Porch Group, Inc. · NASDAQ:PRCH

Porch — FY2021 Earnings Presentation

43 slides from Porch's earnings presentation, Mar 16, 2022

Slide 1: Q4 and FY 2021 Earnings Presentation
Copyright 2022 Porch Group, Inc. All rights reserved Q4 and FY 2021 Earnings Presentation March 16, 2022 Love your home. For moving and improving and everything in between.
Slide 2: Presenters
Copyright 2022 Porch Group, Inc. All rights reserved Presenters Matt Ehrlichman CEO, Chairman & Founder Porch Group Marty Heimbigner CFO Porch Group Matthew Neagle COO Porch Group Nicole Pelley SVP, Product & Technology Porch Group 2
Slide 3: Disclaimers
Copyright 2022 Porch Group, Inc. All rights reserved 3 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
Slide 4: Agenda
Copyright 2022 Porch Group, Inc. All rights reserved Agenda 1. Strategy Recap 2. Q4 and FY2021 Results 3. FY 2022 Guidance 4. Segments & KPIs 5. Deep Dives: Product | M&A | Targeted Future Milestones 6. Q&A 4
Slide 6: Porch, the Vertical Software Platform for the Home
Copyright 2022 Porch Group, Inc. All rights reserved Porch, the Vertical Software Platform for the Home Insurance (Carrier, Agency & Warranty) Vertical Software (SaaS + Transaction) (1) Customer acquisition cost 6
Slide 7: Key Focus Areas for 2022
Copyright 2022 Porch Group, Inc. All rights reserved Key Focus Areas for 2022 1. Sell Vertical Software to more companies, increasing market share in key strategic verticals 2. Embed and expand B2B2C Transactions via our privileged access to consumers 3. Grow profitably our capital light Insurance r
Slide 9: Strong Growth and Margin Improvement from Q4 2020 Year Over Year
Copyright 2022 Porch Group, Inc. All rights reserved Strong Growth and Margin Improvement from Q4 2020 Year Over Year ▲ Disclaimer: See Porch’s Q4 and full year 2021 earnings press release for final audited results for a reconciliation of Adjust ed EBITDA (loss) as a percentage of revenue and Contri
Slide 10: Recap of 2021 Guidance History vs. Actuals
Copyright 2022 Porch Group, Inc. All rights reserved Recap of 2021 Guidance History vs. Actuals $195M Revenue ~70% Revenue - Cost of Revenue Margin - 14 to - 16% Adj. EBITDA Margin ~40% Contribution Margin $192.4M Revenue 69.5% Revenue - Cost of Revenue Margin - 12.5% Adj. EBITDA Margin 39.2% Contri
Slide 11: 2021A Revenue: 166% Year-over-Year Growth
Copyright 2022 Porch Group, Inc. All rights reserved $36M $57M $72M 2018PF 2019PF 2020A 2021A Note: PF figures are Pro Forma results which exclude the financial results of certain Porch businesses divested during 2019 a nd the first half of 2020, after giving effect to all such divestitures as if th
Slide 13: 2022 Guidance: 66% Revenue Growth & Adj EBITDA Improvement
Copyright 2022 Porch Group, Inc. All rights reserved 2022 Guidance: 66% Revenue Growth & Adj EBITDA Improvement ~$320M Revenue ~ - 9% > - $26.5M Adj EBITDA % Adj EBITDA $ ~$210M Revenue Less Cost of Revenue Increase of 58% from $133.7M in 2021 YoY improvements of >400 bps and total Adj EBITDA $ (1)
Slide 14: Rapid Growth Expected Across Each Key Measure
Copyright 2022 Porch Group, Inc. All rights reserved Rapid Growth Expected Across Each Key Measure $192.4M ~$320M 2021 2022E YoY 66 % increase YoY 95% increase $ 307 M ~$ 600 M 0 100 200 300 400 500 600 700 2021 2022E Series 1 $ 133.7 M ~$ 210 M 0 50 100 150 200 250 2021 2022E Series 1 YoY 58% incre
Slide 15: 2022E: Both Strong Growth and Margin Improvement
Copyright 2022 Porch Group, Inc. All rights reserved $36M $57M $72M 2018PF 2019PF 2020A 2021A 2022E 2022E: Both Strong Growth and Margin Improvement Revenue % Growth 58% 26% 166% $192.4M $137M Vertical Software $55M Insurance Adjusted EBITDA % ~$190M Vertical Software $320M ~$130M Insurance 66% - 79
Slide 17: 2022E Revenue: Strong Growth in Both Vertical Software and Insurance
Copyright 2022 Porch Group, Inc. All rights reserved ~30% ~ 40% ~ 23% ~ 7% (1) B2B includes recurring fees paid by Companies to Porch for SaaS and other services (2) B2B2C (Move - Related Services) includes revenue predominantly related to selling consumers insurance, moving, security and TV/int ern
Slide 18: Number of Companies & Average Revenue Per Company
Copyright 2022 Porch Group, Inc. All rights reserved Number of Companies & Average Revenue Per Company (1) Porch management defines average companies in a quarter as an average of the end of period number of companies with the begin nin g of period number, inclusive of all companies across Porch’s h
