8-K

EVERQUOTE, INC.

Date: May 8, 2023

/s/ John Wagner

John Wagner

Chief Financial Officer and Treasurer

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 8, 2023

EverQuote, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware	001-38549	26-3101161
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

210 Broadway

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
Symbol(s)

Name of each exchange

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 8, 2023, EverQuote, Inc. (the “Company”) issued a press release reporting financial results for the fiscal quarter ended March 31, 2023. 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 8, 2023, 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 No.		Description

99.1		Press release dated May 8, 2023

99.2		Investor Presentation dated May 8, 2023

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.

Exhibit 99.1

EverQuote Announces First Quarter 2023 Financial Results

•

First Quarter Revenue of $109.2 million

•

First Quarter Variable Marketing Margin Increased to $35.6 million

CAMBRIDGE, Mass., May 8, 2023 (GLOBE NEWSWIRE) — EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the quarter ended March 31, 2023.

“In the first quarter of 2023, we exceeded expectations across our three primary financial KPIs, delivering revenue of $109.2 million, Variable Marketing Margin, or VMM, of $35.6 million and improved adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote. “Our team is executing well, and our progress this quarter demonstrates that when the auto insurance industry normalizes, major carriers will resume their spending on consumer acquisition and EverQuote will be well positioned to capitalize on the opportunity.”

“As we have done throughout the auto insurance industry downturn, we will continue to drive efficiency throughout our operations by judiciously managing expenses, while investing in key strategic areas to position the company for long-term growth. However, the persistence of elevated claims losses for auto insurance carriers, has introduced significant uncertainty with regards to the outlook for industry marketing spend for the balance of this year, and as a result, we are withdrawing our full year guidance.”

First Quarter 2023 Financial Highlights:

(All comparisons are relative to the first quarter of 2022)

•

Total revenue of $109.2 million, a decrease of 1%.

•

Automotive insurance vertical revenue of $89.7 million, an increase of 2%.

•

Revenue from other insurance verticals, which includes home and renters, life, and health insurance, decreased 15% to $19.5 million.

•

Direct to consumer agency, or DTCA, revenue of $9.8 million, or 9% of total revenue.

•

Variable Marketing Margin of $35.6 million, an increase of 4%.

•

GAAP net loss improved to a loss of $2.5 million, compared to a GAAP net loss of $5.7 million.

•

Adjusted EBITDA increased to $5.4 million, compared to Adjusted EBITDA of $2.4 million.

Second Quarter and Full Year 2023 Outlook:

Given the uncertainty of performance within the auto insurance industry and the exact timing of when carriers may restore their marketing budgets, the Company is withdrawing its previously provided full year 2023 guidance.

For the second quarter 2023, EverQuote anticipates revenue, Variable Marketing Margin and Adjusted EBITDA to be in the following ranges:

•

Revenue of $70 - $75 million.

•

Variable Marketing Margin of $23 - $26 million.

•

Adjusted EBITDA of ($4) - ($1) million.

With respect to the Company’s expectations under “Second Quarter and Full Year 2023 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 2023 financial results at 4:30 p.m. Eastern Time today, May 8, 2023. To access the conference call, dial Toll Free: +1 (833) 470-1428 for the US, or follow this link: https://www.netroadshow.com/events/global-numbers?confId=49490 for international callers, and provide conference ID 176252. The live webcast and replay 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,” “continues,” “will” 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 effectiveness of the Company’s growth strategies and its ability to effectively manage growth; (4) the Company’s ability to maintain and build its brand; (5) the Company’s reliance on its third-party service providers; (6) 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; (7) the impact of competition in the Company’s industry and innovation by the Company’s competitors; (8) the expected recovery of the auto insurance industry; (9) developments regarding the insurance industry and the transition to online marketing; (10) the possible impacts of inflation; 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, health, property, and future. Our vision is to become the largest online source of insurance policies by using data, technology, and knowledgeable advisors 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

415-489-2193

EVERQUOTE, INC.

STATEMENTS OF OPERATIONS


	Three Months Ended March 31,
	2023			2022

	(in thousands except per share)
Revenue	$	109,220		$	110,681

Cost and operating expenses(1):
Cost of revenue		5,770			5,984
Sales and marketing		90,237			96,150
Research and development		7,927			8,196
General and administrative		7,830			6,941
Acquisition-related costs		(113	)		(892	)

Total cost and operating expenses		111,651			116,379

Loss from operations		(2,431	)		(5,698	)

Other income (expense):
Interest income		187			8
Other income (expense), net		1			(25	)

Total other income (expense), net		188			(17	)

Loss before income taxes		(2,243	)		(5,715	)
Income tax expense		(286	)		—

Net loss	$	(2,529	)	$	(5,715	)

Net loss per share, basic and diluted	$	(0.08	)	$	(0.19	)

Weighted average common shares outstanding, basic and diluted		32,892			30,529

(1) Amounts include stock-based compensation expense, as follows:
	Three Months Ended March 31,
	2023			2022

	(in thousands)
Cost of revenue	$	54		$	59
Sales and marketing		2,273			3,210
Research and development		2,374			2,411
General and administrative		1,808			1,850

	$	6,509		$	7,530

EVERQUOTE, INC.

