Porch Group, Inc. · NASDAQ:PRCH

Porch — FY2021 Earnings Presentation

43 slides from Porch's earnings presentation, Mar 16, 2022

Slide 1: Love your home. Q4 and FY 2021 Earnings Presentation
Love your home. For moving and improving and everything in between. Q4 and FY 2021 Earnings Presentation March 16, 2022 Copyright 2022 Porch Group, Inc. All rights reserved
Slide 2: Presenters
Presenters Matt Ehrlichman Marty Heimbigner CEO, Chairman & Founder CFO Porch Group Porch Group Matthew Neagle Nicole Pelley COO SVP, Product & Technology Porch Group Porch Group Copyright 2022 Porch Group, Inc. All rights reserved 2
Slide 3: 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 4: Agenda
Agenda 1. Strategy Recap 2. Q4 and FY2021 Results 3. FY 2022 Guidance 4. Segments & KPIs 5. Deep Dives: Product | M&A | Targeted Future Milestones 6. Q&A Copyright 2022 Porch Group, Inc. All rights reserved 4
Slide 6: 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 6
Slide 7: 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. Grow profitably our capital light Insurance revenue via geographic and product expansion 4. Begin
Slide 9: Strong Growth and Margin Improvement from Q4 2020
Strong Growth and Margin Improvement from Q4 2020 Year Over Q4 2020 Year▲ Q4 2021(1) $18.6M 177% Increase $51.6M Revenue Revenue 77% 73% Revenue-Cost of Revenue-Cost of Revenue Margin Revenue Margin 29% 37% Contribution Margin Contribution Margin -22% -10% Adj. EBITDA Margin Adj. EBITDA Margin Discl
Slide 10: Recap of 2021 Guidance History vs. Actuals
Recap of 2021 Guidance History vs. Actuals Latest guidance Actual $195M $192.4M Revenue Revenue ~70% 69.5% Revenue-Cost of Revenue-Cost of Revenue Margin Revenue Margin ~40% 39.2% Contribution Margin Contribution Margin -14 to -16% -12.5% Adj. EBITDA Margin Adj. EBITDA Margin Disclaimer: See Porch’s
Slide 11: 2021A Revenue: 166% Year-over-Year Growth
2021A Revenue: 166% Year-over-Year Growth Revenue Adjusted EBITDA % $192.4M G R C A % 25% ~ 75 $55M Insurance -12.5% -24% $72M $57M $36M $137M -57% Vertical Software -79% 2018PF 2019PF 2020A 2021A 2018PF 2019PF 2020A 2021A Long-Term % Growth 58% 26% 166% Target Note: PF figures are Pro Forma results
Slide 13: 2022 Guidance: 66% Revenue Growth & Adj EBITDA Improvement
2022 Guidance: 66% Revenue Growth & Adj EBITDA Improvement 2022E Guidance ~$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 Revenue ~-9% >-$26.5M YoY improvement
Slide 14: Rapid Growth Expected Across Each Key Measure
Rapid Growth Expected Across Each Key Measure Revenue Revenue Less Cost of Revenue Gross Written Premium 700 ~$320M Series 1 Series 1 ~$600M 600 250 ~$210M 500 200 $192.4M 400 150 $133.7M $307M 300 100 200 50 100 0 0 2021 2022E 2021 2022E 2021 2022E YoY 66% increase YoY 58% increase YoY 95% increase
Slide 15: 2022E: Both Strong Growth and Margin Improvement
2022E: Both Strong Growth and Margin Improvement Revenue Adjusted EBITDA % G R $320M 25% C A % ~ 73 ~$130M Insurance $192.4M ~-9% -12.5% $55M -24% Insurance ~$190M $72M Vertical $57M $137M Software -57% Vertical $36M Software -79% (1) (1) (2) 2018PF 2019PF 2020A 2021A 2022E 2018PF 2019PF 2020A 2021A
Slide 17: 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) Vertical Software ~$190M ~7% $137M 40% ~23% ~30% YoY Growth ~40% 2021 2022E Insurance ~$130M Software & Services Subscriptions (~30%)(1) B2B Recurring Fees From Compa
Slide 18: Number of Companies & Average Revenue Per Company
Number of Companies & Average Revenue Per Company (1) (2) 24,603 companies in Q4 2021 $699 revenue per company per month in Q4 2021 (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
Slide 19: Monetized Services & Average Revenue Per Monetized Service
Monetized Services & Average Revenue Per Monetized Service (1) (2) Q1 Q2 Q3 Q4 260,352 monetized services in Q4 2021 $132 revenue per monetized service in Q4 2021 (1) Monetized Services per Quarter is defined as the total number of unique consumer services from which Porch generated revenue, includi
Slide 20: Vertical Software Segment: 4Q 2021 Financials
Vertical Software Segment: 4Q 2021 Financials $35.5M 68% Revenue Less Q4 Revenue Cost of Revenue Margin 39% 9% Contribution Margin Adj. EBITDA Margin(1) Disclaimer: See Porch’s Q4 and full year 2021 earnings press release for final audited results for a reconciliation of Adjusted EBITDA (loss) as a
Slide 21: Insurance Segment: 4Q 2021 Financial Performance & KPI's
Insurance Segment: 4Q 2021 Financial Performance & KPI's $16.1M $101M Insurance (Agency in Q4 Revenue(1) Q4 GWP(2) 50 states. Carrier now live in 15 states as carrier) 83% 304K Revenue Less Policyholders Cost of Revenue Margin Warranty 33% $211 (Live in 46 states and D.C.) Annualized Revenue Per Con
Slide 31: Recent acquisitions are accelerating as part of Porch
Recent acquisitions are accelerating as part of Porch Growth in Revenue(1) ~28% ~6% 2020 Average Growth Rate 2021 Average Growth Rate (1) Companies include acquisitions from the first half of 2021: Homeowners of America, iRoofing, Palm-Tech, Rynoh and V12. Copyright 2022 Porch Group, Inc. All rights
Slide 32: Porch has a track record of improving growth post acquisition
Porch has a track record of improving growth post acquisition Growth in Revenue Growth in GWP Series 1 Series 1 45% growth 35% growth 2018 2021 19% CAGR 19% CAGR 2 years prior to acquisition 3 years prior to acquisition ISN acquired HOA acquired Q3 2017 Q2 2021 2015 2017 2018 2017 2020 2021 Growth i
Slide 33: RWS Acquisition Strengthens Porch's Warranty and Inspection Capabilities
RWS Acquisition Strengthens Porch’s Warranty and Inspection Capabilities Company Overview Strategic Rationale • Residential Warranty Services (“RWS”), based in ü Enhances Porch’s inspector offerings: Carmel, Indiana, is a national provider of home warranty products and inspector-centric software ü A
Slide 34: RWS Offers an Attractive Addition to Porch's Capabilities
RWS Offers an Attractive Addition to Porch’s Capabilities Transaction Summary • Definitive Agreements signed February 28, 2022 with closing expected in early Q2 2022 subject to certain closing conditions • Total closing consideration of $33M represents a ~3X 2022 full year estimated revenue of ~$10M
Slide 36: Porch's Key Target Milestones
Porch’s Key Target Milestones $1.5B revenue Full year positive Mid-term Adj. EBITDA revenue target 2nd half positive Adj. EBITDA 2024 $320M Revenue $600M GWP 2023 166% YoY 2022 Revenue Growth 2021 Disclaimer: See Porch’s Q4 and full year 2021 earnings press release for a reconciliation of Adjusted E
Slide 37: 39% Contribution Margin in 2021 demonstrates profit potential
39% Contribution Margin in 2021 demonstrates profit potential 2021 Expenses(1) 2021 Sales & Marketing Investments(1) ~8% B2B (51%) Largely software sales and support to companies Consumer (41%) ~51% Largely consumer sales ~41% and support teams Corporate (8%) Key Product & Technology Investments • D
Slide 38: 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, add new products (i.e. bundled auto), and convert at a higher ~$150M 4 rate to Porch customers $ 1 4 0 3 ~$400M $ 1 2 0 2 Grow in current software verticals: Sell software an
Slide 41: Balance Sheet well positioned for growth
Balance Sheet well positioned for growth Balance Sheet Cash and Restricted Cash as of Dec 31, 2021: $325M • Primary use of cash expected for M&A • Well positioned to support investments; vertical software systems, Insurtech, data platform & consumer experience Total Long-Term Debt as of Dec 31, 2021
Slide 42: Capital Structure Update
Capital Structure Update Capital Structure • Total common shares issued and outstanding as of December 31, 2021: 98.0M and 1.8M private warrants outstanding • In addition to the above, when team RSUs vest or team options both vest and are exercised, it will be added to total shares outstanding above
Slide 43: 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

