Porch(US:PRCH)2021-05-19 23:10Financial Performance - Total revenue for the three months ended March 31, 2021, was $26,742,000, a 77.6% increase from $15,074,000 in the same period of 2020[83]. - Referral network revenue increased to $11,024,000 in Q1 2021 from $9,128,000 in Q1 2020, representing a 20.8% growth[83]. - Software and service subscription revenue surged to $11,074,000 in Q1 2021, compared to $1,811,000 in Q1 2020, marking a 509.4% increase[83]. - Moving services accounted for 82% of total revenue in Q1 2021, up from 51% in Q1 2020, while post-move services decreased from 49% to 18%[83]. - The Company reported a net loss of $65,570 for the three months ended March 31, 2021, compared to a net loss of $21,264 for the same period in 2020[160]. Cash and Cash Equivalents - As of March 31, 2021, the company reported cash and cash equivalents of $222,948,000, an increase from $196,046,000 as of December 31, 2020, representing a growth of approximately 13.7%[47]. - Restricted cash as of March 31, 2021, was $10,435,000, up from $8,407,000 as of December 31, 2020, reflecting an increase of approximately 24.1%[47]. Revenue Recognition - Revenue is primarily generated from three streams: Referral Network Revenue, Managed Services Revenue, and Software and Service Subscription Revenue, with revenue recognized upon delivery of services or goods[58][59]. - The company assesses collectability based on factors including collection history and customer creditworthiness, delaying revenue recognition until collectability is probable[60]. - The company’s revenue recognition framework includes identifying contracts, performance obligations, and determining transaction prices, ensuring compliance with GAAP[59]. Tax and Liabilities - For the three months ended March 31, 2021, the company reported an income tax benefit of $350,000, resulting in an effective tax rate of 0.53%[74]. - Contract liabilities decreased from $3,193,000 at December 31, 2020, to $2,422,000 by March 31, 2021, with $2,026,000 expected to be recognized as revenue within the next 12 months[90]. - Deferred revenue balance was $4,346,000 as of March 31, 2021, down from $5,208,000 at December 31, 2020[91]. Acquisitions - The Company acquired V12 Data on January 12, 2021, for a total consideration of $27,075, which includes $20,169 in cash and $1,410 in contingent consideration[156]. - Revenue from the V12 Data acquisition from January 12, 2021, to March 31, 2021, was $5,580, with a net loss of $575 during the same period[159]. - The Company acquired Homeowners of America Holding Corporation on April 6, 2021, for a total consideration of $106,242, which includes $83,469 in cash and $22,773 in common stock[174]. Debt and Financing - The Company had total debt of $53,088 as of March 31, 2021, with a carrying value of $50,104 after accounting for unaccreted discounts[114]. - The Runway Loan Agreement was amended in January 2021, reducing the interest rate to 8.55% and eliminating a minimum cash balance requirement of $3,000[115]. - The Company received $8,139 from the Paycheck Protection Program, with a maturity date of April 18, 2022, and a fixed interest rate of 1.00%[118]. - As of March 31, 2021, the carrying value of the Porch PPP Loan was $8,317, with an application for forgiveness submitted in December 2020[121]. - A 1% increase in interest rates would result in approximately $0.5 million in additional annual interest expense for the Company[256]. Stock and Compensation - Stock-based compensation for the three months ended March 31, 2021, totaled $16,835,000, compared to $672,000 for the same period in 2020[136]. - The company expects to record $5,476,000 in stock compensation expense related to employee earnout shares over the remaining estimated service period in 2021[148]. - The 2020 Equity Incentive Plan reserves 11,005,115 shares for future issuance, with annual increases based on the lesser of 5% of outstanding shares or a board-determined amount[140]. - During the three months ended March 31, 2021, 329,132 restricted employee earnout shares fully vested, resulting in a stock compensation expense of $6,153,000[148]. - The company recorded $6,228,000 in stock compensation expense related to the CEO's restricted stock award during the three months ended March 31, 2021[150]. Assets and Fair Value - Total intangible assets as of March 31, 2021, amounted to $32,628, with net intangible assets of $22,715 after accumulated amortization of $9,913[111]. - Goodwill increased from $28,289 as of December 31, 2020, to $50,120 as of March 31, 2021, due to acquisitions totaling $21,831[112]. - The estimated fair value of contingent consideration related to business combinations was $93,506,000 as of March 31, 2021[97]. - The fair value of private warrants as of March 31, 2021, was $2,869, a decrease from $3,549 at the start of the year, with a loss of $355 included in net loss[104]. - As of March 31, 2021, the fair value of contingent consideration - earnout was $43,193, down from $50,238 at the beginning of the year, reflecting a loss of $18,770 included in net loss[104]. Accounting Standards - The Company expects the adoption of new accounting standards to increase total assets and liabilities related to operating leases by approximately $2,500,000[81]. - The Company is currently evaluating the impact of new accounting standards on its consolidated financial statements and related disclosures[79].