Porch Group (PRCH) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Good afternoon, everyone, and thank you for participating in Porsche Group's First Quarter twenty twenty five Conference Call. Today, we issued our earnings release and filed our related Form eight ks with the SEC. The press release can be found on our Investor Relations website at ir.porchgroup.com. I would like to take a moment to review the company's Safe Harbor statement within the meaning of the Private Securities Litigation Ref ...

Exhibit 99.1 Porch Group Reports First Quarter 2025 Results | | | | | | | | | | | Three Months Ended March 31, 2025 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Porch | | | | | | | | | | Insurance | | Software & | | Consumer | | | | | Shareholder | | | | | | | | | | Services | | Data | | Services | | | Corporate 3 | | Interest | 1 | Reciprocal | | Eliminations | | Consolidated | | Revenue | | $ | 49.8 | ...

Q1 2025 Earnings Presentation May 6, 2025 Copyright 2025 Porch Group, Inc. All rights reserved Disclaimers Financial Targets Porch is providing guidance and targets for future periods in this presentation based on current market conditions, assumptions, and expectations as of the date of this presentation. Actual results may vary due to a number of factors and there is no guarantee that we will be able to achieve these results. Please refer to the below for important disclaimers and a description of these f ...

Company Overview - Porch Group, Inc. (PRCH) shares increased by 6.3% to close at $6.80, with trading volume significantly higher than usual, reflecting a 33.1% gain over the past four weeks [1] - The company is experiencing strong revenue growth and improved profitability due to its data-driven underwriting, expanded distribution partnerships, and innovative insurance and vertical software solutions [1] Earnings Expectations - Porch Group is expected to report a quarterly loss of $0.07 per share, which is a year-over-year change of +66.7%, with revenues projected at $80.45 million, down 30.3% from the previous year [2] - The consensus EPS estimate for Porch Group has been revised 63.2% higher in the last 30 days, indicating a positive trend that typically correlates with price appreciation [3] Industry Context - Porch Group is part of the Zacks Internet - Software industry, where another company, Braze, Inc. (BRZE), saw a 2.7% increase in its stock price, closing at $37.03, but has returned -11.3% over the past month [3] - Braze's consensus EPS estimate for its upcoming report remains unchanged at $0.05, reflecting a +225% change from the previous year, and it currently holds a Zacks Rank of 3 (Hold) [4]

Porch Group, Inc. (NASDAQ: PRCH ) , based in Seattle, is what's known as a vertical software and insurance platform specializing in home services, a broad category that includes things like home inspections, moving, real estate, utilities, and warranties. In addition to the software side of things,The mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for compani ...

Q4 2024 Earnings Presentation February 25, 2025 Copyright 2025 Porch Group, Inc. All rights reserved Disclaimers Financial Targets Porch is providing guidance and targets for future periods in this presentation based on current market conditions, assumptions, and expectations as of the date of this presentation. Actual results may vary due to a number of factors and there is no guarantee that we will be able to achieve these results. Please refer to the below for important disclaimers and a description of t ...

Core Viewpoint - Porch Group's stock experienced a significant surge, rising 76% over two trading days following its Q4 2024 earnings release, reaching a 52-week high [1][8]. Company Overview - Porch Group operates in the homebuying and home insurance sectors, aiming to create a flywheel effect where different business segments enhance each other [2]. - The company provides software utilized by 40% of the home inspection market, generating revenue and acquiring valuable data for home insurance pricing [3]. - Porch also serves 40% of the title transaction industry, gaining insights into home transaction timelines, which aids in marketing home insurance services [4][5]. - Additionally, Porch is the second-largest moving labor provider in the U.S., connecting homebuyers with moving professionals and earning fees from these services [6]. Financial Performance - In Q4 2024, Porch reported a gross profit margin of 89%, despite a 12% decline in revenues year-over-year [8]. - The company anticipates a gross margin of around 80% for 2025, a significant increase from the 48% margin achieved in 2024 [9]. - The formation of the Porch Insurance Reciprocal Exchange (PIRE) has allowed Porch to hold insurance policies and receive commissions, contributing to higher margins [10]. - Porch achieved record adjusted EBITDA of $42 million in Q4, with a full-year adjusted EBITDA of $7 million for 2024, and expects to increase this to $60 million in 2025 [11]. Stock Outlook - The average price target for Porch Group's stock is $5.84, indicating a potential downside of 16.40% from current levels, with a short-term upside potential of 19% based on recent earnings [12][13]. - Despite the recent stock surge, a short-term decline in share price would not be surprising given the rapid increase [13].

Porch Group, Inc. (NASDAQ:PRCH) Q4 2024 Earnings Call February 25, 2025 5:00 PM ET Company Participants Matt Ehrlichman - Chief Executive Officer and Chairman and Founder Shawn Tabak - Chief Financial Officer Matthew Neagle - Chief Operating Officer Conference Call Participants Dan Kurnos - The Benchmark Company Jason Helfstein - Oppenheimer John Campbell - Stephens Ryan Tomasello - KBW Cal Bartyzal - Craig-Hallum Capital Group Operator Good afternoon, everyone and thank you for participating in Porch Group ...

