Porch(PRCH)

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Porch(PRCH) - 2021 Q3 - Quarterly Report
2021-11-15 21:38
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 September 30, 2021 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 jurisdicti ...
Porch(PRCH) - 2021 Q2 - Earnings Call Transcript
2021-08-17 02:58
Porch Group, Inc. (NASDAQ:PRCH) Q2 2021 Earnings Conference Call August 16, 2021 5:00 PM ET Company Participants Walter Ruddy - Head of Investor Relations & Treasury Matt Glover - Gateway Group, Inc. IR Matthew Ehrlichman - Chief Executive Officer, Chairman and Founder Marty Heimbigner - Chief Financial Officer Matthew Neagle - Chief Operating Officer Adam Kornick - President of InsurTech Division Conference Call Participants Jason Helfstein - Oppenheimer John Campbell - Stephens Inc. Jason Kreyer - Craig-H ...
Porch(PRCH) - 2021 Q2 - Earnings Call Presentation
2021-08-16 23:10
Group Love your home. For moving and improving and everything in between. Copyright 2021 Porch Group, Inc. All rights reserved 1 Q2 2021 Earnings Presentation August 16, 2021 Presenters Matt Ehrlichman CEO & Founder, Porch Group Marty Heimbigner CFO, Porch Group Matthew Neagle COO, Porch Group Adam Kornick President, InsurTech Division Copyright 2021 Porch Group, Inc. All rights reserved DISCLAIMERS 3 Forward-Looking Statements Certain statements in this presentation may be considered "forward-looking state ...
Porch(PRCH) - 2021 Q2 - Quarterly Report
2021-08-16 20:49
Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited statements show significant growth in assets, liabilities, and revenue driven by acquisitions, alongside a wider net loss and negative operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights | Balance Sheet Highlights | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$777,624** | **$268,387** | | Cash and cash equivalents | $150,201 | $196,046 | | Goodwill | $120,961 | $28,289 | | Intangible assets, net | $84,670 | $15,961 | | **Total Liabilities** | **$548,854** | **$161,062** | | Deferred revenue | $162,627 | $5,208 | | Losses and loss adjustment expense reserves | $115,500 | $— | | **Total Stockholders' Equity** | **$228,770** | **$107,325** | - Total assets increased by **190%** from December 31, 2020, to June 30, 2021, primarily due to acquisitions which significantly increased Goodwill, Intangible Assets, and Reinsurance balances[9](index=9&type=chunk) - Total liabilities grew by **241%** over the same period, largely driven by increases in deferred revenue and insurance-related liabilities resulting from the acquisition of Homeowners of America (HOA)[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Income Statement | Income Statement (in thousands) | Q2 2021 | Q2 2020 | YoY Change | H1 2021 | H1 2020 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$51,340** | **$17,122** | **+200%** | **$78,083** | **$32,196** | **+143%** | | Cost of revenue | $19,500 | $3,792 | +414% | $25,429 | $7,891 | +222% | | Total operating expenses | $74,283 | $22,101 | +236% | $130,658 | $50,561 | +158% | | **Operating loss** | **($22,943)** | **($4,979)** | **+361%** | **($52,575)** | **($18,365)** | **+186%** | | **Net loss** | **($16,296)** | **($6,258)** | **+160%** | **($81,398)** | **($24,625)** | **+231%** | | Net loss per share, basic | ($0.17) | ($0.18) | - | ($0.89) | ($0.70) | - | - Stock-based compensation expense increased significantly to **$6.6 million in Q2 2021** from $0.4 million in Q2 2020, and to **$23.5 million in H1 2021** from $1.0 million in H1 2020[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary | Cash Flow Summary (in thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($30,772) | ($9,742) | | Net cash used in investing activities | ($131,298) | ($1,633) | | Net cash provided by financing activities | $107,040 | $11,063 | | **Change in cash, cash equivalents, and restricted cash** | **($55,030)** | **($312)** | - Cash used in investing activities surged to **$131.3 million in H1 2021**, primarily due to **$127.9 million used for acquisitions**, net of cash acquired[16](index=16&type=chunk) - Financing activities provided **$107.0 million in cash**, largely from **$126.8 million in proceeds from the exercise of warrants**, which was partially offset by $22.1 million paid for income tax withholdings on vested restricted stock units[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - The company operates as a single reportable segment, with all revenue generated in the United States[32](index=32&type=chunk)[33](index=33&type=chunk) - On April 5, 2021, the Company acquired Homeowners of America