EverQuote, Inc.

Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the Evercoat fourth quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw a question, again, press the star one. I would now like to turn the conference over to Brindley Johnson with the Blue Share Group. You may begin.

Thank you. Good afternoon, and welcome to EverQuote's fourth quarter and full year's 2024 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 are Jamie Mendel, EverQuote's Chief Executive Officer, and Joseph Sanborn, Chief Financial Officer of EverQuote. During the call, we'll make statements related to our business that may be considered forward-looking statements under the federal securities laws, including statements concerning our financial guidance for the first quarter of 2025. Forward-looking statements may be identified with words and phrases such as expect, believe, intend, anticipate, 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 forward-looking statements, except as required by law. Forward-looking statements are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For discussion of those risks and uncertainties, please refer to our SEC filings, including our annual report on Form 10-K and our quarterly reports on Form 10-Q, on file with the Securities and Exchange Commission and available on the Investor Relations section of our website. Also to note, starting this year, as we look to simplify our investor communications, we will be referring to variable marketing margin as variable marketing dollars, or BMD. Going forth, variable marketing margin, or BMM, will refer to BMD as a percentage of revenue. Finally, during the course of today's call, we refer to certain non-GAAP financial measures, which we believe are helpful to investors. A reconciliation of gap to non-gap measures included in the press release we issued after the close of market today, which is available on the Investor Relations section of our website. And with that, I'll turn it over to Jamie.

Thank you, Brindley, and thank you all for joining us today. The state of EverQuote is as strong as it's ever been, thanks to remarkable progress made by the team over the last year in an improving auto insurance market. The EverQuote exiting 2024 would be almost unrecognizable to the EverQuote which entered the year, thanks to rapidly accelerated growth, improved operational efficiency, and a strengthened balance sheet. In 2024, we grew revenue by 74% to cross the $500 million mark for the first time, and we grew adjusted EBITDA to nearly $60 million. We entered 2025 with over $100 million of cash on the balance sheet and no debt. In 2024, our unwavering support of carriers and agents helped them emerge from the auto insurance downturn. Many enterprise carriers ramped marketplace participation over the course of the year, contributing to carrier growth in our business over 200% year over year. Our local agent business also accelerated over the course of the year, despite a challenging start in Q1 to achieve 65% year over year growth in Q4, and we continue to build deeper ties with local agents. Our customer relationships have never been better, and consequently, we have a strong foundation for sustained and balanced growth moving forward. Our ability to support customers' return to growth was enabled by strength in our traffic operations. Our customer acquisition teams continue to demonstrate a remarkable ability to execute in a dynamic environment. Last year's traffic landscape moved fast and became more competitive as carriers often made sudden and significant changes to their marketing budgets and as the industry prepared for a now vacated FCC rule. Against this backdrop, our team grew consumer volume by nearly 20% year-over-year in Q4 at healthy margins. They did so through operational rigor, focused growth initiatives, and continued refinement and improvement of our AI-powered bidding solution. On the technology front, we made great strides, advancing towards more modernized and simplified platforms across all facets of the business. Advances in our tech stack are enabling faster development of a better and broader suite of products for customers moving forward, as experienced with recent releases of new agent and site features. In our technology and beyond, we continue placing heavy emphasis on efficiency, investing in automation and AI tools throughout the business. The impact of this can be seen in the immense operating leverage achieved over the last year, and we have more room to run. With the strong recovery of our business, we are taking the opportunity to make investments in our team and our culture. In the last year, we ramped hiring in a highly disciplined way, focusing mostly on high leverage technical roles. We also implemented a return to office policy and upgraded our offices into new space to enhance in-person collaboration. We remain extremely committed to strengthening our team and culture and ensuring EverQuote is a highly desirable place to work. As we look to the future, I'll first share some perspective on the current landscape in which we operate, beginning with the auto insurance market. I believe we've returned to broad-based healthy underwriting profitability. While several states and carriers continue to lag, most carriers have restored campaigns with wide geographical footprints and healthy budgets. The homeowner's insurance market, whose recovery has lagged that of auto, is also beginning to see a return to healthy underlying combined ratios, which bodes well for growing carrier demand in the year to come. The regulatory landscape was another prominent dynamic in 2024. We spent much of the last year preparing to implement changes in response to a new FCC rule, which the industry has referred to as one-to-one consent. After we implemented the requisite changes, the courts vacated the rule, reverting the industry back to its pre one-to-one consent state. While many others have rolled back changes entirely, we decided to keep certain changes in place where they benefit our customers and advance our strategy. Looking ahead, based on the current administration's regulatory posture, we believe that the one-to-one consent requirement is behind us for the foreseeable future. This favorable market backdrop aligns nicely with EverQuote's sharpened strategy. Over the last year, we have refocused and clarified our vision to become the number one growth partner to P&C insurance providers by efficiently delivering, One, better performing referrals. Two, bigger traffic scale. And three, broader suite of products and services. We oriented our 2025 planning to advance this strategy and expect to make significant progress across all fronts in the upcoming year. As we enter 2025, I can confidently say that not only did we weather the worst hard market in US auto insurance history, we have emerged from the downturn with record performance and all the ingredients for sustained strong profitable growth in the years to come we have sharpened our focus on pnc allowing us to more fully serve the needs of this increasingly healthy and growth oriented market our execution has been improving quarter after quarter with a team that is capable hardened and hungry our teams and technology platforms have been streamlined contributing to our efficiency and enabling us to move faster in supporting insurance providers' growth moving forward. I'm incredibly proud of what the team has accomplished over the last year and look forward to carrying the momentum into 2025. I'll now turn the call over to Joseph to discuss our financial results.