Good afternoon, everyone. My name is Abby, and I will be your conference operator today. I would like to welcome you to the EverQuote Second Quarter 2023 Earnings Conference Call. I will now turn the conference over to Brinlea Johnson from Investor Relations. You may begin.

Thank you. Good afternoon, and welcome to EverQuote's second quarter 2023 earnings call. We'll be discussing the results announced in our press release issued today after the market closed. With me on the call this afternoon is Jayme Mendal, EverQuote's Chief Executive Officer; and Joseph Sanborn, Chief Financial Officer of EverQuote. During the call, we will make statements related to our business that may be considered forward-looking statements under federal securities laws, including statements concerning our financial guidance for the third quarter of 2023, our growth strategy and our plans to execute on our growth strategy, key initiatives, including our direct-to-consumer agency, our investments in the business, the growth levers we expect to drive our business, our ability to maintain existing and acquire new customers, our expectations regarding recovery of the auto insurance industry and other statements regarding our plans and prospects. Forward-looking statements may be identified with words and phrases such as we expect, we believe, we intend, we anticipate, we plan, may, upcoming and similar words and phrases. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We specifically disclaim any obligation to update or revise these forward-looking statements, except as required by law. Forward-looking statements are not promises or guarantees of their future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For a discussion of material risks and other important factors that could cause our actual results to differ materially from our expectations, please refer to those contained under the heading Risk Factors in our most recent quarterly report on Form 10-Q, our annual report on Form 10-K that is on file with the Securities and Exchange Commission and available on the Investor Relations section of our website investor.everquote.com and SEC’s website sec.gov. Finally, during the course of today's call, we refer to certain non-GAAP financial measures, which we believe are helpful to investors. A reconciliation of GAAP to non-GAAP measures was included in the press release we issued after the close of market today, which is available on the Investor Relations section of our website at investors.everquote.com. And with that, I'll turn it over to Jayme.

Thank you, Brinlea, and thank you all for joining us today. In the second quarter, EverQuote reported revenue of $68 million variable marketing margin or VMM of $24.7 million and adjusted EBITDA of negative $2.1 million. We achieved a record high VMM as a percentage of revenue of 36.3%. However, our revenue results fell below our expectations, largely driven by two factors that developed in the latter half of the second quarter as auto insurance carriers continue to wrestle with significant profitability challenges. First, a major carrier partner reduced its budget multiple times over the quarter, resulting in their lowest levels of spend in our marketplace since the auto insurance downturn began in late summer of 2021. Second, we experienced a substantial contraction in agent demand following reductions in carrier marketing subsidies for local agents. We exited the quarter with auto demand at a new low point, which we now expect to persist into the back half of the year. In response to this renewed pullback and continued uncertainty about the timing of a more sustainable auto recovery, we initiated a restructuring of the business in June. The restructuring included a large reduction in force, an exit of our health insurance vertical and its associated direct-to-consumer agency operations, and a scale down of our DTCA operations serving the auto and home verticals. We also took actions to strengthen our balance sheet, which Joseph will cover in more detail. The combination of actions we have taken puts EverQuote in a stronger position to weather a further prolonged period of volatility in the auto insurance market. While the restructuring was catalyzed by the lower for longer auto insurance outlook, the specific decisions we made were informed by a deeper assessment of our overall strategy. We are also restoring greater focus on our most differentiated assets to deliver deeper value to our customers. These assets include our insurance shopping traffic scale and technology, our local agent network and our proprietary data and associated data science and machine learning capabilities, which we expect to take on greater significance as we continue to identify AI applications for insurance distribution. And in doing so, we reset our cost structure to enable significant adjusted EBITDA expansion and cash generation as the auto insurance market recovers. While we are proud of the health and Medicare business we built over the last three years, our decision to exit the vertical reflects our renewed commitment to a greater focus. As a more people and capital-intensive operation, these verticals operated with materially lower capital efficiency than our other verticals. In addition, the market's constantly changing regulatory environment gave us lower conviction in our ability to win. As a result of exiting health and Medicare, our teams will have the resources to go deeper in our remaining vertical markets with a heavier focus on our P&C marketplace. We believe the P&C market will evolve in the coming years as a result of fast-changing underwriting dynamics and that EverQuote is well positioned to partner with carriers and local agents in adapting. In P&C, we have the industry's largest local agent network and sales operation with an installed base of over 7,000 local agents to whom we can deliver more and better products to support their growth. As the largest online source of P&C insurance shopping traffic, we have a wealth of insurance distribution data. We have been steadfast in applying this data using machine learning to make our P&C operation more effective and efficient. And now with a sharper focus, we believe we can accelerate the rate at which we deploy machine learning and artificial intelligence across aspects of our business, ranging from operational efficiency to traffic bidding. Our vision remains unchanged: to become the largest online source of insurance policies using data, technology and knowledgeable advisers to make insurance simpler, more affordable and more personalized. While our path to get there is evolving, I'm confident that greater focus and a more capital-efficient and streamlined operation will accelerate our ability to provide compelling value to our consumers, insurance provider partners, and shareholders. Our team has demonstrated remarkable resilience and adaptability to fast-changing and challenging market conditions. And I have no doubt that the strengthening of our team will pay dividends and enable us to emerge with incredible success when the market recovers. Before I turn the call over to Joseph, I wanted to thank John Wagner for his nine years of dedication to EverQuote. I am also excited to welcome Joseph Sanborn to his first EverQuote earnings call as our new Chief Financial Officer. Joseph has been working closely with our executive team and me for the past four years, serving in a variety of finance and strategy roles. He possesses deep operational experience and understanding of our business and brings extensive strategic finance and capital markets experience to the role. Joseph, please go ahead.

