Affirms Guidance At or Above the High End of
Annual Ranges
Third Quarter 2021 Business Highlights(1):
- Total revenues of $163 million, up 34% versus Q3 2020
- Closed orders of 35,300, up 39% versus Q3 2020
- Retained premiums and fees of $71 million, up 31% versus Q3
2020
- Gross profit of $28 million, up 7% versus Q3 2020
- Adjusted gross profit of $30 million, up 10% versus Q3
2020
- Enterprise segment closed orders grew 386% versus Q3 2020
- Open orders of 52,867, up 41% versus Q3 2020
2021 Full Year Outlook (1):
- For the full year, Doma now expects to come in at or above the
high end of its previous ranges for both revenue of between $475
million and $525 million and retained premiums and fees of between
$250 million and $260 million
- Similarly, Doma expects finishing the year at or above the high
end of its previous ranges for both gross profit between $83
million and $93 million and adjusted gross profit between $95
million and $105 million
Doma Holdings, Inc. (NYSE: DOMA) (“Doma” or the “Company”), a
leading force for disruptive change in the real estate industry,
today reported quarterly financial results and key operating data
for the three and nine months ended September 30, 2021(2). Doma’s
results demonstrate strong growth that continues to outperform the
mortgage industry as a whole, driven by the expansion and continued
adoption of its proprietary machine learning technology. Because of
its continued momentum in the third quarter of 2021 and an
accelerating rate of growth in open order volume, Doma is now
affirming that it expects full year 2021 results to be at or above
the high end of its previously stated guidance ranges.
“Doma’s impressive growth relative to the industry is driven by
our unique technology, and we continue to gain momentum,” said Max
Simkoff, Founder and CEO of Doma. “Given our proven ability to grow
market share, we will be heavily focused on investing in the
extension of our game-changing technology to serve more of the
market - specifically across home purchase transactions. As soon as
possible, we want prospective homeowners to experience the same
value proposition that we’ve been delivering to our Enterprise
channel: an instant, digital home closing that is vastly more
simple and more affordable," Mr. Simkoff concluded.
Third Quarter 2021 Growth Drivers
- Continued improvements to the Doma Intelligence platform helped
deliver better customer outcomes through the application of
cutting-edge machine learning technology.
- Added important new functionality to Doma Docs - which is a
feature that uses machine intelligence to replace the manual and
error-prone process of traditional fee collaboration - that deepens
its algorithms to tackle even more complex Closing Disclosure
scenarios and drive better outcomes for Doma's largest
clients.
- Enhanced the Doma Connect integration layer to introduce
important new integration functionality across several key
middleware platforms used by Doma's mortgage originator customers,
making those connections more seamless and fostering further
expansion of wallet share.
- Increased orders at the Enterprise level, despite a softening
mortgage market, reflect confidence in Doma's technology by the
nation's largest mortgage lenders. Total order growth in the third
quarter came from both new customers starting to transact as well
as increases in wallet share among existing Doma Enterprise
customers, who are among the nation's leading lenders.
- Home purchase transaction volume increased by a healthy 9% over
the same period last year, outpacing overall market trends in
Doma's Local channel.
- Top talent from leading global tech companies like Amazon,
Apple, Facebook, Netflix, LogMeIn, and Splunk joined the Doma team
in the third quarter, in key roles across customer acquisition,
account management, fulfillment, software engineering, data
science, and product management, helping the Company deliver on its
fast pace of innovation.
“Our strong third quarter results are reflective of the
increasing demand for our differentiated technology offering, most
notably by our largest Enterprise clients,” stated Noaman Ahmad,
CFO of Doma. “Our recent performance and momentum allow us the
confidence to invest more aggressively in our product roll-out,
particularly as it relates to the accelerated migration of our
Local Purchase business to the Doma Intelligence platform, which we
remain on track to start by year-end. We believe that the
acceleration of these investments is worth any short-term trade off
in margins that will likely be required to get to larger scale
faster."
Non-GAAP Financial Measures
Some of the financial information and data contained in this
press release, such as retained premiums and fees, adjusted gross
profit and adjusted EBITDA, have not been prepared in accordance
with United States generally accepted accounting principles
("GAAP"). Retained premiums and fees is defined as revenue less
premiums retained by third-party agents. Adjusted gross profit is
defined as gross profit, plus depreciation and amortization.
