Porch(PRCH)

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Porch Group: The Inflection Is Real, And I'm Staying Long
Seeking Alpha· 2025-05-14 21:56
Group 1 - Porch Group, Inc. has transitioned from a tech company focused on home services to a data-driven platform emphasizing insurance, software, and consumer engagement [1] - The company's current strategy prioritizes margin-focused operations rather than service provision [1] Group 2 - The analysis primarily targets small- to mid-cap companies, which are often overlooked by investors, while also occasionally reviewing large-cap companies for a broader market perspective [1]
Porch Group: Up 50%+ Post-Earnings--But Is The Rally Justified?
Seeking Alpha· 2025-05-11 14:20
Group 1 - The analysis begins coverage on Porch Group (NASDAQ: PRCH) with a comprehensive overview of their business model, history, financial performance, Q1 2025 earnings, valuation, and risks [1] - A 'Hold' rating will be issued for Porch Group based on the analysis [1]
Porch(PRCH) - 2025 Q1 - Quarterly Report
2025-05-08 19:34
PART I — FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2025 consolidated financial statements reflect the company's financial position and performance, significantly impacted by the Reciprocal Exchange formation [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) The March 31, 2025, balance sheet reflects total assets of **$802.3 million** and a **$32.0 million** stockholders' deficit, including the consolidated Reciprocal Exchange Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $65,899 | $167,643 | | Total current assets | $111,368 | $365,127 | | Goodwill | $191,907 | $191,907 | | Assets of Reciprocal (VIE) | $403,267 | $0 | | **Total assets** | **$802,283** | **$813,968** | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $73,071 | $414,156 | | Long-term debt | $409,160 | $403,788 | | Liabilities of Reciprocal (VIE) | $319,911 | $0 | | **Total liabilities** | **$834,332** | **$857,193** | | Porch stockholders' deficit | ($52,418) | ($43,225) | | **Total stockholders' deficit** | **($32,049)** | **($43,225)** | - On January 1, 2025, Porch sold HOA to the newly formed Porch Reciprocal Exchange, a consolidated VIE managed by Porch[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Q1 2025 consolidated net income was **$3.7 million**, a turnaround from a **$13.4 million** loss in Q1 2024, driven by reduced cost of revenue Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $104,745 | $115,443 | | Cost of revenue | $39,297 | $78,366 | | **Gross Profit** | **$65,448** | **$37,077** | | Operating loss | ($1,266) | ($34,668) | | **Net income (loss)** | **$3,736** | **($13,362)** | | Net loss attributable to the Reciprocal | ($4,659) | $0 | | **Net income (loss) attributable to Porch** | **$8,395** | **($13,362)** | | Net income (loss) attributable to Porch per share - basic | $0.08 | ($0.14) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Q1 2025 net cash used in operating activities was **$11.2 million**, a reversal from **$8.5 million** provided in Q1 2024, primarily due to working capital shifts Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($11,178) | $8,465 | | Net cash provided by (used in) investing activities | ($19,368) | $12,697 | | Net cash used in financing activities | ($229) | ($2,501) | | **Net change in cash** | **($30,775)** | **$18,661** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail accounting policies and the strategic shift to a reciprocal insurance model, establishing new segments and the Reciprocal's formation - As of January 2025, the company operates under new segments: Insurance Services, Software & Data, Consumer Services (Porch Shareholder Interest), and the Reciprocal Segment[32](index=32&type=chunk)[62](index=62&type=chunk) - The Reciprocal's formation on January 1, 2025, involved Porch selling HOA and receiving approximately **$106 million** in surplus notes[85](index=85&type=chunk) - As of April 1, 2025, the Reciprocal's reinsurance program includes excess of loss catastrophe coverage starting at **$25 million** and a 7.5% third-party quota share[163](index=163&type=chunk)[164](index=164&type=chunk) - The company is involved in legal proceedings alleging TCPA violations, with potential loss currently unestimable[173](index=173&type=chunk)[177](index=177&type=chunk) [Management's Discussion and Analysis (MD&A)](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q1 2025 transition to a new reciprocal insurance model, leading to improved profitability and Adjusted EBITDA despite a revenue decrease [Business Overview](index=36&type=section&id=Business%20Overview) Porch leverages SaaS relationships and property data for its homeowners insurance business, operating under four new segments as of January 2025 - Porch leverages relationships with approximately **24,000** SaaS