Core Viewpoint - Porch Group, Inc. reported quarterly earnings of $0.15 per share, significantly exceeding the Zacks Consensus Estimate of $0.06 per share, marking a 150% earnings surprise compared to a loss of $0.06 per share a year ago [1] Financial Performance - The company posted revenues of $100.36 million for the quarter ended December 2024, which was 8.95% below the Zacks Consensus Estimate and a decrease from $114.61 million in the same quarter last year [2] - Over the last four quarters, Porch Group has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance - Porch Group shares have declined approximately 20.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at -$0.19 for the coming quarter and -$0.38 for the current fiscal year [4][7] - The estimate revisions trend for Porch Group is currently favorable, resulting in a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which Porch Group belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance and Growth - Porch Insurance Reciprocal Exchange (PIRE) was approved on October 25, 2024, and funded with approximately $106 million in surplus notes, expected to enhance financial performance and mitigate exposure to seasonality and catastrophic weather [49]. - The strategy focuses on profitable growth by recruiting a high-performing sales team to increase insurance gross written premiums and premium per policy [51]. - The company plans to launch new SaaS products and features while maintaining high customer retention rates and increasing prices [52]. - The company expanded its insurance operations through the acquisition of HOA, a leading property and casualty insurance company, effective January 1, 2025 [91]. - The company operates an insurance business through Porch Insurance Reciprocal Exchange (PIRE), which directly affects its operating revenue and financial health [90]. - The company's future growth depends on managing operations and growing the insurance business by limiting attrition and increasing revenue from home-related services [96]. - The company may not be able to access capital markets when needed, impacting its ability to fund operations and seize business opportunities [87]. - The cyclical nature of the insurance industry may lead to fluctuations in financial performance, affecting premium rates and underwriting capacity [97]. - The company incurred operating losses of $64.6 million, $190.4 million, and $177.0 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $754.9 million as of December 31, 2024 [213]. - The company has experienced net losses in each year since its inception, indicating challenges in achieving and sustaining profitability [213]. Risks and Challenges - Claims costs for PIRE may increase due to inflated material costs, supply chain shortages, and labor cost increases, potentially impacting the company's financial position [92]. - The company faces risks from its expansion into the insurance business, including higher than expected claims costs and external factors affecting financial condition [90]. - PIRE's financial strength ratings could be downgraded, which may adversely affect the company's financial condition [87]. - Severe weather events and climate change may require additional capital for the insurance business, impacting financial stability [102]. - Increased insurance claims and costs could reduce access to reinsurance, negatively affecting the company's operations [103]. - Development of new insurance products and market expansion efforts may require substantial expenditures and carry inherent risks [106]. - The company faces risks related to customer service quality, which could harm its reputation and sales if not maintained [128]. - The company is subject to market volatility affecting raw material prices, which may hinder its ability to pass cost increases to customers [132]. - The company is dependent on reinsurance, and any inability to secure adequate reinsurance could materially impact its business model and profitability [168]. - The company may face litigation risks related to the actions of its service providers, which could divert management's focus and resources [133]. Regulatory and Compliance Issues - The company is subject to various risks related to regulatory compliance, which could limit growth and impose additional costs on PIRE and HOA [87]. - The company is subject to extensive state regulation in its insurance businesses, which could limit growth and impose additional costs [220]. - The company is subject to evolving privacy and data protection regulations, which could increase operational costs and expose it to liabilities [229]. - Compliance with privacy and data protection laws may impose significant costs and burdens on the company, potentially delaying product development and affecting business relationships [232]. - Non-compliance with applicable laws could lead to increased scrutiny from regulatory agencies and result in significant financial penalties [239]. - The company is subject to numerous regulations, including the Truth in Lending Act and the Fair Credit Reporting Act, which impose specific compliance obligations [235]. Employee and Organizational Structure - As of December 31, 2024, the company had a total of 733 employees, including 729 full-time employees, and maintains good relationships with employees and contractors [82]. - The company emphasizes a decentralized operating model to maintain momentum and entrepreneurial culture during acquisitions [78]. - The company was certified as a Great Place to Work in 2023 and 2024, highlighting its commitment to a supportive and inclusive environment [81]. - Employee costs, the largest expense for the company, could increase due to external factors like inflation, impacting profitability [201]. Strategic Partnerships and Market Position - Partnerships with moving companies and utilities are being leveraged to expand access to high-value homebuyers and foster long-term customer relationships [54]. - The company is incorporating AI into its products and services, which presents both opportunities and regulatory risks [147]. - A business collaboration agreement with Aon includes a cash payment of approximately $25 million and additional payments in 2025, contingent on maintaining certain conditions [165]. Financial Management and Capital Structure - Management fees and commissions from PIRE are critical to the company's revenue; any reduction could adversely affect profitability [153]. - The company does not own PIRE but serves as its attorney-in-fact, which subjects it to risks associated with PIRE's financial health [151]. - Changes in the management fee rate could materially affect the company's revenues and profitability, as it is determined at Porch's discretion [160]. - PIRE holds surplus notes totaling $106 million, with payments subject to risk-based capital levels and regulatory approval [157]. - The company has net operating loss carryforwards of $430.4 million for U.S. federal income tax purposes and $289.7 million for state income tax purposes, which may expire if not utilized [219].