Adjusted EBITDA is defined as net loss before interest expense,
income taxes, depreciation and amortization, stock-based
compensation, COVID-related severance costs and change in fair
value of warrant and sponsor covered shares liabilities. Doma
believes that the use of retained premiums and fees, adjusted gross
profit and adjusted EBITDA provides an additional tool to assess
operational performance and trends in, and in comparing Doma's
financial measures with, other similar companies, many of which
present similar non-GAAP financial measures to investors. Doma’s
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies. The presentation of
non-GAAP financial measures is not intended to be considered in
isolation or as a substitute for, or superior to, financial
measures determined in accordance with GAAP. Because of the
limitations of non-GAAP financial measures, you should consider the
non-GAAP financial measures presented herein in conjunction with
Doma’s financial statements and the related notes thereto. Please
refer to the non-GAAP reconciliations in this press release for a
reconciliation of these non-GAAP financial measures to the most
comparable financial measure prepared in accordance with GAAP.
Conference Call Information
Doma will host a conference call at 5:30 PM Eastern Time on
Wednesday, November 10, 2021, to present its third quarter 2021
financial results.
The telephonic version of the call can be
accessed by dialing:
Participant Toll Free Dial-In Number: (844)
615-6508
Participant International Dial-In Number:
(918) 922-3146
Conference ID: 5855336
The live webcast of the call will be accessible on the Company’s
website at investor.doma.com. Approximately two hours after
conclusion of the live event, an archived webcast of the conference
call will be accessible from the Investor Relations section of the
Company’s website for twelve months.
About Doma Holdings, Inc.
Doma (NYSE: DOMA) is architecting the future of real estate
transactions. The Company uses machine intelligence and its
proprietary technology solutions to transform residential real
estate, making closings instant and affordable. Doma and its family
of brands – States Title, North American Title Company (NATC) and
North American Title Insurance Company (NATIC) – offer solutions
for current and prospective homeowners, lenders, title agents, and
real estate professionals that make closings vastly more simple and
efficient, reducing cost and increasing customer satisfaction.
Doma’s clients include some of the largest bank and non-bank
lenders in the United States. To learn more visit doma.com.
Forward-Looking Statements Legend
This press release includes “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 may be identified by the use of words such as
"estimate," "plan," "project," "forecast," "intend," "will,"
"expect," "anticipate," "believe," "seek," "target" or other
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. The
absence of these words does not mean that a statement is not
forward-looking. Such statements are based on the beliefs of, as
well as assumptions made by information currently available to Doma
management. These forward-looking statements include, but are not
limited to, statements regarding estimates and forecasts of
financial and performance metrics, projections of market
opportunity, total addressable market ("TAM"), market share and
competition. These statements are based on various assumptions,
whether or not identified in this press release, and on the current
expectation of Doma’s management and are not predictions of actual
performance. These forward-looking statements are provided for
illustrative purposes only and are not intended to serve as, and
must not be relied on by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict, will differ from assumptions and are beyond
the control of Doma.
These forward-looking statements are subject to a number of
risks and uncertainties, including changes in business, market,
financial, political and legal conditions; risks relating to the
uncertainty of the projected financial information with respect to
Doma; future global, regional or local economic, political, market
and social conditions, including due to the COVID-19 pandemic; the
development, effects and enforcement of laws and regulations,
including with respect to the title insurance industry; Doma’s
ability to manage its future growth or to develop or acquire
enhancements to its platform; the effects of competition on Doma’s
future business; the outcome of any potential litigation,
government and regulatory proceedings, investigations and
inquiries; and those other factors described in the "Risk Factors"
section of the documents filed by Doma from time to time with the
SEC.
If any of these risks materialize or Doma’s assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that Doma does not presently know or that Doma
currently believes are immaterial that could also cause actual
results to differ from those contained in the forward-looking
statements. In addition, forward-looking statements reflect Doma’s
expectations, plans or forecasts of future events and views as of
the date of this press release. Doma anticipates that subsequent
events and developments will cause Doma’s assessments to change.
