Slide 1: Investor Presentation July 2020 - The partner for your home
1 Investor Presentation July 2020 The partner for your home Love your home. For moving and improving and everything in between
Slide 2: Disclaimers
Copyright 2020 Porch.com. All rights reserved 2 DISCLAIMERS 2 Information Subject to Change The information, including financial information, contained herein has not been finalized and is subject to change. PropTech Acq uisition Corporation (“PTAC”) intends to file a registration statement on Form
Slide 3: Disclaimers
Copyright 2020 Porch.com. All rights reserved DISCLAIMERS 3 Porch uses these non - GAAP measures to compare Porch’s performance to that of prior periods for budgeting and planning purposes . PTAC and Porch believe these non - GAAP measures of financial results provide useful information to managemen
Slide 4: PTAC and Porch leadership
Copyright 2020 Porch.com. All rights reserved 4 Co - CEO & CFO – PropTech Acquisition Corporation Managing Partner – Hennessy Capital Real Estate Strategies Former Senior Investment Manager at Abu Dhabi Investment Authority (ADIA) Experience: Previously with Goldman Sachs Investment Bank Joe Beck Co
Slide 5: Porch aligns with PTAC's investment objectives
Copyright 2020 Porch.com. All rights reserved Porch aligns with PTAC’s investment objectives 5 ~350 PropTech companies reviewed (companies that are bringing innovation to real estate) Established companies with considerable scale Quantitative Metrics Qualitative Metrics Ready to be public Identify S
Slide 6: Indicative Transaction Overview
Copyright 2020 Porch.com. All rights reserved Indicative Transaction Overview 6 ▪ PropTech Acquisition Corporation (“PTAC”) has proposed to enter a business combination (the “Transaction”) with Porch.com, Inc. (“Porch”), a vertical software platform for the home ▪ The Transaction is expected to clos
Slide 7: Investment highlights
Copyright 2020 Porch.com. All rights reserved Large Addressable Market Strong Unit Economics Attractive Financial Results Defensible Moat Creates a Sustainable Advantage >$200B addressable TAM that will continue to expand 30x LTV/CAC Inspector SaaS Companies 49% Expected 3 year revenue CAGR 78% 2020
Slide 8: Porch Introduction
Copyright 2020 Porch.com. All rights reserved 8 Porch Introduction
Slide 9: Transitioned to a Vertical Software Platform for Home Service Companies
Copyright 2020 Porch.com. All rights reserved 9 Transitioned to a Vertical Software Platform for Home Service Companies with Reoccurring B2B2C Transaction Revenue Leading ERP/CRM software for home inspectors and moving companies creates high retention rates. Companies (software customers) provide co
Slide 10: Software & Services for Companies, Access to Consumers, Deliver Services
Copyright 2020 Porch.com. All rights reserved 10 Software & Services for Companies Access to Consumers Deliver Services 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. 2. Through these c
Slide 11: Software & Services for Companies
Copyright 2020 Porch.com. All rights reserved Software & Services for Companies Access to Consumers Deliver Services 11 #1 Moving Labor + Full Service #1 Inspector ERP / CRM 11,0 00 Companies (1) (1) (1) Based on Porch management estimates of relative market share. Porch provides software and servic
Slide 12: Early access to homebuyers at scale through 11,000 companies
Copyright 2020 Porch.com. All rights reserved 12 Porch has early access to homebuyers at large scale by way of 11,000 companies. 65% of U.S. homebuyers flow through Porch’s software platform. (1) 27% of U.S. homebuyers provided to Porch by companies to help make the move and home maintenance easy. (
Slide 13: Monetized services via B2B2C transaction model
