Porch Group, Inc. · NASDAQ:PRCH

Porch — Q1 2022 Earnings Presentation

29 slides from Porch's earnings presentation, May 10, 2022

  1. Slide 1: Love your home. Q1 2022 Earnings Presentation

    Love your home. For moving and improving and everything in between. Q1 2022 Earnings Presentation May 10, 2022 Copyright 2022 Porch Group, Inc. All rights reserved

  2. Slide 2: Presenters

    Presenters Matt Ehrlichman Marty Heimbigner CEO, Chairman & Founder CFO Porch Group Porch Group Matthew Neagle Adam Kornick COO President, InsurTech Division Porch Group Copyright 2022 Porch Group, Inc. All rights reserved 2

  3. Slide 3: Disclaimers

    DISCLAIMERS Forward-Looking Statements Certain stat ement s in this pr esent ation may b e considered “forward-looking stat ement s” within the m ean in g of the “saf e harbor” provisions of the Unit ed Stat es Priv ate Securit ies Litigatio n Reform Act of 1995. Forward-looking stat ements generall

  4. Slide 4: Agenda

    Agenda 1. Strategy Recap 2. Q1 2022 Results & Guidance 3. Segments & KPIs 4. Deep Dive: Insurance 5. Q&A Copyright 2022 Porch Group, Inc. All rights reserved 4

  5. Slide 5: CEO Update

    Q1 2022 Earnings Call CEO Update Copyright 2022 Porch Group, Inc. All rights reserved

  6. Slide 6: 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 6

  7. Slide 7: Key Focus Areas for 2022

    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. Enhance Consumer Experience and Conversion via app, digital, and concierge experiences 4. Profitab

  8. Slide 8: Q1 2022 Results & Guidance

    Q1 2022 Earnings Call Q1 2022 Results & Guidance Copyright 2022 Porch Group, Inc. All rights reserved

  9. Slide 9: Q1 2022 Revenue and Adj EBITDA Met Expectations

    Q1 2022 Revenue and Adj EBITDA Met Expectations Q1 2021 Q1 2022 $26.7M $62.6M Revenue Revenue 78% 66% Revenue-Cost of Revenue-Cost of Revenue Margin Revenue Margin -36% -11% Adj. EBITDA Margin Adj. EBITDA Margin $102M Gross Written Premium(1) Disclaimer: See Porch’s Q1 2022 earnings press release fo

  10. Slide 10: Affirming Full Year 2022 Guidance

    Affirming Full Year 2022 Guidance 2022 Guidance ~$320M Revenue ~$210M Revenue Less Cost of Revenue ~-9% >-$26.5M Adj EBITDA % Adj EBITDA $ ~$600M Gross Written Premium(1) Disclaimer: See Porch’s Q4 and full year 2021 earnings press release for a reconciliation of Adjusted EBITDA (loss) as a percenta

  11. Slide 11: 2022E: Both Strong Growth and Margin Improvement

    2022E: Both Strong Growth and Margin Improvement Revenue Adjusted EBITDA % $320M 25% ~$130M Insurance $192.4M ~-9% -12.5% $55M Insurance -24% ~$190M $72M Vertical $57M $137M Vertical Software -57% $36M Software -79% (1) (1) (2) 2018PF 2019PF 2020A 2021A 2022E 2018PF 2019PF 2020A 2021A 2022E Long-Ter

  12. Slide 12: 2022E Revenue: Strong Growth in Both Vertical Software and Insurance

    2022E Revenue: Strong Growth in Both Vertical Software and Insurance FY 2022E Guidance Revenue Distribution Segment Revenue Growth (4) Vertical Software ~$190M ~7% $137M 40% ~23% ~30% YoY Growth ~40% 2021 2022E Insurance Updated from previous ~$130M guidance of $130M Software & Services Subscription

  13. Slide 13: Vertical Software: Delivering Recurring SaaS Revenue

    Vertical Software: Delivering Recurring SaaS Revenue FY 2022E Revenue Guidance Distribution Key Verticals Pricing Growth Initiatives (2) B2B Subscription Monthly minimum Consumer app to reach and fees that scale with help all inspection ~7% Fees represent use consumers with key services nearly $100M

  14. Slide 14: Insurance: Long-Term Fundamental Advantages

    Insurance: Long-Term Fundamental Advantages FY 2022E Revenue Guidance Distribution Key Offerings Sustainable Advantages Access to low-cost consumers via Porch (1) Proprietary data provides opportunity for enhanced underwriting and pricing capabilities ~7% Strong historic underwriting allows for high