Thank you, Jayme, for the warm introduction. Good afternoon, everyone. During my nearly four years with EverQuote, I've had the pleasure of meeting many of our investors. As I step into the CFO role, I look forward to continuing our dialogue and sharing with you the progress we are making at EverQuote. I will start by discussing our financial results for the second quarter then update you on recent actions taken since the end of Q2 before providing guidance for the third quarter. Our total revenue for the second quarter of $68 million represented a decline of 33% year-over-year and was lower than our previous guidance range for Q2 revenue. Despite the revenue shortfall, we delivered Variable Marketing Margin, or VMM, and adjusted EBITDA above the midpoint of our guidance as our operating teams continue to execute well in a deeply challenging environment. Q2 revenue from our auto insurance vertical decreased 39% year-over-year to $49.7 million, a sequential decline of 45% for Q1. The second quarter is typically a seasonally weaker period in our auto insurance vertical. In addition, we saw substantially weakened demand in Q2 from our largest carrier customer that called a very strong start to the year. Our third-party or local agent network was more resilient, representing 50% of total revenues in Q2, but it also experienced a year-over-year revenue decline, primarily driven by another one of our large carrier partners reducing their agent subsidies within the quarter. As a result, we exited the quarter with auto revenues at a new low point since the downturn began in late summer 2021. Revenue from our other insurance verticals, which includes home and renters, life, and health insurance, decreased 11% year-over-year to $18.2 million in the second quarter and represented 27% of revenue. The decline in revenue was mostly attributable to our health insurance vertical, which we made the strategic decision to exit within the quarter, which I will cover in more detail later in my remarks. Excluding health, the other insurance verticals grew quarter-over-quarter, led by the home vertical, which continues to make steady progress. VMM was $24.7 million for the second quarter. Despite lower monetization, VMM as a percentage of revenue was a record 36.3% for the quarter, driven by three main factors: First, our traffic teams were able to quickly drive down customer acquisition costs in a volatile environment. Second, we benefited from a shift in revenue mix towards our local agent network, which often has a higher VMM percentage. And third, we experienced double-digit growth in traffic volume as consumers continue to face large premium increases from auto insurance carriers receiving regulatory approvals for rate hikes. In short, our engine is working. We're also being disciplined in managing expenses and took multiple actions within the quarter to restructure our operations to reflect the current conditions of the market in which, in aggregate, resulted in the elimination of approximately 30% of positions across our company, including open requisitions. On June 16, we announced plans to implement a structural reduction of over 15% in our non-marketing operating expenses excluding non-cash items. As part of the strategic review that identified these savings, we made the decision to exit the health insurance vertical, including the associated direct-to-consumer agency or DTCA. Our decision to exit the vertical reflects our return to a relatively more asset-light model and renewed commitment to investing in areas where we believe we can build a long-term competitive moat. We also announced today that we sold select assets of our former health insurance vertical to MyPlan Advocate for approximately $13.2 million in cash, subject to customary post-closing adjustment and buyers' assumption of certain related liabilities. The transaction closed on August 1. Included in the sale was the $32.2 million commission receivable as of June 30, 2023, which we expect to be collected over the next seven years. We expect to take a significant non-cash charge in Q3 related to the sale of these assets. For context, the health insurance vertical represented less than 10% of our revenue in fiscal year 2022. If we had continued to operate the health insurance vertical, we expect it to generate incremental adjusted EBITDA in the coming fourth quarter during the annual open enrollment period. That performance, however, would have come at the cost of significant cash consumption in the current year. Given that all traffic and selling costs on policy sales are incurred in the current period, but the majority of commissions from such sales are received over several