Porch Group, Inc. · NASDAQ:PRCH
Porch — Investor Presentation (March 2022)
36 slides from Porch's investor presentation, March 2022
Slide 1: Love your home.
Love your home. For moving and improving and everything in between. March 2022 Copyright 2022 Porch Group, Inc. All rights reserved
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: Porch, the Vertical Software Platform for the home
Porch, the Vertical Software Platform for the home Revenue $320M >24,000 Home Services Companies 2022E (from $192.4M 2021) Generate strong SaaS + transaction revenue Robust Growth Strong B2B2C Monetization Low-cost and early access to homebuyers 66% 2022E YoY Revenue Growth Large InsurTech & Warrant
Slide 4: 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 4
Slide 5: Porch Platform
Porch Platform Consumer Experience Data Platform Embedded Transactions Proprietary Insights Copyright 2022 Porch Group, Inc. All rights reserved 5
Slide 6: 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
Slide 7: 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) (2) Warrant
Slide 8: 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 9: 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 10: 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 11: Segment Information
Segment Information Copyright 2022 Porch Group, Inc. All rights reserved
Slide 12: 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 13: 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 13
Slide 14: 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 a reconciliation of Adjusted EBITDA (loss) as a percentage of revenue and
Slide 15: 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
Slide 16: 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 16
Slide 17: 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 18: Porch Runs a Scaled Capital-Light InsurTech
Porch Runs a Scaled (~$600M GWP(1)) Capital-Light InsurTech Porch’s high-performing gross loss ratio allows Porch and reinsurers both attractive financial results Ceded to 3rd party reinsurers 3 Year Average(2) Statutory NWP / GWP Retained by 100% company 2.2% 57.4% 73.5% 93.0% 90% 97.8% 80% 70% 60%
Slide 19: Porch Has Unique Property Data to Better Assess Risk
Porch Has Unique Property Data to Better Assess Risk • Make, model and serial number of appliances • Roof type, quality, and issues • Interior issues (drywall, electrical, etc.) • Exterior issues (windows, foundation, etc.) • Water risks (water system location, pipe type, sump pump, etc.) • Home ins
Slide 20: 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
Slide 21: Porch Has a Successful and Repeatable M&A Strategy
Porch Has a Successful and Repeatable M&A Strategy Proven ability to significantly accelerate revenue of an acquired company when part of Porch Strong M&A pipeline to fuel continued M&A Acquisitions set the stage for strong future growth Large opportunity set Consistent evaluation framework (1) Effi
Slide 22: 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 23: Porch Progresses Rapidly Massive TAM Of >$320B
Porch Progresses Rapidly Massive TAM Of >$320B $192.4M 166% $600M ~25% 2021 Revenue Target Long Term 2021 Revenue GWP 2022 Guide Growth Adj. EBITDA(1) Margin 24k+ ~$700 1M+ $132 Avg. Number of Revenue per 2021 Monetized Revenue Per Software Customers Company per Month Services Monetized Service Note
Slide 24: Thank You
Thank You Copyright 2022 Porch Group, Inc. All rights reserved
Slide 25: Appendix
Appendix Copyright 2022 Porch Group, Inc. All rights reserved
Slide 26: 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 27: 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 28: 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,
Slide 29: 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
Slide 30: 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
Slide 31: 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
Slide 32: 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 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
Slide 34: Welcome: Consumer App Demo
Consumer App Demo Welcome Copyright 2022 Porch Group, Inc. All rights reserved 34
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
Slide 36: Thank You!
Thank You! Copyright 2022 Porch Group, Inc. All rights reserved 36