EverQuote (EVER) investor relations material

Financial performance and outlook

• Achieved 34% year-on-year revenue growth and 70% year-on-year adjusted EBITDA growth in Q2, with record EBITDA margin of 14% and operating cash flow over $25M.

• Ended Q2 with approximately $150M in cash and no debt, projecting close to $200M by year-end.

• Q3 guidance implies further record levels in revenue and EBITDA, with full-year EBITDA margin expected at 13.5–14%.

• Long-term model targets 20% average annual growth and EBITDA margin expansion by 100 basis points per year, aiming for 20% in the long run.

• Share buyback program of $50M announced, with $21M already executed via a block purchase from the largest shareholder.

Industry trends and growth drivers

• Carrier underwriting profitability is strong, with combined ratios in the mid to high 80s, supporting growth ambitions.

• Expecting a full carrier panel by year-end, with California as a notable exception but showing signs of recovery.

• Digital marketing adoption among carriers is accelerating, with a shift from offline to performance digital channels.

• AI-powered products like Smart Campaigns are driving 20% improvements in ad spend efficiency and increasing share.

• Agency network expansion and new technology-driven services are increasing product penetration per agent.

Strategic initiatives and technology

• Investing in AI and technology for long-term differentiation, including AI voice agents for top-of-funnel qualification.

• Monitoring and preparing for shifts in consumer behavior toward AI-generated search and conversational platforms.

• Exploring integrations and paid advertising opportunities as new digital platforms emerge.

• Focused on expanding within P&C, with potential investments in ancillary lines like boats, motorcycles, and small business.