companies to gain insights into U.S. homebuyers and properties for its insurance business[187](index=187&type=chunk) - Unique property data enhances risk assessment, pricing, and underwriting for the policyholder-owned Porch Reciprocal Exchange, managed by Porch[193](index=193&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q1 2025 consolidated revenue decreased 9% to **$104.7 million**, but operating loss significantly narrowed, and Adjusted EBITDA turned positive due to the new reciprocal model Consolidated Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $104,745 | $115,443 | ($10,698) | (9)% | | Cost of revenue | $39,297 | $78,366 | ($39,069) | (50)% | | Operating loss | ($1,266) | ($34,668) | $33,402 | (96)% | | Net income (loss) attributable to Porch | $8,395 | ($13,362) | $21,757 | (163)% | | Adjusted EBITDA (Loss) | $16,861 | ($16,788) | $33,649 | (200)% | - Revenue decreased primarily due to higher reinsurance ceding, while cost of revenue fell due to the same program and fewer weather-related claims[202](index=202&type=chunk)[203](index=203&type=chunk) - Adjusted EBITDA improved due to the shift to the reciprocal model, generating higher-margin management fees, and reduced weather-related claims[206](index=206&type=chunk) [Porch Shareholder Interest Results (Non-GAAP)](index=42&type=section&id=Porch%20Shareholder%20Interest%20Results%20(Non-GAAP)) Porch Shareholder Interest segments showed strong Q1 2025 performance, with flat revenue but significant increases in Gross Profit and Adjusted EBITDA Porch Shareholder Interest Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $84,546 | $84,416 | $130 | | Gross Profit | $69,074 | $49,838 | $19,236 | | Adjusted EBITDA (Loss) | $16,861 | ($4,075) | $20,936 | - Gross Profit and Adjusted EBITDA improved due to the shift to managing the Reciprocal, generating high-margin management fees, and reduced weather-related claims[220](index=220&type=chunk)[221](index=221&type=chunk) [Key Performance Measures and Operating Metrics](index=44&type=section&id=Key%20Performance%20Measures%20and%20Operating%20Metrics) The company tracks key operating metrics for its new segments, including Reciprocal Written Premium, Average Companies, and Monetized Services - Q1 2025 Insurance Services metrics include **$96.9 million** in Reciprocal Written Premium and **36.1 thousand** policies written[222](index=222&type=chunk) - Q1 2025 Software & Data metrics include **24.1 thousand** average companies and **$3,644** in annualized average revenue per company[228](index=228&type=chunk) - Q1 2025 Consumer Services metrics include **71.0 thousand** monetized services and **$207** in average revenue per monetized service[232](index=232&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity and capital resources as of March 31, 2025, are discussed, with management affirming sufficient funding for 12 months Liquidity of Porch Shareholder Interest (in thousands) | Component | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unrestricted cash, cash equivalents, and investments | $96,624 | $61,648 | | Restricted cash and cash equivalents | $17,213 | $28,244 | | **Total cash, cash equivalents, and investments** | **$113,837** | **$89,892** | - The company has outstanding convertible notes totaling **$507.1 million** principal, with maturities in 2026 (**$173.8 million**) and 2028 (**$333.3 million**)[254](index=254&type=chunk)[255](index=255&type=chunk) - Net cash used in operating activities was **$11.2 million** in Q1 2025, a reversal from **$8.5 million** provided in Q1 2024, due to ceded insurance premium timing[260](index=260&type=chunk)[261](index=261&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including interest rate fluctuations, inflation, and dependence on the Reciprocal's financial health - The company's **$507.1 million** fixed-rate convertible debt means interest expense is not directly impacted by market rate changes[280](index=280&type=chunk) - Fixed income investment portfolios of both the company and the Reciprocal are exposed to unrealized losses in a rising interest rate environment[282](index=282&type=chunk) - Inflation negatively impacts operations through higher costs and could reduce consumer spending[284](index=284&type=chunk) - A key risk is the company's dependence on the Reciprocal's financial condition and growth, as it impacts Porch's management fee revenue[286](index=286&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[287](index=287&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[288](index=288&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 16 for legal proceedings, believing current claims will not materially adversely affect the business - The report refers to Note 16 in the financial statements for a description of certain litigation and legal proceedings[291](index=291&type=chunk) - Management