Porch Group, Inc. · NASDAQ:PRCH
Porch — Q4 2024 Earnings Presentation
31 slides from Porch's earnings presentation, Feb 25, 2025
Slide 1: Q4 2024 Earnings Presentation
Q4 2024 Earnings Presentation February 25, 2025 Copyright 2025 Porch Group, Inc. All rights reserved
Slide 2: Disclaimers
Disclaimers Financial Targets Porch is providing guidance and targets for future periods in this presentation based on current market conditions, assumptions, and expectations as of the date of this presentation. Actual results may vary due to a number of factors and there is no guarantee that we wi
Slide 3: Agenda
Agenda Matt Ehrlichman CEO, Chairman & Founder Key Updates Shawn Tabak Chief Financial Officer Financials & Guidance Matthew Neagle Chief Operating Officer Strategic Update & KPIs Copyright 2025 Porch Group, Inc. All rights reserved 3
Slide 4: Key Updates
Key Updates Matt Ehrlichman CEO, Chairman & Founder Copyright 2025 Porch Group, Inc. All rights reserved 4
Slide 5: Porch: A New Kind Of Homeowners Insurance Company
Porch: A New Kind Of Homeowners Insurance Company Vertical Software Insurance Services for Consumers Differentiators to win Unique assets, strong SaaS Warranty, moving and home SaaS forand margins home inspection, insights into US management services title, mortgage, and roofing homebuyers Advantage
Slide 6: Achieved Full Year Profitability Goal
Achieved Full Year Profitability Goal 1 Achieved quarterly record: Q4 2024 Adj EBITDA of $42m and Net Income of $30m 2 2025 guidance raised: Adj EBITDA of $60m (>$50m increase from 2024) 3 2026 target re-affirmed: Adj EBITDA of $100m 4 Expect Porch to generate positive cash for shareholders in 2025
Slide 7: Financials & Guidance
Financials & Guidance Shawn Tabak Chief Financial Officer Copyright 2025 Porch Group, Inc. All rights reserved 7
Slide 8: Q4'24 Highlights: Record Quarterly Adjusted EBITDA
Q4’24 Highlights: Record Quarterly Adjusted EBITDA Revenue Revenue less Cost Adj EBITDA Gross Written of Revenue Premium $114.6 $112 $112 (12)% $100.4 $9m EIG, +$26m Vesttoo1 divested in impact $89.3 Jan’24 $79.9 +12% $41.8 +$30m $11.7 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 70% 89% 10% 42%
Slide 9: Q4'24 Highlights: Record Quarterly Adjusted EBITDA
Q4’24 Highlights: Record Quarterly Adjusted EBITDA Gross Written Revenue Revenue less Cost of Revenue Adj EBITDA Premium $114.6 $112 $112 (12)% $100.4 $9m EIG, +$26m Vesttoo1 divested in impact $89.3 Jan’24 $79.9 +12% $41.8 +$30m $103… $11.7 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 70% 89% 10
Slide 10: Q4'24 Highlights: Record Quarterly Adjusted EBITDA
Q4’24 Highlights: Record Quarterly Adjusted EBITDA Revenue Revenue less Cost Adj EBITDA Gross Written of Revenue Premium $114.6 $112 $112 (12)% $100.4 $9m EIG, +$26m Vesttoo1 divested in impact $89.3 Jan’24 $79.9 +12% $41.8 +$30m $11.7 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 70% 89% 10% 42%
Slide 11: Premium & SaaS Price Increases Benefit Revenue
Premium & SaaS Price Increases Benefit Revenue Insurance Revenue Vertical Software Revenue $86.9 (17)% +$26m $72.0 Vesttoo1 impact $27.7 $29.3 +6% Q4'23 Q4'24 Q4'23 Q4'24 • Revenue decrease driven by Vesttoo • $29m Vertical Software Revenue, increase driven by SaaS revenue growth • Partially offset
Slide 12: Q4'24 Adj EBITDA: Improvement Across Each Segment
Q4’24 Adj EBITDA: Improvement Across Each Segment Insurance Vertical Software Corporate Adj EBITDA Adj EBITDA Expenses $48.8 +$17m $31.6 +$5m $5.0 $8m improvement ($19.7) ($12.0) Q4'23 Q4'24 ($0.3) Q4'23 Q4'24 36% 68% (1)% 17% Q4'23 17% Q4'24 12% Adjusted EBITDA margin Adjusted EBITDA margin As a %
Slide 13: FY'24 Highlights: Full Year Adjusted EBITDA Profitability
FY’24 Highlights: Full Year Adjusted EBITDA Profitability Revenue Revenue less Cost Adj EBITDA Gross Written of Revenue Premium $430.3 +2% $437.8 $525 (14)% $49m EIG, +$55m divested in $452 Vesttoo1 Jan’24 impact $210.1 $212.2 +1% +$52m $7.2 ($44.5) FY'23 FY'24 Q4'23 Q4'24 FY'23 FY'24 49% 48% (10)%
Slide 14: Improved Balance Sheet For Porch Shareholders Following PIRE Formation
Improved Balance Sheet For Porch Shareholders Following PIRE Formation $106 $49 $93 $70 December 31, 2024 January 31, 2025 1 Porch cash & investments Surplus notes • Reciprocal improves Porch Cash + Investments1 following formation on January 1, 2025 • $70m Porch Cash + Investments at December 31, 2
Slide 15: 2025 Disclosure Changes
