Porch Group, Inc. (“Porch Group” or “the Company”)
(NASDAQ: PRCH), a leading vertical software company reinventing the
home services and insurance industries, today reported
second-quarter results for the Company as of June 30, 2022, with
revenues of $70.8 million, compared to second-quarter 2021 revenues
of $51.3 million, highlighting both organic growth and the strength
of businesses acquired in the prior twelve month period. For the
six months ended June 30, 2022, Porch Group reported revenues of
$133.3 million, compared to $78.1 million in 2021.
CEO Summary
“Porch Group delivered solid revenues and operating performance
in the second quarter, and we are continuing to execute on our
strategy of providing software to more home services companies
involved in the home buying process while helping consumers with
key services such as insurance,” said Matt Ehrlichman, founder and
Chief Executive Officer of Porch Group, Inc. “Our continued growth,
despite impacts from inflation and a slowdown in the housing
market, highlights the recurring nature of our insurance and
software revenues and our strong strategic position. As we move
into the second half of the year, macroeconomic headwinds may
persist, but we look forward to continued improvement in revenue
and margins, advancing the integrations of our acquired business
units, and progressing our capital-light, differentiated home
insurance business model. We are laser-focused on driving the
business toward profitability, without sacrificing progress against
our key strategic growth initiatives.”
Second Quarter 2022 Financial Results
- Total revenue for the second quarter of 2022 was $70.8 million,
an increase of $19.5 million from $51.3 million in the second
quarter of 2021.
- Revenue less cost of revenue for the second quarter of 2022 was
$42.2 million or 59.6% of total revenue, compared to $31.8 million
or 62.0% of total revenue for the second quarter of 2021.
- GAAP net loss for the second quarter of 2022 totaled $26.4
million, compared to a GAAP net loss of $16.3 million for the
second quarter of 2021.
- Adjusted EBITDA loss for the second quarter of 2022 totaled
$14.3 million or -20.2% of total revenue, compared to an Adjusted
EBITDA loss of $9.9 million or -19.3% of total revenue for the
second quarter of 2021. Second quarter profitability has been and
is expected to continue to be lower than the second half of the
year due to the seasonality of insurance loss costs primarily in
Texas, concentrated in the second-quarter months, as well as an
increase in Sarbanes-Oxley-related consulting expense to ensure
controls work is completed with time for testing ahead of the
year-end audit.
Segment Results for the Second Quarter 2022
- Vertical Software revenue for the
quarter was $42.8 million, revenue less cost of revenue was $30.8
million or 72.0% of Vertical Software revenue, and GAAP net loss
was $2.7 million. Adjusted EBITDA for the second quarter was $6.0
million, or 14.1% of Vertical Software revenue.
- Insurance revenue for the quarter
was $28.0 million, revenue less cost of revenue was $11.4 million
or 40.8% of Insurance revenue, and GAAP net loss was $6.9 million.
Adjusted EBITDA loss for the second quarter was $5.1 million, or
(18.1)% of Insurance revenue.
- Insurance gross written premium for
the quarter was $145 million with 379 thousand policies.
Second Quarter 2022 and Recent Operational
Highlights
- Homeowners of America, a Porch Group
subsidiary, continued its nationwide expansion plan, now operating
in 20 states
- Completed the acquisition of the
home warranty and inspection software and services business of
Residential Warranty Services.
- Completed a bolt-on acquisition of
Home Inspector Pro, an inspection software company that is expected
to strengthen Porch Group’s SaaS offerings in the home inspection
vertical.
- Ended the quarter with approximately
$282 million in cash and cash equivalents
Second Quarter 2022 Key Performance Indicators
(KPIs)
Software and services to companies:
- Average companies in quarter
increased to 28,730 from 17,120 in the second quarter of 2021.
- Average revenue per account per month in quarter decreased to
$821 from $933 in the second quarter of 2021, driven in part by
macroeconomic impacts to the move and post-move businesses.
Monetized services for consumers:
- Number of monetized services in quarter was 331,889 in the
second quarter of 2022, up from 302,462 in the second quarter of
2021.
- Average revenue per monetized service in quarter was $158, a
33.9% increase from $118 in the second quarter of 2021.
Mutual Termination of CSE Insurance Acquisition
Agreement
On August 8, 2022, Porch Group executed a mutual termination
agreement with Covéa Coopérations S.A. to terminate the acquisition
of CSE Insurance and simultaneously withdrew its application for
approval to acquire CSE from the California Department of
Insurance. No breakup fees are owed by either party as a result of
the termination. Porch Group had previously assumed a mid-2022
closing and anticipated offering auto insurance from CSE to Porch
Group’s homeowner insurance customers. These assumptions have been
removed from the 2022 financial guidance displayed below, with
total expected cash at year-end increasing by approximately $50
million.
