Slide 1: Investor Presentation October 2020
Investor Presentation October 2020 Group Love your home. For moving and improving and everything in between.
Slide 2: Disclaimers
DISCLAIMERS 2 Copyright 2020 Porch.com. All rights reserved Information Subject to Change This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to the proposed business combination of PropTech Acqu
Slide 3: Disclaimers
DISCLAIMERS 3 Copyright 2020 Porch.com. All rights reserved 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: Introductions
Introduction s Dena Singleton VP People • HR Leader at Apptio, Starbucks, Microsoft, and Pepsi Matt Ehrlichman CEO & Founder • CSO, Active Network (IPO) • CEO, Thriva (sold for >$60M) Matthew Neagle CRO • Prin. Product Manager, Amazon • SMB Ad Sales & Operations, Google Nicole Pelley VP Product • Gr
Slide 5: Porch aligns with PTAC's investment objectives
Porch aligns with PTAC’s investment objectives ~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 Screen S e le c t Exec ute Implied Transaction EV
Slide 6: Indicative Transaction Overview
Indicative Transaction Overview Transaction Structure ▪ 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 close in Q4 2020 ▪ Post - clos
Slide 7: Large Addressable Market, Strong Unit Economics, Defensible Moat
Large Addressable Market Strong Unit Economics Attractive Financial Results Defensible Moat Creates a Sustainable Advantage Software for home service companies provides early access to homebuyers and unique data about the home >$200B addressable TAM that will continue to expand (1) For the period Au
Slide 8: Porch Introduction
Porch Introduction 8 Copyright 2020 Porch.com. All rights reserved
Slide 9: Transitioned to a Vertical Software Platform for Home Service Companies
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 consistent and reoccurring access to homebuyers in
Slide 10: Software & Services for Companies, Access to Consumers, Deliver Services
Software & Services for Companies Access to C onsum er s Deliver Servi c e s 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 companies, Porch gains early access to homeb
Slide 11: Software & Services for Companies
Software & Services for Companies Access to C onsum er s Deliver Servi c e s #1 Moving Labor + Full Service ~11,000 Co m p a n i e s (1) (1) #1 Inspector ERP / CRM (1) Based on Porch management estimates of relative market share. Porch provides software and services to home services companies (such
Slide 12: ~11,000 companies; nearly two-thirds of U.S. homebuyers
~11,000 companies Nearly two - thirds of U.S. homebuyers flow Software & Services for Companies through Porch’s software platform. (1) Approx. one quarter of U.S. homebuyers provided to Porch by companies to help make the move and home maintenance easy. (2) 26% of all U.S. home inspections are manag
Slide 13: 780K Monetized Services
Software & Services for Companies Access to C onsum er s Deliver S e r v ic e s 780K Monetized Services (1) Porch generates a majority of its revenues via a B2B2C transaction model, assisting consumers provided by companies with service purchases. Current services include moving, insurance, security
Slide 14: Porch by the numbers
Porch by the numbers 14 Copyright 2020 Porch.com. All rights reserved About Us 2013 Launched Sept ‘13 900 Full - time team members (1) Customers ~11,000 Contracted Recurring Companies (2) Seattl e Headquarters Nation a l Coverage Key Financial Metrics 780K 2019 Monetized Services (7) $73M 2020E Reve
Slide 15: Porch provides software & services to several home service industries
Real Estate Uti l ities Wa r r anty I nspecto r s 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 companies provide Porch access to homebuyers
Slide 16: Leading ERP/CRM software
B2B - Software & Services for Companies L ead ing ERP / C RM s o f twar e (1) DASHBOARDS CUSTOMER CRM CALENDAR & DISPATCH ONLINE BOOKING & SCHEDULING REPORTING PAYMENT PROCESSING (1) Based on Porch management estimates of relative market share. (2) For 2019, Porch generated approximately $4 per insp
Slide 17: Porch's unique value proposition creates strong results
Porch’s unique value proposition creates strong results B2B - Software & Services for Companies “ Porch will be a game changer in our industry … Porch’s CRM has turned me from a technician to a business owner , and keeps me focused on growing my business. ” Pam Pybas, Founder Inspect It Like A Girl
Slide 18: Companies introduce Porch to help their homebuyers
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 home maintenance Self - Service Moving Dashboard to
Slide 19: Access to homebuyers through channel companies
Home Ins p ec ti o n CRM / ERP software compani e s Nearly 2/3rds of all U.S. homebuyers are processed through Porch’s software by Inspections lead to early insights 6 weeks pre - move (1) B2B2C - Access to Consumers Companies provide Porch uniquely vast access to homebuyers ~1/4 of all U.S. homebuy
Slide 20: Porch knows homebuyers are moving weeks before the move
Porch knows homebuyers are moving 6 weeks before the move due to unique early access (1) 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 homebuyers 6 weeks pre - move, when most valuab