However, while Doma may elect to update these forward-looking
statements at some point in the future, Doma specifically disclaims
any obligation to do so, except as required by law. These
forward-looking statements should not be relied upon as
representing Doma’s assessment as of any date subsequent to the
date of this press release. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
Key Operating and Financial Indicators
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands, except for open
and closed order numbers)
Key operating data:
Opened orders
52,867
37,572
135,442
101,161
Closed orders
35,300
25,358
99,386
65,026
GAAP financial data:
Revenue (1)
$
162,582
$
121,072
$
420,364
$
292,304
Gross profit (2)
$
28,302
$
26,379
$
81,232
$
61,418
Net loss
$
(34,270
)
$
(3,622
)
$
(69,327
)
$
(26,540
)
Non-GAAP financial data (3):
Retained premiums and fees
$
70,986
$
54,048
$
193,249
$
136,172
Adjusted gross profit
$
30,280
$
27,600
$
88,937
$
64,654
Ratio of adjusted gross profit to retained
premiums and fees
43
%
51
%
46
%
47
%
Adjusted EBITDA
$
(20,109
)
$
(649
)
$
(35,291
)
$
(15,926
)
_________________
n.m. = not meaningful
(1)
Revenue is comprised of (i) net premiums
written, (ii) escrow, other title-related fees and other, and (iii)
investment, dividend and other income. Net loss is made up of the
components of revenue and expenses.
(2)
Gross profit, calculated in accordance
with GAAP, is calculated as total revenue, minus premiums retained
by third-party agents, direct labor expense (including mainly
personnel expense for certain employees involved in the direct
fulfillment of policies) and direct non-labor expense (including
mainly title examination expense, provision for claims, and
depreciation and amortization). In our consolidated income
statements, depreciation and amortization is recorded under the
“other operating expenses” caption.
(3)
Retained premiums and fees, adjusted gross
profit and adjusted EBITDA are non-GAAP financial measures.
Non-GAAP Financial Measures
Retained premiums and fees
The following presents our retained premiums
and fees and reconciles the measure to our gross profit, the most
closely comparable GAAP financial measure, for the periods
indicated:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
(in thousands)
Revenue
$
162,582
$
121,072
$
420,364
$
292,304
Minus:
Premiums retained by third-party
agents
91,596
67,024
227,115
156,132
Retained premiums and fees
$
70,986
$
54,048
$
193,249
$
136,172
Minus:
Direct labor
23,948
14,892
62,829
45,104
Provision for claims
6,685
5,242
16,741
10,065
Depreciation and amortization
1,978
1,221
7,705
3,236
Other direct costs (1)
10,073
6,314
24,742
16,349
Gross Profit
$
28,302
$
26,379
$
81,232
$
61,418
__________________
(1)
Includes title examination expense, office
supplies, and premium and other taxes.
Adjusted gross profit
The following table reconciles our adjusted
gross profit to our gross profit, the most closely comparable GAAP
financial measure, for the periods indicated:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
(in thousands)
Gross Profit
$
28,302
$
26,379
$
81,232
$
61,418
Adjusted for:
Depreciation and amortization
1,978
1,221
7,705
3,236
Adjusted Gross Profit
$
30,280
$
27,600
$
88,937
$
64,654
Adjusted EBITDA
The following table reconciles our adjusted
EBITDA to our net loss, the most closely comparable GAAP financial
measure, for the periods indicated:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
(in thousands)
Net loss (GAAP)
$
(34,270
)
$
(3,622
)
$
(69,327
)
$
(26,540
)
Adjusted for:
Depreciation and amortization
1,978
1,221
7,705
3,236
Interest expense
4,531
1,193
12,341
4,428
Income taxes
170
204
506
620
EBITDA
$
(27,591
)
$
(1,004
)
$
(48,775
)
$
(18,256
)
Adjusted for:
Stock-based compensation
3,004
355
9,006
945
COVID-related severance costs
—
—
—
1,385
Change in fair value of warrant and
sponsor covered shares liabilities
4,478
—
4,478
—
Adjusted EBITDA
$
(20,109
)
$
(649
)
$
(35,291
)
$
(15,926
)
The following table reconciles our adjusted
gross profit to our adjusted EBITDA, for the periods indicated:
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
(in thousands)
Adjusted Gross Profit
$
30,280
$
27,600
$
88,937
$
64,654
Minus:
Customer acquisition costs
14,870
8,849
36,956
25,227
Other indirect costs (1)
35,519
19,400
87,272
55,353
Adjusted EBITDA
$
(20,109
)
$
(649
)
$
(35,291
)
$
(15,926
)
__________________
(1)
Includes corporate support, research and development, and other
operating costs.