“Given the change in the market and the increase in the cost of
capital, we are confident there are other ways to deploy the
approximately $50 million in cash that would have been used for
purchase price and look forward to creating long-term value for
Porch Group shareholders,” Ehrlichman said.
Full Year 2022 Financial OutlookPorch Group
provides updated guidance based on current market conditions and
expectations, with the CSE acquisition no longer included and auto
insurance no longer anticipated to be offered in 2022.
|
|
|
|
|
Previous 2022E Guidance |
|
Updated 2022E Guidance |
Revenue~$320M |
∆ DriversRemoval of CSE acquisitionSmall
macroeconomic adjustmentIncrease of ~$50M unrestrictedcash at EOY
(CSE purchase price) |
Revenue~$290M |
Vertical Software
Revenue~$190M |
Insurance Revenue~$130M |
Vertical Software
Revenue~$175M |
Insurance Revenue~$115M |
Revenue Less Cost of
Revenue~$210M |
Revenue Less Cost of
Revenue~$195M |
Adj. EBITDA~-9% and >
-$26.5M |
Adj. EBITDA ~-10% and
>-$30.0M |
Gross Written Premium ARR at YE
20221~$600M |
|
Gross Written Premium Recorded in
20221~$520M |
1 2022 gross written premium (“GWP”) guidance is stated as the
expected full-year GWP for 2022 and is the total premium written
across Homeowners of America, Porch Group’s insurance agency, and
warranty products for the face value of one year’s premium, before
deductions for reinsurance and ceding commissions. Previous GWP
guidance was based on a year-end run rate. Porch Group has updated
this metric to now guide to the actual GWP for the 2022 year.
Porch Group is not providing reconciliations of expected
Adjusted EBITDA margin for future periods to the most directly
comparable measures prepared in accordance with GAAP because the
Company is unable to provide these reconciliations without
unreasonable effort because certain information necessary to
calculate such measures on a GAAP basis is unavailable or dependent
on the timing of future events outside of the Company’s
control.
Conference CallPorch Group management will host
a conference call today (August 9, 2022) at 5:00 p.m. Eastern time
(2:00 p.m. Pacific time). The presentation will be accompanied by a
slide presentation available on the Investor Relations
section of the Company’s website. A question-and-answer
session will follow management’s prepared remarks.
All are invited to listen to the event by registering for the
webinar here.
A replay of the webinar will also be available in the Investors
section of Porch Group’s corporate website.
About Porch GroupSeattle-based Porch
Group Inc, the vertical software platform for the home, provides
software and services to more than 28,700 home services companies
such as home inspectors, mortgage companies and loan officers,
title companies, moving companies, real estate agencies, utility
companies, and warranty companies. Through these relationships and
its multiple brands, Porch Group provides a moving concierge
service to homebuyers, helping them save time and make better
decisions on critical services, including insurance, warranty,
moving, security, TV/internet, home repair and improvement, and
more. To learn more about Porch Group,
visit porchgroup.com or porch.com.
Investor Relations Contact:Emily Lear, Head of
Investor RelationsPorch Group, Inc.(701)
214-8177emilylear@porch.com
Porch Group Press Contact:Catherine
AdcockGateway Group, Inc. (949) 386-6332PRCH@gatewayir.com
Forward-Looking StatementsCertain statements in
this release may be considered “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to future events or Porch Group’s
future financial or operating performance. For example,
forward-looking statements include projections of future revenue,
revenue less cost of revenue, gross written premium, Adjusted
EBITDA (loss), and other metrics, business strategy and plans, and
anticipated impacts from pending or completed acquisitions. In some
cases, you can identify forward-looking statements by terminology
such as “may,” “should,” “expect,” “intend,” “will,” “estimate,”
“anticipate,” “believe,” “predict,” “potential” or “continue,” or
the negatives of these terms or variations of them or similar
terminology. Such forward-looking statements are subject to risks,
uncertainties, and other factors which could cause actual results
to differ materially from those expressed or implied by such
forward-looking statements.
These forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by Porch Group and
its management at the time they are made, are inherently uncertain.
