Business
Porch Group Reports First Quarter 2023 Results
$87 Million Revenue, With Growth Of 37% Year-Over-Year.Adjusted EBITDA In Line With Expectations.Insurance Carrier Top Decile 2022 Combined Loss Ratio and
About this update from Porch Group, Inc.
[{"type":"text","content":"$87 Million Revenue, With Growth Of 37% Year-Over-Year.Adjusted EBITDA In Line With Expectations.Insurance Carrier Top Decile 2022 Combined Loss Ratio and Growth Performance. SEATTLE, May 10, 2023 (GLOBE NEWSWIRE) -- Porch Group, Inc. (“Porch Group” or “the Company”) (NASDAQ: PRCH), a leading vertical software company reinventing the home services and insurance industries, today reported first-quarter results for the Company as of March 31, 2023, with total revenue of $87.4 million, which increased 37% compared to $63.6 million in the first quarter of 2022. CEO Summary“I am excited by the transformational year before us. Already in 2023 Porch Group has filed an application for a Reciprocal Exchange to move our insurance business forward and raised $333 million with a new convertible note alongside other key operational successes. The Porch team achieved this while producing solid results despite a 26% year-over-year decline in home sales and the hardened reinsurance market. We are executing well and believe we are set up for important milestones ahead including Adjusted EBITDA profitability for the second half of this year.” Matt Ehrlichman, Chief Executive Officer, Chairman and Founder. First Quarter 2023 Financial Results Total revenue of $87.4 million, an increase of 37% or $23.8 million (first quarter of 2022: $63.6 million).Revenue less cost of revenue of $36.1 million, or 41% of total revenue (first quarter 2022: $38.4 million, 60% of total revenue). As expected, reinsurance markets have hardened, which resulted in a reduction in Revenue less cost of revenue by approximately $15 million in the first quarter of 2023 compared to the same quarter prior year.GAAP net loss of $38.7 million, compared to $9.3 million for the first quarter of 2022, and was similarly impacted by the hardened reinsurance markets.Adjusted EBITDA loss of $21.9 million in-line with Company’s expectations, a decrease from the prior year (first quarter of 2022: loss of $10.4 million) driven by the hardened reinsurance markets in the Insurance Segment and to a lesser extent, the soft housing market impact on the Vertical Software Segment. Excluding the impact from reinsurance market dynamics, Adjusted EBITDA loss would have been approximately $7 million.Insurance gross written premium for the quarter was $115 million with approximately 376 thousand polici...