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Investor Presentation
September 2018
Investor Presentation September 2018 1 Proprietary and - - PowerPoint PPT Presentation
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
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September 2018
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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
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.
This presentation may not be reproduced, forwarded to any person or published, in whole or in part.
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Proprietary and confidential Note: Quote request data are cumulative as of each date indicated
2011 2014 2015 2016 2017 2018
Auto
Marketplace Launch
Quote Requests
Carrier
Platform Launch
Agent
Platform Launch $100M Revenue Run Rate
Quote Requests
Home & Life
marketplace launch
Quote Requests
EverDrive
Safe Driving App Launch Boston Globe
Voted One of Boston's Best Places to Work
Fastest Growing Companies
500K EverDrive Downloads
Cumulative Quote Requests
Company IPO
June 28, 2018
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$126mn EverQuote 2017A revenue
$9.3bn
U.S. Total Insurance advertising spend 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
$120bn
U.S. Non-health insurance sales, marketing and distribution spend
Growth drivers Continued shift of
consumer time spent online
Shift in acquisition spend online
Digitization of insurance products and workflows
2% 27% 37% 57% Insurance Travel Lodging Auto marketing
Mature market average: 40%
Significant online penetration upside
% of distribution spent online by category
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Source: 2015 comScore survey
Consumers cite the desire to speak to an agent as top reason for not buying online
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Premium
2017 BMW 20012 8K miles / year Typical coverage $500K injury
Standard
2017 Nissan Leaf 90210 6K miles / year Typical coverage $100K / $300K
Non-standard
2013 Honda Civic 10016 2 tickets Coverage State minimum
Provider
(premium)
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Consumers Insurance providers
20-50 consumer submitted data points
Quote request
Monetization at Referral
CLICKS CALLS DATA
Match Attract
250+ traffic sources
More Efficient Acquisition Save Time and Money
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Insurance providers Consumers
Consumer Alignment Algorithms Multi-Channel Bid Automation Algorithms
Minimize Cost per Acquisition
Continuous data flow improves every metric
Maximize Conversion Carriers A B C D E F G Maximize Bind Rate
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35M
100B $410M1
¹ Cumulative figure for the seven years ended April 30, 2018 Source: Company data, Facebook, Statista, comScore & OperaMedia
250+
Acquisition Channels
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As data assets grow, algorithms become more powerful
Improved Conversion A/B Testing Feedback Data Consumer Visits Marketplace Matches Granular Ad Bidding
Improved Conversion Rate & Personalization Improved Consumer Acquisition & Matching Efficiency
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Increase provider coverage Attract more consumers Launch new verticals
Enhance brand awareness Expand internationally
Deepen consumer engagement Leverage secular shift online
10M monthly visits 35M cumulative quote requests 500k cumulative EverDrive downloads 160+ insurance carriers 7,500+ insurance agencies Home and life revenue grew 420% to $5.6 Million from 2Q 2017 to 2Q 2018 2% of total distribution spent
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Carrier Partner #1 Contact Carrier #1
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Seth Birnbaum CEO and Co- Founder John Wagner CFO Darryl Auguste SVP of Analytics and Online Marketing Jayme Mendal CRO Shimrit Markette SVP of People Operations Tomas Revesz CTO and Co- Founder Eugene Suzuki CIO
Prior Experience Education
Ryan Grimard SVP of Engineering Jesse Wolf SVP of Product and Design David Mason General Counsel
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Note: Variable Marketing Margin is a non-GAAP metric, refer to financial reconciliation for additional detail
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$45.6 $61.9 $96.8 $122.8 $126.2 $161.0 20 40 60 80 100 120 140 160 180 2014
28% Total Revenue CAGR*
Revenue ($mm)
2013 2015 2016 2017
2018 FY Guidance a/o 8-6-2018
*Projected CAGR for fiscal year 2013-2018, based on actual results from fiscal year 2013 through fiscal year 2017 and assuming that the Company achieves its projected revenue guidance mid- point of $161.8 million for fiscal year 2018.