Factors that may cause actual results to differ materially from
current expectations include, but are not limited to: (1) expansion
plans and opportunities, including recently completed acquisitions
as well as future acquisitions or additional business combinations;
(2) costs related to being a public company; (3) litigation,
complaints, and/or adverse publicity; (4) the impact of changes in
consumer spending patterns, consumer preferences, local, regional
and national economic conditions, crime, weather, demographic
trends and employee availability; (5) further expansion into the
insurance industry, and the related federal and state regulatory
requirements; (6) privacy and data protection laws, privacy or data
breaches, or the loss of data; (7) the duration and scope of the
COVID-19 pandemic and its continued effect on the business and
financial conditions of Porch Group; and (8) other risks and
uncertainties described in the Company’s most recent Form 10-K and
subsequent reports filed with the Securities and Exchange
Commission (the “SEC”), such as Porch Group’s quarterly reports on
Form 10-Q, as well as in its subsequent reports on Form 8-K, all of
which are available on the SEC’s website at www.sec.gov.
Nothing in this release should be regarded as a representation
by any person that the forward-looking statements set forth herein
will be achieved or that any of the contemplated results of such
forward-looking statements will be achieved. You should not place
undue reliance on forward-looking statements, which speak only as
of the date of this release. Unless specifically indicated
otherwise, the forward-looking statements in this release do not
reflect the potential impact of any divestitures, mergers,
acquisitions, or other business combinations that have not been
completed as of the date of this release. Porch Group does not
undertake any duty to update these forward-looking statements,
whether as a result of changed circumstances, new information,
future events or otherwise, except as may be required by law.
Non-GAAP Financial MeasuresThis release
includes one or more non-GAAP financial measures, such as Adjusted
EBITDA (loss), Adjusted EBITDA (loss) as a percentage of revenue,
and average revenue per monetized service.
Porch Group defines Adjusted EBITDA (loss) as net income (loss)
adjusted for interest expense, net, income taxes, other expenses,
net, depreciation and amortization, certain non-cash long-lived
asset impairment charges, stock-based compensation expense and
acquisition-related impacts, including compensation to the sellers
that requires future service, amortization of intangible assets,
gains (losses) recognized on changes in the value of contingent
consideration arrangements, if any, gain or loss on divestitures
and certain transaction costs. Adjusted EBITDA (loss) as a
percentage of revenue is defined as Adjusted EBITDA (loss) divided
by GAAP total revenue. Average revenue per monetized services in
quarter is the average revenue generated per monetized service
performed in a quarterly period. When calculating average revenue
per monetized service in quarter, “average revenue” is defined as
total quarterly monetized service transaction revenues generated
from monetized services.
Porch Group management uses these non-GAAP financial measures as
supplemental measures of the Company’s operating and financial
performance, for internal budgeting and forecasting purposes, to
evaluate financial and strategic planning matters, and to establish
certain performance goals for incentive programs. Porch Group
believes that the use of these non-GAAP financial measures provides
investors with useful information to evaluate the Company’s
operating and financial performance and trends and in comparing
Porch Group’s financial results with competitors, other similar
companies and companies across different industries, many of which
present similar non-GAAP financial measures to investors. However,
Porch Group's definitions and methodology in calculating these
non-GAAP measures may not be comparable to those used by other
companies. In addition, the Company may modify the presentation of
these non-GAAP financial measures in the future, and any such
modification may be material.
You should not consider these non-GAAP financial measures in
isolation, as a substitute to or superior to financial performance
measures determined in accordance with GAAP. The principal
limitation of these non-GAAP financial measures is that they
exclude specified income and expenses, some of which may be
significant or material, that are required by GAAP to be recorded
in Porch Group’s consolidated financial statements. The Company may
also incur future income or expenses similar to those excluded from
these non-GAAP financial measures, and the Company’s presentation
of these measures should not be construed as an inference that
future results will be unaffected by unusual or non-recurring
items. In addition, these non-GAAP financial measures reflect the
exercise of management judgment about which income and expense are
included or excluded in determining these non-GAAP financial
measures.
You should review the tables accompanying this release for
reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measure. The Company is not
providing reconciliations of non-GAAP financial measures for future
periods to the most directly comparable measures prepared in
accordance with GAAP. The Company is unable to provide these
reconciliations without unreasonable effort because certain
information necessary to calculate such measures on a GAAP basis is
unavailable or dependent on the timing of future events outside of
its control.
