Porch Group, Inc. · NASDAQ:PRCH
Porch — Q2 2022 Earnings Presentation
29 slides from Porch's earnings presentation, Aug 9, 2022
Slide 1: Love your home. Q2 2022 Earnings Presentation
Love your home. For moving and improving and everything in between. Q2 2022 Earnings Presentation August 9, 2022 Copyright 2022 Porch Group, Inc. All rights reserved 1
Slide 2: Presenters
Presenters Matt Ehrlichman Marty Heimbigner CEO, Chairman & Founder CFO Porch Group Porch Group Matthew Neagle Joshua Steffan COO VP and Group GM, Inspection and Porch Group Real Estate Copyright 2022 Porch Group, Inc. All rights reserved 2
Slide 3: Disclaimers
DISCLAIMERS Forward-Looking Statements Certain statements in this presentation may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to futur
Slide 4: Agenda
Agenda 1. Strategy Recap 2. Q2 2022 Results & Guidance 3. Segments & KPIs 4. Deep Dive: Inspection & KPI Update 5. Q&A Copyright 2022 Porch Group, Inc. All rights reserved 4
Slide 5: CEO Update
Q2 2022 Earnings Call CEO Update 5 Copyright 2022 Porch Group, Inc. All rights reserved
Slide 6: Guidance: 51% YoY Growth; Expects H2 '23 Adj EBITDA Profitability
Guidance: 51% YoY Growth; Expects H2 '23 Adj EBITDA Profitability Revenue Adjusted EBITDA % $290M 25% ~$115M Insurance $192M -12.5% ~-10% $55M Insurance -24% ~$175M $72M Vertical $57M $137M Vertical Software -57% $36M Software -79% (1) (1) 2018PF 2019PF 2020A 2021A 2022E 2018PF 2019PF 2020A 2021A 20
Slide 7: Porch, the Vertical Software Platform for the Home
Porch, the Vertical Software Platform for the Home Vertical Software Insurance (SaaS + Transaction) (Carrier, Agency & Warranty) (1) Customer acquisition cost Copyright 2022 Porch Group, Inc. All rights reserved 7
Slide 8: Key Focus Areas for 2022
Key Focus Areas for 2022 1. Sell Vertical Software to more companies, increasing our reach in key strategic verticals 2. Embed and expand B2B2C Transactions via our privileged access to consumers 3. Enhance Consumer Experience and Conversion via app, digital, and concierge experiences 4. Profitably
Slide 9: Q2 2022 Results & Guidance
Q2 2022 Earnings Call Q2 2022 Results & Guidance 9 Copyright 2022 Porch Group, Inc. All rights reserved
Slide 10: Second Quarter Results
Second Quarter Results Q2 2021 Q2 2022 $51.3M $70.8M Revenue Revenue 62% 60% Revenue Less Revenue Less Cost of Revenue Margin Cost of Revenue Margin -20% -20% Adj. EBITDA Margin(1) Adj. EBITDA Margin(1) (1) Adjusted EBITDA is a non-GAAP measure. See Porch’s Q2 2022 earnings release for an explanatio
Slide 11: Segments: Q2 2022 Financials
Segments: Q2 2022 Financials Vertical Software Segment Insurance Segment $42.8M $28.0M Revenue Revenue 72% 41% Revenue Less Revenue Less Cost of Revenue Margin Cost of Revenue Margin 14% -18% Adj. EBITDA Margin(1,2) Adj. EBITDA Margin(1,3) (1) Adjusted EBITDA is a non-GAAP measure. See Porch’s Q2 20
Slide 12: Updating Full Year 2022E Guidance
Updating Full Year 2022E Guidance Previous 2022E Guidance Current 2022E Guidance ~$320M ~$290M ▲ Drivers: Revenue Revenue • Removal of CSE ~$210M acquisition and related revenue impacts ~$195M Revenue Less Cost of Revenue • Small macroeconomic Revenue Less Cost of Revenue adjustment ~-9% >-$26.5M •
Slide 13: 2022E Revenue: Strong Growth Across Existing Businesses
2022E Revenue: Strong Growth Across Existing Businesses FY 2022E Guidance Revenue Distribution Segment Revenue Growth Vertical Software ~7% ~$175M $137M 28% ~23% ~30% YoY Growth ~40% 2021 2022E Insurance ~$115M Software & Services Subscriptions (~30%)(1) B2B Recurring Fees From Companies Move-Relate
Slide 14: KPIs & Segment Information
Q2 2022 Earnings Call KPIs & Segment Information 14 Copyright 2022 Porch Group, Inc. All rights reserved
Slide 15: Number of Companies & Average Revenue Per Company
Number of Companies & Average Revenue Per Company Average RevenueChart Title (1) (2,3) Average Number of Companies in a Quarter Per Company Per Month 40,000 2018 2019 2020 2021 2022 28,730 30,000 $933 $821 20,000 17,120 $556 $468 $400 10,000 10,470 10,523 10,000 0 Q2'18 Q2'19 Q2'20 Q2'21 Q2'22 Q1 Q2
