8-K
EverQuote, Inc. (EVER)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 3, 2021
EverQuote, Inc.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 001-38549 | 26-3101161 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
| 210 Broadway<br> <br>Cambridge, Massachusetts | 02139 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (855) 522-3444
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br> <br>Symbol(s) | Name of each exchange<br> <br>on which registered |
|---|---|---|
| Class A Common Stock, $0.001 par value per share | EVER | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On May 3, 2021, EverQuote, Inc. (the “Company”) issued a press release reporting financial results for the fiscal quarter ended March 31, 2021. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in Item 2.02 in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 7.01 | Regulation FD Disclosure. |
|---|
On May 3, 2021, the Company posted an investor presentation to its website (www.everquote.com). A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information contained in Item 7.01 in this Current Report on Form 8-K (including Exhibit 99.2) shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits
EXHIBIT INDEX
| Exhibit<br>No. | Description |
|---|---|
| 99.1 | Press release dated May 3, 2021 |
| 99.2 | Investor Presentation dated May 2021 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EVERQUOTE, INC. | ||
|---|---|---|
| Date: May 3, 2021 | By: | /s/ David Mason |
| David Mason | ||
| Secretary and General Counsel |
EX-99.1
Exhibit 99.1
EverQuote Announces First Quarter 2021 Financial Results
| • | Revenue Increased 28% Year-Over-Year to $103.8 Million |
|---|---|
| • | Non-Auto Insurance Revenue Increased 41% Year-Over-Year to $19.3Million |
| --- | --- |
| • | Variable Marketing Margin Increased 32% Year-Over-Year to $31.4 Million |
| --- | --- |
CAMBRIDGE, Mass., May 3, 2021 — EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the first quarter ended March 31, 2021.
“We enter 2021 with clarity in our strategy and a focus on execution - delivering solid results across all of our key metrics as revenue increased 28%, VMM grew 32%, and Adjusted EBITDA continued to expand,” said Jayme Mendal, CEO of EverQuote. “We are pleased with our Q1 performance and are scaling the business by making strategic investments to attract more shoppers, grow insurance provider coverage and budget, optimize and deepen consumer-provider engagement and further expand our non-auto verticals. We remain bullish in our outlook for the remainder of this year and in our ability to build an industry-defining company,” concluded Mr. Mendal.
First Quarter 2021 FinancialHighlights:
(All comparisons are relative to the first quarter of 2020):
| • | Total revenue of $103.8 million, an increase of 28%. |
|---|---|
| • | Automotive insurance vertical revenue of $84.5 million, an increase of 25%. |
| --- | --- |
| • | Revenue from our other insurance verticals, which includes home and renters, life, health and commercial<br>insurance, increased 41% to $19.3 million. |
| --- | --- |
| • | Variable Marketing Margin of $31.4 million, an increase of 32%. |
| --- | --- |
| • | GAAP net loss of $3.8 million, compared to GAAP net loss of $1.4 million. |
| --- | --- |
| • | Adjusted EBITDA of $4.8 million, compared to Adjusted EBITDA of $3.8 million. |
| --- | --- |
First Quarter 2021 Business Highlights:
| • | Consumer traffic initiatives focused on improving monetization led to a 22% year-over-year increase in revenue<br>per quote request as quote requests grew 4% year-over-year. |
|---|---|
| • | Digital carriers grew their spending on our platform by over 200% year-over-year. |
| --- | --- |
| • | EverQuote continued building its leadership team, with David Brainard promoted to Chief Technology Officer and<br>Brandon Washington joining EverQuote as Senior Vice President, Diversity, Equity and Inclusion. |
| --- | --- |
Second Quarter and IncreasedFull-Year 2021 Guidance:
EverQuote anticipates Revenue, Variable Marketing Margin and Adjusted EBITDA to be in the following ranges:
Second quarter 2021:
| • | Revenue of $101 - $103 million, a year-over-year increase of 30% at the<br>mid-point. |
|---|---|
| • | Variable Marketing Margin of $31 - $32 million, a year-over-year increase of 34% at the mid-point. |
| --- | --- |
| • | Adjusted EBITDA in the range of $5 - $6 million, a year-over-year improvement of 38% at the mid-point. |
| --- | --- |
Full year 2021:
| • | Revenue of $434 - $442 million, a year-over-year increase of 26%<br>at the mid-point and an increase from our previous guidance of $430 - $440 million. |
|---|---|
| • | Variable Marketing Margin of $136 - $140 million, a year-over-year increase of 27% at the mid-point and an increase from our previous guidance of $135 - $140 million. |
| --- | --- |
| • | Adjusted EBITDA in the range of $26 - $30 million, a year-over-year increase of 52% at the mid-point and an increase from our previous guidance of $25 - 30 million. |
| --- | --- |
With respect to the Company’s expectations under “Second Quarter and Increased Full Year 2021 Guidance” above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.