The following tables reconcile Adjusted EBITDA (loss) to
operating loss for the periods presented (dollar amounts in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Segment adjusted EBITDA
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Vertical Software |
|
$ |
6,038 |
|
|
$ |
8,107 |
|
|
$ |
9,022 |
|
|
$ |
11,258 |
|
Insurance |
|
|
(5,068 |
) |
|
|
(2,951 |
) |
|
|
(1,782 |
) |
|
|
(2,443 |
) |
Corporate and Other |
|
|
(15,237 |
) |
|
|
(15,073 |
) |
|
|
(28,577 |
) |
|
|
(28,334 |
) |
Total segment adjusted EBITDA
(loss) |
|
|
(14,267 |
) |
|
|
(9,925 |
) |
|
|
(21,337 |
) |
|
|
(19,519 |
) |
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
(6,416 |
) |
|
|
(3,894 |
) |
|
|
(12,899 |
) |
|
|
(6,356 |
) |
Non-cash stock-based
compensation expense |
|
|
(9,702 |
) |
|
|
(7,035 |
) |
|
|
(15,556 |
) |
|
|
(24,160 |
) |
Acquisition and related
expense |
|
|
(214 |
) |
|
|
(1,056 |
) |
|
|
(1,110 |
) |
|
|
(1,784 |
) |
Non-cash long-lived asset
impairment charge |
|
|
— |
|
|
|
(72 |
) |
|
|
(70 |
) |
|
|
(139 |
) |
Revaluation of contingent
consideration |
|
|
(1,481 |
) |
|
|
(574 |
) |
|
|
(4,686 |
) |
|
|
(220 |
) |
Investment income and realized
gains |
|
|
(243 |
) |
|
|
(387 |
) |
|
|
(440 |
) |
|
|
(397 |
) |
Non-cash bonus expense |
|
|
1,526 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating loss |
|
$ |
(30,797 |
) |
|
$ |
(22,943 |
) |
|
$ |
(56,098 |
) |
|
$ |
(52,575 |
) |
PORCH GROUP,
INC.Monetized Services
Revenue(all numbers in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Monetized services
revenue |
|
$ |
52,388 |
|
$ |
35,702 |
|
$ |
97,159 |
|
$ |
52,515 |
Other operating revenue |
|
|
18,381 |
|
|
15,638 |
|
|
36,171 |
|
|
25,568 |
Total revenue |
|
$ |
70,769 |
|
$ |
51,340 |
|
$ |
133,330 |
|
$ |
78,083 |
PORCH GROUP,
INC.Revenue Less Cost of Revenue
(all numbers in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2022 |
|
|
|
Corporate |
|
Insurance |
|
Vertical Software |
|
Consolidated |
|
Revenue |
|
$ |
— |
|
$ |
27,956 |
|
|
$ |
42,813 |
|
|
$ |
70,769 |
|
|
Less: Cost of revenue |
|
|
— |
|
|
(16,549 |
) |
|
|
(12,009 |
) |
|
|
(28,558 |
) |
|
Revenue less cost of
revenue |
|
$ |
— |
|
$ |
11,407 |
|
|
$ |
30,804 |
|
|
$ |
42,211 |
|
|
Revenue less cost of revenue
as a percentage of revenue |
|
|
N/A |
|
|
41 |
|
% |
|
72 |
|
% |
|
60 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022 |
|
|
|
Corporate |
|
Insurance |
|
Vertical Software |
|
Consolidated |
|
Revenue |
|
$ |
— |
|
$ |
55,829 |
|
|
$ |
77,501 |
|
|
$ |
133,330 |
|
|
Less: Cost of revenue |
|
|
— |
|
|
(27,997 |
) |
|
|
(21,750 |
) |
|
|
(49,747 |
) |
|
Revenue less cost of
revenue |
|
$ |
— |
|
$ |
27,832 |
|
|
$ |
55,751 |
|
|
$ |
83,583 |
|
|
Revenue less cost of revenue
as a percentage of revenue |
|
|
N/A |
|
|
50 |
|
% |
|
72 |
|
% |
|
63 |
|
% |
PORCH GROUP,
INC.Unaudited Condensed Consolidated
Balance Sheets (all numbers in thousands, except share
amounts)
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
271,003 |
|
|
$ |
315,741 |
|
Accounts receivable, net |
|
|
38,474 |
|
|
|
28,767 |
|
Short-term investments |
|
|
8,165 |
|
|
|
9,251 |
|
Reinsurance balance due |
|
|
273,971 |
|
|
|
228,416 |
|
Prepaid expenses and other current assets |
|
|
22,621 |
|
|
|
14,338 |
|
Restricted cash |
|
|
10,574 |
|
|
|
8,551 |
|
Total current assets |
|
|
624,808 |
|
|
|
605,064 |
|
Property, equipment, and