believes current legal proceedings will not materially adversely affect the company's business, financial condition, or results of operations[292](index=292&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were disclosed from the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[293](index=293&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) Two Board members entered Rule 10b5-1 trading plans in March 2025 to sell shares for tax obligations related to board compensation - Lead Independent Director Alan Pickerill entered a Rule 10b5-1 trading plan on March 13, 2025, to sell up to **40,000** shares[297](index=297&type=chunk) - Board member Rachel Lam entered a Rule 10b5-1 trading plan on March 14, 2025, to sell up to **50,000** shares[298](index=298&type=chunk)
Porch Group, Inc. (PRCH) Beats Q1 Earnings and Revenue Estimates
ZACKS· 2025-05-06 23:00
Core Viewpoint - Porch Group, Inc. reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, marking a significant improvement from a loss of $0.21 per share a year ago [1] Financial Performance - The company posted revenues of $104.75 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 30.20%, although this is a decline from year-ago revenues of $115.44 million [2] - Over the last four quarters, Porch Group has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Porch Group shares have increased approximately 27% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates for the coming quarter at -$0.02 on revenues of $98.16 million, and -$0.10 on revenues of $400 million for the current fiscal year [4][7] - The estimate revisions trend for Porch Group is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Porch Group belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]
Porch(PRCH) - 2025 Q1 - Earnings Call Transcript
2025-05-06 22:02
Financial Data and Key Metrics Changes - Revenue for Q1 2025 was reported at $85 million, generated from $97 million of written premium, both exceeding expectations [6][7] - Gross profit reached $69 million, an 86% increase year-over-year, with gross margins at 82% [8][20] - Adjusted EBITDA was $17 million, representing a 20% margin and a $34 million increase compared to the prior year [9][20] - Net income attributable to Porch was positive at $8 million, with positive cash flow from operations amounting to $27 million [9][26] Business Line Data and Key Metrics Changes - Insurance services accounted for 59% of revenue, with a gross margin of 85% and adjusted EBITDA of $25.8 million [19][22] - Software and data revenue was $22 million, a 4% increase year-over-year, with a gross margin of 75% [22] - Consumer services revenue decreased by 9% to $14.7 million, driven by the closure of lower-margin moving products [24] Market Data and Key Metrics Changes - The reciprocal's written premium reached $97 million, reflecting a 10% increase year-over-year [37] - New business premium doubled compared to the prior year, indicating strong growth in the insurance segment [40] Company Strategy and Development Direction - The company has transitioned to a commission and fee-based model, focusing on higher margins and predictable results [5][6] - Strategic focus areas include scaling insurance premiums, software innovation, and expanding data services [31][35] - The company aims to grow its written premium to $3 billion over the next 7-10 years, with a target revenue of $2.3 billion [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience during economic downturns, particularly in the homeowners insurance market [12][14] - The company anticipates continued growth in written premiums and management fees, supported by strategic pricing and distribution efforts [37][39] - Management noted that the reciprocal's surplus reached $198 million, the highest ever, indicating a strong financial position [10][72] Other Important Information - The company has reduced corporate expenses significantly, leading to improved cash flow [25] - The reciprocal's reinsurance costs have decreased year-over-year due to strong underwriting results [10][45] Q&A Session Summary Question: Clarity on high take rate in the quarter - Management explained that the high take rate was due to policy fees from policyholders and management fees from the reciprocal, with a healthy surplus of nearly $200 million [54][55] Question: Willingness to accelerate growth given strong start - Management indicated a willingness to invest in growth initiatives, including engaging more agents and expanding into new geographies [58][60] Question: Insights on consumer selection between HOA and Porch insurance - Management did not provide specific metrics but noted strong conversion rates among homebuyers and new construction segments [69][70] Question: Surplus metrics and expectations - Management clarified that the surplus combined with non-admitted assets was $198 million, the highest ever, and discussed the seasonal nature of surplus [72][74] Question: Reinsurance process and reinsurers' appetite - Management expressed satisfaction with the reinsurance renewal process, highlighting strong relationships with reinsurers and reduced risk exposure [86][88] Question: Breakdown of reciprocal written premium growth - Management stated that growth would come from both rate increases and new policy acquisitions, with expectations for continued growth in the second quarter [90][91] Question: Growth levers and agent channel size - Management noted that many previously closed ZIP codes have reopened and emphasized the potential for growth through the agency channel [96][100]
