Business
Porch Group announces catastrophic weather events impact for Q2 2023, and will release second quarter 2023 earnings on August 8, 2023
SEATTLE, July 20, 2023 (GLOBE NEWSWIRE) -- Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a leading vertical software company reinventing the
About this update from Porch Group, Inc.
[{"type":"text","content":"SEATTLE, July 20, 2023 (GLOBE NEWSWIRE) -- Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a leading vertical software company reinventing the home services and insurance industries, ahead of its second quarter 2023 earnings, today announced an estimated $18 million catastrophic weather (“cat”) impact in the second quarter of 2023, due to extreme weather events in June. The second quarter is often the worst and riskiest weather quarter of the year for Porch. The second quarter 2023 was on track until extreme weather events occurred, including wind, thunderstorm and hail events in Texas in mid and late June, which resulted in an estimated $5.0 billion1 in combined industry-wide claims. This will negatively impact operating results2 in the second quarter within the Insurance Segment. Porch preliminarily estimates the extreme weather resulted in a $18 million loss, net of third-party reinsurance. These were uncommon cat weather events compared to historic trends and therefore not included within our full year 2023 guidance. “I’m proud of our team for serving our customers quickly and effectively after these difficult weather events. At Porch, our experienced underwriters continue to use our unique data and analysis of historic trends to evaluate risk when writing insurance policies. Like everyone in the industry, we cannot predict these unfortunate and uncommon weather events, but we will continue to seek to increase prices to ensure we are setup well as we look ahead. Outside of this event, our business is performing well, and we continue to expect to launch the Porch Insurance Reciprocal Exchange later this year, once approved by the Texas Department of Insurance.” Matt Ehrlichman, Chief Executive Officer. Porch will provide a further update when it reports its second quarter financial results for the period ended June 30, 2023, after markets close on Tuesday, August 8, 2023. 1 Source: Property Claims Services Catastrophe Bulletin for events 2348 and 2351. 2 Referring to Revenue less cost of revenue, Adjusted EBITDA and Net Loss. Q2 2023 Earnings Conference Call Porch management will host a live webinar to discuss the financial results and business followed by Q&A on Tuesday, August 8, 2023, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A presentation to accompany the discussion will be posted on the company we...