Holding Corporation ("HAHC"), an insurance holding company, which significantly expanded its insurance operations[22](index=22&type=chunk) Revenue Disaggregation | Revenue Disaggregation (in thousands) | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | Core services revenue | $28,684 | $11,709 | $39,708 | $20,837 | | Managed services revenue | $9,669 | $3,698 | $14,314 | $7,833 | | Software and service subscription revenue | $12,987 | $1,715 | $24,061 | $3,526 | | **Total revenue** | **$51,340** | **$17,122** | **$78,083** | **$32,196** | - In H1 2021, the company completed several acquisitions for total consideration of **$185.9 million**, adding **$92.7 million in goodwill**, with key acquisitions including V12 Data, Homeowners of America (HOA), and Rynoh[149](index=149&type=chunk)[150](index=150&type=chunk) - In June 2021, the company's **$8.1 million Paycheck Protection Program (PPP) loan was forgiven in whole**, resulting in a gain on extinguishment of debt[116](index=116&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong revenue growth to acquisitions and organic expansion, while higher operating losses are due to growth-related costs and public company expenses [Business Overview and Key Performance Measures](index=37&type=section&id=Business%20Overview%20and%20Key%20Performance%20Measures) - Porch operates as a vertical software platform for the home, providing software and services to approximately **17,000 home services companies** as of Q2 2021[186](index=186&type=chunk)[190](index=190&type=chunk) Key Performance Metrics | Key Performance Metrics | Q2 2021 | Q2 2020 | YoY Change | | :--- | :--- | :--- | :--- | | Average Companies in Quarter | 17,120 | 10,523 | +62.7% | | Average Revenue per Account per Month | $1,000 | $556 | +79.9% | | Monetized Services in Quarter | 302,462 | 181,520 | +66.6% | | Revenue per Monetized Service in Quarter | $129 | $86 | +50.0% | - The company has expanded through selective acquisitions, including ISN™, HireAHelper™, and in H1 2021, V12 Data, HOA, and Rynoh[188](index=188&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) - Q2 2021 revenue increased **200% YoY to $51.3 million**, driven by acquisitions and organic growth in moving, inspection, and insurance businesses, which contributed $36.0 million of the increase[218](index=218&type=chunk) - Cost of Revenue for Q2 2021 increased **414% YoY**, primarily due to growth in the moving business and costs from acquired businesses, rising to **38% of revenue** from 22% in the prior year[221](index=221&type=chunk) - General and Administrative expenses for Q2 2021 grew **250% YoY**, mainly due to a **$3.2 million increase in stock compensation**, costs of operating as a public company, and increased hiring[229](index=229&type=chunk) - Total stock-based compensation expense for H1 2021 was **$23.5 million**, a significant increase from $1.0 million in H1 2020, largely driven by employee earnout restricted stock and other awards post-merger[232](index=232&type=chunk) [Non-GAAP Financial Measures](index=45&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA (Loss) Reconciliation | Adjusted EBITDA (Loss) Reconciliation (in thousands) | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(16,296) | $(6,258) | $(81,398) | $(24,625) | | Adjustments... | ... | ... | ... | ... | | **Adjusted EBITDA (loss)** | **$(10,312)** | **$(2,094)** | **$(19,916)** | **$(12,864)** | - Adjusted EBITDA loss for H1 2021 was **$19.9 million**, a decline from a loss of $12.9 million in H1 2020, attributed to weather-related losses in the HOA insurance business and higher public company costs[245](index=245&type=chunk)[247](index=247&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2021, the company had cash and cash equivalents of **$150.2 million** and restricted cash of $2.2 million[248](index=248&type=chunk) - In H1 2021, the company raised approximately **$126.8 million** from the exercise of public warrants[250](index=250&type=chunk) - The company spent **$127.9 million in cash** (net of cash acquired) and $22.9 million in stock to acquire several companies during the first six months of 2021[251](index=251&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure from its variable-rate debt, with minimal inflation or foreign currency risk - The company is exposed to interest rate risk through its variable-rate senior secured term loans, which totaled **$43.8 million** as of June 30, 2021[262](index=262&type=chunk) - A hypothetical **1% increase in interest rates** on variable-rate debt would increase annual interest expense by approximately **$0.5 