Slide 16: Monetized Services & Average Revenue Per Monetized Service
Monetized Services & Average Revenue Per Monetized Service Chart Title (1) (2,3) Number of Monetized Services in Quarter Average Revenue per Monetized Service 2018 2019 2020 2021 2022 $210 332k 302k 254249 $140 $158 206k 188k 182k $118 $70 $86 $63 $41 $0 Q1 Q2 Q3 Q4 Q2 '18 Q2 '19 Q2 '20 Q2 '21 Q2 '2
Slide 17: Insurance Segment: Q2 2022 Performance
Insurance Segment: Q2 2022 Performance Insurance $145M 379K (Agency in 50 states. Carrier now live in 20 states) Q2 GWP(1) Policies Warranty 88% $286 (Live in 47 states and D.C.) Customer Retention(3) Annualized Revenue Per Policy(2) Active states Approved / Signed (coming soon) Agency only (carrier
Slide 18: Porch's InsurTech is Growing and Capital Light
Porch's InsurTech is Growing (~$520M GWP ) and Capital Light (1) 3 Year Average Statutory NWP / GWP (2) Ceded to 3rd party reinsurers Retained by company 100% 91.4% 5.9% 53.3% 65.1% 90% 94.1% 80% 70% 60% 50% 40% 46.7% 30% 34.9% 20% 10% 8.6% 0% (3) National Carriers Regional Carriers InsurTech peer s
Slide 19: Inspection Deep Dive
Q2 2022 Earnings Call Inspection Deep Dive 19 Copyright 2022 Porch Group, Inc. All rights reserved
Slide 20: Offering A Best-In-Class Inspection Software
Offering A Best-In-Class Inspection Software CRM Suite Online Bookings Payment Processing Report Writer Copyright 2022 Porch Group, Inc. All rights reserved 20
Slide 21: Extending Leadership Position in Home Inspection Industry
Extending Leadership Position in Home Inspection Industry (1) Announcing: Home Inspector Pro Acquisition Porch Group is now monetizing ~ 40% Considered a leading home inspector software solution of all home inspections across the U.S Enhances Porch’s inspector offerings: • Best-in-class report w
Slide 22: Releasing Porch App to all Inspection Consumers
Releasing Porch App to all Inspection Consumers Y O U R S U B T I T L E H E R E Our Inspectors Seamless way to distribute reports to homeowners, and offer value after the inspection is complete Porch Consumers Now have a one-stop shop for all inspection details & home system information Porch
Slide 23: Porch's Pay At Close Helps Inspection Companies Grow
Porch's Pay At Close Helps Inspection Companies Grow Copyright 2022 Porch Group, Inc. All rights reserved 23
Slide 24: Net Promoter Score (NPS) Update
Net Promoter Score (NPS) Update #1 Inspector Leading SMB mortgage #1 transaction ERP / CRM(1) automation and point- management software for of-sale solution title companies(1) H1 2022 NPS Score: 64 62 87 (1) Based on Porch management estimates of relative market monetization Copyright 2022 Porch Gro
Slide 25: Close & Q&A
Q2 2022 Earnings Call Close & Q&A 25 Copyright 2022 Porch Group, Inc. All rights reserved
Slide 26: Appendix
Q2 2022 Earnings Call Appendix 26 Copyright 2022 Porch Group, Inc. All rights reserved
Slide 27: Balance Sheet Well Positioned for Growth
Balance Sheet Well Positioned for Growth Balance Sheet Cash and Restricted Cash as of June 30, 2022: $282.1M • Well positioned to support investments: vertical software systems, Insurtech, data platform & consumer experience Long-Term Debt as of June 30, 2022: • $425M of convertible notes issued in
Slide 28: Capital Structure Update
Capital Structure Update Capital Structure • Total common shares issued and outstanding as of June 30, 2022: 99.4M and 1.8M private warrants Copyright 2022 Porch Group, Inc. All rights reserved 28
Slide 29: Porch Group Investment Highlights
Porch Group Investment Highlights 1 1. Vertical software leader to key home service companies with low churn and high NPS 2 Large and ideal consumer audience provided via software companies, with low acquisition costs 2. 3 Unique, substantial, and valuable property data 3. 4 4. Large insurance opera