Porch Group, Inc. · NASDAQ:PRCH
Porch — Q1 2021 Earnings Presentation
30 slides from Porch's earnings presentation, May 17, 2021
Slide 1: Love your home. Q1 2021 Earnings Presentation
Love your home. For moving and improving and everything in between. Group Q1 2021 Earnings Presentation May 17, 2021 Copyright 2021 Porch Group, Inc. All rights reserved 1
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
Slide 3: Presenters
Presenters Matt Ehrlichman Marty Heimbigner CEO & Founder, Porch Group CFO, Porch Group Matthew Neagle Nicole Pelley COO, Porch Group VP Product, Porch Group Copyright 2021 Porch Group, Inc. All rights reserved 3
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
Slide 5: Copyright 2021 Porch Group, Inc. All rights reserved
Copyright 2021 Porch Group, Inc. All rights reserved 5
Slide 6: 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
Slide 7: Q1 2021 Results & 2021E Guidance
Q1 2021 Results & 2021E Guidance Group Copyright 2021 Porch Group, Inc. All rights reserved 7
Slide 8: Strong Year-over-Year Growth
Strong Year-over-Year Growth Q1 2021 Actuals YoY ▲ Q1 2020 PF Actuals (1) $14.1M $26.7M or +112% $12.6M 2% pts 78% 80% 36% pts 41% 5% 43% pts -36% -79% (1) PF stands for Pro Forma to account for the removal of financial results related to past divested businesses. Disclaimer: See Appendix for a reco
Slide 9: Q1 Revenue Grew 112% Year-over-Year and Beat Q1 Guidance
Q1 Revenue Grew 112% Year-over-Year and Beat Q1 Guidance Q1 2021 Revenue vs Q1 Revenue Guidance Revenue Growth if M&A occurred Jan 1, 2021 ~$25.0M ~$37.6M Incremental growth with ~$11M full quarter of Pro Forma M&A (i.e. HOA, M&A $3.7M $26.7M V12) Higher $23.0M Revenue $14.1M Actual YoY Growth (112%
Slide 10: Raising FY 2021E Revenue Guidance and Reiterating Margin Guidance
Raising FY 2021E Revenue Guidance and Reiterating Margin Guidance Previous 2021E Guidance Guidance ▲ Current 2021E Guidance $175M $178M (143% YoY Growth) (147% YoY Growth) New ~72% No Change ~40% ~40% No Change -10% to -16% -10% to -16% Disclaimer: Porch is not providing reconciliations of forward-l
Slide 11: 2021E Revenue: 147% Growth with ~90% Recurring or Reoccurring
2021E Revenue: 147% Growth with ~90% Recurring or Reoccurring Revenue FY 2021E Guidance Revenue Distribution $178M (2) 10% $50M (HOA + V12) 25% (1) $85M 65% $72M $57M $36M (3) Software & Services Subscriptions B2B Recurring Fees From Companies (4) Move-Related Transactions 2018PF 2019PF 2020A 2021E
Slide 12: 2021E Contribution Margin % and Adjusted EBITDA % Continued Growth
2021E Contribution Margin % and Adjusted EBITDA % Continued Growth Contribution Margin % Adjusted EBITDA % 50% 25% 40% 31% -10% to -16% -25% 19% -57% 7% -79% 2018PF 2019PF 2020A 2021E Long-Term 2018PF 2019PF 2020A 2021E Long-Term Target Target Note: PF figures are Pro Forma results which exclude the
Slide 13: KPIs – Number of Companies & Average Revenue Per Company
KPIs – Number of Companies & Average Revenue Per Company (1) (2) Q1 Q2 Q3 Q4 (1) Porch management defines average companies in a quarter as an average of the end of period number of companies with the beginning of period number, inclusive of all companies across Porch’s home services verticals that
Slide 14: KPIs – Monetized Services for Consumers
KPIs – Monetized Services for Consumers (1) (2) Q1 Q2 Q3 Q4 (1) Monetized Services per Quarter is defined as the total number of unique consumer services from which Porch generated revenue, including, but not limited to, new and renewing insurance customers, completed moving jobs, security installat
Slide 15: Deep Dives
Deep Dives Group Copyright 2021 Porch Group, Inc. All rights reserved 15
Slide 16: InsurTech Update
InsurTech Update Gross Written Premium – 2021E Guidance HOA State Expansion Plan $275M (from $270M) Active States Target States (2021-2022) Ceding vs Retaining Premium Gross Loss Ratios – 2020 Results ~90% Premium Ceded to 3rd party reinsurers 59% Premium Held by HOA (backed with XOL reinsurance) Co