Porch(PRCH) - 2025 Q1 - Earnings Call Transcript
2025-05-06 21:00
Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $85 million, generated from $97 million of premium written, both exceeding expectations [6][19] - Gross profit reached $69 million, an 86% increase year-over-year, with gross margins at 82% [7][20] - Adjusted EBITDA was $17 million, a 20% margin, representing a $34 million increase over the prior year [8][20] - Positive cash flow from operations was $27 million for the quarter [8][26] Business Line Data and Key Metrics Changes - Insurance services accounted for 59% of revenue, with a gross margin of 85% and adjusted EBITDA of $25.8 million [19][22] - Software and data revenue was $22 million, a 4% increase year-over-year, with a gross margin of 75% [22] - Consumer services revenue decreased by 9% to $14.7 million, driven by the closure of lower-margin products [24] Market Data and Key Metrics Changes - The reciprocal's written premium reached $97 million, reflecting a 10% increase year-over-year [37] - New business premium doubled compared to the prior year, indicating effective expansion efforts [40] Company Strategy and Development Direction - The company has transitioned to a commission and fee-based model, enhancing predictability and margins [4][5] - Focus areas include scaling insurance premiums, software innovation, and expanding access to homebuyers [32][34] - The company aims to grow its written premium to $3 billion over the next 7-10 years [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the homeowners insurance market, even during economic downturns [12][45] - The company anticipates continued growth in reciprocal written premium and management fees due to strategic pricing and distribution efforts [37][90] - Management noted that the reciprocal's surplus reached $198 million, the highest ever, providing a strong financial position [10][71] Other Important Information - The company has reduced corporate expenses significantly, leading to improved cash flow [25] - The reciprocal's reinsurance costs have decreased year-over-year due to strong underwriting results [10][44] Q&A Session Summary Question: Clarification on high take rate in the quarter - Management explained that the high take rate was due to management fees and policy fees from the reciprocal, with a healthy surplus of nearly $200 million [52][54] Question: Willingness to accelerate growth given strong start - Management indicated a willingness to invest in growth initiatives, including engaging more agents and expanding into new geographies [56][59] Question: Insights on Texas market and consumer selection - Management noted that they do not disclose specific metrics on consumer selection but emphasized their focus on homebuyers and new construction [67][68] Question: Details on reinsurance process and reinsurers' appetite - Management expressed satisfaction with the reinsurance renewal process, highlighting strong relationships with reinsurers and a healthy retention limit [84][86] Question: Breakdown of reciprocal written premium growth - Management stated that they do not break out the specific contributions from rate increases versus policy acquisition but expect continued growth in both areas [89][90]
Porch(PRCH) - 2025 Q1 - Quarterly Results
2025-05-06 20:15
First Quarter 2025 Financial & Operational Highlights [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Porch Group's shareholder-owned businesses achieved strong Q1 2025 results, reporting **$84.5 million revenue**, **$8.4 million net income**, and an **82% gross margin** Q1 2025 Financial Highlights for Porch Shareholder Interest ($ in millions) | Metric | Q1 2025 | YoY Change | Gross Margin | | :--- | :--- | :--- | :--- | | Revenue | $84.5 | n/a | n/a | | Gross Profit | $69.1 | +86% | 82% | | Net Income (attributable to Porch) | $8.4 | n/a | n/a | | Adjusted EBITDA | $16.9 | +$33.6M | 20% | - Effective January 2, 2025, Porch Group sold its insurance carrier (HOA) to the newly formed Porch Reciprocal Exchange, shifting focus to 'Porch Shareholder Interest' results for predictability and cash flow