Outlook reconciliations
The following tables reconcile the ranges of
expected gross profit to expected retained premiums and fees and
the ranges of expected gross profit to expected adjusted gross
profit for the full year ended December 31, 2021:
Year Ended December 31,
2021
Low
High
(in thousands)
Revenue
$
475,000
$
525,000
Minus:
Premiums retained by third-party
agents
225,000
265,000
Retained premiums and fees
$
250,000
$
260,000
Minus:
Estimated adjustments (1)
$
167,000
$
167,000
Gross Profit
$
83,000
$
93,000
Year Ended December 31,
2021
Low
High
(in thousands)
Gross Profit
$
83,000
$
93,000
Adjusted for:
Depreciation and amortization
12,000
12,000
Adjusted Gross Profit
$
95,000
$
105,000
__________________
(1)
Estimated adjustments include direct
labor, provision for claims, depreciation and amortization, and
other direct costs (which includes title examination expense,
office supplies, and premium and other taxes).
Doma Holdings, Inc.
Condensed Consolidated
Statements of Operations
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(In thousands, except share and
per share information)
2021
2020
2021
2020
Revenues:
Net premiums written (1)
$
141,491
$
103,587
$
358,754
$
246,738
Escrow, other title-related fees and
other
20,452
16,742
59,092
43,298
Investment, dividend and other income
639
743
2,518
2,268
Total revenues
$
162,582
$
121,072
$
420,364
$
292,304
Expenses:
Premiums retained by third-party agents
(2)
$
91,596
$
67,024
$
227,115
$
156,132
Title examination expense
5,289
4,624
15,643
11,811
Provision for claims
6,685
5,242
16,741
10,065
Personnel costs
62,410
36,197
159,829
104,652
Other operating expenses
21,693
10,210
53,038
31,136
Total operating expenses
$
187,673
$
123,297
$
472,366
$
313,796
Loss from operations
$
(25,091
)
$
(2,225
)
$
(52,002
)
$
(21,492
)
Other (expense) income:
Change in fair value of warrant and
sponsor covered shares liabilities
(4,478
)
—
(4,478
)
—
Interest expense
(4,531
)
(1,193
)
(12,341
)
(4,428
)
Loss before income taxes
$
(34,100
)
$
(3,418
)
$
(68,821
)
$
(25,920
)
Income tax expense
(170
)
(204
)
(506
)
(620
)
Net loss
(34,270
)
(3,622
)
(69,327
)
(26,540
)
Earnings per share:
Net loss per share attributable to
shareholders - basic and diluted
$
(0.14
)
$
(0.06
)
$
(0.54
)
$
(0.43
)
Weighted average shares outstanding common
stock - basic and diluted
245,003,754
64,060,987
128,105,954
62,255,035
__________________
(1)
Net premiums written includes revenues
from a related party of $30.3 million and $22.9 million during the
three months ended September 30, 2021 and 2020, respectively. Net
premiums written includes revenues from a related party of $81.9
million and $64.2 million during the nine months ended September
30, 2021 and 2020, respectively.
(2)
Premiums retained by third-party agents
includes expenses associated with a related party of $24.8 million
and $18.4 million during the three months ended September 30, 2021
and 2020, respectively. Premiums retained by third-party agents
includes expenses associated with a related party of $66.6 million
and $51.9 million during the nine months ended September 30, 2021
and 2020, respectively.