BALANCE SHEET DATA


	March 31, 2023		December 31, 2022

	(in thousands)
Cash and cash equivalents	$	28,753	$	30,835
Working capital		38,606		35,567
Total assets		160,437		156,519
Total liabilities		48,801		49,033
Total stockholders’ equity		111,636		107,486

EVERQUOTE, INC.

STATEMENTS OF CASH FLOWS


	Three Months Ended March 31,
	2023			2022

	(in thousands)
Cash flows from operating activities:
Net loss	$	(2,529	)	$	(5,715	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		1,407			1,511
Stock-based compensation expense		6,509			7,530
Change in fair value of contingent consideration liabilities		(113	)		(892	)
Provision for bad debt		245			75
Unrealized foreign currency transaction losses		9			7
Changes in operating assets and liabilities:
Accounts receivable		(9,827	)		(10,973	)
Prepaid expenses and other current assets		1,709			(287	)
Commissions receivable, current and non-current		595			(5,381	)
Operating lease right-of-use assets		688			645
Other assets		36			(29	)
Accounts payable		4			13,296
Accrued expenses and other current liabilities		852			(2,857	)
Deferred revenue		80			(112	)
Operating lease liabilities		(902	)		(663	)

Net cash used in operating activities		(1,237	)		(3,845	)

Cash flows from investing activities:
Acquisition of property and equipment, including costs capitalized for development of internal-use software		(1,007	)		(681	)

Net cash used in investing activities		(1,007	)		(681	)

Cash flows from financing activities:
Proceeds from exercise of stock options		287			558
Proceeds from private placement of common stock		—			15,000
Tax withholding payments related to net share settlement		(130	)		—

Net cash provided by financing activities		157			15,558

Effect of exchange rate changes on cash, cash equivalents and restricted cash		5			(5	)

Net increase (decrease) in cash, cash equivalents and restricted cash		(2,082	)		11,027
Cash, cash equivalents and restricted cash at beginning of period		30,835			35,101

Cash, cash equivalents and restricted cash at end of period	$	28,753		$	46,128

EVERQUOTE, INC.

FINANCIAL AND OPERATING METRICS

Revenue by vertical:


	Three Months Ended March 31,				Change
	2023		2022		%

	(in thousands)
Automotive	$	89,699	$	87,675		2.3	%
Other		19,521		23,006		-15.1	%

Total Revenue	$	109,220	$	110,681		-1.3	%

Other financial and non-financial metrics:


	Three Months Ended March 31,						Change
	2023			2022			%

	(in thousands)
Loss from operations	$	(2,431	)	$	(5,698	)		-57.3	%
Net loss	$	(2,529	)	$	(5,715	)		-55.7	%
Variable Marketing Margin	$	35,593		$	34,264			3.9	%
Adjusted EBITDA(1)	$	5,373		$	2,426			121.5	%

(1)	Adjusted EBITDA is a non-GAAP measure. Please see “EverQuote, Inc. Reconciliation of Non-GAAP Measures to GAAP” below for more 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 costs; 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,
	2023			2022

	(in thousands)
Net loss	$	(2,529	)	$	(5,715	)
Stock-based compensation		6,509			7,530
Depreciation and amortization		1,407			1,511
Acquisition-related costs		(113	)		(892	)
Interest income		(187	)		(8	)
Income tax expense		286			—

Adjusted EBITDA	$	5,373		$	2,426

Investor Presentation May 2023 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 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 effectiveness of the Company’s growth strategies and its ability to effectively manage growth; (4) the Company’s ability to maintain and build its brand; (5) the Company’s reliance on its third-party service providers; (6) 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; (7) the impact of competition in the Company’s industry and innovation by the Company’s competitors; (8) the expected recovery of the auto insurance industry; (9) developments regarding the insurance industry and the transition to online marketing; (10) the possible impacts of inflation; and (11) 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 to the most directly comparable GAAP measures is included in the Appendix to these slides.

Our vision Become the largest online source of insurance policies by using data, technology and knowledgeable advisors to make insurance simpler, more affordable and personalized, ultimately reducing cost and risk.

