Porch Group (PRCH) Q2 2022 Results Highlights

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  • Porch Group (PRCH) recently released its second quarter 2022 results. Those are the details.

Porch Group (PRCH) recently released its second quarter 2022 results. Below are the highlights.

Q2 2022 financial results

– Total revenue for the second quarter of 2022 was $70.8 million, an increase of $19.5 million from $51.3 million in the second quarter of 2021.

– Revenue less cost of revenue for the second quarter of 2022 was $42.2 million or 59.6% of total revenue, compared to $31.8 million or 62.0% of total revenue for the second quarter of 2021.

– GAAP net loss for the second quarter of 2022 totaled $26.4 million, compared to a GAAP net loss of $16.3 million for the second quarter of 2021.

– Adjusted EBITDA loss for the second quarter of 2022 totaled $14.3 million or -20.2% of total revenue, compared to an adjusted EBITDA loss of $9.9 million or -19.3% of total revenues for the second quarter of 2021. Second quarter profitability was and is expected to remain lower than the second half of the year due to the seasonality of insurance loss costs primarily in Texas, concentrated in the months of the second quarter, as well as an increase in Sarbanes-Oxley-related consulting expenses to ensure the controls work is completed with time for testing before the year-end audit.

Financial outlook for the full year 2022

Porch Group provided updated guidance based on current market conditions and expectations, with the acquisition of CSE no longer included and auto insurance no longer expected to be offered in 2022:

Previous 2022E Guide

Guidelines 2022E updated

Revenue ~$320 million

∆ Drivers: Cancellation of the acquisition of the CSE; Small macroeconomic adjustment; Increase of approximately $50 million in unrestricted cash to EOY (CSE purchase price)

Revenue ~ $290 million

Vertical Software Revenues ~$190M

Insurance revenue ~$130 million

Vertical Software Revenues ~$175M

Insurance revenue ~$115 million

Revenue less revenue cost ~$210 million

Revenue minus revenue cost ~$195 million

Adj. EBITDA~-9% and > -26.5M$

Adj. EBITDA ~-10% and >-$30.0M

Gross written premium ARR at YE 20221 ~$600 million

Gross written premium recorded in 20221 ~ $520 million

KEY QUOTES:

“Porch Group delivered strong revenue and operating performance in the second quarter, and we continue to execute on our strategy of providing software to more home service companies involved in the home buying process while helping consumers with key services such as insurance. Our continued growth, despite the effects of inflation and a slowing housing market, highlights the recurring nature of our insurance and software revenues and our strong strategic position. As we enter the second half of the year, macro headwinds may persist, but we look forward to continued improvement in revenue and margins, progress in the integrations of our acquired business units and progress in our model. commercial differentiated and small capitalization home insurance. We are focused on driving the business toward profitability, without sacrificing progress against our key strategic growth initiatives. »

– Matt Ehrlichman, Founder and CEO of Porch Group

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