Business
Porch Group Reports Second Quarter 2024 Results
Solid performance in the second quarter SEATTLE--(BUSINESS WIRE)-- Porch Group, Inc. (“Porch Group” or “the Company”) (NASDAQ: PRCH), a homeowners insurance
About this update from Porch Group, Inc.
[{"type":"text","content":"\nSolid performance in the second quarter\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 second quarter results through June 30, 2024, with total revenue of $110.8 million, which increased 12% compared to the prior year. GAAP net loss was $64.3 million, an improvement of $22.6 million compared to the prior year, and Adjusted EBITDA Loss was $34.8 million, an improvement of $8.4 million compared to the prior year.\n\n\nCEO Summary\n\n\n“The team delivered a solid performance this quarter. Despite a May hurricane-like event in Houston with 100 miles per hour sustained winds that caused catastrophic weather claims worse than historic experiences and expectations, our results are still broadly in line with plan and showed solid year-over-year improvement. Our insurance profitability actions continued to result in attritional losses performing better than anticipated and substantial improvement in our gross combined ratio year-over-year,” said Matt Ehrlichman, Chief Executive Officer, Chairman and Founder. “Our focus remains on deepening our long-term competitive moat by expanding our data platform, monetizing data products such as Home Factors in the market, and executing the reciprocal exchange to structure our insurance operation in a way we believe scales rapidly and profitability with lower volatility. We are excited about the announcement of having filed the updated reciprocal application, with a targeted 2024 approval. We remain focused on building long-term value for our shareholders and are very excited about how the years ahead are shaping up.”\n\n\nSecond Quarter 2024 Financial Results\n\n\n\nTotal revenue of $110.8 million, an increase of 12% or $12.1 million compared to prior year (second quarter 2023: $98.8 million), driven by the Insurance segment, including a 28% increase in premium per policy and lower reinsurance ceding.\n\n\n\nRevenue less cost of revenue of $19.2 million, 17% of total revenue (second quarter 2023: $17.4 million, 18% of total revenue). Vertical Software Segment margin improved ~800bps, driven by price increases and strong cost control. In the Insurance Segment attritional losses were better than anticipated, offsetting the severe Houston catastrophic event in the second quarte...