years. In addition to the agent support roles associated with the health insurance vertical, we eliminated numerous positions company-wide, including a substantial scale down of our DTCA, serving the P&C markets of auto and home insurance. Given the cash consumptive nature of the DTCA model, we have concluded that the current environment does not support scaling this operation at this time even in our core P&C markets. Instead, we have elected to maintain a small agent team to focus exclusively on selling auto and home policies. We have learned that having our own agents provides valuable traffic and customer insights and expanded carrier selection for shoppers, which in turn creates a stronger marketplace that better serves our customers. Turning to the bottom line. In the second quarter, GAAP net loss was $13.2 million and adjusted EBITDA was negative $2.1 million. To note, cost reduction efforts taken in Q2 resulted in a restructuring charge of approximately $3.8 million, which is excluded from adjusted EBITDA. We generated operating cash flow of $3.3 million for the second quarter, a year-over-year and sequential improvement, reflecting favorable timing of working capital, tighter expense management, and reduced investment in our DTCA operations. We ended the quarter with cash and cash equivalents on the balance sheet of $31 million. Subsequent to the close of Q2, we made two strategic decisions to strengthen our balance sheet and liquidity position. As I described earlier in my remarks, we sold select assets of our former health insurance vertical for approximately $13.2 million in cash, which will be added to our balance sheet. Second, we modified our existing loan agreement with Western Alliance Bank, providing significantly more flexible terms that better align with our current financial outlook given the prolonged nature of the auto carrier downturn. As part of this modification, we reduced the line of credit from $35 million to $25 million and eliminated the undrawn $10 million term loan. We have no debt currently outstanding on the Western Alliance debt facility, which runs through to July 2025, and have no plans to draw on the facility. Following these two actions after the close of the quarter, we currently have total liquidity in excess of $60 million. Turning to our outlook, including an update on the market conditions in the auto insurance industry. We ended June with very weak auto carrier demand, resulting in a new low point since the auto insurance downturn began in late summer 2021. We have seen these conditions persist into Q3, like many others in the industry. Based on discussions with our carrier partners and their public commentary on their own profitability, our current expectation is that auto carriers will largely remain on the sidelines through year-end. While moderating inflation and falling used car prices provide reason for some optimism, the exact timing of recovery continues to be uncertain. We believe nearly all auto insurance carriers are continuing to experience a low level of profitability while still working to aggressively increase rates in order to achieve rate adequacy. Although our local agent network has proved to be resilient, the prolonged nature of this downturn has resulted in more reductions of carrier support for their captive agents, and we anticipate the possibility of further reductions which may impact our local agents during the remainder of this year. Ultimately, we remain confident that auto insurance premium increases will improve financial performance for auto insurance carriers and consequently, will increase their demand for new consumer acquisition. But the timing of this improvement continues to be delayed, therefore impacting our guidance for Q3. We expect revenue to be between $51 million and $56 million, a year-over-year decrease of 48% at the midpoint. We expect VMM to be between $16 million and $18 million, a year-over-year decrease of 47% at the midpoint. And we expect adjusted EBITDA to be between negative $6 million and negative $4 million. In summary, we delivered solid performance within the second quarter, exceeding the midpoint of our guidance for VMM and adjusted EBITDA. We are executing well and taking market share in a very challenging market. We are focusing on what we can control and taking decisive action to judiciously manage expenses and our own capital. Though we recognize the high level of uncertainty in the near term, we have strong conviction that EverQuote will be well positioned to capitalize on the market opportunity and will directly benefit from the normalization of auto insurance carrier demand. Jayme and I will now answer your questions.