2025 Disclosure Changes 2024 From Q1 2025 Legacy Segments 2025 New Segments Insurance Porch Shareholder Interests Vertical Software Insurance Services less corporate expenses Software & Data Consumer Services less corporate expenses Porch Group Consolidated Above plus PIRE1 Legacy KPIs New KPIs alig
Slide 16: Porch Shareholder Interests 2025 Guidance
Porch Shareholder Interests 2025 Guidance 2025 guidance relates to Porch Shareholder Interests and excludes PIRE Revenue $390m to $410m An increase from prior 2025 target Gross Profit $310m to $325m Results in ~80% Gross Profit margin Adjusted EBITDA $55m to $65m >$50m increase compared to 2024 Note
Slide 17: Strategic Update & KPIs
Strategic Update & KPIs Matthew Neagle Chief Operating Officer Copyright 2025 Porch Group, Inc. All rights reserved 17
Slide 18: Strategic Growth Areas
Strategic Growth Areas Scaling Insurance Premiums Software Innovation • Sales team expansion • Inspection AI helper in report • Adding agencies writers • Premium per policy increases • Rynoh advanced reporting • New geographies capabilities Growth of the Data Business Access More Homebuyers • Proof
Slide 19: Q4 2024 KPIs
Q4 2024 KPIs 27k • (10)% compared to Q4’23 driven by housing market impact on industries Avg Number of Companies $1,236 • (3)% compared to Q4’23 driven by lower insurance revenue Avg Revenue per Company per Month 219k • Broadly flat compared to Q4’23 Monetized Services $390 • (13)% compared to Q4’23
Slide 20: Insurance KPIs
Insurance KPIs Insurance Segment KPIs1: $112m 206k $1,396 Gross Written Policies in Force Annualized Revenue Premium Per Policy Q4’23: $112m Q4’23: 310k Q4’23: $1,120 Insurance Carrier (HOA) KPIs: $2,446 105% $157m Annualized Premium Premium Retention Surplus Combined with Per Policy Nonadmitted Ass
Slide 21: Loss Ratio Improvement Driven By Profitability Actions
Loss Ratio Improvement Driven By Profitability Actions Q4 Gross Loss Ratio1 FY Gross Loss Ratio1 Gross Combined Ratio Improved 15pp YoY Improved 4pp YoY Improved 9pp YoY 88% 79% 69% 65% 35% Impact of CAT weather claims 43% 36% Impact of 6% CAT weather claims 21% 5% 34% Attritional 30% Loss Ratio2 22
Slide 22: Wrap Up
Wrap Up Matt Ehrlichman CEO, Chairman & Founder Copyright 2025 Porch Group, Inc. All rights reserved 22
Slide 23: Strategic Goals
Strategic Goals 1 Achieve $100 million Adjusted EBITDA in 2026 2 Scale insurance premiums to $3 billion 3 Build a large and defensible data business 4 Grow our software and consumer services businesses 5 Generate cash for shareholders Copyright 2025 Porch Group, Inc. All rights reserved 23
Slide 24: Wrap Up
Wrap Up 1 Achieved record quarterly Adj EBITDA of $42m in Q4’24 (Net Income $30m) 2 Adjusted EBITDA: On track for $100m in 2026, increased 2025 guidance to $60m mid-point 3 Formed Porch Insurance Reciprocal Exchange and sold HOA as expected 4 Re-opened for premium growth Notes: All numbers are $mill
Slide 25: Q4 2024 Earnings Q&A
Q4 2024 Earnings Q&A Copyright 2025 Porch Group, Inc. All rights reserved 25
Slide 26: Appendix
Q4 2024 Earnings APPENDIX Copyright 2025 Porch Group, Inc. All rights reserved 26
Slide 27: Operating Cash Flow
Operating Cash Flow Reconciliation to Adj EBITDA Q4 2023 Q4 2024 Operating Cash Flow $(41)m $(27)m Working capital and other $43m $57m Cash interest expense $10m $11m Adjusted EBITDA $12m $42m Reconciliation to Free Cash Flow Q4 2023 Q4 2024 Operating Cash Flow $(41)m $(27)m Capitalized software cos
Slide 28: Upcoming Segment Reporting Change
Upcoming Segment Reporting Change ● Following the formation of PIRE and its acquisition of HOA, we expect to report under new segments starting Q1 2025 ● Instead of the historical Insurance and Vertical Software segments, we expect to report under Insurance Services, What is changing? Software & Dat
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes non-GAAP financial measures, such as Adjusted EBITDA (Loss), Adjusted EBITDA (Loss) margin, free cash flow, and attritional loss ratio. We define Adjusted EBITDA (Loss) as net income (loss) attributable to Porch stockholders adjusted for interes
Slide 30: Glossary
Glossary Term Definition AIF Attorney-in-fact, the Porch Risk Management Services entity that is a subsidiary of Porch Group. We define Annualized Premium Per Policy as the total direct earned premium for Homeowners of America (“HOA”), our insurance carrier, divided by the number of active insurance
Slide 31: Thank You
THANK YOU Email: IR@porch.com Website: IR.porchgroup.com Copyright 2025 Porch Group, Inc. All rights reserved 31