Investor Presentation February 2025 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 forw ...

EverQuote, Inc. (NASDAQ:EVER) Q4 2024 Earnings Conference Call February 24, 2025 4:30 PM ET Company Participants Brinlea Johnson - The Blueshirt Group, IR Jayme Mendal - Chief Executive Officer Joseph Sanborn - Chief Financial Officer Conference Call Participants Michael Graham - Canaccord Genuity Cory Carpenter - JPMorgan Zachary Cummins - B. Riley Mayank Tandon - Needham & Company Jed Kelly - Oppenheimer Ralph Schackart - William Blair Jason Kreyer - Craig Hallum Mitch Rubin - Raymond James Operator Ladie ...

Earnings Performance - EverQuote reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, compared to a loss of $0.19 per share a year ago, representing an earnings surprise of 83.33% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] Revenue Performance - EverQuote posted revenues of $147.46 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10%, and showing a significant increase from year-ago revenues of $55.71 million [2] - The company has also topped consensus revenue estimates for four consecutive quarters [2] Stock Performance and Outlook - EverQuote shares have increased approximately 3.9% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] - The company's earnings outlook is favorable, with a current consensus EPS estimate of $0.16 on $139.91 million in revenues for the coming quarter and $0.81 on $578.44 million in revenues for the current fiscal year [7] Industry Context - The Insurance - Multi line industry, to which EverQuote belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Revenue Growth - Total revenue for 2024 reached $500.2 million, representing a 74% increase year-over-year[6] - Fourth quarter revenue grew by 165% year-over-year to $147.5 million, with automotive insurance vertical revenue increasing over 200% to $135.9 million[7][8] - Total revenue for Q4 2024 reached $55,705, a 164.7% increase from $147,455 in Q4 2023[24] - Total revenue for the year 2024 was $500,190, a 73.7% increase from $287,921 in 2023[24] Profitability - Full year net income increased to $32.2 million, compared to a net loss of $51.3 million in 2023[12] - Net income for Q4 2024 was $12,306, compared to a net loss of $6,348 in Q4 2023, representing a significant turnaround[24] - Year-to-date net income for 2024 was $32,169, compared to a net loss of $51,287 for the entire year of 2023[24] Adjusted EBITDA - Adjusted EBITDA for the fourth quarter was $18.9 million, compared to a loss of $0.9 million in the same quarter of 2023[8] - Adjusted EBITDA for Q4 2024 was $18,916, compared to a loss of $886 in Q4 2023, indicating strong operational performance[30] Cash Flow and Liquidity - Operating cash flow for the full year was $66.6 million, compared to a cash outflow of $2.8 million in 2023[12] - The company ended the fourth quarter with $102.1 million in cash and cash equivalents, a 23% increase from $82.8 million at the end of Q3 2024[8] - Cash provided by operating activities for Q4 2024 was $20,134, a significant improvement from cash used of $792 in Q4 2023[22] - Cash, cash equivalents, and restricted cash at the end of Q4 2024 totaled $102,116, up from $37,956 at the end of Q4 2023[22] Marketing and Investment - Variable Marketing Dollars (VMD) for the fourth quarter increased over 110% year-over-year to $44.0 million, and full year VMD grew by 55% to $155.2 million[7][12] - Variable marketing dollars increased to $44,023 in Q4 2024, up 113.0% from $20,668 in Q4 2023[24] - The company plans to continue strategic investments in technology to enhance product offerings and support insurance provider customers[4] - EverQuote aims to leverage its traffic expertise and data assets to drive profitable growth into 2025 and beyond[4] Future Guidance - The first quarter 2025 revenue guidance is projected to be between $155.0 million and $160.0 million, representing approximately 73% year-over-year growth at the midpoint[12] Accounts Payable - The company reported a significant increase in accounts payable, which rose to $12,961 in Q4 2024 from a decrease of $3,382 in Q4 2023[22]