Conference Call and Webcast Information
EverQuote will host a conference call and live webcast to discuss its first quarter 2021 financial results at 4:30 p.m. Eastern Time today, May 3, 2021. To access the conference call, dial (877) 273-5005 for the U.S. or Canada, or (647) 689-5410 for international callers and provide conference ID 7356836. The webcast will be available live on the Investors section of the Company’s website at https://investors.everquote.com.
An audio replay of the call will also be available to investors beginning at approximately 6:30 p.m. Eastern Time on May 3, 2021, until 11:59 p.m. Eastern Time on May 9, 2021, by dialing (800) 585-8367 for the U.S. or Canada, or (416) 621-4642 for international callers, and entering passcode 7356836. In addition, an archived webcast will be available on the Investors section of the Company’s website at: https://investors.everquote.com.
Safe Harbor Statement
Any statements in this press release about future expectations, plans and prospects for EverQuote, Inc. (“EverQuote” or the “Company”), including statements about future results of operations or the future financial position of the Company, including financial targets, business strategy, plans and objectives for future operations and other statements containing the words “anticipates,” “believes,” “expects,” “plans,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: (1) the Company’s ability to attract and retain consumers and insurance providers using the Company’s marketplace; (2) the Company’s ability to maintain or increase the amount providers spend per quote request; (3) the impact on the Company and the insurance industry of the COVID-19 pandemic; (4) the effectiveness of the Company’s growth strategies and its ability to effectively manage growth; (5) the Company’s ability to maintain and build its brand; (6) the Company’s reliance on its third-party service providers; (7) the Company’s ability to develop new and enhanced products and services to attract and retain consumers and insurance providers, and the Company’s ability to successfully monetize them; (8) the impact of competition in the Company’s industry and innovation by the Company’s competitors; (9) the Company’s expected use of proceeds from its initial public offering; (10) developments regarding the insurance industry and the transition to online marketing; and (11) other factors discussed in the
“Risk Factors” section of the Company’s most recent Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.
About EverQuote
EverQuote operates a leading online insurance marketplace, connecting consumers with insurance providers. The company’s mission is to empower insurance shoppers to better protect life’s most important assets—their family, property, and future. Our vision is to 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.
For more information, visit everquote.com and follow on Twitter @everquotelife, Instagram @everquotepics, and LinkedIn
https://www.linkedin.com/company/everquote/.
Investor Relations Contact:
Brinlea Johnson
The Blueshirt Group
212-331-8424
Brinlea @blueshirtgroup.com
EVERQUOTE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| (in thousands except per share) | ||||||
| Revenue | $ | 103,822 | $ | 81,364 | ||
| Cost and operating expenses(1): | ||||||
| Cost of revenue | 5,953 | 5,335 | ||||
| Sales and marketing | 87,569 | 66,504 | ||||
| Research and development | 8,573 | 6,459 | ||||
| General and administrative | 5,596 | 4,719 | ||||
| Acquisition-related | (79 | ) | — | |||
| Total cost and operating expenses | 107,612 | 83,017 | ||||
| Loss from operations | (3,790 | ) | (1,653 | ) | ||
| Other income (expense): | ||||||
| Interest income | 14 | 111 | ||||
| Other income (expense), net | (25 | ) | 100 | |||
| Total other income (expense), net | (11 | ) | 211 | |||
| Net loss | $ | (3,801 | ) | $ | (1,442 | ) |
| Net loss per share, basic and diluted | $ | (0.13 | ) | $ | (0.05 | ) |
| Weighted average common shares outstanding, basic and diluted | 28,431 | 26,640 | ||||
| (1) | Amounts include stock-based compensation expense, as follows: | |||||
| --- | --- | |||||
| Three Months Ended March 31, | ||||||
| --- | --- | --- | --- | --- | ||
| 2021 | 2020 | |||||
| (in thousands) | ||||||
| Cost of revenue | $ | 91 | $ | 54 | ||
| Sales and marketing | 3,391 | 1,695 | ||||
| Research and development | 2,327 | 1,276 | ||||
| General and administrative | 1,711 | 1,515 | ||||
| $ | 7,520 | $ | 4,540 |
EVERQUOTE, INC.