Slide 19: Monetized Services & Average Revenue Per Monetized Service
Copyright 2022 Porch Group, Inc. All rights reserved Monetized Services & Average Revenue Per Monetized Service (1) Monetized Services per Quarter is defined as the total number of unique consumer services from which Porch generated revenue, in cluding, but not limited to, new and renewing insurance
Slide 20: Vertical Software Segment: 4Q 2021 Financials
Copyright 2022 Porch Group, Inc. All rights reserved 20 Vertical Software Segment: 4Q 2021 Financials $35.5M Q4 Revenue 68% Revenue Less Cost of Revenue Margin 39% Contribution Margin 9% Adj. EBITDA Margin (1) Disclaimer: See Porch’s Q4 and full year 2021 earnings press release for final audited res
Slide 21: Insurance Segment: 4Q 2021 Financial Performance & KPIs
Copyright 2022 Porch Group, Inc. All rights reserved Insurance Segment: 4Q 2021 Financial Performance & KPI's 21 Insurance (Agency in 50 states. Carrier now live in 15 states as carrier) Warranty (Live in 46 states and D.C.) Active states Approved / Signed (coming soon) (5) Agency only (carrier oppo
Slide 31: Acquired companies' growth in revenue
Copyright 2022 Porch Group, Inc. All rights reserved (1) Companies include acquisitions from the first half of 2021: Homeowners of America, iRoofing , Palm - Tech, Rynoh and V12. Recent acquisitions are accelerating as part of Porch 31 ~6% ~28% 2020 Average Growth Rate 2021 Average Growth Rate Growt
Slide 32: Porch has a track record of improving growth post acquisition
Copyright 2022 Porch Group, Inc. All rights reserved 2015 2017 2018 Series 1 Porch has a track record of improving growth post acquisition 19 % CAGR 2 years prior to acquisition 45 % growth 2018 Growth in Revenue 15 % CAGR 3 years prior to acquisition Growth in Revenue 32 2017 2020 2021 Series 1 19
Slide 33: RWS Acquisition Strengthens Porch's Warranty and Inspection Capabilities
Copyright 2022 Porch Group, Inc. All rights reserved RWS Acquisition Strengthens Porch’s Warranty and Inspection Capabilities Company Overview • Residential Warranty Services (“RWS”), based in Carmel, Indiana, is a national provider of home warranty products and inspector - centric software and serv
Slide 34: RWS Offers an Attractive Addition to Porch's Capabilities
Copyright 2022 Porch Group, Inc. All rights reserved RWS Offers an Attractive Addition to Porch’s Capabilities Transaction Summary • Definitive Agreements signed February 28, 2022 with closing expected in early Q2 2022 subject to certain closing conditions • Total closing consideration of $33M repre
Slide 36: Porch's Key Target Milestones
Copyright 2022 Porch Group, Inc. All rights reserved Porch’s Key Target Milestones 36 2021 $600M GWP 166% YoY Revenue Growth 2022 2024 2023 2 nd half positive Adj. EBITDA Full year positive Adj. EBITDA $1.5B revenue $320M Revenue Mid - term revenue target Disclaimer: See Porch’s Q4 and full year 202
Slide 37: 39% Contribution Margin in 2021 demonstrates profit potential
Copyright 2022 Porch Group, Inc. All rights reserved ~51% ~ 41% ~ 8% 39% Contribution Margin in 2021 demonstrates profit potential 37 B2B (51%) Largely software sales and support to companies Consumer (41%) Largely consumer sales and support teams 2021 Expenses Cost of Revenue Sales & Marketing Fixe
Slide 38: Porch's Path to $1.5 Billion Mid-Term Revenue Target
Copyright 2022 Porch Group, Inc. All rights reserved $320M ~$1.5B - $200 $400 $600 $800 $1000 $1200 $1400 $1600 2022E Revenue Insurance Expansion Grow Current Software Verticals Enter New Software Verticals Mover Marketing Mid-term Target 2 3 4 Porch’s Path To $1.5 Billion Mid - Term Revenue Target
Slide 41: Balance Sheet
Copyright 2022 Porch Group, Inc. All rights reserved Balance Sheet Cash and Restricted Cash as of Dec 31, 2021: $325M • Primary use of cash expected for M&A • Well positioned to support investments; vertical software systems, Insurtech, data platform & consumer experience Total Long - Term Debt as o
Slide 42: Capital Structure
Copyright 2022 Porch Group, Inc. All rights reserved Capital Structure • Total common shares issued and outstanding as of December 31, 2021: 98.0M and 1.8M private warrants outstanding • In addition to the above, when team RSUs vest or team options both vest and are exercised, it will be added to to
Slide 43: Porch Group Investment Highlights
Copyright 2022 Porch Group, Inc. All rights reserved 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 3. Unique, substantial, and valuable property data 4. Large insu