software, net |
|
|
9,984 |
|
|
|
6,666 |
|
Operating lease right-of-use
assets |
|
|
6,052 |
|
|
|
4,504 |
|
Goodwill |
|
|
273,831 |
|
|
|
225,654 |
|
Long-term investments |
|
|
56,228 |
|
|
|
58,324 |
|
Intangible assets, net |
|
|
136,575 |
|
|
|
129,830 |
|
Restricted cash,
non-current |
|
|
500 |
|
|
|
500 |
|
Long-term insurance
commissions receivable |
|
|
10,461 |
|
|
|
7,521 |
|
Other assets |
|
|
1,519 |
|
|
|
684 |
|
Total assets |
|
$ |
1,119,958 |
|
|
$ |
1,038,747 |
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
7,739 |
|
|
$ |
6,965 |
|
Accrued expenses and other current liabilities |
|
|
47,967 |
|
|
|
37,675 |
|
Deferred revenue |
|
|
243,425 |
|
|
|
201,085 |
|
Refundable customer deposit |
|
|
19,246 |
|
|
|
15,274 |
|
Current portion of long-term debt |
|
|
150 |
|
|
|
150 |
|
Losses and loss adjustment expense reserves |
|
|
88,894 |
|
|
|
61,949 |
|
Other insurance liabilities, current |
|
|
61,516 |
|
|
|
40,024 |
|
Total current liabilities |
|
|
468,937 |
|
|
|
363,122 |
|
Long-term debt |
|
|
416,568 |
|
|
|
414,585 |
|
Operating lease liabilities,
non-current |
|
|
3,622 |
|
|
|
2,694 |
|
Earnout liability, at fair
value |
|
|
100 |
|
|
|
13,866 |
|
Private warrant liability, at
fair value |
|
|
926 |
|
|
|
15,193 |
|
Other liabilities (includes
$29,858 and $9,617 at fair value, respectively) |
|
|
30,825 |
|
|
|
12,242 |
|
Total liabilities |
|
|
920,978 |
|
|
|
821,702 |
|
Commitments and contingencies
(Note 12) |
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
Common stock, $0.0001 par
value: |
|
|
10 |
|
|
|
10 |
|
Authorized shares – 400,000,000 and 400,000,000,
respectively |
|
|
|
|
|
|
Issued and outstanding shares – 99,440,528 and 97,961,597,
respectively |
|
|
|
|
|
|
Additional paid-in
capital |
|
|
659,814 |
|
|
|
641,406 |
|
Accumulated other
comprehensive loss |
|
|
(4,559 |
) |
|
|
(259 |
) |
Accumulated deficit |
|
|
(456,285 |
) |
|
|
(424,112 |
) |
Total stockholders’ equity |
|
|
198,980 |
|
|
|
217,045 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,119,958 |
|
|
$ |
1,038,747 |
|
PORCH GROUP,
INC.Unaudited Condensed Consolidated
Statements of Operations(all numbers in thousands, except
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
70,769 |
|
|
$ |
51,340 |
|
|
$ |
133,330 |
|
|
$ |
78,083 |
|
Operating expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
28,558 |
|
|
|
19,500 |
|
|
|
49,747 |
|
|
|
25,429 |
|
Selling and marketing |
|
|
28,826 |
|
|
|
23,122 |
|
|
|
54,569 |
|
|
|
37,762 |
|
Product and technology |
|
|
15,777 |
|
|
|
11,050 |
|
|
|
30,009 |
|
|
|
22,841 |
|
General and administrative |
|
|
28,405 |
|
|
|
20,611 |
|
|
|
55,103 |
|
|
|
44,625 |
|
Total operating expenses |
|
|
101,566 |
|
|
|
74,283 |
|
|
|
189,428 |
|
|
|
130,658 |
|
Operating loss |
|
|
(30,797 |
) |
|
|
(22,943 |
) |
|
|
(56,098 |
) |
|
|
(52,575 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,858 |
) |
|
|
(1,216 |
) |
|
|
(4,151 |
) |
|
|
(2,439 |
) |
Change in fair value of earnout liability |
|
|
2,587 |
|
|
|
(4,032 |
) |
|
|
13,766 |
|
|
|
(22,801 |
) |
Change in fair value of private warrant liability |
|
|
4,078 |
|
|
|
(4,303 |
) |
|
|
14,267 |
|
|
|
(20,212 |
) |
Gain on extinguishment of debt |
|
|
— |
|
|
|
8,243 |
|
|
|
— |
|
|
|
8,243 |
|
Investment income and realized gains, net of investment
expenses |
|
|
243 |
|
|
|
387 |
|
|
|
440 |
|
|
|
397 |
|
Other expense, net |