CONSOLIDATED BALANCE SHEET DATA
| March 31,2021 | December 31,2020 | |||
|---|---|---|---|---|
| (in thousands) | ||||
| Cash and cash equivalents | $ | 46,886 | $ | 42,870 |
| Working capital | 55,107 | 50,554 | ||
| Total assets | 135,669 | 129,050 | ||
| Total liabilities | 59,681 | 58,068 | ||
| Total stockholders’ equity | 75,988 | 70,982 |
EVERQUOTE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| (in thousands) | ||||||
| Cash flows from operating activities: | ||||||
| Net loss | $ | (3,801 | ) | $ | (1,442 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
| Depreciation and amortization expense | 1,174 | 849 | ||||
| Stock-based compensation expense | 7,520 | 4,540 | ||||
| Change in fair value of contingent consideration | (79 | ) | — | |||
| Provision for (recovery of) bad debt | (46 | ) | 21 | |||
| Unrealized foreign currency transaction (gains) losses | 15 | — | ||||
| Changes in operating assets and liabilities, net of effects from acquisition: | ||||||
| Accounts receivable | (2,942 | ) | (3,462 | ) | ||
| Prepaid expenses and other current assets | 172 | (94 | ) | |||
| Operating lease<br>right-of-use assets | 791 | — | ||||
| Other assets | (733 | ) | (4 | ) | ||
| Accounts payable | (702 | ) | 3,983 | |||
| Accrued expenses and other current liabilities | 2,810 | (489 | ) | |||
| Operating lease liabilities | (638 | ) | — | |||
| Deferred revenue | (57 | ) | 76 | |||
| Other long-term liabilities | 36 | (51 | ) | |||
| Net cash provided by operating activities | 3,520 | 3,927 | ||||
| Cash flows from investing activities: | ||||||
| Acquisition of property and equipment, including costs capitalized for development of internal-use software | (777 | ) | (885 | ) | ||
| Net cash used in investing activities | (777 | ) | (885 | ) | ||
| Cash flows from financing activities: | ||||||
| Proceeds from exercise of stock options | 1,272 | 1,364 | ||||
| Net cash provided by financing activities | 1,272 | 1,364 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1 | — | ||||
| Net increase in cash, cash equivalents and restricted cash | 4,016 | 4,406 | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 43,120 | 46,304 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 47,136 | $ | 50,710 |
EVERQUOTE, INC.
FINANCIAL AND OPERATING METRICS
Revenue by vertical:
| Three Months Ended March 31, | Change | ||||||
|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | |||||
| (in thousands) | |||||||
| Automotive | $ | 84,481 | $ | 67,641 | 24.9 | % | |
| Other | 19,341 | 13,723 | 40.9 | % | |||
| Total Revenue | $ | 103,822 | $ | 81,364 | 27.6 | % |
Other financial and non-financial metrics:
| Three Months Ended March 31, | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | |||||||
| (in thousands) | |||||||||
| Loss from operations | $ | (3,790 | ) | $ | (1,653 | ) | 129.3 | % | |
| Net loss | $ | (3,801 | ) | $ | (1,442 | ) | 163.6 | % | |
| Quote requests | 7,720 | 7,392 | 4.4 | % | |||||
| Variable Marketing Margin | $ | 31,438 | $ | 23,815 | 32.0 | % | |||
| Adjusted EBITDA(1) | $ | 4,800 | $ | 3,836 | 25.1 | % | |||
| (1) | Adjusted<br>EBITDA is a non-GAAP measure. Please see “EverQuote, Inc. Reconciliation of Non-GAAP Measures to GAAP” below for more<br>information. | ||||||||
| --- | --- |
To supplement the Company’s financial statements presented in accordance with GAAP and to provide investors with additional information regarding EverQuote’s financial results, the Company has presented Adjusted EBITDA as a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies.