Slide 21: Services across the lifetime of the home
Core Focus 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 quality professionals Porch supports l
Slide 22: End-to-end comparison & provisioning for key services
Porch provides end - to - end comparison & provisioning for key services Moving Per job revenue Contractors Per lead/appt revenue TV/Internet Per install revenue Insurance Commission revenue Porch is a nationwide insurance agency, quoting and selling P&C insurance to homebuyers and renters. This inc
Slide 23: Financial Overview
Financial Overview 23 Copyright 2020 Porch.com. All rights reserved
Slide 24: Financial Results and Projections
- $10 $7 $29 $47 $57 81% 83% 78% 81% Gross Profit Gross Margin $97 $36 $57 $73 $120 Gross Profit ($ mm) Financial Results and Projections R e v e n ue ($ mm) $11 $26 $53 Contribution Margin ($ mm) Adjusted EBITDA ($ mm) 2 0 1 8 PF 2 0 1 9 PF 2020E % Growth 292% 161% 87% 2 0 1 8 PF 2 0 1 9 PF 2020E $
Slide 25: Revenue quality leads to targeted 25% long-term Adjusted EBITDA margins
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 to selling consumers insurance, moving, secur
Slide 26: Industries rapidly rebounding from COVID
Porch operates in industries rapidly rebounding from COVID Home Inspections 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 record going back to 1968. (1)
Slide 27: Looking Forward
Looking Forward 27 Copyright 2020 Porch.com. All rights reserved
Slide 28: U.S. Total Addressable Market
Contractor Services Moving S e r v ic e s Insurance Contractor Services: $141B (referral, managed services gross profit) ( 1) Moving Services: $4B (moving, security, TV/internet) P&C Insurance: $83B (2) (home, auto, umbrella, flood) U.S. Total Addressable Market (“TAM”): Trillion dollar market poten
Slide 29: Core business revenue potential in 5-7 years
$73M ~$5 00M 2020E R e v e nue Core Business Growth Revenue Potential in 5 - 7 Years Core business growth has potential to increase 30 - 35% annually 30 - 35% CAGR (1) # of B2B clients Increase organically through sales & marketing Increase through SaaS acquisitions % of B2B clients that grant acces
Slide 30: Core growth levers
Core growth levers: clear opportunities to continue strong growth 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 Access Pricing Porch’s Revenue Per Homebuyer with
Slide 31: Potential to grow revenues ~20x
$73M ~$ 500M ~$400M ~$1.5B 2020E Re v enue Core B u sin e ss Growth R e v enue Po te n ti a l in 5 - 7 Years Mover Marketing Insurance Expansion New Home Service Verticals Upside Potential ~$ 200M ~$ 400 M Porch has the potential to grow revenues ~20x (1) New Vertical Expansion: ~$400M potential rev
Slide 32: M&A pipeline and track record
Porch has a compelling M&A pipeline and the track record to execute Management Experience CEO has led >25 acquisitions CFO has led 40 buy - side acquisitions Corp Dev leader with >30 M&A deals Porch has a strong M&A playbook Home service with recurring revenue Ability to accelerate growth within Por
Slide 33: Platform creates significant growth for acquisitions
Porch’s innovative platform creates significant growth for acquisitions Summary: Founded in 2007, HireAHelper offers SaaS for moving companies and a highly rated consumer experience for comparing and booking any moving service. Key Initiatives: 1. Product Expansion: Launched integrated Movers + Truc
Slide 34: Unique platform creates long-term advantages
Porch’s unique platform creates significant long - term advantages Vertical Software Platform Reoccurring B2B2C Transaction Revenue Marketplace SaaS Predictable and repeatable revenue Sticky customer base Controllable sales channel High customer LTV No ability to capture broad monetization opportuni
Slide 35: Transaction Overview
Transaction Overview 35 Copyright 2020 Porch.com. All rights reserved
Slide 36: Pro Forma Ownership Structure
Pro Forma Ownership Structure (8) 5% 2% Existing Porch Equity Rollover (4) 18% PTAC Public Shareholders 20% 55% PIPE Investors PTAC Sponsor Shareholders Other (9) 36 Copyright 2020 Porch.com. All rights reserved Pro Forma Equity Ownership ($M) Sources Porch Shares (1) $ 376 Estimated Cash Held in Tr
Slide 37: Financial + Operational Benchmarking
Financial + Operational Benchmarking Sources: Company filings and S&P Capital IQ. Note: Market data as of July 22, 2020. Porch provides a rare combination of value + growth 7 0 % 6 0 % 5 0 % 4 0 % 3 0 % 2 0 % 1 0 % 0% 37 Copyright 2020 Porch.com. All rights reserved 2.0 x 7.0 x 12.0 x 17.0 x 22.0 x
Slide 38: Thank you
38 Thank you Group Copyright 2020 Porch.com. All rights reserved
Slide 39: Appendix
39 Appendix Group Copyright 2020 Porch.com. All rights reserved
Slide 40: Values-led culture
No Jerks / No Egos Be Ambitious Solve Each Problem Care Deeply Together We Win 40 Copyright 2020 Porch.com. All rights reserved Porch has built a values - led culture and business
Slide 41: Public KPIs through Q2 2020
Public KPIs through Q2 2020 (1) Porch management defines average companies in a quarter as the number of home services companies across all of Porch’s home services verticals that (i) had reoccurring revenue contracts with us and (ii) generated revenue each month, averaged across a quarterly period.