  15. Slide 15: Segment Information

    Q1 2022 Earnings Call Segment Information Copyright 2022 Porch Group, Inc. All rights reserved

  16. Slide 16: Number of Companies & Average Revenue Per Company

    Number of Companies & Average Revenue Per Company Average Number of Companies in a Quarter (1) (2,3) 30,000 Average Revenue Chart Title Per Company Per Month 2018 2019 2020 2021 2022 25,512 20,000 817 13,995 637 10,903 10,000 10,199 484 10,000 300 305 0 Q1'18 Q1'19 Q1'20 Q1'21 Q1'22 Q1 Q2 Q3 Q4 25,5

  17. Slide 17: Monetized Services & Average Revenue Per Monetized Service

    Monetized Services & Average Revenue Per Monetized Service (1) Chart Title (2) Number of Monetized Services in Quarter Average Revenue per Monetized Service 2018 2019 2020 2021 2022 $210 $176 254k $140 185k 183k $93 $92 160k 152k $70 $43 $42 $0 Q1 Q2 Q3 Q4 Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 254,249

  18. Slide 18: Segments: Q1 2022 Financials

    Segments: Q1 2022 Financials Vertical Software Insurance Segment Segment $34.7M $27.9M Revenue Revenue 72% 59% Revenue Less Cost of Revenue Revenue Less Cost of Revenue Margin Margin 9% 12% Adj. EBITDA Margin(1) Adj. EBITDA Margin(2) Disclaimer: See Porch’s Q1 2022 earnings press release for final a

  19. Slide 19: Insurance Segment: Q1 2022 Financial Performance & KPIs

    Insurance Segment: Q1 2022 Financial Performance & KPI's Insurance (Agency in $102M 338K 50 states. Carrier now live in 17 states as Q1 GWP(1) Policies carrier) 89% Warranty $330 (Live in 50 states and D.C.) Customer Retention(3) Annualized Revenue Per Policy(2) Active states Approved / Signed (comi

  20. Slide 20: Insurance Deep Dive

    Q1 2022 Earnings Call Insurance Deep Dive Copyright 2022 Porch Group, Inc. All rights reserved

  21. Slide 21: We Have a Proven Track Record of Underwriting Results

    We Have a Proven Track Record of Underwriting Results 68% 70% 72% HOA Industry: U.S Texas Attritional: Non-weather and non-catastrophe claims All Other: Weather and catastrophe claims 106% 2017-2021 100% Average 77% 82% 76% 74% 68% 68% 71% 58% 60% 70% 63% 59% 57% 60% 45% 46% 2017 2018 2019 2020 2021

  22. Slide 22: Porch Runs a Growing and Profitable InsurTech

    Porch Runs a Growing (~$600M GWP(1)) and Profitable (16% Adj EBITDA Margin(2)) InsurTech 3 Year Average(3) Statutory NWP / GWP 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% (4) National Carriers Regional Ca

  23. Slide 23: Introducing Insurance to Borrowers via Floify

    Introducing Insurance to Borrowers via Floify Copyright 2022 Porch Group, Inc. All rights reserved 23

  24. Slide 24: Approved! Porch Data Being Used in Insurance Pricing

    Approved! Porch Data Being Used in Insurance Pricing Water heater data Water heater location: • AZ, VA, GA: Filed and approved • Additional states: In-flight Further data (such as system data) under evaluation Roofing Additional data types under evaluation Data Advantage: Up to date roof type, age a

  25. Slide 25: Q&A

    Q1 2022 Earnings Call Q&A Copyright 2022 Porch Group, Inc. All rights reserved

  26. Slide 26: Appendix

    Q1 2022 Earnings Call Appendix Copyright 2022 Porch Group, Inc. All rights reserved

  27. Slide 27: Balance Sheet Well Positioned for Growth

    Balance Sheet Well Positioned for Growth Balance Sheet Cash and Restricted Cash as of March 31, 2021: $303.0M • Well positioned to support investments: vertical software systems, Insurtech, data platform & consumer experience Total Long-Term Debt as of March 31, 2021: $425.5M • $425M of convertible

  28. Slide 28: Capital Structure Update

    Capital Structure Update Capital Structure • Total common shares issued and outstanding as of March 31, 2021: 98.3M 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 total shares outstanding above. C

  29. 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

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