Doma Holdings, Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands, except share
information)
September 30, 2021
December 31, 2020
Assets
Cash and cash equivalents
$
411,669
$
111,893
Restricted cash
2,021
129
Investments:
Fixed maturities
Held-to-maturity debt securities, at
amortized cost
74,872
65,406
Available-for-sale debt securities, at
fair value (amortized cost $7,139 at December 31, 2020)
—
8,057
Equity securities, at fair value (cost
$2,000 at December 31, 2020)
—
2,119
Mortgage loans
2,920
2,980
Other invested assets
306
—
Total Investments
$
78,098
$
78,562
Receivables (net of provision for doubtful
accounts of $571 at September 30, 2021 and $492 at December 31,
2020)
14,485
15,244
Prepaid expenses, deposits and other
assets
22,161
7,365
Fixed assets (net of accumulated
depreciation of $17,283 at September 30, 2021 and $15,065 at
December 31, 2020)
35,243
21,661
Title plants
13,952
14,008
Goodwill
111,487
111,487
Trade names (net of accumulated
amortization of $3,187 at December 31, 2020)
—
2,684
Total assets
$
689,116
$
363,033
Liabilities and stockholders'
equity
Accounts payable
$
6,651
$
6,626
Accrued expenses and other liabilities
50,187
33,044
Senior secured credit agreement, net of
debt issuance costs and original issue discount
138,684
—
Loan from a related party
—
65,532
Liability for loss and loss adjustment
expenses
78,671
69,800
Warranty liabilities
24,440
—
Sponsor covered shares liability
8,610
—
Total liabilities
$
307,243
$
175,002
Stockholders' equity:
Series A preferred stock, 0.0001 par
value; 0 shares authorized at September 30, 2021; 0 shares and
43,737,586 shares issued and outstanding as of September 30, 2021
and December 31, 2020, respectively
$
—
$
1
Series A-1 preferred stock, 0.0001 par
value; 0 shares authorized at September 30, 2021; 0 shares and
48,913,906 shares issued and outstanding as of September 30, 2021
and December 31, 2020, respectively
—
1
Series A-2 preferred stock, 0.0001 par
value; 0 shares authorized at September 30, 2021; 0 shares and
14,003,187 shares issued and outstanding as of September 30, 2021
and December 31, 2020, respectively
—
—
Series B preferred stock, 0.0001 par
value; 0 shares authorized at September 30, 2021; 0 shares and
15,838,828 shares issued and outstanding as of September 30, 2021
and December 31, 2020, respectively
—
—
Series C preferred stock, 0.0001 par
value; 0 shares authorized at September 30, 2021; 0 shares and
60,665,631 shares issued and outstanding as of September 30, 2021
and December 31, 2020, respectively
—
1
Common stock, 0.0001 par value;
2,000,000,000 shares authorized at September 30, 2021; 321,544,052
and 62,832,307 shares issued and outstanding as of September 30,
2021 and December 31, 2020, respectively
33
1
Additional paid-in capital
530,290
266,464
Accumulated deficit
(148,450
)
(79,123
)
Accumulated other comprehensive income
—
686
Total stockholders’ equity
$
381,873
$
188,031
Total liabilities and stockholders'
equity
$
689,116
$
363,033
Doma Holdings, Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Nine Months Ended September
30,
(In thousands)
2021
2020
Cash flow from operating activities:
Net loss
$
(69,327
)
$
(26,540
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Interest expense - paid in kind
6,353
5,085
Depreciation and amortization
7,705
3,236
Stock-based compensation expense
8,447
945
Amortization of debt issuance costs and
original issue discount
1,429
—
Provision for doubtful accounts
562
304
Deferred income taxes
377
535
Realized gain on debt securities
(908
)
(141
)
Net unrealized loss on equity
securities
119
10
Gain on disposal of fixed assets and title
plants
(11
)
(281
)
Accretion of discounts on held-to-maturity
securities
901
369
Change in fair value of warrant and
sponsor covered shares liabilities
4,478
—
Change in operating assets and
liabilities:
Accounts receivable
(284
)
(261
)
Prepaid expenses, deposits and other
assets
(14,799
)
(6,166
)
Accounts payable
(274
)
2,658
Accrued expenses and other liabilities
13,813
472
Liability for loss and loss adjustments
expenses
8,872
3,374
Net cash used in operating activities
$
(32,547
)
$
(16,401
)
Cash flow from investing
activities:
Proceeds from sales, calls and maturities
of investments: Held-to-maturity
$
23,514
$
15,394
Proceeds from sales, calls and maturities
of investments: Available-for-sale
7,817
18
Proceeds from sales of investments: Equity
securities
2,000
—
Proceeds from sales and principal
