Porch Group, Inc. · NASDAQ:PRCH

Porch — Q4 2020 Earnings Presentation

27 slides from Porch's earnings presentation, Mar 30, 2021

  1. Slide 1: Q4 2020 Earnings Presentation

    Love your home. For moving and improving and everything in between. Group Q4 2020 Earnings Presentation March 30, 2021 Copyright 2021 Porch Group, Inc. All rights reserved 1

  2. Slide 2: 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

  3. Slide 3: Presenters

    Presenters Matt Ehrlichman Marty Heimbigner CEO & Founder, Porch Group CFO, Porch Group matt@porchgroup.com marty@porchgroup.com www.porchgroup.com Matthew Neagle COO, Porch Group maneagle@porchgroup.com Copyright 2021 Porch Group, Inc. All rights reserved 3

  4. Slide 4: Porch, the Vertical Software Platform for the Home

    Porch, the Vertical Software Platform for the Home Software & Services for Companies Porch has a unique strategy in the home services industry. 1. Porch provides software and services to home services companies such as home inspection and moving and helps these companies grow. 2. Through these compa

  5. Slide 5: Key Focus Areas for 2021

    6 Key Focus Areas for 2021 1. Increase number of companies using our vertical software 2. Increase access to consumers from software companies 3. Increase B2B2C transaction revenue per consumer 4. Continue to scale our InsurTech business 5. Help brands and advertisers improve their mover marketing 6

  6. Slide 6: Q4 and Full Year 2020 Results

    Q4 and Full Year 2020 Results Group Copyright 2021 Porch Group, Inc. All rights reserved 6

  7. Slide 7: Q4 2020 and FY 2020 Results Ahead of Guidance

    Q4 2020 and FY 2020 Results Ahead of Guidance Q4 2020 Full Year 2020 (1) Q4 2020 Q4 2019 PF Q4 2019 Actual Guidance Revenue $19.5M $14.5M $18.3M Revenue $73.2M $ 72M YoY Growth PF 34% YoY Revenue Growth 28% 26% (2) Adj EBITDA % -17% -56% -51% Adj EBITDA % -24% -25% Adj EBITDA $ $-3.2M -$8.1M -$9.2M

  8. Slide 8: Cash position is strong, with primary use expected for M&A

    Cash position is strong, with primary use expected for M&A Balance Sheet Capital Structure (1) Expected Cash post-warrants and HOA: ~$230M • Total shares outstanding as of Dec 31, 2020: ~81.7M (2) (2) • $159M from assumed cash exercise of all warrants • Warrants (assuming all cash exercised): + ~14.

  9. Slide 9: Public KPIs

    Public KPIs Group Copyright 2021 Porch Group, Inc. All rights reserved 9

  10. Slide 10: KPIs – Software & Services to Companies

    KPIs – Software & Services to Companies (1) (2) Q1 Q2 Q3 Q4 (1) Porch management defines average companies in a quarter as the number of home services companies across all of Porch’s home services verticals that (i) had reoccurring revenue contracts with us and (ii) generated revenue each month, ave

  11. Slide 11: KPIs – Reoccurring B2B2C Services for Consumers

    KPIs – Reoccurring B2B2C Services for Consumers (1) (2) Q1 Q2 Q3 Q4 (1) Monetized services per quarter is defined as the total number of unique services from which Porch generated revenue, including, but not limited to, new insurance customers, completed moving jobs, security installations, TV/inter

  12. Slide 12: Q1 and Full Year 2021 Guidance Update

    Q1 and Full Year 2021 Guidance Update Group Copyright 2021 Porch Group, Inc. All rights reserved 12

  13. Slide 13: Revenue Growth in Q1 2021 Expected to be approximately 85% YoY

    Revenue Growth in Q1 2021 Expected to be approximately 85% YoY Q1 2021 does not include HOA (expected to close in Q2) and is the hardest 2020 comp (pre-COVID) * PF stands for Pro Forma and is defined as excluding divestitures that occurred during 2019 and the first half of 2020, after giving effect

  14. Slide 14: With M&A for full Q1 2021, Revenue Growth expected to be ~170% YoY

    With M&A for full Q1 2021, Revenue Growth expected to be ~170% YoY Assuming HOA and the other Q1 acquisitions had closed Jan 1, 2021, Q1 2021 estimated at ~$34M in revenue Incremental growth with full quarter of HOA, V12, and other M&A * PF stands for Pro Forma and is defined as excluding divestitur