And we will take our first question from Michael Graham with Canaccord. Your line is open.

I want to wish John Wagner well and Joseph, congratulations. I wanted to ask two questions, guys. The first one is on just liquidity and sort of capital needs and just maybe address how you're thinking about your balance sheet and how comfortable you are with it here for the balance of the year, I guess? And then secondly, Jayme, you mentioned in your prepared remarks that you felt like in the auto vertical, where you were sort of maintaining your core business that you feel like you have a good competitive moat that you're building around. Can you just maybe address some of the sort of key points and sort of the focus of like building or maintaining a competitive moat in auto?

Sure. I will address the second question first and then let Joseph speak about liquidity. As we progressed through Q2, we observed a significant decrease in auto demand. Consequently, we conducted a strategic evaluation and concluded that we would benefit from increased strategic focus and better utilization of capital. This led to the decision to reduce our workforce, exit the health and Medicare sectors, and concentrate specifically on P&C. A major factor in this decision was our assessment of our truly unique assets. We consider these assets to include our local agent network, featuring over 7,000 local agents who depend on us for their growth, the significant traffic volume in P&C, auto, and home insurance, where we believe we are the leading source of online traffic, and the extensive data and technology infrastructure we have developed. Therefore, in making strategic choices about expanding more broadly or focusing more deeply, we chose to narrow our focus and deepen our investments in P&C. We believe we can leverage these assets to provide enhanced value for our customers, ultimately benefiting our shareholders over time.

I'll address your first question, Mike. Thank you for your kind words as well. Regarding our liquidity position, we concluded the second quarter with $31 million in cash on our balance sheet. Since the end of the quarter, we've taken two actions to further enhance our balance sheet. One action was selling our health assets for an additional $13 million. Additionally, we modified our loan with Western Alliance Bank to a $25 million facility. While we do not plan to utilize that facility, we adjusted the terms to provide us with greater flexibility in light of the current environment. Adding everything together, we now have over $60 million in liquidity, which we believe is sufficient for the business during an extended downturn in the auto sector. As for cash utilization this quarter, we are moving back to a model where EBITDA more closely represents cash flow usage for the quarter, while acknowledging the variations in working capital from one quarter to the next. We feel confident in our liquidity given the ongoing downturn and the proactive measures we've taken since Q2.

And we will take our next question from Ralph Schackart with William Blair. Your line is open.

So congrats, Joseph on the new role. During the prepared remarks, Jayme, you talked about focusing perhaps on AI and applications for insurance distribution. Just curious if you could provide some more context to that as the more traditional AI? Or are you looking to leverage Gen AI at some capacity. And then I have a follow-up.

Sure. Our simplistic framework for thinking about this is sort of two categories of application. One is in operational efficiency. It's more internal use cases. And then the second in more customer-facing features. The focus to date has been primarily on the first category. And we've already begun to deploy use cases, which are starting to show signs of success and build some adoption internally. And so in a recent example, we leveraged AI capabilities to automate a set of activities in one of our sales functions, and that improved the efficiency of that team by about 80%. We have similar examples beginning to take shape in engineering, and we're working on kind of extending it outwards to build adoption internally first. But I think one of the big opportunities that we have, and again, it's part of the rationale for focusing more narrowly on P&C and going deeper, is that we have a wealth of insurance distribution data in this market where we can tie consumer data and attributes that we've collected on millions and millions of consumers to outcomes down funnel with thousands of local agents and dozens of insurance carriers. And I think with that data, there will be opportunities to really apply some of the new technology as it comes out to better match and connect consumers with the right insurance providers for them, to right-price our traffic acquisition as we bid for traffic upmarket and to improve providers' efficiency and their spend with us. So there are a whole bunch of use cases that we see out there, and we're just beginning to step our way through it, but we see a huge opportunity given the unique data that we have to emerge as a leader in the space.

And then maybe just on the sort of the EBITDA burn at this point. Just philosophically, you have continued prolonged or longer than expected, tough macro environment with your carrier partners. Would there be a certain level that you'd want to manage the burn to? Or would you perhaps look to sort of balance that out with potentially tapping the loan facility?

Let me begin. As we made certain decisions this quarter, we had a few financial objectives. One of them was to lower our cash breakeven revenue level, which we accomplished successfully. We significantly enhanced the capital efficiency of the business through our actions. Consequently, we reduced the revenue needed to achieve breakeven or better cash flow by 35% to 40%. We also considered profitability and adjusted EBITDA based on assumptions about the auto recovery. For the past 18 to 24 months, we've experienced peaks and troughs. Currently, we are at the lowest point in this volatile period. However, as Joseph mentioned, we expect recovery to begin as we approach 2024. We implemented a cut that we deemed appropriate but still allows us to invest in areas of the business where we see considerable opportunity, particularly within P&C. We will maintain strict discipline regarding operating expenses as we move through the year and monitor market recovery. Our liquidity position is strong, and we can sustain modest investments in key areas. Nevertheless, we will continue to tightly manage our expenses for the remainder of this year, and I believe we will begin to operate at a more favorable level next year.

