Porch Group, Inc. · NASDAQ:PRCH

Porch — Investor Presentation (August 2022)

37 slides from Porch's investor presentation, August 2022

  1. Slide 1: Love your home.

    Love your home. For moving and improving and everything in between. August 2022 Copyright 2022 Porch Group, Inc. All rights reserved

  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: Porch Group, the Vertical Software Platform for the home

    Porch Group , the Vertical Software Platform for the home Revenue $290M >28,700 Home Services Companies 2022E (from $192.4M 2021) Generate strong SaaS + transaction revenue Guidance as stated August 9, 2022 Robust Growth Strong B2B2C Monetization 51% Low-cost and early access to homebuyers 2022E YoY

  4. Slide 4: Key Focus Areas for 2022

    Key Focus Areas for 2022 1. Sell Vertical Software to more companies, increasing our reach 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. Profitably

  5. Slide 5: Porch Group, the Vertical Software Platform for the Home

    Porch Group, 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 5

  6. Slide 6: Porch Platform

    Porch Platform Consumer Experience Data Platform Embedded Transactions Proprietary Insights Copyright 2022 Porch Group, Inc. All rights reserved 6

  7. Slide 7: Porch Has Early Access to High-Intent Homebuyers

    Porch Has Early Access to High-Intent Homebuyers Everyone else Porch knows homebuyers Major move-related purchase Customer info becomes are moving ~6 weeks before the decisions​ begin to be made public (available to everyone else) move due to unique early access​ via USPS Mortgage Title file Engages

  8. Slide 8: Porch provides end-to-end comparison & provisioning for key services

    Porch provides end-to-end comparison & provisioning for key services Porch is a nationwide insurance agency selling home, auto, Insurance renters, flood and umbrella insurance. Additionally, Porch Recurring Revenue operates as an MGA and carrier for home insurance. Warranty Porch provides home warra

  9. Slide 9: Second Quarter Results

    Second Quarter Results Q2 2021 Q2 2022 $51.3M $70.8M Revenue Revenue 62% 60% Revenue Less Revenue Less Cost of Revenue Margin Cost of Revenue Margin -20% -20% Adj. EBITDA Margin(1) Adj. EBITDA Margin(1) (1) Adjusted EBITDA is a non-GAAP measure. See Porch’s Q2 2022 earnings release for an explanatio

  10. Slide 10: 2022E Guidance: 51% Revenue Growth YoY

    2022E Guidance: 51% Revenue Growth YoY ~$290M Increase of 51% from $192.4M in 2021 Revenue Guidance as stated August 9, 2022 ~$195M Increase of 46% from $133.7M in 2021 Revenue Less Cost of Revenue ~-10% >-$30.0M YoY improvements in total Adj. EBITDA (1) (Guiding to breakeven in 2H 2023 and FY 2024)

  11. Slide 11: Guidance: Strong Growth; Expects H2 '23 Adj EBITDA Profitability

    Guidance: Strong Growth; Expects H2 '23 Adj EBITDA Profitability Revenue Adjusted EBITDA % $290M 25% ~$115M Insurance $192M -12.5% ~-10% $55M Insurance -24% ~$175M $72M Vertical $57M $137M Vertical Software -57% $36M Software -79% (1) (1) 2018PF 2019PF 2020A 2021A 2022E 2018PF 2019PF 2020A 2021A 202

  12. Slide 12: 2022E Revenue: Growth Across Existing Businesses

    2022E Revenue: Growth Across Existing Businesses FY 2022E Guidance Revenue Distribution Segment Revenue Growth Vertical Software ~7% ~$175M $137M 28% ~23% ~30% YoY Growth ~40% 2021 2022E Insurance ~$115M Software & Services Subscriptions (~30%)(1) B2B Recurring Fees From Companies Move-Related Servi

  13. Slide 13: Segment Information

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

  14. Slide 14: Segments: Q2 2022 Financials

    Segments: Q2 2022 Financials Vertical Software Segment Insurance Segment $42.8M $28.0M Revenue Revenue 72% 41% Revenue Less Revenue Less Cost of Revenue Margin Cost of Revenue Margin 14% -18% Adj. EBITDA Margin(1,2) Adj. EBITDA Margin(1,3) (1) Adjusted EBITDA is a non-GAAP measure. See Porch’s Q2 20

  15. Slide 15: Number of Companies & Average Revenue Per Company

    Number of Companies & Average Revenue Per Company Av e ra g e Re v e n u e Chart P e r CoTitle (1) (2,3) Av e ra g e Nu m b e r o f Co m p a n ie s in a Q u a rt e r m p a n y P e r Mo n t h 40,000 2018 2019 2020 2021 2022 28,730 30,000 $933 $821 20,000 17,120 $556 $468 $400 10,000 10,470 10,523 10,

  16. Slide 16: Monetized Services & Average Revenue Per Monetized Service

    Monetized Services & Average Revenue Per Monetized Service Nu m b e r o f Mo n eChart t ize d Title (1) (2,3) Se rv ic e s in Q u a rt e r Av e ra g e Re v e n u e p e r Mo n e t ize d Se rv ic e 2018 2019 2020 2021 2022 $210 332k 302k 254249 $140 $158 206k 188k 182k $118 $70 $86 $63 $41 $0 Q1 Q2 Q3

  17. Slide 17: Porch Value Proposition to Software Companies

    Porch Value Proposition to Software Companies Best-in-Class Vertical Software Differentiated Value Prop Demand Generation Mortgage Inspection Movers More Copyright 2022 Porch Group, Inc. All rights reserved 17