Copyright 2020 Porch.com. All rights reserved Software & Services for Companies Access to Consumers Deliver Services 13 Licensed insurance agency 780K Monetized Services (1) Porch generates a majority of its revenues via a B2B2C transaction model, assisting consumers provided by companies with servi
Slide 14: Porch by the numbers
Copyright 2020 Porch.com. All rights reserved 14 Porch by the numbers 14 About Us 2013 Launched Sept ‘13 90 0 Full - time team members (1) 11 ,000 Contracted Recurring Companies (2) Headquarters National Coverage Seattle Key Financial Metrics 780K $73M 2020E Revenue >50% YoY 2021E Revenue Growth 202
Slide 15: Porch provides software & services to several home service industries
Copyright 2020 Porch.com. All rights reserved 15 Real Estate Utilities Warranty Inspectors Inspection companies utilize Porch’s ISN software and provide Porch access to homebuyers Porch provides agents with inspection booking tools and a Repair Estimate Report and Moving Concierge Home Warranty comp
Slide 16: B2B - Software & Services for Companies
Copyright 2020 Porch.com. All rights reserved 16 B2B - Software & Services for Companies DASHBOARDS CUSTOMER CRM CALENDAR & DISPATCH ONLINE BOOKING & SCHEDULING REPORTING PAYMENT PROCESSING (1) (1) Based on Porch management estimates of relative market share. (2) For 2019, Porch generated approximat
Slide 17: Case Study: Inspect It Like A Girl
Copyright 2020 Porch.com. All rights reserved Porch’s unique value proposition creates strong results Case Study: Inspect It Like A Girl (“ILG”) is an inspection company using Porch’s CRM, Moving Concierge, and other modules. 17 B2B - Software & Services for Companies “ Porch will be a game changer
Slide 18: Companies introduce Porch to help their homebuyers
Copyright 2020 Porch.com. All rights reserved 18 18 Companies introduce Porch to help their homebuyers in many ways B2B2C - Access to Consumers Moving Concierge Personal (and free) Moving Concierge teams with Porch’s in - house insurance agents to assist with all aspects of the move and any ongoing
Slide 19: Access to consumers through inspection, moving, utilities, warranty, real estate
Copyright 2020 Porch.com. All rights reserved Home Inspection Inspections lead to early insights 6 weeks pre - move 65% of all U.S. homebuyers are processed through Porch’s software by companies Companies provide Porch uniquely vast access to homebuyers B2B2C - Access to Consumers 19 27% of all U.S.
Slide 20: Porch knows homebuyers are moving weeks before the move
Copyright 2020 Porch.com. All rights reserved Porch knows homebuyers are moving 6 weeks before the move due to unique early access 71% of movers make major move related purchase decisions Customer info becomes public (i.e. available to everyone else) via USPS 5 - 60 days post - move Porch sees homeb
Slide 21: Future Opportunities across the lifetime of the home
Copyright 2020 Porch.com. All rights reserved Future Opportunities Porch’s unique access to the consumer allows it to deliver services across the lifetime of the home Porch assists homebuyers with all of their move - in service needs Porch supports all maintenance requests with fixed pricing and qua
Slide 22: End-to-end comparison & provisioning for key services
Copyright 2020 Porch.com. All rights reserved Porch provides end - to - end comparison & provisioning for key services 22 Moving Contractors TV/Internet Insurance Porch is a nationwide insurance agency, quoting and selling P&C insurance to homebuyers and renters. This includes home, auto, flood and
Slide 23: Financial Overview
Copyright 2020 Porch.com. All rights reserved 23 Financial Overview
Slide 24: Financial Results and Projections