Yes. To build on what Jayme said, we will continue to manage our expenses carefully and in a disciplined manner. We've made decisions regarding our strategic focus, exiting our health business, and concentrating more on property and casualty. Part of the reason for the cuts we implemented was to ensure we are well-prepared for a recovery in the auto sector, which we believe is essential. We've been navigating this challenging period for quite a while, and our aim is to emerge as a strong leader in the industry. We believe the reductions we've made position us to have the necessary resources for ongoing investments. Additionally, we will stay attentive to managing expenses and adjusting them as needed to align with the current environment. Our goal as a team is to achieve cash flow breakeven and positive EBITDA during the first half of 2024.

We will take our next question from Cory Carpenter with JPMorgan. Your line is open.

I have a few questions for you. It sounds like you sold parts of the health business but still retain others. I'm curious about what you have left and how you plan to manage the wind down of that. Additionally, could you provide any context regarding your expectations for revenue contribution from the other vertical in the third quarter? Lastly, it would be helpful if you could explain why you anticipate a sequential decline in VMM margins for the third quarter.

At that third one, Cory.

The VMM guide in 3Q, I think you did 36% in margins in 2Q, you guided to about 32% in 3Q. Just curious the drivers there.

Certainly. Let me begin by discussing the exit from the health protocol. We entered the health vertical on June 30, and from that point onward, we will not be generating any health revenues. We have fully exited this vertical. The press release indicates that we sold select assets, and indeed, we have sold nearly everything, possibly just leaving a desk computer behind. This was done for the benefit of the lawyers and accountants involved. The main asset sold was the $32.2 million contract for commission receivables recorded on our balance sheet, which represented the estimated cash flows expected over the next seven years. We sold this for $13.2 million in cash. Additionally, as part of the transaction, we assisted in transitioning some employees to MyPlan Advocate, ensuring a smooth job placement process, which we were happy about. Therefore, regarding the health business exit, no revenues from this vertical will impact Q3. In Q3, as we finalize the accounting for the asset sales that took place on August 1, there will be a non-cash charge reflecting the sale of the contract asset for $13.2 million, as we will not receive that over time. This charge will be reported in the quarter, and we are currently finalizing the treatment of it, with guidance expected next quarter. For the other insurance verticals, I can share some insights from Q2 to help frame it along with the health vertical. Last year, the health vertical contributed just under 10% of the company's total revenues. Throughout the year, the bulk of this revenue is generated in Q4 during the annual enrollment period. The first half of this year also saw contributions of less than 10%, again due to the annual enrollment being in Q4. In Q2 specifically, we recorded approximately $18 million in revenue from the other insurance verticals, with around 35% to 40% stemming from health. That is the extent of guidance I can provide for Q2. We are not giving specific projections for the other insurance verticals, but the primary driver in this area has been the home vertical, which has been making steady progress as we have increased resources and leadership focus. We saw double-digit growth in the home vertical during Q2. Lastly, regarding the anticipated decline in VMM margins in Q3, you can observe that our margins in Q2 were at a record level, so our guidance reflects a range in the low 30s, around 31.5% to 32.5%. We are pleased with the record VMM margins, but we do not expect these to be sustainable. This was driven by our teams' ability to adapt well to the evolving environment and capitalize on short-term benefits. However, we remain cautious about the sustainability of this performance in the future, which is why we factored it into our guidance. Additionally, we experienced larger direct-to-consumer advertising expenses in Q2 for both health and our property and casualty sector. As Jayme highlighted, we have scaled back our P&C vertical and exited the health space, which also contributed to the elevated VMM. Consequently, we are reverting to a more typical level, recognizing that while Q2 was high, we cannot use it as a baseline for the remainder of the year.

We will take our next question from Dan Day with B. Riley Securities. Your line is open.

So a little more detail just on the pullback to subsidies and agent channel. So how much visibility do you have in terms of how long that will last? Is it any better than the carrier marketplace spending? How aggressive have those reductions been? And really, is it just like one or two carriers? Or is it fairly broad-based so far?

Yes, thanks, Dan. The agent subsidies are mostly concentrated among a few carriers. In the second quarter, one of the larger carriers significantly reduced subsidies in several states, impacting a considerable portion of their agent demand. Consequently, in those states, we noticed that agents had decreased subsidy support from the carrier, which affected their demand. Looking forward, we expect the remainder of 2023 to mirror the current market circumstances, and we do not anticipate a recovery in those subsidy dollars during this time. However, as we approach 2024, the indications we are receiving suggest that some of those funds may be reinstated, but not immediately at the levels from early 2023. The revival will likely depend on the carriers achieving sufficient rates to ensure their profitability on a state-by-state basis throughout 2024.