  18. Slide 18: Extending Leadership Position in Home Inspection Industry

    Extending Leadership Position in Home Inspection Industry (1) Announcing: Home Inspector Pro Acquisition Porch Group is now monetizing ~ 40%  Considered a leading home inspector software solution of all home inspections across the U.S  Enhances Porch’s inspector offerings: • Best-in-class report w

  19. Slide 19: Net Promoter Score (NPS) Update

    Net Promoter Score (NPS) Update #1 Inspector Le a ding S MB mortga ge #1 tra ns a ction ma na ge me nt ERP / CRM(1) a utoma tion a nd point-of- s oftwa re for title compa nie s (1) s a le s olution H1 2022 NPS Score: 64 62 87 (1) Based on Porch management estimates of relative market monetization Co

  20. Slide 20: Insurance: Long-Term Fundamental Advantages

    Insurance: Long-Term Fundamental Advantages FY 2022E Revenue Guidance Distribution Key Offerings Sustainable Advantages Guidance as stated August 9, 2022 Access to low-cost consumers via Porch Proprietary data provides opportunity for enhanced underwriting and pricing capabilities ~7% Strong histori

  21. Slide 21: Insurance Segment: High-Value Protection Products

    Insurance Segment: High-Value Protection Products Agency Capital-Light InsurTech Home Warranty • Licensed in all 50 states • Operate a capital-light model, • Live in 48 states • Write Porch’s insurance ceding vast majority of • Offer innovative 3-year policy products as well as 3rd party premiums to

  22. Slide 22: Porch Protects Homeowners with Insurance & Warranty

    Porch Protects Homeowners with Insurance & Warranty Homeowners insurance & umbrella Insurance Warranty Auto insurance Appliance warranty Service line warranty Copyright 2022 Porch Group, Inc. All rights reserved 22

  23. Slide 23: Insurance Segment: Q2 2022 Performance

    Insurance Segment: Q2 2022 Performance Insurance $145M 379K (Agency in 50 states. Carrier now live in 20 states) Q2 GWP(1) Policies Warranty 88% $286 (Live in 47 states and D.C.) Customer Retention(3) Annualized Revenue Per Policy(2) Active states Approved / Signed (coming soon) Agency only (carrier

  24. Slide 24: Porch Runs a Scaled and Profitable InsurTech

    Porch Runs a Scaled (~$520M 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 Car

  25. Slide 25: 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% 20 17 -20 21 100% Ave ra g e 77% 82% 76% 74% 68% 68% 71% 60% 70% 63% 58% 59% 57% 60% 45% 46% 20 17 20 18 20 19

  26. Slide 26: 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

  27. Slide 27: Value of Proprietary Data for Claims Mitigation

    Value of Proprietary Data for Claims Mitigation Insurance Wa rra nty Wind & Hail Example: Older roofs are more easily  Data Advantage: Up to date roof ~34%(1) of industry loss damaged; replacing can exceed $10K(2) type, age and quality Water Damage Example: Water heater failure typically  Data Adv

  28. Slide 28: Thank You

    Thank You Copyright 2022 Porch Group, Inc. All rights reserved

  29. Slide 29: Appendix

    Appendix Copyright 2022 Porch Group, Inc. All rights reserved

  30. Slide 30: Massive TAM Of >$320B Continues to Expand

    Massive TAM Of >$320B Continues to Expand Moving services: ~$4B(1) (moving, security, TV/internet) Insurance: ~$172B(2) (home, auto, umbrella, flood, warranty) Contractor services: ~$140B(3) (referral, managed services gross profit) Mover marketing: ~$8B(4) Other opportunities in “Home” (SaaS fees,

  31. Slide 31: 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

  32. Slide 32: Porch's Path To $1.5 Billion Mid-Term Revenue Target

    Porch’s Path To $1.5 Billion Mid-Term Revenue Target 1 $1600 ~$150M ~$1.5B Expand our insurance business: Enter new states, grow our product offerings, and convert at a higher rate to Porch ~$150M 4 customers $1400 3 ~$400M $1200 2 Grow in current software verticals: Sell software and 2 services to

  33. Slide 33: Providing software & services to home service companies

    Providing software & services to home service companies Inspectors Inspection companies utilize Porch’s ISN software and provide Porch access to homebuyers Mortgage companies and loan officers companies utilize Mortgage Porch’s Floify software to simplify the mortgage application process and close m

  34. Slide 34: Proven Porch Management Team Has Built a Culture-Driven Business

    Proven Porch Management Team Has Built a Culture-Driven Business Matt Ehrlichman Matthew Neagle Marty Heimbigner CEO, Chairman, & Founder Chief Operating Officer Chief Financial Officer Nicole Pelley Adam Kornick Matt Cullen Malcolm Conner Mike Glanz Joshua Steffan Janet Zimmerman SVP of Product Pre

  35. Slide 35: Welcome: Consumer App Demo

    Consumer App Demo Welcome Copyright 2022 Porch Group, Inc. All rights reserved 35

  36. Slide 36: Looking Ahead: The App for your Home

    Looking Ahead: The App for your Home Copyright 2022 Porch Group, Inc. All rights reserved 36

  37. Slide 37: Copyright 2022 Porch Group, Inc. All rights reserved

    Copyright 2022 Porch Group, Inc. All rights reserved 37

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