Copyright 2020 Porch.com. All rights reserved 24 - $29 - $30 - $10 $7 $29 $47 $57 $97 81% 83% 78% 81% Gross Profit Gross Margin ($ mm) $36 $57 $73 $120 2018PF 2019PF 2020 2021 Financial Results and Projections Gross Profit Revenue ($ mm) 24 $3 $11 $26 $53 2018PF 2019PF 2020PF 2021PF Contribution Mar
Slide 25: Revenue mix and targeted 25% long-term Adjusted EBITDA margins
Copyright 2020 Porch.com. All rights reserved Diverse, quality, and reoccurring revenue leads to targeted 25% long - term Adjusted EBITDA margins (1) B2B includes recurring fees paid by Companies to Porch for SaaS and other services. (2) B2B2C (Moving Services) includes revenue predominantly related
Slide 26: Industries rapidly rebounding from COVID
Copyright 2020 Porch.com. All rights reserved Porch operates in industries rapidly rebounding from COVID The volume of home inspections processed through Porch nationwide bottomed out at a 42% YoY decline in April 2020. Existing - home sales in June 2020 experienced the biggest monthly increase on r
Slide 27: Looking Forward
Copyright 2020 Porch.com. All rights reserved 27 Looking Forward
Slide 28: Values-led culture and business
Copyright 2020 Porch.com. All rights reserved 28 No Jerks / No Egos Be Ambitious Solve Each Problem Care Deeply Together We Win Porch has built a values - led culture and business Dena Singleton VP People • HR Leader at Apptio, Starbucks, Microsoft, and Pepsi Matt Ehrlichman CEO & Founder • CSO, Act
Slide 29: U.S. Total Addressable Market
Copyright 2020 Porch.com. All rights reserved 29 Contractor Services Moving Services Insurance Contractor Services: $ 141 B (referral, managed services gross profit) Moving Services: $4B (moving, security, TV/internet) P&C Insurance: $ 83 B (home, auto, umbrella, flood) U.S. Total Addressable Market
Slide 30: Core business growth potential
Copyright 2020 Porch.com. All rights reserved $73M ~$500M - $100 $200 $300 $400 $500 2020E Revenue Core Business Growth Revenue Potential in 5 - 7 Years Core business growth has potential to increase 30 - 35% annually 30 30 - 35% CAGR (1) Increase organically through sales & marketing Increase throu
Slide 31: Core growth levers
Copyright 2020 Porch.com. All rights reserved Core growth levers: clear opportunities to continue strong growth 31 59% of companies don't yet pay with access Porch sees a 6x increase in revenue when they do SaaS Fee Pricing Companies pay ~$4 fee per transaction for using Porch software $4 Customer A
Slide 32: Potential to grow revenues ~20x
Copyright 2020 Porch.com. All rights reserved $73M ~$500M ~$1.5B - $200 $400 $600 $800 $1000 $1200 $1400 $1600 2020E Revenue Core Business Growth Revenue Potential in 5 - 7 Years Mover Marketing Insurance Expansion New Home Service Verticals Upside Potential ~$200M ~$400M ~$400M Porch has the potent
Slide 33: M&A pipeline and track record to execute
Copyright 2020 Porch.com. All rights reserved Porch has a compelling M&A pipeline and the track record to execute 33 Management Experience CEO has led >25 acquisitions CFO has led 40 buy - side acquisitions Corp Dev leader with >30 M&A deals Porch has a strong M&A playbook Home service with recurrin
Slide 34: Platform creates growth for acquisitions
Copyright 2020 Porch.com. All rights reserved 34 Porch’s innovative platform creates significant growth for acquisitions Summary: Founded in 2007, H ireAHelper offers SaaS for moving companies and a highly rated consumer experience for comparing and booking any moving service. Key Initiatives: 1. Pr
Slide 35: Strategy to build a winner in the Home market
Copyright 2020 Porch.com. All rights reserved Be a critical partner for home service companies Companies give unique access to consumers We build trust as the Moving Concierge Vertically integrate in insurance Monetize data with mover marketing How: Software and services to help companies grow and d
Slide 36: Transaction Overview