  15. Slide 15: 2021 Revenue Now Expected to be $175M (140% YoY Growth)

    2021 Revenue Now Expected to be $175M (140% YoY Growth) Copyright 2021 Porch Group, Inc. All rights reserved 15

  16. Slide 16: 2021E Revenue: 140% Growth; 90% Recurring or Reoccurring

    2021E Revenue: 140% Growth; 90% Recurring or Reoccurring (2) (3) (4) Note: Numbers noted as PF are Pro Forma results which exclude the financial results of certain Porch businesses divested during 2019 and the first half of 2020, after giving effect to all such divestitures as if they had occurred o

  17. Slide 17: Reiterating 2021 Contribution Margin % and Adj EBITDA % Guidance

    Reiterating 2021 Contribution Margin % and Adj EBITDA % Guidance (2) (2) 2018PF 2019PF 2020 2021E Long-Term (targeted) (1) Contribution Margin 7% 19% 31% 40% 50% Adj. EBITDA Margin -79% -57% -24% -10% to -16% 25% Contribution Margin: Includes all variable expenses and is approaching long-term 50% ta

  18. Slide 18: Summary: Porch expected to grow 140% YoY in 2021

    Summary: Porch expected to grow 140% YoY in 2021 ✓ Q4 2020: better than expected on top and bottom line (FY 2020: $73M, -24% Adj EBITDA) ✓ 2021 Revenue: expected increase from $73M (2020) to $175M (2021E), ~140% YoY growth ✓ 2021 Revenue: ~90% either B2B SaaS or B2B2C Recurring/Reoccurring Transacti

  19. Slide 19: Thank you

    Group Thank you Copyright 2021 Porch Group, Inc. All rights reserved 19

  20. Slide 20: Q&A

    Q&A Group Copyright 2021 Porch Group, Inc. All rights reserved 20

  21. Slide 21: Appendix

    Appendix Group Copyright 2021 Porch Group, Inc. All rights reserved 21

  22. Slide 22: Net Income to Adj EBITDA non-GAAP Reconciliation

    Net Income to Adj EBITDA non-GAAP Reconciliation Q4 2020 Q4 2019 FY 2020 FY 2019 Net loss $ (18,060) $ (20,480) $ (51,609) $ (103,319) Interest expense 5,311 6,851 14,734 7,134 Income tax (benefit) expense (1,691) 82 (1,691) 96 Depreciation and amortization 1,623 1,992 6,644 7,377 Other expense, net

  23. Slide 23: Revenue to Contribution Margin non-GAAP Reconciliation

    Revenue to Contribution Margin non-GAAP Reconciliation FY 2020 FY 2019 Revenue $ 73,216 $ 77,595 Cost of Revenue 17,562 21,500 Revenue- Cost of Revenue 55,654 56,095 Variable Selling & Marketing and Advertising 32,661 43,942 Contribution Margin(1) $ 22,993 $ 12,153 Contribution Margin % of revenue 3

  24. Slide 24: Comparing Q1 2020 Actual Revenue to Q1 2021 Forecasted

    Comparing Q1 2020 Actual Revenue to Q1 2021 Forecasted Copyright 2021 Porch Group, Inc. All rights reserved 24

  25. Slide 25: Porch Has The Potential to Grow Revenues ~20x

    (1) Porch Has The Potential to Grow Revenues ~20x 1 $1600 ~$400M ~$1.5B Mover Marketing: ~$200M potential revenue opportunity $1400 • Data monetization by shifting mover marketing 3 spend by brands from change of address to 6 $1200 weeks prior with Porch. ~$400M $1000 2 2 $800 Insurance Expansion: ~

  26. Slide 26: The Home is one of the largest market opportunities

    The Home is one of the largest market opportunities Porch has a U.S. Total Addressable Market of ~$320B Moving Services: ~$4B(1) Moving (moving, security, TV/internet) Services Mover Marketing: ~$8B(4) Mover Marketing Contractor Services: ~$141B(3) Contractor (referral, managed services gross profit

  27. Slide 27: Previous 2021 Revenue Guidance Provided in mid-January 2021

    Previous 2021 Revenue Guidance Provided in mid-January 2021 $20M $170M $44M ($14M) $48M $120M $72M+ ‘20E Revenue YoY Growth Prev ‘21 Guide +HOA -HOA Q1 Rev & +V12 2021 Revenue Estimated EIG commissions Estimated Guidance Revenue Revenue Previous Guidance: 66% YoY Growth 2021 Revenue Guidance: 134% Y

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