|
|
(162 |
) |
|
|
(165 |
) |
|
|
(107 |
) |
|
|
(91 |
) |
Total other income
(expense) |
|
|
4,888 |
|
|
|
(1,084 |
) |
|
|
24,215 |
|
|
|
(36,904 |
) |
Loss before income taxes |
|
|
(25,909 |
) |
|
|
(24,027 |
) |
|
|
(31,883 |
) |
|
|
(89,479 |
) |
Income tax benefit
(expense) |
|
|
(468 |
) |
|
|
7,731 |
|
|
|
(290 |
) |
|
|
8,081 |
|
Net loss |
|
$ |
(26,377 |
) |
|
$ |
(16,296 |
) |
|
$ |
(32,173 |
) |
|
$ |
(81,398 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share - basic and diluted (Note 15) |
|
$ |
(0.27 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.89 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic and diluted loss per share |
|
|
97,142,163 |
|
|
|
95,221,928 |
|
|
|
96,611,294 |
|
|
|
91,483,053 |
|
(1) Amounts include stock-based compensation
expense, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Cost of revenue |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
Selling and marketing |
|
|
1,270 |
|
|
1,424 |
|
|
1,902 |
|
|
3,506 |
Product and technology |
|
|
1,840 |
|
|
1,836 |
|
|
2,977 |
|
|
4,154 |
General and
administrative |
|
|
6,592 |
|
|
3,382 |
|
|
10,677 |
|
|
15,816 |
|
|
$ |
9,702 |
|
$ |
6,642 |
|
$ |
15,556 |
|
$ |
23,477 |
PORCH GROUP,
INC.Unaudited Condensed Consolidated
Statements of Comprehensive Loss(all numbers in thousands,
audited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net loss |
|
$ |
(26,377 |
) |
|
$ |
(16,296 |
) |
|
$ |
(32,173 |
) |
|
$ |
(81,398 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
Current period change in net unrealized loss, net of tax |
|
|
(1,785 |
) |
|
|
267 |
|
|
|
(4,300 |
) |
|
|
267 |
|
Comprehensive loss |
|
$ |
(28,162 |
) |
|
$ |
(16,029 |
) |
|
$ |
(36,473 |
) |
|
$ |
(81,131 |
) |
PORCH GROUP,
INC.Unaudited Condensed Consolidated
Statements of Stockholders’ Equity (Deficit)(all numbers
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
Other |
|
Total |
|
|
Common Stock |
|
Paid-in |
|
Accumulated |
|
Comprehensive |
|
Stockholders’ |
|
|
Shares |
|
Amount |
|
Capital |
|
Deficit |
|
Loss |
|
Equity |
Balances as of December 31, 2021 |
|
97,961,597 |
|
|
$ |
10 |
|
$ |
641,406 |
|
|
$ |
(424,112 |
) |
|
$ |
(259 |
) |
|
$ |
217,045 |
|
Net loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(5,796 |
) |
|
|
— |
|
|
|
(5,796 |
) |
Other comprehensive
income |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(2,515 |
) |
|
|
(2,515 |
) |
Stock-based compensation |
|
— |
|
|
|
— |
|
|
5,854 |
|
|
|
— |
|
|
|
— |
|
|
|
5,854 |
|
Contingent consideration for
acquisitions |
|
— |
|
|
|
— |
|
|
530 |
|
|
|
— |
|
|
|
— |
|
|
|
530 |
|
Vesting of restricted stock
awards |
|
245,855 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Exercise of stock options |
|
185,685 |
|
|
|
— |
|
|
473 |
|
|
|
— |
|
|
|
— |
|
|
|
473 |
|
Income tax withholdings |
|
(95,951 |
) |
|
|
— |
|
|
(712 |
) |
|
|
— |
|
|
|
— |
|
|
|
(712 |
) |
Balances as of March
31, 2022 |
|
98,297,186 |
|
|
$ |
10 |
|
$ |
647,551 |
|
|
$ |
(429,908 |
) |
|
$ |
(2,774 |
) |
|
$ |
214,879 |
|
Net loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(26,377 |
) |
|
|
— |
|
|
|
(26,377 |
) |
Other comprehensive
income |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,785 |
) |
|
|
(1,785 |
) |
Stock-based compensation |
|
— |
|
|
|
— |
|
|
9,702 |
|
|
|
— |
|
|
|
— |
|
|
|
9,702 |
|
Issuance of common stock for
acquisitions |
|
628,660 |
|
|
|