Slide 42: The Porch journey so far
The Porch journey so far… we are just getting started 2013 - 2014 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 providing CRM solutions to companies who
Slide 43: Strategy to build a winner in the Home market
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 How: Software and services to help companies grow and delight their customers How: Software - using companies introduce Porch ~6 weeks e
Slide 44: Operational Benchmarking
2018PF - 2021E Revenue CAGR 49.0% 26 . 6 % 15.0% 13.5% 37 . 4 % 23.8% 24.9% 28.2% 16.7% Median: 15.0% Median: 26.6% Operational Benchmarking Porch’s operating metrics compare favorably to its publicly traded peers 80 . 8 % 91.3% 91.0% 82.8% 76.9% 76.8% 61.4% 80.4% 62.4% 2021E Gross Profit Margin Med
Slide 45: Valuation Benchmarking
Valuation Benchmarking The indicative Transaction valuation is attractive on an absolute and on a relative basis 4.4 x 13.2 x 14.6 x 6.0 x 16.8 x 10.0 x 21.9 x 8.8 x 4.1 x EV / 2021E Revenue Median: 13.2x Median: 13.4x 5.4 x 21.6 x 18.2 x 9.6 x 18.5 x 12.1 x 28.4 x 11.5 x 4.4 x EV / 2021E Gross Prof
Slide 46: EV / NTM Revenue
EV / NTM Revenue 8.0x 6.0x 4.0x 2.0x 0.0 x 1 8 . 0x 1 6 . 0x 1 4 . 0x 1 2 . 0x 1 0 . 0x 2 0 . 0x 5 - Year Avg: 8.1x Public Company Comparables Include: CoStar, The Trade Desk, HubSpot, Zendesk, Alteryx, ANGI HomeServices, RealPage, AppFolio, Shopify, Bill.com and Goosehead. Source: Capital IQ. 46 Co
Slide 47: Average of the Top EV / NTM Revenue Multiples
Average of the Top 5 EV / NTM Revenue Multiples 0.0 x 5 . 0 x 1 0 . 0x 1 5 . 0x 2 0 . 0x 2 5 . 0x 3 0 . 0x 5 - Year Avg: 10.5x Public Company Comparables Include: CoStar, The Trade Desk, HubSpot, Zendesk, Alteryx, ANGI HomeServices, RealPage, AppFolio, Shopify, Bill.com and Goosehead. Source: Capita
Slide 48: EV / NTM Revenue (CAGR >20%)
EV / NTM Revenue (CAGR >20%) 0.0 x 5 . 0 x 1 0 . 0x 1 5 . 0x 2 0 . 0x 2 5 . 0x 5 - Year Avg: 8.4x 48 Copyright 2020 Porch.com. All rights reserved Today at: 19.2x Public Company Comparables Include : CoStar, The Trade Desk, HubSpot, Zendesk, Alteryx, ANGI HomeServices, RealPage, AppFolio, Shopify, B
Slide 49: EV / NTM Revenue / Growth Multiples
EV / NTM Revenue / Growth Multiples 0.0 x 0 . 1 x 0 . 2 x 0 . 3 x 0 . 4 x 0 . 5 x 5 - Year Avg: 0.2x 49 Copyright 2020 Porch.com. All rights reserved Today at: 0.4x Public Company Comparables Include : CoStar, The Trade Desk, HubSpot, Zendesk, Alteryx, ANGI HomeServices, RealPage, AppFolio, Shopify,
Slide 50: M&A Benchmarking
M&A Benchmarking Two relevant comparable transactions were priced at a ~95% premium to the proposed Porch Transaction $1,8 2 9M 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: Company filings and S&P Capital IQ based o
Slide 51: Non-GAAP Reconciliation – Net Loss to Pro Forma Adjusted EBITDA
Non - GAAP Reconciliation – Net Loss To Pro Forma Adjusted EBITDA 51 Copyright 2020 Porch.com. All rights reserved (#039;s in millions) 2018 Actual 2019 Actual 2020E Forecast 2021E Forecast Net income (loss) ($50) ($56) ($34) ($11) Interest expense $4 $7 $12 $4 Other, net ($2) ($0) $0 $0 Income tax exp
Slide 52: Non-GAAP Reconciliation – Pro Forma Gross Profit Contribution Margin
Non - GAAP Reconciliation – Pro Forma Gross Profit Contribution Margin 52 Copyright 2020 Porch.com. All rights reserved (#039;s in millions) 2018PF Actual 2019PF Actual 2020E Forecast 2021E Forecast Revenue $36 $57 $73 $120 Cost of revenue $7 $10 $16 $23 Gross profit $29 $47 $57 $97 Variable compensati
Slide 53: Non-GAAP Reconciliation – Actuals to Pro Forma Gross Profit
Non - GAAP Reconciliation – Actuals to Pro Forma Gross Profit 53 Copyright 2020 Porch.com. All rights reserved (#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