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Home & Life Revenue ($mm)
1.1 5.6 Q2'17 Q2'18 3.1 6.9 2016 2017 121% y/y growth 420% y/y growth
Growth drivers Sales leverage: Ability to cross- sell traffic to existing customers Traffic leverage: Target advertising opportunities leveraging expertise and technology
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10.5 32.8 45.4 70.8 73.9 2013 2014 2015 2016 2017
2011 Cohort 2012 Cohort 2013 Cohort 2014 Cohort 2015 Cohort 2016 Cohort 2017 Cohort
Carrier revenue by annual cohort ($mm)
91% of 2017 carrier revenue from 2011-2014 cohorts
26% 58% 65% 81% 85% 90% 74% 42% 35% 19% 15% 10%
2013 2014 2015 2016 2017 Q2'18
Direct Indirect
Direct vs. indirect distribution share
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Quote requests (M)
1.8M 2.4M 5.4M 9.5M 12.1M 2013 2014 2015 2016 2017 60% CAGR 2013-2017
Cost / quote request ($)
$21.2 $21.4 $13.8 $9.4 $7.4 2013 2014 2015 2016 2017 65% reduction 2013-2017
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$9.1 $12.8
30.3% 31.2%
27% 29% 31% 33% 35% 37% 39% $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20
Q2'17 Q2'18
VMM ($mm) Margin (%)
$6.9 $11.9 $23.4 $33.8 $37.6
15.2% 19.2% 24.2% 27.5% 29.7%
0% 5% 10% 15% 20% 25% 30% 35% $0 $5 $10 $15 $20 $25 $30 $35 $40
2013 2014 2015 2016 2017
Note: Variable Marketing Margin is a non-GAAP metric, refer to financial reconciliation for additional detail
53% CAGR 2013-2017
41% y/y growth
Variable Marketing Margin ($mm) Quarterly overview Annual overview
Demonstrating our online acquisition efficiency and the benefits
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Metric Definition Quote Requests
Quote requests are consumer-submitted website forms that contain the data required to provide an insurance quote. As we attract more consumers to our platform and they complete quote requests, we are able to refer them to our insurance provider customers, selling more referrals while also collecting data, which we use to improve personalization, conversion rates and consumer satisfaction.
Variable Marketing Margin
We define variable marketing margin, or VMM, as revenue less online advertising costs related to attracting consumers to our marketplace (which are a component of total advertising expense, which is a component of sales and marketing expense). We utilize VMM to measure the financial return on our online advertising, specifically to measure the degree by which the revenue generated from consumer quote requests exceeds the cost to attract those consumers to our marketplace through online advertising. We also use VMM to measure the efficiency of individual online advertising and consumer acquisition sources and to make trade-off decisions to manage our return on advertising. We do not utilize VMM as a measure
Adjusted EBITDA
We define adjusted EBITDA as net loss, adjusted to exclude: stock-based compensation expense, depreciation and amortization expense, interest expense and the provision for (benefit from) income taxes. We monitor and present adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our
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Revenue Less: total advertising expense Revenue less advertising expense Add: other advertising expense Variable marketing margin 2013 2014 2015 2016 2017 Q2 2017 Q2 2018 (in thousands) $ 45,581 $ 61,901 $ 96,798 $ 122,778 $ 126,242 $ 30,017 $ 41,092 $ (38,668) $ (49,986) $ (73,414) $ (89,197) $ (90,471) $ (21,429) $ (28,946) $ 6,913 $ 11,915 $ 23,384 $ 33,581 $ 35,771 $ 8,588 $ 12,146 — — — $ 179 $ 1,780 $ 520 $ 673 $ 6,913 $ 11,915 $ 23,384 $ 33,760 $ 37,551 $ 9,108 $ 12,819
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Three Months Ended June 30, 2018 2017 (in thousands) Net loss $ (1,730) $ (1,665) Stock-based compensation 723 468 Depreciation and amortization 318 327 Interest expense 103 85 Adjusted EBITDA $ (586) $ (785)