Porch Group — FY2021 Earnings Presentation on 6ix

Porch — FY2021 Earnings Presentation

Slide 1: Q4 and FY 2021 Earnings Presentation

Slide 2: Presenters

Slide 3: Disclaimers

Slide 4: Agenda

Slide 5: CEO Update

Slide 6: Porch, the Vertical Software Platform for the Home

Slide 7: Key Focus Areas for 2022

Slide 8: Q4 and FY 2021 Results

Slide 9: Strong Growth and Margin Improvement from Q4 2020 Year Over Year

Slide 10: Recap of 2021 Guidance History vs. Actuals

Slide 11: 2021A Revenue: 166% Year-over-Year Growth

Slide 12: FY 2022 Guidance

Slide 13: 2022 Guidance: 66% Revenue Growth & Adj EBITDA Improvement

Slide 14: Rapid Growth Expected Across Each Key Measure

Slide 15: 2022E: Both Strong Growth and Margin Improvement

Slide 16: Segment Information

Slide 17: 2022E Revenue: Strong Growth in Both Vertical Software and Insurance

Slide 18: Number of Companies & Average Revenue Per Company

Slide 19: Monetized Services & Average Revenue Per Monetized Service

Slide 20: Vertical Software Segment: 4Q 2021 Financials

Slide 21: Insurance Segment: 4Q 2021 Financial Performance & KPIs

Slide 22: Product Deep Dives

Slide 23: Porch Platform

Slide 24: Consumer App Demo: Onboarding

Slide 25: Consumer App Demo: Welcome

Slide 26: Consumer App Demo: Checklist

Slide 27: Consumer App Demo: My Home Inspection Report

Slide 28: Consumer App Demo: Contacts

Slide 29: Looking Ahead: The App for your Home

Slide 30: M&A Deep Dives

Slide 31: Acquired companies' growth in revenue

Slide 32: Porch has a track record of improving growth post acquisition

Slide 33: RWS Acquisition Strengthens Porch's Warranty and Inspection Capabilities

Slide 34: RWS Offers an Attractive Addition to Porch's Capabilities

Slide 35: Targeted Future Milestones

Slide 36: Porch's Key Target Milestones

Slide 37: 39% Contribution Margin in 2021 demonstrates profit potential

Slide 38: Porch's Path to $1.5 Billion Mid-Term Revenue Target

Slide 39: Q&A

Slide 40: Appendix

Slide 41: Balance Sheet

Slide 42: Capital Structure

Slide 43: Porch Group Investment Highlights