The Company defines Adjusted EBITDA as net income (loss), excluding the impact of stock-based compensation expense; depreciation and amortization expense; acquisition-related; interest income; and income taxes. The most directly comparable GAAP measure is net income (loss). The Company monitors and presents Adjusted EBITDA because it is a key measure used by management and the board of directors to understand and evaluate operating performance, to establish budgets and to develop operational goals for managing EverQuote’s business. In particular, the Company believes that excluding the impact of these items in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of EverQuote’s core operating performance.
The Company uses Adjusted EBITDA to evaluate EverQuote’s operating performance and trends and make planning decisions. The Company believes that this non-GAAP financial measure helps identify underlying trends in EverQuote’s business that could otherwise be masked by the effect of the items that the Company excludes in the calculations of Adjusted EBITDA. Accordingly, the Company believes that this financial measure provides useful information to investors and others in understanding and evaluating EverQuote’s operating results, enhancing the overall understanding of the Company’s past performance and future prospects.
The Company’s non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, other companies may use other measures to evaluate their performance, which could reduce the usefulness of the Company’s non-GAAP financial measures as tools for comparison.
The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.
EVERQUOTE, INC.
RECONCILIATION OF NON-GAAP MEASURES TO GAAP
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Net loss | $ | (3,801 | ) | $ | (1,442 | ) |
| Stock-based compensation | 7,520 | 4,540 | ||||
| Depreciation and amortization | 1,174 | 849 | ||||
| Acquisition-related | (79 | ) | — | |||
| Interest income | (14 | ) | (111 | ) | ||
| Adjusted EBITDA | $ | 4,800 | $ | 3,836 |
EX-99.2
Investor Presentation May 2021 Exhibit 99.2
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, & the effects of competition are forward-looking statements. These statements involve known & unknown risks, uncertainties & 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,” “guidance,” 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 & projections about future events & financial trends that it believes may affect the Company’s business, financial condition & results of operations. These forward-looking statements speak only as of the date of this presentation & are subject to a number of risks, uncertainties & assumptions, some of which cannot be predicted or quantified & some of which are beyond the Company’s control. The events & circumstances reflected in the Company’s forward-looking statements may not be achieved or occur, & actual results could differ materially from those projected in the forward-looking statements, including as a result of: (1) the Company’s ability to attract & retain consumers & insurance providers using the Company’s marketplace; (2) the Company’s ability to maintain or increase the amount providers spend per quote request; (3) the effectiveness of the Company’s growth strategies & its ability to effectively manage growth; (4) the Company’s ability to maintain & build its brand; (5) the Company’s reliance on its third-party service providers; (6) the Company’s ability to develop new & enhanced products & services to attract & retain consumers & insurance providers& the Company’s ability to successfully monetize them; (7) the impact of competition in the Company’s industry & innovation by the Company’s competitors; (8) the Company’s expected use of proceeds from its initial public offering; & (9) developments regarding the insurance industry & the transition to online marketing; (10) the effects of the COVID-19 pandemic; & (11) 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 & the other filings that the Company makes with the Securities & Exchange Commission from time to time. Moreover, new risk factors & uncertainties may emerge from time to time, & it is not possible for management to predict all risk factors & 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, & other information concerning the Company’s industry, the Company’s business & the markets for certain of the Company’s products & 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 & actual events or circumstances may differ materially from events & circumstances reflected in this information. Unless otherwise expressly stated, the Company obtained this industry, business, market & other data from reports, research surveys, studies & similar data prepared by market research firms & other third parties, from industry, general publications, & from government data & similar sources. The Company presents 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.
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.