— |
|
|
3,552 |
|
|
|
— |
|
|
|
— |
|
|
|
3,552 |
|
Vesting of restricted stock
units |
|
563,406 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Exercise of stock options |
|
88,772 |
|
|
|
— |
|
|
219 |
|
|
|
— |
|
|
|
— |
|
|
|
219 |
|
Income tax withholdings |
|
(137,496 |
) |
|
|
— |
|
|
(1,210 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,210 |
) |
Balances as of June
30, 2022 |
|
99,440,528 |
|
|
$ |
10 |
|
$ |
659,814 |
|
|
$ |
(456,285 |
) |
|
$ |
(4,559 |
) |
|
$ |
198,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
Other |
|
Total |
|
|
Common Stock |
|
Paid-in |
|
Accumulated |
|
Comprehensive |
|
Stockholders’ |
|
|
Shares |
|
Amount |
|
Capital |
|
Deficit |
|
Loss |
|
Equity |
Balances as of December 31, 2020 |
|
81,669,151 |
|
|
$ |
8 |
|
$ |
424,823 |
|
|
$ |
(317,506 |
) |
|
$ |
— |
|
$ |
107,325 |
|
Net loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(65,101 |
) |
|
|
— |
|
|
(65,101 |
) |
Stock-based compensation |
|
— |
|
|
|
— |
|
|
4,462 |
|
|
|
— |
|
|
|
— |
|
|
4,462 |
|
Stock-based compensation -
earnout |
|
— |
|
|
|
— |
|
|
12,373 |
|
|
|
— |
|
|
|
— |
|
|
12,373 |
|
Issuance of common stock for
acquisitions |
|
90,000 |
|
|
|
— |
|
|
1,169 |
|
|
|
— |
|
|
|
— |
|
|
1,169 |
|
Reclassification of earnout
liability upon vesting |
|
— |
|
|
|
— |
|
|
25,815 |
|
|
|
— |
|
|
|
— |
|
|
25,815 |
|
Vesting of restricted stock
awards |
|
2,078,102 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Exercise of stock
warrants |
|
8,087,623 |
|
|
|
1 |
|
|
93,007 |
|
|
|
— |
|
|
|
— |
|
|
93,008 |
|
Exercise of stock options |
|
593,106 |
|
|
|
— |
|
|
355 |
|
|
|
— |
|
|
|
— |
|
|
355 |
|
Income tax withholdings |
|
(1,062,250 |
) |
|
|
— |
|
|
(16,997 |
) |
|
|
— |
|
|
|
— |
|
|
(16,997 |
) |
Transaction costs |
|
— |
|
|
|
— |
|
|
(402 |
) |
|
|
— |
|
|
|
— |
|
|
(402 |
) |
Balances as of March
31,2021 |
|
91,455,732 |
|
|
$ |
9 |
|
$ |
544,605 |
|
|
$ |
(382,607 |
) |
|
$ |
— |
|
$ |
162,007 |
|
Net loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(16,296 |
) |
|
|
— |
|
|
(16,296 |
) |
Other comprehensive
income |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
267 |
|
|
267 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
2,466 |
|
|
|
— |
|
|
|
— |
|
|
2,466 |
|
Stock-based compensation -
earnout |
|
— |
|
|
|
— |
|
|
4,176 |
|
|
|
— |
|
|
|
— |
|
|
4,176 |
|
Issuance of common stock for
acquisitions |
|
1,292,441 |
|
|
|
— |
|
|
28,372 |
|
|
|
— |
|
|
|
— |
|
|
28,372 |
|
Reclassification of private
warranty liability upon exercise |
|
— |
|
|
|
— |
|
|
16,843 |
|
|
|
— |
|
|
|
— |
|
|
16,843 |
|
Vesting of restricted stock
awards |
|
33,182 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Exercise of stock
warrants |
|
2,862,312 |
|
|
|
1 |
|
|
33,761 |
|
|
|
— |
|
|
|
— |
|
|
33,762 |
|
Exercise of stock options |
|
946,392 |
|
|
|
— |
|
|
2,227 |
|
|
|
— |
|
|
|
— |
|
|
2,227 |
|
Income tax withholdings |
|
(296,643 |
) |
|
|
— |
|
|
(5,194 |
) |
|
|
— |
|
|
|
— |
|
|
(5,194 |
) |
Transaction costs |
|
— |
|
|
|
— |
|
|
140 |
|
|
|
— |
|
|
|
— |
|
|
140 |
|
Balances as of June
30, 2021 |
|
96,293,416 |
|
|
$ |
10 |
|
$ |
627,396 |
|
|
$ |
(398,903 |
) |
|
$ |
267 |
|
$ |
228,770 |
|
PORCH GROUP,
INC.Unaudited Condensed Consolidated
Statements of Cash Flows(all numbers in thousands)
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(32,173 |
) |
|
$ |