Could you provide more details on your decision not to fully exit the DTCA in home and health? What do you find appealing about that business? Additionally, do you view this as a temporary reduction with plans to bring in more P&C agents when recovery occurs, or is this the current state moving forward?

Sure. So just to clarify, we exited DTCA entirely in health and Medicare, which we exited the verticals. And with that, our DTCA operations, and that represented the majority of our Asian headcount. And then within P&C, which is the other DTCA operation that we have, we significantly reduced the agent headcount. And we did so because we — because of our renewed commitment to capital efficiency in the business. And so if you go back to the rationale for getting into this — into the DTCA in the first place, it — there was a strategic rationale and then there was some growth that it was meant to generate. And we made this decision at a time when the auto insurance market was in a healthier place. And of course, conditions on the ground have changed, and so we're revisiting some of those assumptions. Where we are today, we have a basically scaled down P&C DTCA operation today. So we have agents who are selling auto and home insurance. The strategic rationale that existed back when continues to exist today and get proven out. And that is that these agents can provide incremental coverage to the marketplace. They can provide options to consumers who come in when we don't have a good third-party option for them. They can generate a lot of insight about what happens with consumers down funnel. So we've got a lot of real-time data on the quality of traffic and LTV profile of consumers that we can use to improve our overall traffic operations. And it serves as a bit of an internal customer, which we treat this like an innovation lab as we try and improve our offering for third-party agents as well. So the majority of those things can be accomplished with a smaller footprint, and that's what we're trying to hold on to. I think the piece that — the notion that we are letting go of is DTCA as a standalone growth driver because that's not consistent with our renewed focus on capital efficiency. And so I would expect that its current incarnation, which is a much smaller agent base, will be the state in which it persists for the foreseeable future.

And we will take our final question from Jed Kelly with Oppenheimer. Your line is open.

Just looking at sort of the, I guess, non-variable marketing expenses implied in the guide, I think it's around like $22 million in the third quarter. Is that the proper run rate to assume going forward? And then, Joseph, just circling back on your free cash flow breakeven comments around the first half of next year, sort of what kind of gives you confidence to put that type of guidance out there?

Sure. Thanks for the question, Jed. In terms of the operating expense level, I believe you have a reasonable estimate. If we consider where we ended Q2 and the guidance we've provided, we indicated there would be a 15% reduction in structural costs, which we are implementing in Q3. Looking ahead to next year, we anticipate some recovery in the automotive sector during the first half. As Jayme mentioned, we have significantly reduced the cash flow breakeven point of the business by 35% to 40% compared to the beginning of the year. In practical terms, this means a very modest recovery from current levels, even below where we were earlier in the year. This gives us confidence in reaching cash flow EBITDA breakeven. The current difference between EBITDA and cash flow is quite similar, mainly due to working capital changes from quarter to quarter. Previously, with DTCA, we had substantial cash investments upfront, which we realized over time. Now, with a more asset-light model, we are seeing a stronger correlation between adjusted EBITDA and cash flow during a period.

Just a follow-up on the insurance market. Jayme, how do you see the competitive landscape evolving once the recovery occurs? Do you anticipate that everyone will benefit, or do you think there will be fewer players? Are you expecting a period of consolidation? How do you envision things unfolding as we eventually reach recovery?

Thank you, Jed. While it has been a challenging time for everyone, we have performed relatively well. By all measures, if you track insurance revenue from similar companies, we have gained market share during the downturn. We feel very confident about our competitive position. Looking ahead, I believe the recovery will benefit all participants in the market. It's difficult for me to predict if there will be consolidation, but I am optimistic about EverQuote's standing as we emerge from this downturn, having gained market share and strengthened our focus on the auto insurance market. I believe we will continue to enhance our advantage with local agents and position ourselves distinctly compared to others in the market.

And there are no further questions at this time. I will now turn the call back to management for closing remarks.

Thanks all for joining us today. So as the auto insurance market volatility persists. We took significant action this quarter to strengthen our position for further prolonged downturn. We dramatically improved our capital efficiency. We strengthened our balance sheet. We streamlined expenses. And we bolstered our focus in areas where we can build on and around our most differentiated assets. I'm confident that the changes we made will accelerate our ability to provide compelling value to our customers, insurance provider partners, and our shareholders moving forward. Thanks for your time.

Ladies and gentlemen, this concludes today's call. We thank you for your participation. You may now disconnect.