million**[263](index=263&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to previously identified material weaknesses, and a remediation plan is currently underway - The CEO and CFO concluded that the company's **disclosure controls and procedures were not effective** as of June 30, 2021[268](index=268&type=chunk) - The ineffectiveness is attributed to **material weaknesses in internal control over financial reporting** described in the company's Annual Report on Form 10-K/A[268](index=268&type=chunk) - Remediation efforts include hiring a new CFO and Controller, recruiting additional personnel, improving system automation, and enhancing the review process for complex accounting matters[269](index=269&type=chunk)[273](index=273&type=chunk) Part II. Other Information [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal proceedings concerning TCPA violations, a contract dispute, and a wage class action, with outcomes currently uncertain - The company is party to **14 legal proceedings** alleging violations of the Telephone Consumer Protection Act (TCPA), which have been consolidated in the Western District of Washington[165](index=165&type=chunk)[276](index=276&type=chunk) - A complaint was filed by the former owners of Kandela, LLC, alleging **breach of contract related to an earnout agreement**, with arbitration scheduled for Q1 2022[168](index=168&type=chunk)[278](index=278&type=chunk) - A former employee filed a putative **class action lawsuit for wage and hour violations** in California, and a tentative settlement has been reached pending court approval[169](index=169&type=chunk)[279](index=279&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from industry competition, acquisition integration challenges, and its recent expansion into the highly regulated insurance business - The company operates in competitive industries (insurance, moving, home services, software) with **low switching costs for consumers**, which could adversely affect business[282](index=282&type=chunk)[283](index=283&type=chunk) - Significant risks are associated with acquisitions, including the ability to successfully integrate businesses and realize synergies, with the recent **HOA acquisition noted as particularly large and complex**[300](index=300&type=chunk)[302](index=302&type=chunk)[304](index=304&type=chunk) - Expansion into the insurance business exposes the company to new risks, including **underwriting risk, catastrophic weather events, state-level regulation**, and potential inadequacy of loss reserves[306](index=306&type=chunk)[307](index=307&type=chunk)[318](index=318&type=chunk)[330](index=330&type=chunk)
Porch(PRCH) - 2021 Q1 - Quarterly Report
2021-05-19 23:10
FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2021 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 o ...
Porch(PRCH) - 2021 Q1 - Earnings Call Presentation
2021-05-18 20:30
Group Love your home. For moving and improving and everything in between. Copyright 2021 Porch Group, Inc. All rights reserved 1 Q1 2021 Earnings Presentation May 17, 2021 DISCLAIMERS 2 Forward-Looking Statements 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 Porch Group, Inc.'s ("Porc ...
Porch(PRCH) - 2021 Q1 - Earnings Call Transcript
2021-05-18 00:50
Porch Group, Inc. (NASDAQ:PRCH) Q1 2021 Earnings Conference Call May 17, 2021 5:00 PM ET Company Participants Matt Glover - Gateway Group, Inc. IR Matthew Ehrlichman - Founder, Chairman & CEO Martin Heimbigner - CFO Matthew Neagle - COO Nicole Pelley - VP, Product Management Conference Call Participants John Campbell - Stephens Inc. Daniel Kurnos - The Benchmark Company Michael Grondahl - Northland Capital Markets Jason Kreyer - Craig-Hallum Benjamin Sherlund - Cantor Fitzgerald Matt Glover Thank you f ...
Porch(PRCH) - 2020 Q4 - Annual Report
2021-03-31 16:25
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-39142 PORCH GROUP, INC (Exact name of registrant as specified in its charter) Delaware 83-2587663 (State of Other Jurisdiction of incorporation or Organization ...
Porch(PRCH) - 2020 Q3 - Quarterly Report
2020-11-04 21:30
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 September 30, 2020 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 PropTech Acquisition Corporation (Exact name of registrant as specified in its charter) | Delaware | 83-2587663 | | - ...
Porch(PRCH) - 2020 Q2 - Quarterly Report
2020-08-11 20:13
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, 2020 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 PropTech Acquisition Corporation (Exact name of registrant as specified in its charter) | Delaware | 83-2587663 | | --- | ...