Core Insights - EverQuote, Inc. reported a significant financial performance in 2024, achieving a revenue growth of 74% year-over-year, surpassing $500 million for the first time, and generating an Adjusted EBITDA of nearly $60 million [2][6][7] - The company aims to be the leading growth partner for property and casualty (P&C) insurance providers, focusing on delivering better-performing referrals and a broader suite of products and services [2][13] - EverQuote's strong momentum is expected to continue into 2025, with strategic investments planned to enhance its technology platform [2][6] Fourth Quarter 2024 Highlights - Total revenue for Q4 2024 reached $147.5 million, marking a 165% increase year-over-year [6][7] - Variable Marketing Dollars (VMD) increased over 110% year-over-year to $44.0 million [6][7] - The company reported a net income of $12.3 million and an Adjusted EBITDA of $18.9 million for the fourth quarter [6][7] Full Year 2024 Highlights - Total revenue for the full year 2024 was $500.2 million, a 74% increase compared to 2023 [7][6] - Automotive insurance vertical revenue grew by 96% to $446.1 million, while home and renters insurance revenue increased by 27% to $52.0 million [7][6] - The company achieved a net income of $32.2 million, a significant turnaround from a net loss of $51.3 million in 2023 [7][6] First Quarter 2025 Outlook - The company anticipates revenue between $155.0 million and $160.0 million for Q1 2025, representing a 73% year-over-year growth at the midpoint [5][11] - Expected VMD for Q1 2025 is projected to be between $44.0 million and $46.0 million, indicating a 46% year-over-year growth at the midpoint [11] Financial Metrics - Operating cash flow for the full year 2024 was $66.6 million, compared to a cash outflow of $2.8 million in 2023 [7][6] - The company ended Q4 2024 with $102.1 million in cash and cash equivalents, a 23% increase from the previous quarter [7][6] - Total assets as of December 31, 2024, were $210.5 million, with total liabilities of $75.2 million [19]

Core Insights - Return on equity (ROE) is a key profitability metric favored by investors, measuring earnings generated from equity [1] - Advanced analysis of ROE through DuPont analysis can provide deeper insights into a company's financial condition by breaking down ROE into profit margin, asset turnover ratio, and equity multiplier [2][3] DuPont Analysis - DuPont analysis allows investors to assess the components affecting ROE, helping to differentiate between companies with high margins and those with high turnover [3] - It also highlights a company's leverage status, indicating that a high ROE could be misleading if it results from excessive debt [4] Screening Parameters - Key screening parameters for identifying strong stocks include: - Profit Margin of 3% or higher, indicating profitable business operations [6] - Asset Turnover Ratio of 2 or higher, reflecting management efficiency in asset utilization [6] - Equity Multiplier between 1 and 3, showing the extent of debt used to finance assets [6] - Zacks Rank of 1 (Strong Buy) or 2 (Buy), suggesting better performance compared to peers [7] - Current Price above $5 to filter out low-priced stocks [7] Stock Examples - WalMart de Mexico (Zacks Rank 2) operates 587 commercial units and has an expected EPS growth of 8.23% over the next 3-5 years [7][8] - EverQuote (Zacks Rank 1) operates an online marketplace for various insurance products, reporting an average earnings surprise of 149.6% over the past four quarters and holds a top Growth Score of A [8]

Core Viewpoint - EverQuote, Inc. will report its fourth quarter and full year 2024 financial results on February 24, 2025, and will host a conference call to discuss these results and the company's outlook [1][2]. Company Overview - EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with insurance providers, including carriers and agents [3]. - The company's vision is to be the leading growth partner for property and casualty (P&C) insurance providers, utilizing a results-driven marketplace powered by proprietary data and technology [3]. Conference Call Details - The conference call will take place on February 24, 2025, at 4:30 p.m. ET, with a live call available for participants [2]. - The US toll-free number for the call is (800) 715-9871, and for all other participants, it is +1 (646) 307-1963, with a conference ID of 4210704 [2]. - A live webcast will also be available on the company's investor relations website [2].

Core Insights - EverQuote (EVER) shares increased by 18.9% to close at $20.89, following a notable trading volume, contrasting with a 10.7% loss over the past four weeks [1] - The company is expected to leverage its exclusive data assets, technology, and a strong financial profile for long-term growth [1][2] Financial Performance - EverQuote anticipates quarterly earnings of $0.18 per share, reflecting a year-over-year increase of 194.7%, with revenues projected at $134.06 million, up 140.6% from the previous year [3] - The consensus EPS estimate for EverQuote has remained stable over the last 30 days, indicating potential for continued stock strength [4] Market Position - EverQuote is positioned to benefit from the shift towards online insurance sales and is focused on increasing consumer traffic and channel additions [2] - The company holds a Zacks Rank of 1 (Strong Buy), indicating positive market sentiment [4]