Key Investment Highlights Leading online insurance marketplace providing compelling benefits for consumers and insurance providers Track record of delivering strong growth and expanding adjusted EBITDA profitability; re-occurring revenue, asset-light model Insurance Marketplace $154bn in annual distribution and advertising spend in the early phases of shifting online provides multi-year secular tailwind Massive Market Opportunity Proprietary platforms built on highly integrated machine learning & data assets support rapid growth, drive network effects and create competitive moat Proprietary Tech & Data 100+ carriers and 8,500+ local agents coupled with Direct-to-Consumer (DTC) agency in life and health verticals Extensive Distribution Strong Financial Profile
* First year of revenue Founded* 2011 IPO June 28, 2018 EverQuote Company Snapshot LTM Revenue Growth 33% LTM Adjusted EBITDA Growth 43% Employees 450+ LTM Variable Marketing Margin Growth 40% Headquarters Cambridge, MA Auto Home & Renters Life Health Commercial Insurance Verticals Last Twelve Months (”LTM”) financial information as of March 31, 2021 with growth relative to the twelve months ended March 31, 2020..
Large & Expanding TAM Total Digital Spending Growth: ~ 16% EVER Share: <10% Projected Annual Growth to 2024 Continued shift of consumer time spent online Continued shift of acquisition spend online Continued shift to digitization of insurance products & workflows Growth Drivers U.S. Insurance Market: Distribution & Ad Spend Total Market Growth: ~4% EVER Share: <1% Source: Stax Consulting, Inc., S&P Global Market Intelligence SNL Insurance Data, IIABA and Company estimates. EverQuote is not reaffirming this guidance as of the date of this presentation & makes no statement with respect to this guidance other than such guidance was provided by EverQuote as of May 3, 2021. $438.0mm1 EverQuote 2021 revenue guidance midpoint $154bn Total Market $16.7bn Total Advertising Spend $6.5bn Total Digital Spend
Compelling Model Benefits Both Consumers & Providers More Efficient Acquisition for Providers Large volume of high intent consumers Target based consumer attributes tied to ROI Consumers Save Time & Money Match & connect for multiple quotes Average Savings ~$600 per year1 Addresses the alignment challenges inherent in the fragmented insurance market Estimated average annual premium savings based on a countrywide survey in 2020 of EverQuote users that reported old & new premiums. Consumers Insurance Providers
Marketplace Arrival to Policy Sale Journey Gets Quotes / Buy Insurance Traffic Channels Matched with Providers Arrives at the Marketplace Marketplace Workflows Other includes organic search, direct-to-site, inbound calls,, social & other traffic sources.. Performance Marketing relates to managing traffic directed to owned and operated websites.. Display Email TV / Offline SEM Other1 Verified Partners EverQuote Agents Carriers Local Agents 1St Party - DTC Agency Health & Life Only 3rd Party - All Verticals Customer Acquisition Marketplace Distribution Performance Alignment Bidding EQ monetizes on commission; LTV relationship with consumer EQ monetizes on the referral to carriers and third-party agents Performance Marketing2 (Owned & Operated) Verified Partner Network (3rd Party) Traffic Platforms
100+ carriers available via the marketplace1 19 of 20 top auto insurance carriers1 8,500+ 3rd party local agents Distribution Strength of our Marketplace Based on Company data & representative of the insurance provider partners on the platform as of December 31, 2020
Multi-Vertical Marketplace Data Platform (Growing Data Assets, Rapid Data Onboarding, Rich Analytics Tools) Growing Data & Tech Assets Strengthen Competitive Moat Diverse Customer Acquisition Broad Distribution with Carriers & 3rd Party Agents; 1st Party EQ Agents in Life & Health Proprietary Platforms Built on Highly Integrated Machine Learning and Data Assets Support Growth of all Marketplace Verticals Property & Casualty (Auto, Home, Commercial) Multi-Channel Automated Bidding Minimize Cost per Acquisition Marketing Platforms Personalized User Experiences Maximize Conversion Rates Consumer Platforms Consumer Alignment Algorithms Maximize Bind Rates Distribution Platforms Enterprise & Agency Campaign Management Maximize Value per Acquisition B2B Platforms ML Platforms (Automated Selection, Prediction & Anomaly Detection) Life & Health Traffic Sources Other includes organic search, direct-to-site, inbound calls, social & other traffic sources.. . Display Email TV / Offline SEM Other1 Verified Partners
