Porch Group, Inc. · NASDAQ:PRCH
Porch — Q3 2021 Earnings Presentation
28 slides from Porch's earnings presentation, Nov 15, 2021
Slide 1: Love your home. Q3 2021 Earnings Presentation
Love your home. For moving and improving and everything in between. Q3 2021 Earnings Presentation November 15, 2021 Copyright 2021 Porch Group, Inc. All rights reserved 1
Slide 2: Presenters
Presenters Matt Ehrlichman Marty Heimbigner CEO & Founder, Porch Group CFO, Porch Group Matthew Neagle Adam Kornick COO, Porch Group President, Porch’s InsurTech Division Copyright 2021 Porch Group, Inc. All rights reserved
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: Q3 2021 Earnings Call Kick-off
Q3 2021 Earnings Call Kick-off Copyright 2021 Porch Group, Inc. All rights reserved 4
Slide 5: Porch, the Vertical Software Platform for the Home
Porch, the Vertical Software Platform for the Home (1) Vertical Software Insurance (SaaS + Transaction) (Carrier, Agency & Warranty) (2) (1) Floify acquired October 27, 2021 (2) CSE Insurance Group subject to regulatory approval; anticipated for mid-2022 (3) Customer acquisition cost Copyright 2021
Slide 6: Key Focus Areas for 2021
6 Key Focus Areas for 2021 1. Grow SaaS revenue as we increase the number of companies using our vertical software 2. Increase access to consumers from software companies 3. Increase B2B2C transaction revenue per consumer 4. Continue to scale our Insurance (carrier, agency & warranty) business 5. He
Slide 7: Q3 2021 Results & 2021E Guidance
Q3 2021 Results & 2021E Guidance Copyright 2021 Porch Group, Inc. All rights reserved 7
Slide 8: Strong Q3 Revenue Growth of 192% Year-over-Year
Strong Q3 Revenue Growth of 192% Year-over-Year Q3 2021 vs. Q3 2020 $62.8M $21.5M Q3 2020 Q3 2021 YoY 192% increase Copyright 2021 Porch Group, Inc. All rights reserved 8
Slide 9: Strong Growth and Margin Improvement from Q2 to Q3
Strong Growth and Margin Improvement from Q2 to Q3 Quarter Over Q2 2021 Quarter ▲ Q3 2021 $51.3M $62.8M Revenue Revenue 62% 69% Revenue-Cost of Revenue-Cost of Revenue Margin Revenue Margin 33% 45% Contribution Margin Contribution Margin -20% +1% Adj. EBITDA Margin Adj. EBITDA Margin Disclaimer: See
Slide 10: FY 2021E Guidance Update: Raising '21 Revenue Guidance to $195M
FY 2021E Guidance Update: Raising ‘21 Revenue Guidance to $195M Previous 2021E Guidance Guidance▲ Current 2021E Guidance $187.5M $195M Revenue Revenue (170% YoY Growth) ~72% ~70% Adj. for mix shift Revenue Less Revenue Less Cost of Revenue Margin Cost of Revenue Margin ~40% No Change ~40% Contributi
Slide 11: 2021E Revenue: 170% Year-over-Year Growth
2021E Revenue: 170% Year-over-Year Growth Revenue 2021 M&A(2) FY 2021E Guidance Revenue Distribution (acquired revenue at time $195M of announcement) $33.5M HOA: $30M AHP: $3.5M ~10% $61M Insurance ~28% ~31% $26M V12: $20M Rynoh: $4M $85M(1) Floify: $2M ~31% $72M $57M $36M $134M Software & Services
Slide 12: 2021E Contribution Margin % and Adjusted EBITDA % Continued Growth
2021E Contribution Margin % and Adjusted EBITDA % Continued Growth Contribution Margin % Adjusted EBITDA % 50% 25% ~40% 34% -14% to -16% -24% 19% -57% 7% -79% 2018PF 2019PF 2020PF 2021E Long-Term 2018PF 2019PF 2020PF 2021E Long-Term Target Target Note: PF figures are Pro Forma results which exclude
Slide 13: Segment Deep Dive
Segment Deep Dive Copyright 2021 Porch Group, Inc. All rights reserved 13
Slide 14: Number of Companies & Average Revenue Per Company
Number of Companies & Average Revenue Per Company (1) (2) 20,472 companies in Q3 2021 $1,022 revenue per company per month in Q3 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 a
Slide 15: Monetized Services & Average Revenue Per Monetized Service
Monetized Services & Average Revenue Per Monetized Service (1) (2) Q1 Q2 Q3 Q4 329,359 monetized services in Q3 2021 $144 revenue per monetized service in Q3 2021 (1) Monetized Services per Quarter is defined as the total number of unique consumer services from which Porch generated revenue, includi
Slide 16: Porch is a Leading Software Provider in Key Home Verticals
Porch is a Leading Software Provider in Key Home Verticals #1 Inspector ERP / CRM(1) Leading SMB mortgage #1 transaction management #1 moving labor + full service(1) automation and point-of- software for title companies(1) sale solution(2) (1) Based on Porch management estimates of relative market s
Slide 17: 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 2021 Porch Group, Inc. All rights reserved 17
Slide 18: Vertical Software Segment: Q3 2021 Financials
Vertical Software Segment: Q3 2021 Financials $42.3M 66% Revenue Less Q3 Revenue Cost of Revenue Margin 42% 18% Contribution Margin Adj. EBITDA Margin(1) Disclaimer: See Porch’s third quarter 2021 earnings press release for a reconciliation of Adjusted EBITDA (loss) as a percentage of revenue and Co
Slide 19: 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 45 states • Write Porch’s insurance ceding vast majority of • Utilize innovative 3-year policy products as well as 3rd
Slide 20: Insurance Segment: 3Q 2021 Financial Performance & KPI's
Insurance Segment: 3Q 2021 Financial Performance & KPI's $20.5M $108M Insurance (Live in 10 Q3 Revenue Q3 GWP(1) states as carrier) 77% 292K Revenue Less Policyholders Cost of Revenue Margin Warranty 54% $281 (Live in 45 states and D.C.) Annualized Revenue Per Contribution Margin Policyholder(2) 27%
Slide 21: Porch Runs a Scaled Capital-Light InsurTech
Porch Runs a Scaled (~$430M 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 22: Value of Proprietary Data for Claims Mitigation
Value of Proprietary Data for Claims Mitigation Insurance Warranty Wind & Hail Example: Older roofs are more easily ✓ Data Advantage: Up to date roof type, ~34%(1) of industry loss damaged; replacing can exceed $10K(2) age and quality Water Damage Example: Water heater failure typically ✓ Data Advan
Slide 23: 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 2. Large and ideal consumer audience provided via software companies, with low acquisition costs 3 3. Unique, substantial, and valuable property data 4 4. Large insurance opera
Slide 24: Thank you
Thank you Copyright 2021 Porch Group, Inc. All rights reserved 24
Slide 25: Q&A
Q&A Copyright 2021 Porch Group, Inc. All rights reserved 25
Slide 26: Appendix
Appendix Copyright 2021 Porch Group, Inc. All rights reserved 26
Slide 27: Balance Sheet well positioned for growth
Balance Sheet well positioned for growth Balance Sheet Cash and Restricted Cash as of Sept 30, 2021: $416M • 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 Sept 30, 20
Slide 28: Capital Structure Update
Capital Structure Update Capital Structure • Total common shares outstanding as of Sept 30, 2021: 97.3M 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. This relates