EverQuote : November 2023 Investor Presentation

Investor Presentation

November 2023

Disclaimer

This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this presentation, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual

results, performance or achievements 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," "expects," "might," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "seek," "would" or "continue," or the negative of these terms or other similar expressions. The forward-looking statements in this presentation are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition liquidity and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions described in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2022, in our subsequent periodic filings with the Securities and Exchange Commission and in our Quarterly Reports on Form 10-Q, particularly in Item 1A. Risk Factors. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law. Some of the key factors that could cause actual results to differ include: (1) our future financial performance, including our expectations regarding our revenue, cost of revenue, variable marketing margin, operating expenses, cash flows and ability to achieve, and maintain, future profitability; (2) our ability to attract and retain consumers and insurance providers using our marketplace; (3) our dependence on our relationships with insurance providers with no long-term contracts; (4) our reliance on a small number of insurance providers for a significant portion of our revenue; (5) our dependence on revenue from automotive insurance providers for a significant portion of our revenue and those automotive insurance providers' exposure to risks related to the automotive insurance industry; (6) our ability to attract consumers searching for insurance, including through search engines, display advertising, email and social media; (7) our ability to develop new and enhanced products and services to attract and retain consumers and insurance providers, and our ability to successfully monetize them; (8) our anticipated growth and growth strategies and our ability to effectively manage that growth; (9) our ability to maintain and build our brand; (10) our ability to properly collect, process, store, share, disclose and use consumer information and other data; (11) our reliance on our third-party service providers; (12) the impact of competition in our industry and innovation by our competitors; (13) our ability to hire and retain necessary qualified employees to expand our operations; (14) the impact of our recent

restructuring and anticipated costs savings and operational efficiencies; (15) our increased reliance on acquiring quote requests from third-party sources; (16) our ability to stay abreast of and comply with

new or modified laws and regulations that currently apply or become applicable to our business; (17) failure to maintain an effective system of internal controls necessary to accurately report our financial results and prevent fraud; and (18) the future trading prices of our Class A common stock.

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. The information concerning our industry contained in this presentation is based on our general knowledge of and expectations concerning the industry. The Company's market position, market share and industry market size are based on estimates using our internal data and estimates, data from various industry analyses, our internal research and adjustments and assumptions that we believe to be reasonable. 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. We have not independently verified data from these sources and cannot guarantee their accuracy or completeness.

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.

2

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.

3

Key Investment Highlights

Insurance Marketplace Leader

Massive Market Opportunity

Proprietary Tech and Data

Extensive Distribution

Attractive Business Model

Leading Property and Casualty1 ("P&C") 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 tailwind2

Proprietary platforms built on highly integrated machine learning assets support rapid growth and drive network effects

Extensive distribution channels with Carriers and Local Agent Network3

Asset-Light model well positioned for recovery of the auto insurance market

1.	Includes auto, home, renters and other related insurance products	4
2.	Source: S&P Global Market Intelligence, Insider Intelligence and Company estimates. Includes commissions and advertising spend of broader insurance including P&C, Life, and Health markets as of 2021
3.	Also referred to as 3rd party agent network

Company Overview

Company Snapshot

• One of the insurance industry's largest online customer acquisition and distribution platforms
• Highly scalable, data proprietary platform leveraging 2.5b+ consumer data points amassed over a decade1
• "Hybrid Marketplace" with extensive distribution: ~75 carriers and ~7,000 3rd party local agents
• Diversified distribution model serving consumers and providers across multiple P&C insurance markets
• Founded in 2011 with headquarters in Cambridge, MA; IPO in summer 2018

Compelling Value Proposition

Providers: efficiently acquire consumers

• Large volume of high intent consumers
• Higher ROI from target-based consumer attributes
• Opportunity to acquire consumer referrals

Consumers: saving time and money

• Single destination for P&C insurance needs
• Personalized shopping experience
• Provide multiple quotes, fitting the consumer's needs

1. Source: estimated using Company data through 2022

5

Large & Expanding TAM

U.S. Insurance Market:

Distribution Spend1

$171b

Total Market

$10.5b

Total Digital

Advertising

Spend

Highlights2

<1%

Estimated share of Total Distribution Spend Market

~4%

Estimated share of Digital Advertising Spend Market

~13%

Estimated Digital Advertising

Spend Growth3

Growth Drivers

Continued shift of

consumer time spent online

Continued shift of

acquisition spend online

Continued shift to digitization of insurance products and workflows

1.	Source: S&P Global Market Intelligence, Insider Intelligence and Company estimates. Includes commissions and advertising spend of individual insurance market including P&C, Life, and Health markets as of 2021	6
2.	Market share based on EverQuote's FY 2022 revenue, which was $404 million
3.	Estimated compound annual growth rate for 2021 to 2024. Source: Insider Intelligence

The Customer Journey

Customer Acquisition

Traffic Consumer

ChannelsArrival

SEM

Performance Media

Calls

Clicks

Partnerships

Other1

Consumer Routing

Provider

Matching

Alignment Bidding

Performance

Distribution

Provider Representative

EngagementCarriers3

Enterprise Distribution

Carriers

Agent Distribution

Local Agent Network2

1.	Other includes organic search, direct-to-site, partner exchange & other traffic sources	7
2.	In addition to the 3rd party agent network, EverQuote has a small 1st party agent presence
3.	Based on Company data & representative of the insurance provider partners on the platform as of September 30, 2023

Proprietary Platforms Strengthen Competitive Moat

Highly integrated machine learning and data assets to support growth of all verticals

Marketing

Omni-channel

Automated Bidding

Minimize Cost per

Acquisition

Consumer

Personalized User

Experiences

Maximize

Conversion Rates

Distribution

Consumer Alignment

Algorithms

Maximize Bind

Performance

B2B

Enterprise & Agency

Campaign Management

Maximize Value per

Acquisition

Over 2.5b Consumer Submitted Data Points Since Inception1

1. Source: estimated using Company data through 2022

8

The State of the Auto Insurance Market

Late Summer 2021

Auto Insurance Downturn Begins

Cost of claims rises rapidly due to higher used car values, increased cost to repair and overall accident severity

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

Current Outlook

Auto carriers continue raising rates to restore adequate profitability; progress varies considerably by carrier and state

Cost of claims show some signs of stabilization, however, loss pressures persist

Exact timing of the auto recovery remains uncertain; anticipated improvements in 2024

9

Exit of Health Insurance Vertical in 2023 Restructuring

Strategic Exit of Health1

Sale of Health Vertical Assets3

Strengthened Balance Sheet3

Significant capital and scale would have been required to effectively compete in a highly regulated and increasingly unpredictable health insurance market2

Completed sale of health insurance vertical assets, including commissions receivable, on August 1, 2023

Sale of health insurance vertical assets resulted in cash proceeds of $13.2m

• Increased strategic focus on our most differentiated assets to extend competitive moat
• • Streamlined operations to improve financial performance

1.	Exiting of the health insurance vertical was approved by the Board of Directors on June 30, 2023, and announced publicly on July 6, 2023	10
2.	The health insurance vertical accounted for less than 10% of Revenue in FY22
3.	Sale of select assets of the health insurance vertical completed on August 1, 2023, and announced publicly on August 7, 2023.