EverQuote, Inc.

Hello, ladies and gentlemen, and thank you all for your patience. Today's conference call will begin momentarily. If you would like to ask a question on today's call, please press star followed by one on your telephone keypad. As a reminder, the call will begin momentarily. Thank you. Thank you. Hello and welcome to today's EverQuote third quarter 2022 earnings conference call. My name is Bailey and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call. There's an opportunity for question and answer at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. I would now like to pass the conference over to our host, Brittany Johnson. So please go ahead when you're ready.

Thank you. Good afternoon and welcome to EverQuote's third quarter 2022 earnings call. We'll be discussing the results announced in our press release issued today after the market closed. With me on the call this afternoon is Jamie Mendel, EverQuote's chief executive officer, and John Wagner, chief financial officer of EverQuote. During the call, you'll make statements related to our business that may be considered forward-looking statements under federal securities laws, including statements concerning our financial guidance for the fourth quarter and full year 2022, our growth strategy and our plans to execute on our growth strategy, key initiatives, including our direct to consumer agency, our investment in the business, the growth drivers we expect to drive our business, our ability to maintain existing and acquire new customers, our expectations regarding recovery of the audio insurance industry, our recent acquisitions, and our goals for integrations and other statements regarding our plans and prospects. Forelooking statements may be identified with words and phrases such as we expect, we believe, we intend, we anticipate, we plan, may, upcoming, and similar words and phrases. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We specifically disclaim any obligation to update or revise these forelooking statements except as required by law. Our booking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For discussion on material risks and other important factors that could cause our actual results to differ materially from our expectations, please refer to those contained under the heading Risk Factors in our most recent quarterly report on Form 10-Q, which is on file with the Securities and Exchange Commission and available on the Investor Relations section of our website, at investor.everquote.com and on the SEC's website at sec.gov. Finally, during the course of today's call, we referred to certain non-GAAP financial measures which would be legally or helpful to investors. A reconciliation of GAAP to non-GAAP measures was included in the press release we issued after the market closed today, which is available on the Investor Relations section of our website at investors.everquote.com. And with that, I'll turn it over to you, Jamie. Thank you.

Thank you, Brindley, and thank you all for joining us today. Third quarter performance demonstrated our continued agility as we quickly adapted our operations to a changing environment and exceeded expectations across our three primary financial KPIs, producing revenue of $103.2 million, variable marketing margin, or VMM, of $31.8 million, and adjusted EBITDA of $2 million, despite ongoing headwinds in the auto insurance industry. the state of the auto insurance market remains unsettled. In August, we began to see the first major carrier return to more normalized historical spending patterns as they started to restore rates and profitability to their desired levels. While this positive dynamic drove better than expected Q3 performance, Hurricane Ian, expected to be among the largest loss events in history, has put significant incremental downward pressure on the market and on carriers' marketing spend through year-end. As a result, we continue to expect the bulk of the auto recovery to materialize in 2023. Despite a challenging backdrop, we executed well in Q3 and continued to make progress on several fronts across our business. On the consumer side of the marketplace, we grew consumer volume by 27% year-on-year through strong execution from our customer acquisition teams. On the provider side of our marketplace, agent-oriented distribution channels continue to demonstrate relative strength and resilience. Feedback from multiple carrier partners indicates that EverQuote is the largest and highest performing referral partner to their local agents. In addition, data suggests EverQuote has gained market share since the start of the downturn, and we also continue to make strides on longer-term strategic initiatives. Our direct-to-consumer agency, or DTCA, continues to perform well. However, we have moderated agent headcount growth relative to earlier plans as part of tighter company-wide operating expense management efforts and in order to prioritize improving our unit economics before further scaling. While these changes come at the expense of near-term revenue growth, including in our health vertical in Q4, we believe that it is the appropriate tradeoff as we seek to build a durable long-term model for our DPCA operations that delivers appropriate financial returns on our capital investment. We have been able to navigate efficiently through this period by maintaining disciplined expense management. In our ad spend, customer acquisition teams and systems are continuously adjusting bids in real time to maximize margin as carrier demand shifts. In our operating expenses, we continue to drive productivity enhancements and efficiencies across the entire organization. We believe that these improvements have positioned us to maintain positive adjusted EBITDA for 2022. In closing, we maintain conviction in our strategy and team and believe we are well positioned looking ahead to 2023. Now, in our second year of the auto downturn, we have leaned out operations, advanced our strategy, and gained market share. We believe these factors bode well for our future as the auto carrier market recovers. I grow more confident by the day that we are on the path to building an industry-defining company whose long-term vision is to become the largest online source of insurance policies by combining data, tech, and knowledgeable advisors to make insurance simpler, more affordable, and personalized. Now, I'll turn the call over to John to provide more details on our financial results.