EverQuote (EVER) Oppenheimer 27th Virtual Annual Technology, Internet & Communications Conference summary

Business overview and industry context

• Operates a leading online insurance marketplace focused on P&C, primarily auto and homeowners insurance.

• Connects consumers with insurance providers, offering time and cost savings for shoppers and efficient customer acquisition for providers.

• The insurance market experienced a hard cycle post-COVID, with carriers facing historic losses due to rising loss costs and delayed rate adjustments.

• Most states have now approved necessary rate increases, with some large states expected to normalize in 2025.

• Carrier demand is returning, shifting from a focus on underwriting to growth, with normalization expected to extend into 2025.

Competitive positioning and strategy

• Achieved strong operating leverage and margins, outperforming peers in both adjusted EBITDA and net income.

• Focused exclusively on P&C, leveraging data and technology to deliver superior results for carriers and agents.

• Strategic realignment and cost reductions in 2023 led to improved cash flow and record financial performance.

• Emphasizes a disciplined, asset-light business model, moving away from first-party agency and health verticals.

• Plans to deepen relationships with agents and carriers by offering a broader suite of growth-oriented products and services.

Financial performance and outlook

• Q2 saw record revenue, variable marketing dollars (VMD), adjusted EBITDA, net income, and cash flow.

• VMD grew nearly 50% year-over-year, with VMM margins expected to moderate to the high 20s before normalizing in the low 30s.

• Adjusted EBITDA margins reached 11% in Q2, with expectations to maintain these levels into next year.

• Cash balance at the end of Q2 was $61 million, with continued strong free cash flow anticipated.

• Capital allocation will prioritize disciplined investment and selective M&A focused on accelerating growth within P&C.