Extensive distribution channels with Enterprise Marketplace (carriers), 3rd Party Agency (local agents) and DTC Agency2 (1st Party) offerings Multi-vertical insurance market with diversified distribution channels creates resilience in business model Targeting 20+% average annual revenue growth over the long-term with expanding Adjusted EBITDA margin3 Key Investment Highlights Insurance Marketplace Leader Massive Market Opportunity Proprietary Tech and Data Extensive Distribution Diversified Business Model Compelling Financial Model Leading multi-vertical online insurance marketplace providing compelling benefits for consumers and insurance providers $171b in annual insurance distribution spend in the early phases of shifting online provides multi-year tailwind1 Proprietary platforms built on highly integrated machine learning assets support rapid growth and drive network effects Source: S&P Global Market Intelligence, Insider Intelligence and Company estimates as of 2021. “DTC Agency” refers to Direct-to-Consumer Agency. Based on the compound annual growth rate (CAGR) from 2017 – 2022 of Revenue of 26% and Adjusted EBITDA percentage point growth of 2.7%,

Company Snapshot Insurance Verticals Served One of the insurance industry’s largest online customer acquisition and distribution platforms "Hybrid Marketplace” with extensive distribution: Enterprise Marketplace (100+ carriers), 3rd Party Agency (~8,000 local agents), and DTC Agency (~150 1st party agents) Diversified business serving consumers and providers across multiple insurance markets Highly scalable, proprietary platform leveraging 2.5b+ consumer data points4 amassed over a decade Founded by MIT alumni in 2011 with headquarters in Cambridge, MA; IPO in summer 2018 Life Home & Renters Health Auto 26% Revenue CAGR (5yr)1 29% VMM2 CAGR (5yr)1 26% 26% 20% Of Revenue was Non-Auto3 in 2022 63% Non-Auto3 CAGR (5yr)1 Based on the compound annual growth rate (CAGR) from 2017 – 2022. “VMM” refers to Variable Marketing Margin. “Non-Auto” refers to non-auto insurance verticals which consist of home & renters, life and health. Source: estimated using Company data through 2022.

Large & Expanding TAM Growth Drivers U.S. Insurance Market: Distribution Spend1 ~13% Estimated Digital Advertising spend growth2 Continued shift of consumer time spent online Continued shift of acquisition spend online Continued shift to digitization of insurance products and workflows Estimated share of Digital Advertising Spend Market ~4% Estimated share of Total Distribution Spend Market <1% $171b Total Market $10.5b Total Digital Advertising Spend $404m EverQuote’s 2022 revenue Distribution Spend includes commissions and advertising spend as of 2021. Estimated compound annual growth rate for 2021 to 2024. Source: Insider Intelligence. Highlights

EverQuote Benefits Both Consumers & Providers Consumers save time and money Single destination for insurance needs Personalized shopping experience Provide multiple quotes, fitting the consumer’s needs Providers efficiently acquire consumers Large volume of high intent consumers Higher ROI from target-based consumer attributes Opportunity to acquire consumer referrals (within Marketplace) and bound policies (within DTC Agency) Our platforms address challenges inherent in the highly-fragmented insurance market

Distribution The Customer Journey Traffic Channels Provider Engagement Consumer Arrival Provider Matching Partnerships Performance Media Other1 SEM Clicks Carriers Enterprise Marketplace Marketplace Per Referral EverQuote Monetization Per Referral DTC Agency 1st party agents Calls Consumer Routing Customer Acquisition Performance Alignment Bidding 3rd Party Agency Local agents Per Policy Sold Other includes organic search, direct-to-site, partner exchange & other traffic sources.

Proprietary Platforms Strengthen Competitive Moat Minimize Cost per Acquisition Omni-channel Automated Bidding Marketing Maximize Conversion Rates Consumer Personalized User Experiences Maximize Bind Performance Consumer Alignment Algorithms Distribution Maximize Value per Acquisition Enterprise & Agency Campaign Management B2B Highly integrated machine learning and data assets to support growth of all verticals Over 2.5b Consumer Submitted Data Points Since Inception1 Source: estimated using Company data through 2022.

Distribution Strength of our Platform ~8,000 3rd party local agents Representative Partners ~150 1st party EverQuote agents 100+ carriers available in the marketplace Based on Company data & representative of the insurance provider partners on the platform as of March 31, 2023.

