Capitol Investment Corp. V — SPAC Merger (May 2021)
58 slides from Capitol Investment Corp. V's SPAC merger presentation, May 25, 2021
Slide 1: Doma is architecting the future of real estate transactions
Doma is architecting the future of real estate transactions. — We deliver instant, digital home ownership experiences. 2016 – 2021 May 2021+ Proprietary and Confidential | 1
Slide 2: Disclaimer
Disclaimer Disclaimer This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination (the “potential business combination”) between Doma Holdings, Inc. (“Doma”) and Capit
Slide 3: Financial Information; Non-GAAP Financial Measures
Financial Information; Non - GAAP Financial Measures The financial information and data contained in this presentation is unaudited and does not conform to the requirements of Regulation S - X. Some of the financial information and data contained in this presentation, such as Retained Premiums & Fee
Slide 4: Q1 2021 Business Update
doma Q1 2021 Business Update
Slide 5: Recent Business Highlights
Recent Business Highlights Outperformance relative to company plan, achieving 83% growth in closed orders and 101% growth in adjusted gross profit in Q1 2021 compared to the same period last year Year-to-date, Doma has added Wells Fargo, the nation’s largest bank mortgage originator, along with seve
Slide 6: Performance Highlights – P&L
Performance Highlights – P&L • Continued robust demand for Doma’stechnology-driven products and differentiated services resulted in strong top-line growth • The impact of the Domaintelligence platform and improvements in the productivity of our employees led to significant operating leverage and gro
Slide 7: Performance Highlights – Closed Orders
Performance Highlights – Closed Orders 18 33 Q1 2020 Q1 2021 8 3% G R O W T H C l o s e d Or d e r G ro w t h 49% 5 3 7% Local Markets (Adj. for closed branches) Strategic & Enterprise Accounts Q 1 20 2 1 Y O Y G r o w t h R a t e b y C h a nn e l ( o r de r s i n t h o u sa n ds) • Total order grow
Slide 8: Wells Fargo Taps Doma to Streamline the Refinance Process
Continued growth in the S&EA segment Wells Fargo Taps Domato Streamline the Refinance Process Doma’smachine intelligence powered title and escrow solutions to help drive superior Wells Fargo customer experience May 18, 2021 During Q1 2021, Doma generated significant momentum with Strategic & Enterpr
Slide 9: Accelerating growth across the map
5 7% G W P 2 , 3 7 5 % G W P 3 ,4 Accelerating growth across the map As of May 2021 EOY 2020 3 Strategic and enterprise licensed and operational Lo c a l s a l e s offices 1 (1) Office locations are approximate and represent 81 local office locations as of March 31, 2021. Local footprint in 2023 not
Slide 10: Appendix
doma Appendix
Slide 11: Reconciliation of (Unaudited) Non-GAAP Metrics
Reconciliation of (Unaudited) Non-GAAP Metrics Historical ($ in millions) Q1 2021 Q1 2020 Revenue (GAAP) $127.8 $70.8 Less: Premiums Retained by Third Party Agents ($70.3) ($33.1) Retained Premiums and Fees1 $57.5 $37.7 Less: Direct Fulfillment Expense2 ($28.3) ($23.2) Less: Depreciation & Amortizat
Slide 12: Thank you
Thank you For your reference, our Analyst Day Presentation follows. Proprietary and Confidential | 12
Slide 13: Analyst Day 2021 Agenda
B u s i n e ss O v er v i e w Max Simkoff Founder and Chief Executive Officer Product and Technology Hasan Rizvi Chief Technology Officer Andy Mahdavi Chief Data Science Officer Operations C h r i s t o p h e r M o rr i so n Ch i e f O p e r a t i n g Off i c e r Go - to - Market Strategy Mini Peiri
Slide 14: Key Investment Highlights
K e y I n ve s t me n t H i g h l i g h t s D isrupt ing a L a r g e , A nt iqu a t e d M a r k e t dominated by commoditized products Strong Market Traction introduced in 2018 and already fueled by marquee clients A Clear Path to Sustained Growth and social impact by expanding access to home owners
Slide 15: Technical and Operational Expertise
Technical and Operational Expertise We are building with the right mix of N o a ma n A h m ad Chief Financial Officer M a x Simk o f f Chief Executive Officer Ha s an R i z vi Chief Technology Officer C h r i s t o p h e r M o rr i so n Chief Operating Officer M in i P eiris Chief Marketing Officer
Slide 16: World-Class Board Members and Top-Tier Advisors
World - Class Board Members Top - Tier Advisors Matthew E. Zames Former COO J . P . M o r ga n C h a s e & C o . Larry Summers Former Treasury Secretary U . S . T re a s u ry Max Simkoff Chief Executive Officer Doma Karen Richardson Board Member B r i t i s h Pe t r o leu m Charles Moldow General Pa
Slide 17: Home Ownership Market
