Second Quarter 2022 Investor Presentation
Key Metrics Definitions
Variable
Marketing
Margin
Adjusted
EBITDA
We define variable marketing margin, or VMM, as revenue, as reported in our consolidated statements of operations and
comprehensive income (loss), less advertising costs (a component of sales and marketing expense, as reported in our statements of
operations and comprehensive income (loss)). We use VMM to measure the efficiency of individual advertising and consumer
acquisition sources and to make trade-off decisions to manage our return on advertising. We do not use VMM as a measure of
profitability.
We define Adjusted EBITDA as net income (loss), adjusted to exclude: stock-based compensation expense, depreciation and
amortization expense, acquisition-related costs, legal settlement expense, one-time severance charges, interest income and the
provision for (benefit from) income taxes. We monitor & present Adjusted EBITDA because it is a key measure used by our
management & board of directors to understand & evaluate our operating performance, to establish budgets & to develop
operational goals for managing our business.
EVERQUOTE
Proprietary Information
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