Business
Porch Group Reports Fourth Quarter 2023 Results
Porch Delivers Strong Fourth Quarter Earnings, Ahead of Expectations SEATTLE--(BUSINESS WIRE)-- Porch Group, Inc. (“Porch Group” or “the Company”) (NASDAQ:
About this update from Porch Group, Inc.
[{"type":"text","content":"\nPorch Delivers Strong Fourth Quarter Earnings, Ahead of Expectations\n\n\n SEATTLE--(BUSINESS WIRE)--\nPorch Group, Inc. (“Porch Group” or “the Company”) (NASDAQ: PRCH), a homeowners insurance and vertical software platform, today reported fourth quarter results ended December 31, 2023, with total revenue of $114.6 million, which increased 79% compared to the prior year. GAAP net loss of $2.5 million, an improvement from $35.5 million GAAP net loss in the prior year and Adjusted EBITDA of $11.7 million, which increased $25.0 million compared to the prior year.\n\n\nCEO Summary\n\n\n\"We are excited to share our financial results, far exceeding the second half profitability target we provided around two years ago, with Adjusted EBITDA of $20.5 million in the second half 20231. I am proud of the achievements and execution of the team over the last year, which improved profitability in our insurance business, launched important new SaaS products for our customers, and maintained strong cost control. We remain focused on improving profitability and further executing our strategy in 2024,” said Matt Ehrlichman, Chief Executive Officer, Chairman and Founder.\n\n\nFourth Quarter 2023 Financial Results\n\n\n\nTotal revenue of $114.6 million, an increase of 79% or $50.5 million compared to prior year (fourth quarter 2022: $64.1 million), driven by the Insurance segment.\n\n\n\nRevenue less cost of revenue of $79.9 million, 70% of total revenue, an increase of 82% compared to prior year (fourth quarter 2022: $43.9 million, 69% of total revenue). Increase driven by premium per policy increases, underwriting actions, and non-renewal of higher risk policies in the Insurance segment.\n\n\n\nGAAP net loss of $2.5 million, compared to $35.5 million for the fourth quarter of 2022.\n\n\n\nAdjusted EBITDA of $11.7 million, a $25.0 million increase from the prior year (fourth quarter 2022: loss of $13.3 million), driven by the Insurance segment and cost control actions.\n\n\n\nGross written premium for the quarter in our Insurance segment was $112 million with approximately 310 thousand policies in force.\n\n\n\n$397.6 million cash, cash equivalents and investments at December 31, 2023.\n\n\n\nFourth Quarter 2023 Operational Highlights\n\n\n\n36% gross loss ratio and 49% combined loss ratio, an improvement from prior year driven by underwriting a...