(81,398 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities |
|
|
|
|
|
|
Depreciation and amortization |
|
|
12,899 |
|
|
|
6,356 |
|
Amortization of operating lease right-of-use assets |
|
|
604 |
|
|
|
803 |
|
Loss on sale and impairment of long-lived assets |
|
|
169 |
|
|
|
126 |
|
Gain on extinguishment of debt |
|
|
— |
|
|
|
(8,243 |
) |
Loss (gain) on remeasurement of private warrant liability |
|
|
(14,267 |
) |
|
|
20,212 |
|
Loss (gain) on remeasurement of contingent consideration |
|
|
4,686 |
|
|
|
(314 |
) |
Loss (gain) on remeasurement of earnout liability |
|
|
(13,766 |
) |
|
|
22,801 |
|
Stock-based compensation |
|
|
15,556 |
|
|
|
23,477 |
|
Amortization of investment premium/accretion of discount, net |
|
|
1,132 |
|
|
|
654 |
|
Net realized losses on investments |
|
|
138 |
|
|
|
— |
|
Interest expense (non-cash) |
|
|
2,339 |
|
|
|
67 |
|
Other |
|
|
80 |
|
|
|
(1,479 |
) |
Change in operating assets and liabilities, net of acquisitions and
divestitures |
|
|
|
|
|
|
Accounts receivable |
|
|
(9,907 |
) |
|
|
(5,017 |
) |
Reinsurance balance due |
|
|
(45,555 |
) |
|
|
(94,883 |
) |
Prepaid expenses and other current assets |
|
|
(7,758 |
) |
|
|
1,654 |
|
Accounts payable |
|
|
(4,226 |
) |
|
|
(21,417 |
) |
Accrued expenses and other current liabilities |
|
|
2,358 |
|
|
|
(3,292 |
) |
Losses and loss adjustment expense reserves |
|
|
26,945 |
|
|
|
29,655 |
|
Other insurance liabilities, current |
|
|
21,492 |
|
|
|
76,474 |
|
Deferred revenue |
|
|
37,610 |
|
|
|
15,824 |
|
Refundable customer deposits |
|
|
3,972 |
|
|
|
(1,273 |
) |
Deferred income tax benefit |
|
|
— |
|
|
|
(8,153 |
) |
Long-term insurance commissions receivable |
|
|
(2,940 |
) |
|
|
(2,775 |
) |
Operating lease liabilities, non-current |
|
|
(1,368 |
) |
|
|
(886 |
) |
Other |
|
|
(326 |
) |
|
|
255 |
|
Net cash used in operating activities |
|
|
(2,306 |
) |
|
|
(30,772 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(1,539 |
) |
|
|
(539 |
) |
Capitalized internal use software development costs |
|
|
(3,496 |
) |
|
|
(1,510 |
) |
Purchases of short-term and long-term investments |
|
|
(13,561 |
) |
|
|
(9,476 |
) |
Maturities, sales of short-term and long-term investments |
|
|
12,241 |
|
|
|
8,110 |
|
Acquisitions, net of cash acquired |
|
|
(32,049 |
) |
|
|
(127,883 |
) |
Net cash used in investing activities |
|
|
(38,404 |
) |
|
|
(131,298 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Repayments of principal and related fees |
|
|
(150 |
) |
|
|
(150 |
) |
Proceeds from line of credit |
|
|
1,000 |
|
|
|
— |
|
Proceeds from exercises of warrants |
|
|
— |
|
|
|
126,772 |
|
Proceeds from exercises of stock options |
|
|
692 |
|
|
|
2,544 |
|
Income tax withholdings paid upon vesting of restricted stock
units |
|
|
(1,922 |
) |
|
|
(22,126 |
) |
Payments of acquisition-related contingent consideration |
|
|
(1,625 |
) |
|
|
— |
|
Net cash (used) provided by financing activities |
|
|
(2,005 |
) |
|
|
107,040 |
|
Net change in cash,
cash equivalents, and restricted cash |
|
$ |
(42,715 |
) |
|
$ |
(55,030 |
) |
Cash, cash
equivalents, and restricted cash, beginning of period |
|
$ |
324,792 |
|
|
$ |
207,453 |
|
Cash, cash
equivalents, and restricted cash end of period |
|
$ |
282,077 |
|
|
$ |
152,423 |
|
Porch (NASDAQ:PRCH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Porch (NASDAQ:PRCH)
Historical Stock Chart
From Apr 2023 to Apr 2024