• Total revenue of $115.4 million, an increase of 32% or $28.1 million compared to prior year (first quarter 2023: $87.4 million), driven by the Insurance segment, including increases in premium per policy. • Revenue less cost of revenue of $39.6 million, 34% of total revenue (first quarter 2023: $36.1 million, 41% of total revenue). Vertical Software Segment margin improved ~600bps, driven by price increases and strong cost control. Insurance Segment margin was impacted by $36 million of net catastrophic w ...

Regulatory Compliance - The company is subject to extensive state regulations governing its insurance business, which impact licensing, premium rates, and claims practices [60]. - The company is subject to data privacy laws, including the California Consumer Privacy Act, which imposes obligations on businesses regarding consumer data protection [55]. - The insurance business is regulated at the state level, requiring compliance with laws that govern market exits and policy cancellations [68]. - The company faces increasing risks from cyberattacks, which could damage systems and impact service delivery, although past incidents have not materially affected operations [106]. - The company is subject to extensive state governmental regulation, which may limit growth and impose additional costs on its insurance businesses [210]. - Regulatory compliance may lead to fines, premium refunds, or other adverse consequences, impacting the company's financial performance [212]. - The company must comply with various federal, state, and local laws related to consumer protection and financial services, which may become applicable as it expands its services [225]. - The company is subject to various federal and state regulations, including the Truth in Lending Act and the Fair Credit Reporting Act, which impose specific compliance requirements [226]. - Compliance with payment card network rules is critical, as any loss of credit and debit card acceptance privileges could significantly limit the business model, impacting revenue generation [231]. - The company faces potential legal proceedings related to compliance with the Telephone Consumer Protection Act and other privacy laws, which could lead to increased expenses and operational distractions [235]. - Regulatory changes regarding independent contractor classifications could necessitate modifications to compensation structures, potentially increasing costs and impacting financial condition [240]. - The company must maintain compliance with the Payment Card Industry Data Security Standards to prevent breaches that could harm relationships with payment processors and merchant banks [231]. - Non-compliance with applicable laws could result in significant penalties, damages, and reputational harm, adversely affecting business operations [229]. - The company is subject to state regulations for its moving services business, which may impose costly compliance requirements and affect operational flexibility [237]. - The company’s marketing efforts are governed by numerous regulations, and any violations could lead to lawsuits or regulatory actions that negatively impact financial performance [232]. Financial Performance and Risks - The company has a history of losses and may struggle to achieve or sustain profitability in the future [13]. - The company incurred operating losses of $190.4 million, $177.0 million, and $83.4 million for the years ended December 31, 2023, 2022, and 2021, respectively, with an accumulated deficit of $722.1 million as of December 31, 2023 [202]. - The company may face challenges in maintaining adequate loss reserves to cover actual losses, which could adversely impact financial results [13]. - The financial strength ratings of the insurance subsidiary could be downgraded, impacting the overall business [13]. - The company faces credit risk from counterparties, particularly in reinsurance contracts, which could adversely affect its financial condition and results of operations [208]. - The company’s financial condition may be adversely affected by limitations in analytical models used to assess exposure to catastrophic losses, which may not accurately predict future losses [189]. - The company faces significant competition for skilled personnel, particularly in information technology, which may increase costs associated with attracting and retaining qualified employees [242]. - The company may face challenges accessing capital markets, which could hinder growth opportunities and operational funding [119]. - Economic downturns and housing market conditions could decrease demand for various services, impacting financial performance [117]. - The company may be liable for actions of service providers, which could result in costly claims and impact financial stability [125]. - Claims costs may increase due to inflation in material costs, supply chain shortages, and demand surges during catastrophic events, impacting the