Home Ownership Market Title & Escrow represents a TAM of $23B 1 NEAR - TERM OPPORTUNITIES Appraisal E scr o w C l o se Warranty Home Search $86B Market 2 Loan $66B Market 3 Home I n s u ra n ce $100B Market 4 $8B Market 5 Title $16B Market $7B Combined Market $3B Market 6 Servicing $32B Market 7 T O
Slide 18: Consumers Expect Instant Digital Experiences
Book Now Hospitality Order Now Buy it Now Consumers Expect Instant Digital Experiences Entertainment R eta i l Dining F in a nce Invest Now Stream Now
Slide 19: Residential Real Estate Is Just Now Joining this Revolution
R e s i d e nt i a l R e a l Esta t e i s Just Now Joining this Revolution Get Pre - A pp r o ve d Ins t a n t ly Get I nsu r e d Ins t a n t ly Get an Offer Ins t a n t ly Close the T r a n sa cti o n Instantly
Slide 20: A Process from the 1890s
Manual County Database Manual Preliminary Order Investigation Underwriting Report Lender & Title Co Fee Balancing Closing Document Nego tiat i o n & Payo ff s Docu ment s Nota riza t ion TITLE IN 3 – 5 DAYS CLOSING IN 30 – 50 DAYS A Process from the 1890 S W e r e b u W i l E t A i R t E a R l E l P
Slide 21: We Re-invented it all from scratch
From 3 – 5 Days From 30 – 50 Days Millions of Historical Transactions Over 100 Public Data Sources Exception Handling Centralized Operations Ops. Team Fee Balancing Document QC P O W E R E D B Y N L P Title ML - Driven Instant Underwriting Algorithm P O W E R E D B Y M L W e r e - i n ve n t e d i t
Slide 22: Our technology has shown it is capable of
Our technology has shown it is capable of (1) Wallet share applies only to the Direct Channel business in states in which Doma is currently active. (2) Pull - through rate is defined as the percentage of mortgage applications that are opened that result in funded loans. 21 % 100% Wallet Share 1 Sinc
Slide 23: Product & Technology
doma Product & Technology
Slide 24: Traditional Path
Traditional Path Or d er Title E XAM IN E GENERATE CO MMI T M E N T C URE U P D A T E CO ND U C T D I SBU R S E R E C O R D F I NA LI ZE SCHEDULE G E NE R A T E
Slide 25: Doma Intelligence replaces large portions of the Title & Closing process
Doma Intelligence replaces large portions of the Title & Closing process with Data Science technology DO M A E S C R O W Steps Re m o v ed DO M A C L O S E 1 5+ 1 0+ Steps Re m o v ed DOM A T I T LE INSTANT Clear to Close O r d e r T i t l e Platform Components Underwriting Collaboration Documents M
Slide 26: Data science & machine learning drive core areas of Doma Intelligence
Data science & machine learning capabilities drive core areas of Doma Intelligence Platform Co m pon e n t s U n d e r w r i t i n g Collaboration Documents Coming Soon Money Flow Decision science and ML algorithms instantly underwrite ~80% of refi orders using hundreds of title & property data poin
Slide 27: Doma Title delivers speed & machine learning-enabled decision-making
Dom a Ti t l e d e l i ve r s s p e e d & machine learning - enabled decision - making Do m a Tit le 3 – 5 D a y s < 1 D a y Traditional Title • Long wait times for search package • Search Package often contains unnecessary information that can delay the search • Curative work is required, including
Slide 28: What Data Science Transformers did for Google's Search product
What Data Science Transformers did for Google’s Search product ... 2019 brazil traveler to US need a visa Before Google’s search function only examined individual words without comprehending the relationship among them Af t e r Google’s search function can comprehend the intrinsic meaning of words a
Slide 29: What we're doing for Title & Escrow
… w e ’ r e doi ng f o r T i t l e & Esc r o w Traditional Escrow Human - powered, error - prone process with significant duplication D o ma I n t e llig e n ce Instant closing disclosure Automatically Recognizes each fee Automatically Categorizes and corrects Instantly Sends back to lender customer
Slide 30: Assigning meaning to words with vectors
The closer those numbers to each other, the closer the meaning Allow gigantic training corpus (Wikipedia) to determine what numbers should be If machines only understand numbers… How can they “get” meaning? We must assign each word a set of scores Each set is called a “vector” 1 2 3 4 1 2 3 4 4 3 2
Slide 31: Operations
doma Operations
Slide 32: Industry standard operating models
“Industry standard” operating models Both with drawbacks ” Single Seat ” Unscalable model reliant on a sole professional to manage the life of a closing ” Assembly Line ” Inflexible model dictating the same customer experience for every closing
Slide 33: An industry first, centralized operations model
An industry first - of - its - kind, centralized operations model We take a fundamentally different approach Doma Technology Removes significant portions of work entirely and intelligently routes any complex exceptions Innovative Customer Delivery Models tailored to the needs of the customer and all