repayments of investments: Mortgage loans
60
378
Purchases of investments:
Held-to-maturity
(33,650
)
(57,624
)
Purchases of investments: Equity
securities
—
(1,000
)
Proceeds from sales of fixed assets
306
246
Purchases of fixed assets
(18,842
)
(12,670
)
Proceeds from sale of title plants and
dividends from title plants
482
1,349
Net cash used in investing activities
$
(18,313
)
$
(53,909
)
Doma Holdings, Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Nine Months Ended September
30,
(In thousands)
2021
2020
Cash flow from financing
activities:
Proceeds from issuance of Series C
preferred stock, net of financing costs
$
—
$
70,701
Proceeds from issuance of senior secured
credit agreement
150,000
—
Payments on loan from a related party
(65,532
)
(28,092
)
Debt issuance costs
(579
)
—
Exercise of stock warrants
48
—
Exercise of stock options
1,690
92
Redemptions of redeemable common and
preferred stock
(294,856
)
—
Net proceeds from Business Combination and
PIPE Investment
624,952
—
Payment of costs directly attributable to
the issuance of common stock in connection with Business
Combination and PIPE Investment
(63,195
)
—
Net cash provided by financing
activities
$
352,528
$
42,701
Net change in cash and cash equivalents
and restricted cash
301,668
(27,609
)
Cash and cash equivalents and restricted
cash at the beginning period
112,022
141,668
Cash and cash equivalents and restricted
cash at the end of period
$
413,690
$
114,059
Supplemental cash flow
disclosures:
Cash paid for interest
$
5,347
$
1
Supplemental disclosure of non-cash
investing activities:
Unrealized loss on available-for-sale debt
securities
$
(179
)
$
(53
)
Supplemental disclosure of non-cash
financing activities:
Issuance of penny warrants related to the
senior secured credit agreement
$
(18,519
)
$
—
Warrant liabilities recognized in
conjunction with the Business Combination
$
19,240
$
—
Net liabilities assumed in the Business
Combination
$
9,517
$
—
Quarterly Results of Operations and Other
Data
The following tables set forth our selected
unaudited quarterly condensed consolidated statements of operations
data for each of the quarters indicated. The information for each
quarter has been prepared on a basis consistent with our audited
consolidated financial statements, and reflect, in the opinion of
management, all adjustments, which consist only of a normal,
recurring nature that are necessary for a fair statement of the
financial information contained in those financial statements. Our
historical results are not necessarily indicative of the results
that may be expected in the future. The following quarterly
financial data should be read in conjunction with our consolidated
financial statements.
Condensed Consolidated Statements of
Operations
Three months ended
(In thousands)
March 31, 2020
June 30, 2020
September 30, 2020
December 31, 2020
March 31, 2021
June 30, 2021
September 30, 2021
Revenues:
Net premiums written
$
56,817
$
86,334
$
103,587
$
98,870
$
107,992
$
109,271
$
141,491
Escrow, other title-related fees and
other
13,174
13,382
16,742
17,977
18,575
20,065
20,452
Investment, dividend and other income
818
707
743
663
1,229
650
639
Total revenues
$
70,809
$
100,423
$
121,072
$
117,510
$
127,796
$
129,986
$
162,582
Expenses:
Premiums retained by third-party
agents
$
33,102
$
56,006
$
67,024
$
64,011
$
70,338
$
65,181
$
91,596
Title examination expense
3,865
3,322
4,624
4,393
4,853
5,500
5,289
Provision for claims
1,783
3,040
5,242
5,272
3,249
6,807
6,685
Personnel costs
35,718
32,737
36,197
38,874
43,464
53,954
62,410
Other operating expenses
10,640
10,286
10,210
12,149
14,165
17,181
21,693
Total operating expenses
$
85,108
$
105,391
$
123,297
$
124,699
$
136,069
$
148,623
$
187,673
Loss from operations
$
(14,299
)
$
(4,968
)
$
(2,225
)
$
(7,189
)
$
(8,273
)
$
(18,637
)
$
(25,091
)
Other income (expense):
Change in fair value of warrant and
sponsor earnout liabilities
—
—
—
—
—
—
(4,478
)
Interest expense
(2,112
)
(1,123
)
(1,193
)
(1,151
)
(3,360
)
(4,451
)
(4,531
)
Loss before income taxes
$
(16,411
)
$
(6,091
)
$
(3,418
)
$
(8,340
)
$
(11,633
)
$
(23,088
)
$
(34,100
)
Income tax expense
(175
)
(241
)
(204
)
(223
)
(125
)
(211
)
(170
)
Net loss
(16,586
)
(6,332
)
(3,622
)
(8,563
)
(11,758
)
(23,299
)
(34,270
)
Reconciliation of GAAP to Non-GAAP
Measures
The following tables present our
reconciliation of GAAP measure to non-GAAP measures for the
historical periods indicated.