Diversification by Distribution Channel 2017 We are continuing to build more diversified revenue streams Non-Auto Revenue1 5% 2022 20% Non-Auto revenues as a percentage of overall revenue. Non-auto revenue includes home & renters, health, and life verticals. $126m $404m 26% Revenue CAGR Revenue ($m)

The Current State of the Auto Insurance Market Late Summer 2021; Auto Insurance Downturn Begins Current Outlook Cost of claims rises rapidly due to higher used car values, increased cost to repair and overall accident severity Auto carriers continue raising rates to restore adequate profitability; progress varies considerably by carrier and state Carriers are unable to adjust and implement rates quickly due to regulatory process and policy renewal cycles Carriers face elevated claims and combined ratios; pull back significantly on consumer acquisition spend Anticipated improvements through 2023 and 2024; exact timing of the auto recovery remains uncertain Cost of claims showing some signs of stabilization, however, loss pressures persist

Multiple Levers Driving Future Growth Attract More Consumers Potential Acquisition Opportunities Increase Provider Coverage & Budget Deepen Consumer & Provider Engagement Grow Existing Verticals

Financial Overview

First Quarter 2023 Highlights Note: Adjusted EBITDA is a non-GAAP metric, refer to financial reconciliation for additional detail Exceeded guidance across Revenue, Variable Marketing Margin, and Adjusted EBITDA Total revenues of $109.2m; a 1.3% decrease compared to 1Q22 Variable Marketing Margin of $35.6m; a 3.9% increase compared to 1Q22 and represents 32.6% of revenues Delivered positive Adjusted EBITDA of $5.4m; an increase of 121.5% compared to 1Q22 and represents 4.9% of revenues 32.6% VMM as a % of revenue $109m Revenue $35.6m VMM $5.4m 1Q23 Adjusted EBITDA

Revenue ($m) 26% CAGR 2017-2022 Focused on Driving Revenue Growth Life Home & Renters Health Auto insurance downturn (begins late summer 2021) Note: Based on the compound annual growth rate (CAGR) from 2017 – 2022 of Revenue. Total revenue grew 26% compounded annually 2017 – 2022 Non-Auto verticals grew 63% compounded annually 2017 – 2022 Building revenue diversification by growing non-auto insurance verticals

29% CAGR 2017-2022 Variable Marketing Margin ($m) Variable Marketing Margin (VMM) grew 29% compounded annually 2017 – 2022 Proprietary traffic platforms have driven increasing VMM as a percentage of revenue (VMM %) since 2017 Potential for incremental improvement in VMM % from traffic optimization and product expansion Delivering Incremental Variable Marketing Margin Note: 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. Auto Insurance downturn (begins late summer 2021)

Focused on Delivering Long-term Profitability Adjusted EBITDA ($m) Steadily grew Adjusted EBITDA margin until auto downturn occurred in late summer 2021 Adjusted EBITDA margin expected to “snapback” to pre-downturn levels once auto insurance market substantially recovers Post auto insurance market recovery, expect continued margin expansion by improving the efficiency of marketing costs and leveraging operating expenses Strategic investments in proprietary technology and data platforms provide key driver for long-term growth Note: Adjusted EBITDA is a non-GAAP metric, refer to financial reconciliation for additional detail. Auto Insurance downturn (begins late summer 2021)

NASDAQ: EVER

Appendix

Key Metrics Definitions 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, one-time severance charges, 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 - 12 Months Ended 12 Months Ended December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 Net loss ($24,416) ($19,434) ($11,202) ($7,117) ($13,791) ($5,070) Stock-based compensation $28,986 $30,020 $24,179 $12,721 $7,121 $1,860 Depreciation & amortization $5,848 $5,072 $3,350 $2,186 $1,341 $1,360 Legal settlement - - - $1,227 - - Acquisition-related costs/ earnout ($4,135) $1,065 $2,258 - - - Severance under a plan - 440 - - - - Interest (income) expense, net ($349) ($37) (189) ($669) (121) 381 Provision for (benefit from) income taxes - ($2,510) - - - - Adjusted EBITDA $5,934 $14,616 $18,396 $8,348 ($5,450) ($1,469) ($ in Thousands)

Reconciliation of Adjusted EBITDA - 3 Months Ended 3 Months Ended March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Net loss ($2,529) ($8,494) ($6,451) ($3,756) ($5,715) Stock-based compensation $6,509 $6,623 $7,233 $7,600 $7,530 Depreciation & amortization $1,407 $1,522 $1,410 $1,405 $1,511 Legal settlement - - - - - Acquisition-related costs/ earnout ($113) $632 ($96) ($3,779) ($892) Severance under a plan - - - - - Interest (income) expense, net ($187) ($191) ($113) ($37) ($8) Provision for (benefit from) income taxes $286 - - - - Adjusted EBITDA $5,373 $92 $1,983 $1,433 $2,426 ($ in Thousands)