alignment[2](index=2&type=chunk) [CEO Summary](index=1&type=section&id=CEO%20Summary) CEO Matt Ehrlichman highlighted the success of the new commission and fee-based business model, emphasizing strong Q1 results and increased full-year 2025 guidance - The business model is now described as simple, predictable, commission and fee-based, and higher margin[3](index=3&type=chunk) - Full-year 2025 guidance for Porch Shareholder Interest was raised to a midpoint of **$410 million in Revenue**, **$327.5 million in Gross Profit**, and **$65 million in Adjusted EBITDA**[3](index=3&type=chunk) - The Reciprocal successfully placed its new reinsurance program at a lower cost, marking the moment Porch Shareholders are no longer in the catastrophic weather claims business[3](index=3&type=chunk) [Operational Highlights & Key Performance Indicators (KPIs)](index=1&type=section&id=Operational%20Highlights%20%26%20Key%20Performance%20Indicators%20(KPIs)) The company completed the sale of its insurance carrier, implemented strategic price increases, and launched new consumer offerings, showing solid Q1 2025 performance - Porch sold its insurance carrier, Homeowners of America, to the Reciprocal and now holds a **$106 million surplus note** with an interest rate of **9.75% plus SOFR**[4](index=4&type=chunk) - In the Software and Data segment, Rynoh implemented a **20% price increase**, aligning with strategic pricing goals[4](index=4&type=chunk) Q1 2025 Key Performance Indicators | Segment | KPI | Value | | :--- | :--- | :--- | | **Insurance Services** | Reciprocal Written Premium | $96.9 million | | | Reciprocal Policies Written | 36.1 thousand | | **Software & Data** | Average Number of Companies | 24.1 thousand | | | Annualized Avg. Revenue per Company | $3,644 | | **Consumer Services** | Monetized Services | 71.0 thousand | | | Average Revenue per Monetized Service | $207 | Financial Condition [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) Porch Shareholder Interest's cash and investments increased to **$113.8 million** as of March 31, 2025, driven by strong operating cash flow Porch Shareholder Interest Cash & Investments ($ in millions) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unrestricted cash, equivalents, & investments | $96.6 | $61.6 | | Restricted cash and cash equivalents | $17.2 | $28.2 | | **Total** | **$113.8** | **$89.9** | - The increase in cash position was primarily driven by Porch Shareholder Interest cash flow from operations of **$27.2 million**[9](index=9&type=chunk) - As of March 31, 2025, the outstanding principal for convertible debt was **$507.1 million**, split between 2028 and 2026 notes[11](index=11&type=chunk) [Post Balance Sheet Events](index=3&type=section&id=Post%20Balance%20Sheet%20Events) The Reciprocal successfully secured its 2025 reinsurance program, reducing risk and costs, and removing catastrophic weather risk from Porch Shareholders - The Reciprocal secured its 2025 reinsurance placements with over **40 A-Rated reinsurers**[12](index=12&type=chunk) - The new program lowers the Reciprocal's risk and reduces its cost of reinsurance compared to the prior year, meaning Porch Shareholders are no longer in the catastrophic weather claims business[12](index=12&type=chunk) [Full Year 2025 Financial Outlook](index=4&type=section&id=Full%20Year%202025%20Financial%20Outlook) Porch Group raised its full-year 2025 financial guidance for its Shareholder Interest businesses, reflecting confidence in its new model and strong Q1 performance [Updated 2025 Guidance](index=4&type=section&id=Updated%202025%20Guidance) The company increased its full-year 2025 guidance for Porch Shareholder Interest, raising revenue, gross profit, and Adjusted EBITDA at the midpoint Full Year 2025 Guidance for Porch Shareholder Interest | Metric | New 2025 Guidance | Previous 2025 Guidance | Increase at Midpoint | | :--- | :--- | :--- | :--- | | Revenue | $400m - $420m | $390m - $410m | $10m | | Gross Profit | $320m - $335m | $310m - $325m | $10m | | Adjusted EBITDA | $60m - $70m | $55m - $65m | $5m | - The financial guidance represents only the Porch Shareholder Interest and does not include the future results of the Reciprocal[14](index=14&type=chunk) Appendix: Detailed Financials & Non-GAAP Reconciliations [Segment Financial Results](index=9&type=section&id=Segment%20Financial%20Results) This section details unaudited Q1 2025 financial results by segment, showing Insurance Services as the largest contributor to revenue and Adjusted EBITDA Q1 2025 Segment Results ($ in thousands) | Segment | Revenue | Gross Profit | Adjusted EBITDA (Loss) | | :--- | :--- | :--- | :--- | | Insurance Services | $49,806 | $42,325 | $25,809 | | Software & Data | $21,999 | $16,493 | $4,571 | | Consumer Services | $14,721 | $12,231 | $(670) | | Corporate | n/a | n/a | $(12,849) | [Reconciliation of