Copyright 2020 Porch.com. All rights reserved Transaction Overview 36
Slide 37: Pro Forma Ownership Structure, Sources and Uses
Copyright 2020 Porch.com. All rights reserved Pro Forma Ownership Structure (8)(9) Pro Forma Equity Ownership 1 Sources Porch Shares (1) $366 Estimated Cash Held in Trust (2) $174 Proceeds from PIPE (3) $150 Total Sources $689 Uses Equity Consideration to Porch Existing Shareholders (4) $366 Cash Pr
Slide 38: Unique platform creates long-term advantages
Copyright 2020 Porch.com. All rights reserved Porch’s unique platform creates significant long - term advantages Vertical Software Platform Reoccurring B2B2C Transaction Revenue Marketplace SaaS Predictable and repeatable revenue Sticky customer base Controllable sales channel High customer LTV No a
Slide 39: Operational Benchmarking
Copyright 2020 Porch.com. All rights reserved 49.0% 26.6% 15.0% 13.5% 37.4% 23.8% 24.9% 28.2% 16.7% 1 2 3 4 5 6 7 8 9 10 11 12 2018PF - 2021E Revenue CAGR Median: 15.0% Median: 26.6% Operational Benchmarking 39 Porch’s operating metrics compare favorably to its publicly traded peers Sources: Company
Slide 40: Valuation Benchmarking
Copyright 2020 Porch.com. All rights reserved Valuation Benchmarking 40 Sources: Company filings and S&P Capital IQ. Note: Market data as of July 22, 2020. (1) High Growth / High Margin Software competitive set defined as companies with greater than 20% projected 2021 Y - o - Y revenue growt h and g
Slide 41: Financial + Operational Benchmarking
Copyright 2020 Porch.com. All rights reserved Financial + Operational Benchmarking 41 Sources: Company filings and S&P Capital IQ. Note: Market data as of July 22, 2020. Porch provides a rare combination of value + growth 0% 10% 20% 30% 40% 50% 60% 70% 2.0 x 7.0 x 12.0 x 17.0 x 22.0 x Revenue Growth
Slide 42: M&A Benchmarking
Copyright 2020 Porch.com. All rights reserved M&A Benchmarking 42 Two relevant comparable transactions were priced at a ~95% premium to the proposed Porch Transaction $1,829M Implied EV 6.5x EV / NTM Revenue $2,503M Implied EV 10.6x EV / NTM Revenue 02/15/19 Closed Date 07/24/14 Closed Date Sources:
Slide 43: Thank you
Copyright 2020 Porch.com. All rights reserved 43 Thank you The partner for your home
Slide 44: Appendix
Copyright 2020 Porch.com. All rights reserved 44 Appendix The partner for your home
Slide 45: Non-GAAP Reconciliation – Net Loss To Pro Forma Adjusted EBITDA
Copyright 2020 Porch.com. All rights reserved Non - GAAP Reconciliation – Net Loss To Pro Forma Adjusted EBITDA 45 (#039;s in millions) 2018 2019 2020E 2021E Actual Actual Forecast Forecast Net income (loss) ($50) ($56) ($34) ($11) Interest expense $4 $7 $12 $4 Other, net ($2) ($0) $0 $0 Income tax exp
Slide 46: Non-GAAP Reconciliation – Pro Forma Gross Profit Contribution Margin
Copyright 2020 Porch.com. All rights reserved Non - GAAP Reconciliation – Pro Forma Gross Profit Contribution Margin 46 (#039;s in millions) 2018PF 2019PF 2020E 2021E Actual Actual Forecast Forecast Revenue $36 $57 $73 $120 Cost of revenue $7 $10 $16 $23 Gross profit $29 $47 $57 $97 Variable compensati
Slide 47: Non-GAAP Reconciliation – Actuals to Pro Forma Gross Profit
Copyright 2020 Porch.com. All rights reserved Non - GAAP Reconciliation – Actuals to Pro Forma Gross Profit 47 (#039;s in millions) 2018 2019 Revenue $54 $78 Revenue from divested businesses ($18) ($21) Pro forma revenue $36 $57 Cost of revenue $15 $22 Cost of revenue from divested businesses ($8) ($12
Slide 48: The Porch journey so far
Copyright 2020 Porch.com. All rights reserved The Porch journey so far… we are just getting started 48 Launch Porch launches with over 1.5 million professionals listed Vertical software platform Porch quietly makes its key pivot, transitioning to becoming a vertical software platform and begins prov