Retained premiums and fees
Three Months Ended
(In thousands)
March 31, 2020
June 30, 2020
September 30, 2020
December 31, 2020
March 31, 2021
June 30, 2021
September 30, 2021
Revenue
$
70,809
$
100,423
$
121,072
$
117,510
$
127,796
$
129,986
$
162,582
Minus:
Premiums retained by third-party
agents
33,102
56,006
67,024
64,011
70,338
65,181
91,596
Retained premiums and fees
$
37,707
$
44,417
$
54,048
$
53,499
$
57,458
$
64,805
$
70,986
Minus:
Direct labor
16,314
13,898
14,892
17,050
17,979
20,902
23,948
Provision for claims
1,783
3,040
5,242
5,272
3,249
6,807
6,685
Depreciation and amortization
1,116
899
1,221
2,579
2,707
3,021
1,978
Other direct costs(1)
5,137
4,898
6,314
4,186
7,109
7,561
10,073
Gross Profit
$
13,357
$
21,682
$
26,379
$
24,412
$
26,414
$
26,514
$
28,302
__________________
(1)
Includes title examination expense, office
supplies, and premium and other taxes.
Adjusted gross profit
Three Months Ended
(in thousands)
March 31, 2020
June 30, 2020
September 30, 2020
December 31, 2020
March 31, 2021
June 30, 2021
September 30, 2021
Gross Profit
$
13,357
$
21,682
$
26,379
$
24,412
$
26,414
$
26,514
$
28,302
Adjusted for:
Depreciation and amortization
1,116
899
1,221
2,579
2,707
3,021
1,978
Adjusted Gross Profit
$
14,473
$
22,581
$
27,600
$
26,991
$
29,121
$
29,535
$
30,280
Adjusted EBITDA
Three Months Ended
(in thousands)
March 31, 2020
June 30, 2020
September 30, 2020
December 31, 2020
March 31, 2021
June 30, 2021
September 30, 2021
Net loss (GAAP)
$
(16,586
)
$
(6,332
)
$
(3,622
)
$
(8,563
)
$
(11,758
)
$
(23,299
)
$
(34,270
)
Adjusted for:
Depreciation and amortization
1,116
899
1,221
2,579
2,707
3,021
1,978
Interest expense
2,112
1,123
1,193
1,151
3,360
4,451
4,531
Income taxes
175
241
204
223
125
211
170
EBITDA
$
(13,183
)
$
(4,069
)
$
(1,004
)
$
(4,610
)
$
(5,566
)
$
(15,616
)
$
(27,591
)
Adjusted for:
Stock-based compensation
308
282
355
1,550
2,289
3,713
3,004
COVID-related severance costs
—
1,385
—
—
—
—
Change in fair value of warrant and
sponsor covered shares liabilities
—
—
—
—
—
—
4,478
Adjusted EBITDA
$
(12,875
)
$
(2,402
)
$
(649
)
$
(3,060
)
$
(3,277
)
$
(11,903
)
$
(20,109
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211110006274/en/
Investor Contact: Chris Mammone | The Blueshirt Group for
Doma | ir@doma.com Media Contact: Martha Shaughnessy | The
Key PR for Doma | press@doma.com
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