Non-GAAP Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles Q1 2025 consolidated Net Income of **$3.7 million** to Adjusted EBITDA of **$16.9 million**, detailing cash flow components for shareholder interest versus consolidated entity Reconciliation of Net Income (Loss) to Adjusted EBITDA (Loss) ($ in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $3,736 | $(13,362) | | Adjustments (Interest, D&A, etc.) | $13,125 | $(3,426) | | **Adjusted EBITDA (Loss)** | **$16,861** | **$(16,788)** | - Porch Shareholder Interest generated **$27.2 million** in cash from operating activities, while the consolidated entity used **$11.2 million** in cash from operating activities in Q1 2025[43](index=43&type=chunk) [Key Performance Indicator Definitions](index=13&type=section&id=Key%20Performance%20Indicator%20Definitions) This section defines the key performance indicators used to evaluate business performance across the Insurance Services, Software & Data, and Consumer Services segments - Insurance Services KPIs include Reciprocal Written Premium (total premium written by the Reciprocal) and Reciprocal Policies Written[48](index=48&type=chunk) - Software & Data KPIs include Average Number of Companies and Annualized Average Revenue per Company[50](index=50&type=chunk)[51](index=51&type=chunk) - Consumer Services KPIs include Monetized Services (total number of services generating revenue) and Average Revenue per Monetized Service[51](index=51&type=chunk)[52](index=52&type=chunk) [Consolidated Financial Statements](index=15&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Porch Group, Inc., including Balance Sheets, Statements of Operations, and Cash Flows [Condensed Consolidated Balance Sheets](index=15&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of **$802.3 million** and total liabilities of **$834.3 million** as of March 31, 2025, with a total stockholders' deficit of **$32.0 million** Key Balance Sheet Items ($ in thousands) | Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $802,283 | $813,968 | | Total Liabilities | $834,332 | $857,193 | | Total Stockholders' Deficit | $(32,049) | $(43,225) | [Condensed Consolidated Statements of Operations](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, consolidated revenue was **$104.7 million**, with net income attributable to Porch shareholders of **$8.4 million**, a significant improvement year-over-year Q1 Statement of Operations Highlights ($ in thousands) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $104,745 | $115,443 | | Gross Profit | $65,448 | $37,077 | | Operating Loss | $(1,266) | $(34,668) | | Net Income (Loss) | $3,736 | $(13,362) | | Net Income (Loss) Attributable to Porch | $8,395 | $(13,362) | [Condensed Consolidated Statements of Cash Flows](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company reported a consolidated net cash outflow from operating activities of **$11.2 million** in Q1 2025, resulting in a net decrease in cash of **$30.8 million** for the quarter Q1 Cash Flow Highlights ($ in thousands) | Cash Flow From | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Activities | $(11,178) | $8,465 | | Investing Activities | $(19,368) | $12,697 | | Financing Activities | $(229) | $(2,501) | | **Net Change in Cash** | **$(30,775)** | **$18,661** |
Porch(PRCH) - 2025 Q1 - Earnings Call Presentation
2025-05-06 20:09
Q1 2025 Financial Performance - Porch Shareholder Interest revenue reached $84.5 million[16], with a gross profit of $69.1 million[16] and an impressive gross profit margin of 82%[16] - Adjusted EBITDA for Porch Shareholder Interest was $16.9 million[16], resulting in a 20% Adjusted EBITDA margin[16] - Cash flow from operations for Porch Shareholder Interest was $27.2 million[16] Segment Performance - Insurance Services generated $49.8 million in revenue with an 85% gross margin and a 52% Adjusted EBITDA margin[87] - Software & Data revenue was $22 million[34], with a 75% gross margin and a 21% Adjusted EBITDA margin[39] - Consumer Services revenue reached $14.7 million[34], boasting an 83% gross margin but a negative 5% Adjusted EBITDA margin due to investments for future growth[39] Guidance and Long-Term View - The company increased its 2025 Adjusted EBITDA guidance by $5 million to $65 million[59] (mid-point) - The company projects long-term (approximately 10 years) revenue of $2.3 billion and Adjusted EBITDA of $660 million[61] Reciprocal Performance - Reciprocal Written Premium (RWP) reached $97 million[16] - The Reciprocal maintains a healthy surplus of $198 million combined with non-admitted assets[18]
Porch Group (PRCH) Surges 6.3%: Is This an Indication of Further Gains?
ZACKS· 2025-03-24 16:21
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]
From Skeptic To Buyer: Why I'm Upgrading Porch Group
Seeking Alpha· 2025-03-05 13:35
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 ...