Slide 17: NPS Scores – what our different customers think of us
NPS Scores – what our different customers think of us Our Companies Our Consumers Q1 2021 Q1 2021 75 Insurance Agency Customers 75 30 TV/Internet Customers 85 Moving Customers 52 Copyright 2021 Porch Group, Inc. All rights reserved 17
Slide 18: Porch offers modules incremental to base SaaS product
Porch offers modules incremental to base SaaS product Inspection Report Writer Payment Processing • Creates clean, • Adds integrated credit card simple and easy to payment processing into our understand reports software • Configurable • Opportunity to offer additional inspection points, payment prod
Slide 19: Product & Technology Investment Areas
Product & Technology Investment Areas Vertical Software systems InsurTech • Simplifying the quoting and binding process for consumers • Optimizing pricing based on best data available Data Platform Consumer Experience • A best-in-class data • Improving the move platform that brings experience for co
Slide 20: 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 2. Large and ideal consumer audience provided via software companies, with low acquisition costs 3 3. Unique, substantial, and valuable property data which no one else has 4 4.
Slide 21: Thank you
Group Thank you Copyright 2021 Porch Group, Inc. All rights reserved 21
Slide 22: Q&A
Q&A Group Copyright 2021 Porch Group, Inc. All rights reserved 22
Slide 23: Appendix
Appendix Group Copyright 2021 Porch Group, Inc. All rights reserved 23
Slide 24: Cash position is strong
Cash position is strong Balance Sheet Capital Structure Cash as of March 31, 2021: $223M • Total shares outstanding as of May 14, 2021: 96.2M • Primary use of cash expected for M&A • Well positioned to support investments; vertical In addition to the above, when team RSUs vest or team software syste
Slide 25: Net Income to Adj EBITDA non-GAAP Reconciliation
Net Income to Adj EBITDA non-GAAP Reconciliation ($ in 000's) Q1 2021 Q1 2020 Net income (loss) $ (65,101) $ (18,367) (1) Interest expense 1,223 3,086 Income tax (benefit) expense (350) 21 Depreciation and amortization 2,463 1,789 (2) Other expense, net (83) 1,874 Non-cash bonus expense 290 — Non-ca
Slide 26: Revenue to Contribution Margin non-GAAP Reconciliation
Revenue to Contribution Margin non-GAAP Reconciliation ($ in 000's) Q1 2021 Q1 2020 Revenue $ 26,742 $ 15,074 Cost of Revenue 5,930 4,099 Revenue - Cost of Revenue 20,812 10,974 Variable Selling & Marketing and Advertising 9,728 10,492 (1) Contribution Margin $ 11,084 $ 482 Contribution Margin % of
Slide 27: Net Income to Adj EBITDA non-GAAP Reconciliation
Net Income to Adj EBITDA non-GAAP Reconciliation ($ in 000's) FY 2020 (as filed) FY 2020 (as restated) FY 2019 Net income (loss) $ (51,609) $ (54,032) $ (103,319) Interest expense (1) 14,734 14,734 7,134 Income tax (benefit) expense (1,691) (1,689) 96 Depreciation and amortization 6,644 6,644 7,377
Slide 28: Revenue to Contribution Margin non-GAAP Reconciliation
Revenue to Contribution Margin non-GAAP Reconciliation ($ in 000's) FY 2020 (as filed) FY 2020 (as restated) FY 2019 Revenue $ 73,216 $ 72,300 $ 77,595 Cost of Revenue 17,562 17,562 21,500 Revenue - Cost of Revenue 55,654 54,738 56,095 Variable Selling & Marketing and Advertising 32,661 32,328 43,94
Slide 29: Porch Has The Potential to Grow Revenues ~20x
(1) Porch Has The Potential to Grow Revenues ~20x 1 $1600 ~$200M ~$1.5B Insurance Expansion: ~$400M potential revenue opportunity $1400 3 ~$400M • Expand from an insurance agency to a Managing General Agent (MGA) / carrier. $1200 2 $1000 ~$400M 2 $800 New Vertical Expansion: ~$400M potential revenue
Slide 30: 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