Porch Group, Inc. · NASDAQ:PRCH

Porch — Investor Presentation (May 2022)

36 slides from Porch's investor presentation, May 2022

  1. Slide 1: Love your home.

    Love your home. For moving and improving and everything in between. May 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, the Vertical Software Platform for the home

    Porch, the Vertical Software Platform for the home Revenue $320M >25,500 Home Services Companies 2022E (from $192.4M 2021) Generate strong SaaS + transaction revenue Robust Growth Strong B2B2C Monetization Guidance as stated May 10, 2022 Low-cost and early access to homebuyers 66% 2022E YoY Revenue

  4. Slide 4: 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. Profitably grow our capital light Insurance revenue via geographic and product expansion 4. Begin

  5. Slide 5: 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 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 w

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

    Porch provides end-to-end comparison & provisioning for key services (1) 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 and soon auto and umbrella(1) Warranty Po

  9. Slide 9: Strong Growth and Margin Improvement from Q1 2021

    Strong Growth and Margin Improvement from Q1 2021 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 Margin1 Adj. EBITDA Margin1 $102M Gross Written Premium 1) Adjusted EBITDA is a Non-GAAP number; See Porch’s Q1

  10. Slide 10: 2022 Guidance: 66% Revenue Growth & Adj EBITDA Improvement

    2022 Guidance: 66% Revenue Growth & Adj EBITDA Improvement 2022E Guidance Guidance as stated May 10, 2022 ~$320M $302.5M + $17.5M from announced acquisitions (RWS = $7.5M of $10M annualized; CSE = $10M of $25M annualized) Revenue ~$210M Increase of 58% from $133.7M in 2021 Revenue Less Cost of Reven

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

    2022E: Both Strong Growth and Margin Improvement Revenue Adjusted EBITDA(1) % G R $320M C A % 25% ~ 73 ~$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 20

  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) Guidance as stated May 10, 2022 Vertical Software ~$190M ~7% $137M 40% ~23% ~30% YoY Growth ~40% 2021 2022E Insurance ~$130M Software & Services Subscriptions (~30%)(

  13. Slide 13: Segment Information

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

  14. Slide 14: 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(1,2) Adj. EBITDA Margin(1,3) (1) Adjusted EBITDA is a Non-GAAP number; See Porch’s Q1 2022

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

    Number of Companies & Average Revenue Per Company Average Number of Companies in a Quarter (1) Average RevenueChart Title (2,3) 30,000 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 25,51

  16. Slide 16: 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

  17. Slide 17: Vertical Software: Delivering Recurring SaaS Revenue

    Vertical Software: Delivering Recurring SaaS Revenue FY 2022E Revenue Guidance Distribution Key Verticals Pricing Growth Initiatives Guidance as stated May 10, 2022 (2) B2B Subscription Monthly minimum Consumer app to reach and fees that scale with help all inspection Fees represent use consumers wi

  18. Slide 18: 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 18

  19. Slide 19: Insurance: Long-Term Fundamental Advantages

    Insurance: Long-Term Fundamental Advantages FY 2022E Revenue Guidance Distribution Key Offerings Sustainable Advantages Guidance as stated May 10, 2022 Access to low-cost consumers via Porch (1) Proprietary data provides opportunity for enhanced underwriting and pricing capabilities ~7% Strong histo

  20. Slide 20: Insurance Segment: High-Value Protection Products

    Insurance Segment: High-Value Protection Products (1) Agency Capital-Light InsurTech Home Warranty • Licensed in all 50 states • Operate a capital-light model, • Selling policies in 46 states • Write Porch’s insurance ceding vast majority of • Utilize innovative 3-year policy products as well as 3rd

  21. Slide 21: 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 21

  22. Slide 22: Insurance Segment: Q1 2022 Financial Performance & KPI's

    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) Warranty 89% $330 (Live in 50 states and D.C.) Customer Retention(3) Annualized Revenue Per Policyholder(2) Active states Approved / Signed

  23. Slide 23: Porch Runs a Scaled and Profitable InsurTech

    Porch Runs a Scaled (~$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 Car

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Value of Proprietary Data for Claims Mitigation

    Value of Proprietary Data for Claims Mitigation Insurance Warranty Wind & Hail Example: Older roofs are more easily ü 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 ü Data Advan

  27. Slide 27: Thank You

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

  28. Slide 28: Appendix

    Appendix Copyright 2022 Porch Group, Inc. All rights reserved

  29. Slide 29: 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,

  30. Slide 30: 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 operat

  31. Slide 31: Porch's Path To $1.5 Billion Mid-Term Revenue Target

    Porch’s Path To $1.5 Billion Mid-Term Revenue Target 1 $ 1 6 0 ~$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 $ 1 4 0 3 ~$400M $ 1 2 0 2 Grow in current software verticals: Sell software and $ 1 0 0

  32. Slide 32: 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

  33. Slide 33: 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 Walter Ruddy CEO, Chairman, & Founder Chief Operating Officer Chief Financial Officer Head of Investor Relations and Treasury Nicole Pelley Adam Kornick Matt Cullen Malcolm Conner Mike Gl

  34. Slide 34: Welcome: Consumer App Demo

    Consumer App Demo Welcome Copyright 2022 Porch Group, Inc. All rights reserved 34

  35. Slide 35: Looking Ahead: The App for your Home

    Looking Ahead: The App for your Home Copyright 2022 Porch Group, Inc. All rights reserved 35

  36. Slide 36: Copyright 2022 Porch Group, Inc. All rights reserved

    Copyright 2022 Porch Group, Inc. All rights reserved 36

Porch Group — Investor Presentation (May 2022) on 6ix