Slide 34: Machine intelligence + operations reduces minutes per file
Machine intelligence + operations Drastically reduces minutes per file across every activity in the process… Minutes Per File metric on Doma Intelligence 1 00% 4 6 % 22% June 2020 Dec 2020 Q4 2023 E 78% D E C R E A S E Efficiency with quality and scalability As volume increases, customer experiences
Slide 35: Go-to-Market Approach
doma Go-to-Market Approach
Slide 36: Incumbents distribute their antiquated offering in an undifferentiated way
(1) 2020 forecasts from American Land Title Association, Mortgage Bankers Association and internal estimates. Incumbents distribute their antiquated offering in an undifferentiated way $23B Market $7B Refinance + $16B Purchase 1 L e g a cy I n c u mbe n t s with 80% market share Traditional Go - to
Slide 37: Our technology re-defines the go-to-market approach
C o m p e t it i v e Pricing V a l u e - b a s e d Selling Digital D ist ri b u t ion * Projected 4Q23 gross premiums & fees per order Our technology and products re - define the entire go - to - market approach... A Faster Close E N A B L E S A Tech - First Approach E N A B L E S Less Manual Work E
Slide 38: A solution for every market segment
Local Refinance 2 Enterprise Refinance L o c a l P u r c h as e 1 Enterprise Purchase and the opportunity to transition customers to higher - volume relationships ...with a solution for every market segment 11.4K Realtors 8.5K Loan Officers +8 more top - tier lenders + iBuyers, Home Builders, and Te
Slide 39: Dual Go-to-Market Approach
Addressing the various market segments with a D u a l Go - t o - M ar k e t App r oach ? ? ! $$$ Local L e a d - b a s ed Enterprise Account - based I d e n t i fy E x pan d E n gage A d v o cate Educate Nurture Q u a l i fy Transact
Slide 40: Enterprise channel: account targeting & wallet share expansion
• Welcome Kit • Personalized Resource Center • Gamification to drive adoption • Account - specific newsletter • Account Day for regional expansion • Technical evaluation of integration options • Customer Advisory Board participation • Case studies shared across regions & teams • Quotes from internal
Slide 41: Local channel: growth fueled by deepening, expanding & innovating
L O C A L C H A N N E L : Growth fueled by deepening , e x pand i ng , & i nn o v ati ng market approach Deepen sales capacity to capture share in existing markets 1 Expand into new geographic markets, specifically high - growth urban areas 2 3 Innovate go - to - market strategy in new and existing
Slide 42: Local channel: using proven playbook from tech sector
E d u c a t e p r o s pe cts th r o ugh d ig it a l i nte r a cti o ns -- > d r i v e t o m i c r o s i t e and/or power retargeting Di g it a l O u t r e a c h Microsite interaction to secure co n t a ct co mmit men t & d et a ils fo r sales outreach Microsite: Education Simple d ig it a l o rd er
Slide 43: Growing across the map
5 7 % G W P 2 > 99% G W P 2 , 3 Planned expansion will accelerate organic growth and unlock market share potential in key strategic geographies for all segments G r o wi n g ac r os s t h e map... EOY 2023 EOY 2020 3 Strategic and enterprise licensed and operational Lo c a l s a l e s offices 1
Slide 44: Financial Overview
doma Financial Overview
Slide 45: Our Technology Will Drive Our Margin Advantage
O u r T e chnolog y Wi ll Drive Our Margin Advantage Segment EBITDA as % of Retained Premiums and Fees² Pre - Corporate Support EBITDA as % of Retained Premiums and Fees² ³ 23% Traditional T i t l e I n s u r e rs Average 1 42% Q 4 2 0 23 E Machine intelligence drives reduction in direct costs Allow
Slide 46: Superior Technology Drives Operating Leverage
Superior Technology Drives Operating Leverage Doma solutions reduce minutes spent per file, significantly decreasing direct labor expense, driving margin expansion Order V o lu m e s R eta in e d P r e m iu m s a n d F ees Direct Fulfillment Expense Economics of Our Business Adjusted G r os s P r of
Slide 47: Unit economics notes
(1) Direct non - labor expenses, which include provision for claims, excludes a one - time reserve release benefit of $1.6M in March 2021 (2) Reflects expenses per order associated with mature clients. Actual direct labor expenses, including costs of new customers being onboarded, was $383 per order
Slide 48: Clear path for accelerated growth
Adj. Closed Orders 1,2 Clear path for accelerated growth 136,880 88,616 58,875 212,199 33 0 , 4 7 3 2 0 19 2020 20 21 20 22 20 23 5 4 % C A G R (1) Direct order volume (2) Between January 2019 and December 2020, Doma closed 40 branches as the company integrated and rationalized its branch footprint.
