Porch(US:PRCH)2021-11-16 15:20Financial Data and Key Metrics Changes - The company reported Q3 2021 revenue of $62.8 million, a 192% increase year-over-year compared to $21.5 million in Q3 2020 [8][15] - Revenue increased by 22% quarter-over-quarter from $51.3 million in Q2 2021 to $62.8 million in Q3 2021 [17] - Adjusted EBITDA margin improved to 45% in Q3, marking the first profitable adjusted EBITDA quarter for the company [9][15] - Full-year 2021 revenue guidance was raised from $187.5 million to $195 million, representing a 170% year-over-year growth [18][20] Business Line Data and Key Metrics Changes - The company now reports two operating segments: Vertical Software and Insurance [13] - Vertical Software generated $42.3 million in revenue for Q3, with a contribution margin of 42% and an adjusted EBITDA margin of 18% [28] - The Insurance segment reported gross written premiums of $108 million, with segment revenue of $20.5 million, resulting in a contribution margin of 54% and adjusted EBITDA margin of 27% [33][34] Market Data and Key Metrics Changes - The average number of companies served increased to over 20,000, a 90% year-over-year growth, with average revenue per company rising to $1,022 per month, a 54% increase year-over-year [23] - Monetized services reached almost 330,000, representing a 66% year-over-year growth, with an average revenue of $144 per monetized service, a 48% increase year-over-year [25] Company Strategy and Development Direction - The company aims to build a leading position in the home services market by providing software and services to various home service companies, generating recurring B2B revenues [12][13] - The strategy includes aggressive investments in product and technology to drive growth, while also focusing on M&A to expand the platform [9][11] - The company is positioned to leverage its unique customer acquisition and property data advantages in the insurance sector [32] Management's Comments on Operating Environment and Future Outlook - Management noted no significant softening in business due to the housing market and expressed confidence in navigating the macro reinsurance market challenges in 2022 [10] - The company is optimistic about future growth potential, citing a predictable business model and competitive advantages in a large market opportunity exceeding $320 billion [9][40] Other Important Information - The company completed a $425 million convertible note offering to strengthen its balance sheet for future M&A opportunities [11] - The acquisition of American Home Protect allows the company to offer home warranties, while the acquisition of Floify enhances access to homebuyers [11][32] Q&A Session Summary Question: What is the vision behind the nationwide inspection tour? - The company aims to increase market share and improve unit economics through various go-to-market tactics, including pop-up conferences [43][44] Question: How does the conversion to customer access pay work? - The company focuses on educating small businesses during in-person events to help them grow and transition to transactional pay models [46] Question: Can you discuss the underlying trends and growth expectations for next year? - The company plans to provide formal guidance for 2022 in the next quarter, emphasizing a balance between growth and profitability [51][52] Question: What is the expected revenue from new states launched in 2021? - The company anticipates some revenue impact from new states in 2022, with a conservative pricing strategy to ensure proper data feedback [76]