company's financial position [143]. - The company faces risks associated with the cyclical nature of the insurance industry, which can lead to fluctuating premium rates and underwriting capacity [148]. - The company’s investment portfolios are subject to various risks, including potential defaults and impairments, which could negatively impact net investment incomes and statutory capital [186]. - The company’s risk management policies may prove ineffective, leaving it exposed to unidentified risks that could materially affect financial results [207]. - The company’s ability to accurately forecast operational and financial performance is challenged by evolving economic conditions, inflation, and uncertainty regarding weather events and related claims [199]. - The company has identified material weaknesses in internal control over financial reporting in previous years, but as of December 31, 2023, all previously identified weaknesses have been remediated [194]. Business Strategy and Operations - Porch Group filed an application to form a Texas reciprocal exchange to conduct its insurance underwriting business, which is expected to mitigate claims exposure and improve margins [51]. - The company plans to increase utilization of its SaaS products and improve conversion rates, with new product launches aimed at driving profitability [52]. - Porch Group is focused on controlling costs, maturing systems, and optimizing capital allocation to enhance organizational efficiency [53]. - The company is committed to environmental, social, and corporate governance (ESG) initiatives, releasing its initial ESG report in November 2023 [78]. - Porch Group's decentralized operating model allows for quick integration of acquisitions while maintaining an entrepreneurial culture [76]. - The company may pursue acquisitions to expand its business, but risks related to operational integration and financial performance could adversely affect results [248]. - Challenges in identifying suitable acquisition candidates and executing successful integrations may hinder the company's growth strategy [249]. - The success of acquisitions depends on achieving anticipated synergies and benefits, which may not be realized if integration processes encounter difficulties [250]. - The company is seeking to form a reciprocal exchange with the Texas Department of Insurance, which involves intensive regulatory dialogue and could lead to material changes in the business plan [151]. - The primary sources of insurance income for Porch will include management fees, commissions, and reinsurance premiums from the Reciprocal [155]. - A decrease in gross written premiums or fee percentages will lead to a corresponding decrease in fee revenue for the attorney-in-fact [157][158]. - Porch will lose access to dividends from HOAIC after its sale to the Reciprocal, limiting cash flow benefits from profitable operations [160]. - The company has implemented a captive reinsurance program, which significantly increases its insurance-related liabilities compared to previous years [146]. - The company entered a collaboration agreement with Aon, receiving an initial cash payment of approximately $25 million, with additional payments contingent on future performance [173]. Workforce and Culture - As of December 31, 2023, Porch Group had a total of 895 employees, including 864 full-time employees, and maintains good relationships with its workforce [80]. - The ability to communicate effectively with home services companies and consumers is critical, but reliance on traditional channels may decline as digital communication preferences shift [112]. - The current remote work environment necessitates new training techniques to maintain corporate culture and compliance, which could increase recruiting and training costs [246]. - The company relies on key personnel for its operations, and the loss of executives or critical employees could adversely affect its business strategy and growth [244]. - Compliance with information security policies is challenging due to remote work by independent contractors, which may lead to potential legal and financial repercussions if violations occur [243]. - The volatility of the company's stock price may impact its ability to attract and retain key employees through equity awards [247]. Market and Competitive Environment - The transition of the home services market online is uncertain, and failure to capture this shift could adversely affect business performance [113]. - Marketing expenditures for attracting home services companies and consumers may not be successful or cost-effective, impacting revenue generation [97]. - The company relies on strategic relationships with third parties for access to personal data, which could be jeopardized by changes in data sharing policies [100]. - Future changes in data privacy regulations could adversely affect the company's competitive position and operational results [228].