Slide 49: Performance Highlights
Performance Highlights Excludes Net Proceeds from Transaction $ 226 $ 3 19 $ 464 2 0 21 E 2 0 22E 2 0 23 E 4 3% C A G R $ 8 9 $ 17 1 $ 3 07 39.5% 5 3 . 5 % 6 6 . 2 % 2 0 21 E 2 0 22E 2 0 23 E $M $M ( 2 9 . 4 % ) (3.3%) 1 9 . 2 % 2 0 21 E 2 0 22E 2 0 23 E 35% 5 - Year Target R e t ai n e d P r e m i
Slide 50: Summary Financial and Other Information
Unaudited S u mma r y Fi nanc i a l an d O t h e r In f ormation ($ i n m illion s) 2019A 2020A 2021E 2022E 2023E C lose d O rders 1 74,017 92,389 136,880 212,199 330,473 Avg Retained Premiums & Fees Per Order 1 $1,921 $1,547 $1,360 $1,306 $1,272 GAA P R evenue $358.1 $409.8 $416.4 $514.6 $665.3 Pre
Slide 51: Multiple Vectors for Growth
doma Multiple Vectors for Growth
Slide 52: Substantial Untapped Growth Potential
Substantial Untapped Growth Potential Inorganic acquisition opportunities Acquisition of independent title agencies to meaningfully expand market share Investment in existing channels Invest in salesforce expansion, geographic expansion and marketing to drive continued organic growth Horizontal prod
Slide 53: Fuel More Organic Growth in 2022 & Beyond
F u e l M o r e O r g a n i c G r o w t h i n 2 0 22 & B e y o n d with increase in sales and marketing investment Acquire Title Agencies and integrate them into the Doma Platform Accelerating Growth of Our Core Title Business Organic and Inorganic Strategies 50+ Target Companies w/ $50M – $100M in
Slide 54: An Instant Closing Experience Accelerating Delivery of Our Vision
An Instant Closing Experience Accelerating Delivery of Our Vision An “afterthought” with a painful user experience $3B Market 2 Home Warranty $ 8 B Ma r k e t 1 Appraisal With Doma: Seamless Today: B r o k en Appraisal process is separate from Title and can derail the closing +$400 in Fees per Direc
Slide 55: Significant opportunity with SPAC proceeds
Existing self - funded plan assumes moderate capture with significant opportunity with SPAC proceeds Doma’s Revenue Market Share of the Title and Escrow Market 1 I ll u s tr a ti v e G r o w t h L e ve r s f r o m T r a ns a c ti o n P r o c ee d s Clear path to $1.5B+ of Retained P r e m i u m & F
Slide 56: Our vision is to revolutionize the homeownership experience
O u r v i s i o n i s t o r e v o l u ti on i z e t h e h om eo wn e rs h i p experience From our reimagination of the title, escrow, and closing experience O ur p a t h t o mar k e t d o m i n an ce Become a category leader in $23B title and escrow market De li v e r i n s t a n t v a l u a t io n
Slide 57: Appendix
doma Appendix
Slide 58: Reconciliation of (Unaudited) non-GAAP Metrics
Reconciliation of (Unaudited) non - GAAP Metrics Historical Projected ( $ i n millions ) 2019A 2020A 2021E 2022E 2023E R evenu e (GAAP ) $358.1 $409.8 $416.4 $514.6 $665.3 Less: Premiums Retained by Third Party Agents ($178.3) ($220.1) ($190.0) ($195.7) ($201.5) R etaine d Premium s an d Fee s 1 $17