Business
Porch Group Reports Second Quarter 2023 Results
$99 Million Revenue, With Growth of 39% Year-Over-Year Operating Results Impacted By Extreme Weather, Otherwise In Line with Management Expectations SEATTLE,
About this update from Porch Group, Inc.
[{"type":"text","content":"$99 Million Revenue, With Growth of 39% Year-Over-Year Operating Results Impacted By Extreme Weather, Otherwise In Line with Management Expectations SEATTLE, Aug. 08, 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 second quarter results for the Company as of June 30, 2023, with total revenue of $98.8 million, which increased 39% compared to $70.9 million in the second quarter of 2022. CEO Summary“We are pleased to deliver a solid performance in the second quarter with 39% top-line growth and continued focus on achieving profitability. We faced industry-wide headwinds in our home insurance business with extreme weather events toward the end of the quarter and in our software business with a declining housing market. We are pleased to reiterate our second half 2023 Adjusted EBITDA profitability outlook. We are making good progress against key strategic initiatives, including growing our high margin home warranty business, and leveraging our unique data advantages to better serve homeowners.” Matt Ehrlichman, Chief Executive Officer, Chairman and Founder. Second Quarter 2023 Financial Results Total revenue of $98.8 million, an increase of 39% or $27.9 million (second quarter of 2022: $70.9 million), driven by Insurance Segment.Revenue less cost of revenue of $17.4 million, or 18% of total revenue (second quarter 2022: $41.7 million, 59% of total revenue). Impacted by continued industry-wide headwinds and weather-related claims costs, including an $18 million loss from catastrophic weather events in the Insurance Segment.GAAP net loss of $87.0 million, compared to $27.3 million for the second quarter of 2022, which includes an $81.4 million gain on extinguishment of debt, a $55.2 million goodwill impairment charge and a $48.2 million net receivable write off in relation to a reinsurance contract with Vesttoo for which the Company is pursuing recovery.Adjusted EBITDA loss of $43.1 million, a decrease from the prior year (second quarter of 2022: loss of $15.0 million) driven by an $18 million loss from extreme weather events compared to historic trends in the Insurance Segment, partially offset by reduced G&A with strong expense control.Gross written premium for the quarter in our Insu...