Q3'22: Secure & Pay bundle Adj EBITDA (loss) ($m) Homeowners insurance differentiators Group Copyright 2024 Porch Group, Inc. All rights reserved 36 Term Definition Top Tier SaaS 2023 Metrics (1) Industry volumes includes new and existing home sales and refinancing volumes. (2) These are assumptions based on current information available. Strategy & Outlook Porch: A New Kind of Homeowners Insurance Company Copyright 2024 Porch Group, Inc. All rights reserved ● Unique data and CAC opportunity driven by strat ...

Financial Data and Key Metrics Changes - Revenue in Q4 2023 grew 79% to $115 million, exceeding prior guidance by $15 million [29] - Adjusted EBITDA profit was $12 million, an increase of $25 million compared to Q4 2022, and $8 million above guidance [29][30] - Adjusted EBITDA loss for the full year improved by $5 million to $44.5 million, driven by insurance profitability actions [13][33] Business Line Data and Key Metrics Changes - Insurance segment revenue was $86.9 million, a 179% increase year-over-year, representing 76% of total revenue [11][29] - Vertical Software segment reported an adjusted EBITDA loss of $300,000, indicating ongoing market pressures [5] - Average revenue per company per month increased 84% to $1,277, with monetized services rising 3% to 220,000 [16] Market Data and Key Metrics Changes - Gross written premiums were $525 million, relatively flat compared to the prior year, with a focus on non-renewals of higher risk policies [13] - Premium retention was 96%, approximately 10 percentage points lower than the prior year due to non-renewals [17] - Annualized revenue per policy increased to $1,120, driven by premium increases and lower reinsurance seating [36] Company Strategy and Development Direction - The company aims to build a large homeowners insurance company with lower volatility and higher margins, leveraging unique property data for pricing advantages [24][44] - Focus on selling proprietary insurance products while maintaining high-margin revenue from third-party carrier products [32] - Plans to unlock growth restrictions in certain geographies throughout 2024 to set up for significant growth in 2025 [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in 2024, with expected adjusted EBITDA improvement of $10 million to $15 million each quarter compared to the previous year [34][82] - The company has implemented various cost management strategies and expects operating expenses to decrease by more than 10% compared to 2023 [14] - Management highlighted the importance of risk reduction and effective underwriting in improving profitability [49][67] Other Important Information - The company repurchased $8 million par value of unsecured notes for $3 million cash, reducing 2026 debt maturity to $217 million [6] - A strategic business agreement with Aon was signed to support reinsurance and other services, providing $25 million upfront cash [12] - The company launched several new products and services in Q4, including a new HVAC micro-warranty and a CRM product for smaller inspectors [119] Q&A Session Summary Question: Update on reciprocal filings and audit - Management confirmed ongoing work with TDI and expressed confidence in the reciprocal structure, but did not provide specific timing [54] Question: Thoughts on adding policies with reduced risk - Management indicated a focus on profitability for 2024, with plans to unlock growth restrictions later in the year [56] Question: Corporate cost actions and profitability drivers - Corporate cost actions are complete, with benefits expected to show in 2024, alongside improved gross loss ratios and increased premium per policy [62] Question: Future capital allocation and M&A opportunities - Management does not expect significant M&A activity in 2024, focusing instead on executing current strategies [70] Question: Cross-sell opportunities between software and insurance - Management is optimistic about leveraging software access to enhance insurance offerings, despite current market challenges [72] Question: January housing trends and impact on software business - Management noted that improved housing sales in January could benefit the software business, but overall guidance remains cautious [78] Question: Seasonal adjusted EBITDA loss guidance for 2024 - Management expects a year-over-year improvement of $10 million to $15 million in adjusted EBITDA for each quarter, driven by profitability actions [82]

Porch Group, Inc. (NASDAQ:PRCH) Q3 2023 Results Conference Call November 7, 2023 5:00 PM ET Company Participants Lois Perkins - Head, IR Matt Ehrlichman - CEO, Chairman and Founder Shawn Tabak - CFO Matthew Neagle - COO Conference Call Participants Daniel Kurnos - Benchmark John Campbell - Stephens Jason Helfstein - Oppenheimer Josh Siegler - Cantor Fitzgerald Jason Kreyer - Craig-Hallum Capital Group Lois Perkins Good afternoon, everyone, and thank you for participating in Porch Group’s Third Quarter 2023 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________ FORM 10-Q ___________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to C ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39142 Porch Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Porch Group, Inc. (NASDAQ:PRCH) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Lois Perkins - IR Matt Ehrlichman - Founder, Chairman & CEO Shawn Tabak - CFO Matthew Neagle - COO Malcolm Conner - VP and GM, Home Services and Warranty Conference Call Participants Joshua Siegler - Cantor Fitzgerald Austin Hayes - Stephens Inc. Cal Bartyzal - Craig-Hallum Daniel Kurnos - The Benchmark Company Ryan Tomasello - KBW Jason Helfstein - Oppenheimer Lois Perkins Good afternoon, everyon ...

^Porch Copyright 2023 Porch Group, Inc. All rights reserved Matthew Neagle Chief Operating Officer Copyright 2023 Porch Group, Inc. All rights reserved Forward-Looking Statements 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 ...

Q1 2023 Earnings Presentation May 10, 2023 Copyright 2023 Porch Group, Inc. All rights reserved Matt Ehrlichman CEO, Chairman & Founder Matthew Neagle Chief Operating Officer Copyright 2023 Porch Group, Inc. All rights reserved Disclaimers Certain statements in this presentation 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 ...