Multiple Levers Driving Future Growth Attract More Consumers Leverage Secular Shift Online Increase Provider Coverage & Budget Deepen Consumer & Provider Engagement Expand Non-Auto Verticals
Financial Overview
Note: Adjusted EBITDA is a non-GAAP metric, refer to financial reconciliation for additional detail. Highlights on First Quarter 2021 Revenue increased 28% YoY to $103.8 mm 28% Revenue from Non-Auto Verticals increased 41% YoY 41% Adjusted EBITDA expanded to $4.8 mm VMM increased 32% YoY to $31.4 mm 32% VMM as a percentage 0f Revenue increased by 100 basis points YoY, to 30.3% +100 bps Revenue per Quote Request increased 22% YoY 22%
Revenue ($mm) 29% CAGR 2015-2020 Track Record of Strong Growth Track Record of Strong Growth 28% Q1’21 YoY Growth
Delivering Incremental Variable Marketing Margin 36% CAGR 2015-2020 Variable Marketing Margin ($mm) Beginning in the first quarter of 2019, we revised our definition of variable marketing margin, or VMM. The VMM displayed above reflects our revised definition of VMM for all years presented. Refer to Key Metrics Definitions in the Appendix for a definition of VMM. 32% Q1’21 YoY Growth Variable Marketing Margin %
Non-auto verticals include our home & renters, life, heath & commercial insurance verticals. Rapid Expansion into New Verticals with Scalable Model Revenue from Non-Auto Verticals ($mm) Traffic leverage: Target advertising opportunities leveraging expertise & technology Sales leverage: Ability to cross-sell traffic to existing customers 112% CAGR 2016-2020 41% YoY Growth Non-Auto Verticals Home & Renters Life Health Commercial
Driving Growth & Profitability Adjusted EBITDA ($mm) Note: Adjusted EBITDA is a non-GAAP metrics, refer to financial reconciliation for additional detail. 2018 2018
NASDAQ: EVER
Appendix
Key Metrics Definitions Quote Requests Quote requests are consumer-initiated requests for an insurance quote that result from a website form, telephones calls with a consumer, or other interactions we have with consumers through third-party websites that result in a revenue generating transaction. As we attract more consumers to our platform & 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 user experience, conversion rates & consumer satisfaction. Variable Marketing Margin We define variable marketing margin, or VMM, as revenue, as reported in our consolidated statements of operations and comprehensive income (loss), less advertising costs (a component of sales and marketing expense, as reported in our statements of operations and comprehensive income (loss)). We use VMM to measure the efficiency of individual advertising and consumer acquisition sources and to make trade-off decisions to manage our return on advertising. We do not use VMM as a measure of profitability. Adjusted EBITDA We define Adjusted EBITDA as net income (loss), adjusted to exclude: stock-based compensation expense, depreciation and amortization expense, acquisition-related costs, legal settlement expense, interest income and the provision for (benefit from) income taxes. We monitor & present Adjusted EBITDA because it is a key measure used by our management & board of directors to understand & evaluate our operating performance, to establish budgets & to develop operational goals for managing our business.
Reconciliation of Adjusted EBITDA Three Months Ended 12 Months Ended March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2020 December 31, 2019 December 31, 2018 Net income (loss) ($3,801) ($3,768) ($3,184) ($2,808) ($1,442) ($11,202) ($7,117) ($13,791) Stock-based compensation $7,520 $6,189 $7,200 $6,250 $4,540 $24,179 $12,721 $7,121 Depreciation & amortization $1,174 $1,176 $731 $594 $849 $3,350 $2,186 $1,341 Legal settlement - - - - - $1,227 - Acquisition-related costs/ earnout ($79) $1,778 $480 - - $2,258 - - Interest (income) expense, net ($14) ($13) ($18) ($47) ($111) (189) ($669) ($121) Adjusted EBITDA $4,800 $5,362 $5,209 $3,989 $3,836 $18,396 $8,348 ($5,450) ($ in Thousands)