Porch Group — FY2021 Earnings Presentation on 6ix

Porch — FY2021 Earnings Presentation

Slide 1: Love your home. Q4 and FY 2021 Earnings Presentation

Slide 2: Presenters

Slide 3: Disclaimers

Slide 4: Agenda

Slide 5: CEO Update

Slide 6: Porch, the Vertical Software Platform for the Home

Slide 7: Key Focus Areas for 2022

Slide 8: Q4 and FY 2021 Results

Slide 9: Strong Growth and Margin Improvement from Q4 2020

Slide 10: Recap of 2021 Guidance History vs. Actuals

Slide 11: 2021A Revenue: 166% Year-over-Year Growth

Slide 12: FY 2022 Guidance

Slide 13: 2022 Guidance: 66% Revenue Growth & Adj EBITDA Improvement

Slide 14: Rapid Growth Expected Across Each Key Measure

Slide 15: 2022E: Both Strong Growth and Margin Improvement

Slide 16: Segment Information

Slide 17: 2022E Revenue: Strong Growth in Both Vertical Software and Insurance

Slide 18: Number of Companies & Average Revenue Per Company

Slide 19: Monetized Services & Average Revenue Per Monetized Service

Slide 20: Vertical Software Segment: 4Q 2021 Financials

Slide 21: Insurance Segment: 4Q 2021 Financial Performance & KPI's

Slide 22: Product Deep Dives

Slide 23: Porch Platform

Slide 24: Onboarding

Slide 25: Welcome

Slide 26: Checklist

Slide 27: My home

Slide 28: Contacts

Slide 29: Looking Ahead: The App for your Home

Slide 30: M&A Deep Dives

Slide 31: Recent acquisitions are accelerating as part of Porch

Slide 32: Porch has a track record of improving growth post acquisition

Slide 33: RWS Acquisition Strengthens Porch's Warranty and Inspection Capabilities

Slide 34: RWS Offers an Attractive Addition to Porch's Capabilities

Slide 35: Targeted Future Milestones

Slide 36: Porch's Key Target Milestones

Slide 37: 39% Contribution Margin in 2021 demonstrates profit potential

Slide 38: Porch's Path To $1.5 Billion Mid-Term Revenue Target

Slide 39: FY 2021 Earnings Call Q&A

Slide 40: Appendix

Slide 41: Balance Sheet well positioned for growth

Slide 42: Capital Structure Update

Slide 43: Porch Group Investment Highlights