral More Efficient Acquisition 9 Proprietary and confidential
Powerful Data Driven Platform & Growth Opportunities 10 Proprietary and confidential
The Network Effect Maximize Conversion Carriers A B C Insurance Consumers providers D Multi-Channel Bid Consumer Automation Alignment E Algorithms Algorithms F G Minimize Cost per Acquisition Maximize Bind Rate Continuous data flow improves every metric 11 Proprietary and confidential
100B Growing Data Advantage $410M 1 35M 250+ Acquisition Channels ¹ Cumulative figure for the seven years ended April 30, 2018 Source: Company data, Facebook, Statista, comScore & OperaMedia 12 Proprietary and confidential
Powerful Flywheel Improved Consumer Acquisition Improved Conversion Rate & Matching Efficiency & Personalization Granular Ad Bidding Consumer Visits A/B Testing Feedback Data Improved Conversion Marketplace Matches As data assets grow, algorithms become more powerful 13 Proprietary and confidential
Compelling Growth Drivers Leverage secular shift online Deepen consumer engagement Launch new verticals Increase provider coverage Attract more consumers 2% of total distribution spent 10M monthly visits online 35M cumulative quote Home and life requests revenue grew 420% to $5.6 500k cumulative 160+ insurance Million from 2Q EverDrive downloads carriers 2017 to 2Q 2018 Enhance brand 7,500+ insurance awareness agencies Expand internationally 14 Proprietary and confidential
The Future of Consumer Engagement: EverDrive • Uses smartphone sensors to assess driving performance • Provides drivers with actionable feedback on becoming a safer driver • Social features enable positive competition with family & friends 15 Proprietary and confidential
EverDrive Seamlessly Connects Drivers with Savings Carrier Partner #1 Contact Carrier #1 • Users opt-in to anonymously receive safe driving offers • Seamless integrations connect them to carriers for purchase • Policy details & consumer relationship remain within EverDrive experience 16 Proprietary and confidential
Strong culture of innovation Seth Birnbaum Tomas Revesz John Wagner Jayme Mendal Darryl Auguste CEO and Co- CTO and Co- CFO CRO SVP of Analytics and Founder Founder Online Marketing Jesse Wolf Eugene Suzuki David Mason Ryan Grimard Shimrit Markette SVP of Product CIO General Counsel SVP of Engineering SVP of People and Design Operations Prior Experience Education 17 Proprietary and confidential
Financial Overview 18 Proprietary and confidential
Key Investment Highlights Strong Second Quarter 2018 Results • Revenue Increased 37% to $41.1 Million • Automotive Revenue Grew 23% • Home and Life Revenue Grew 420% • Revenue Less Advertising Expense Increased 41% to $12.1 Million • Variable Marketing Margin Increased 41% to $12.8 Million • GAAP Net Loss of $1.7 Million • Adjusted EBITDA of ($0.6) million, an Improvement of 25% Note: Variable Marketing Margin is a non-GAAP metric, refer to financial reconciliation for additional detail 19 Proprietary and confidential
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