Core Viewpoint - EverQuote, Inc. (EVER) is trading at a premium compared to the Zacks Multiline Insurance industry, with a price-to-book value of 5.69X against the industry average of 2.3X [1] Company Performance - EverQuote has a market capitalization of $669 million and an average trading volume of 0.5 million shares over the last three months [1] - EVER shares have gained 2.8% in the past month, outperforming its industry, sector, and the Zacks S&P 500 composite [4] - The shares are trading well above the 50-day moving average, indicating a bullish trend [7] Financial Metrics - Return on equity (ROE) for the trailing 12 months is 13.9%, which is lower than the industry average of 15.3% [8] - Return on invested capital (ROIC) for the trailing 12 months is 13.7%, significantly higher than the industry average of 2.4% [8] Growth Factors - Despite a prolonged downturn in auto insurance affecting revenues, EverQuote is positioned to benefit from the recovery in auto carrier demand [10] - The company aims to increase consumer traffic by expanding advertising channels and leveraging its data assets [11] - Variable marketing margin (VMM) is improving, with expectations of strong revenue growth during the annual health open enrollment period [12] Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings has increased by 3 cents in the past 30 days, with an expected earnings of 80 cents, reflecting a 10.7% increase on revenues of $578 million, which is 18.8% higher [13] - The average price target for EVER is $32.17 per share, suggesting a potential upside of 69.9% from the recent closing price [14] Long-term Outlook - EverQuote is expected to benefit from its exclusive data assets, technology, and a strong financial profile, positioning it for long-term growth [15]

Market Performance - U.S. stock markets experienced significant rallies in 2023 and 2024, with the S&P 500 rising 24.2% in 2023 and 23.3% in 2024. The Dow and Nasdaq Composite also saw increases of 12.9% and 28.6% respectively in 2024, following gains of 13.7% and 43.4% in 2023 [1][2]. Sector Analysis - The technology sector, particularly generative AI-centric stocks, largely drove the market rally over the past two years, while small-cap stocks showed relatively subdued performance, as indicated by the Russell 2000 index, which rose 12.9% in 2023 and 10% in 2024 [2]. Investment Recommendations - Due to the overstretched valuations of large-cap stocks, there is a potential shift in market preference towards small-cap stocks. Recommendations include five small-cap stocks with favorable Zacks Rank and strong growth potential for 2025: Travelzoo (TZOO), EverQuote Inc. (EVER), Lindblad Expeditions Holdings Inc. (LIND), Rigel Pharmaceuticals Inc. (RIGL), and Graham Corp. (GHM) [3][10]. Small Business Environment - Small businesses have faced significant challenges since the COVID-19 pandemic, including demand issues and supply chain disruptions. The implementation of tariffs on foreign products aims to strengthen U.S. industries and support small businesses by making imported goods more expensive [4][5][6]. Economic Indicators - The Federal Reserve's reduction of the benchmark interest rate by 1% in 2024 to a range of 4.25-4.5% is expected to benefit small businesses, which typically rely on affordable credit. The Fed has indicated potential further rate cuts in 2025 [8]. Small Business Optimism - The National Federation of Independent Business (NFIB) small business optimization index reached 101.7 in November, surpassing the 50-year average of 98 for the first time in 34 months [9]. Company-Specific Insights - **Travelzoo (TZOO)**: Expected revenue and earnings growth rates of 14.6% and 10.8% for 2025, with a price target indicating a maximum upside of 73.4% [12][13]. - **EverQuote Inc. (EVER)**: Anticipated revenue and earnings growth rates of 18.8% and 10.7% for 2025, with a price target suggesting a maximum upside of 100.7% [14][15]. - **Lindblad Expeditions Holdings Inc. (LIND)**: Expected revenue and earnings growth rates of 10.2% and 93.1% for 2025, with a price target indicating a maximum upside of 53.2% [16][18]. - **Rigel Pharmaceuticals Inc. (RIGL)**: Projected revenue and earnings growth rates of 14.7% and over 100% for 2025, with a price target suggesting a maximum upside of 250.8% [19][21]. - **Graham Corp. (GHM)**: Expected revenue and earnings growth rates of 11.9% and over 100% for the current year, with a price target indicating a maximum upside of 20.4% [22][23][24].