• Porch Group Reports Fourth Quarter and Full Year 2021 Financial Results

    来源: Nasdaq GlobeNewswire / 01 3月 2022 16:27:23   America/New_York

    - Reports $192.4 Million of Full Year 2021 Revenue, up 166% Year-Over-Year -

    - Provides 2022 Guidance of $320 Million in Revenue and $600 Million of Gross Written Premium, Representing 66% and 95% Year-over-Year Growth Respectively; Targets Approximately -9% EBITDA Margin in 2022 -

    - Announces acquisition of Residential Warranty Services to Continue Expansion Into Home Warranty and Home Inspection Software -

    SEATTLE, March 01, 2022 (GLOBE NEWSWIRE) -- Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a leading vertical software company reinventing the home services and insurance industries, today reported financial results for the fourth quarter and full year ended December 31, 2021.

    “Our operational and strategic execution delivered strong fourth quarter and full year results, highlighted by $192.4 million in full year revenues as well as our first quarter of Adjusted EBITDA profitability in the third quarter,” said Matt Ehrlichman, Founder, Chairman and CEO. “In our first year as a public company we continued to grow our position in key verticals such as home inspection, expanded into new software verticals such as mortgage and title, enhanced our insurance and warranty offerings via the acquisitions of Homeowners of America and American Home Protect, increased our insurance footprint into many new states, and raised capital to fund future growth. I am proud of the efforts of our team. We are excited to continue to build on our 2021 accomplishments and continue to execute on our strategy in 2022.”

    Fourth Quarter 2021 Financial Results

    • Total revenue for the fourth quarter of 2021 was $51.6 million, an increase of 172% from $18.6 million in the fourth quarter of 2020.
    • Revenue less cost of revenue for the fourth quarter 2021 was $40.9 million or 79% of total revenue, compared to $14.7 million or 77% of total revenue for the fourth quarter of 2020.
    • Contribution margin was $22.4 million or 44% of total revenue, compared to $5.8 million or 31% of total revenue for the fourth quarter of 2020.
    • GAAP net loss for the fourth quarter of 2021 totaled $22.6 million, compared to a GAAP net loss of $20.5 million for the fourth quarter of 2020.
    • Adjusted EBITDA loss for the fourth quarter of 2021 totaled $7.9 million or -15% of total revenue, compared to an Adjusted EBITDA loss of $4.0 million or -22% of total revenue for the fourth quarter of 2020.

    Segment Results for the Fourth Quarter 2021

    • Vertical Software revenue for the quarter was $35.5 million, revenue less cost of revenue was $24.1 million or 68% of Vertical Software revenue, contribution margin was $14.0 million or 39% of Vertical Software revenue and Adjusted EBITDA was $3.2 million or 9% of Vertical Software revenue.
    • Insurance revenue for the quarter was $16.1 million, revenue less cost of revenue was $16.8 million or 104% of Insurance revenue, contribution margin was $8.7 million or 54% of Insurance revenue and Adjusted EBITDA was $3.4 million or 21% of Insurance revenue. These results reflect the full year impact of a change to how Homeowners of America accounts for claims fees as described later in this release.
    • Insurance gross written premium for the quarter was $101 million with 304 thousand policyholders.

    Fourth Quarter 2021 and Recent Operational Highlights

    • Announced the acquisition of Floify, a leading SaaS provider for mortgage companies and loan officers.
    • Homeowners of America, a Porch Group Subsidiary, continued its nationwide expansion plan, now operating in 15 states.
    • Launched nationwide inspection pop-up conferences for home inspectors on its Inspection Fuel Tour.
    • Announced the addition of a new Pay-At-Close module to its suite of software solutions provided to home inspection companies through its inspection software business, Inspection Support Network.

    Fourth Quarter 2021 Key Performance Indicators (KPIs)
    Software and services to companies:

    • Average number of companies increased to 24,603 from 11,157 in Q4 2020.
    • Average revenue per company per month increased 26% to $699 from $556 in Q4 2020.

    Monetized services for consumers:

    • Number of monetized services was 260,352 in Q4 2021, up from 169,949 in Q4 2020.
    • Average revenue per monetized service was $132, a 35% increase from $98 in Q4 2020.

    Full Year 2021 Financial Results

    • Total revenue for the full year 2021 was $192.4 million, an increase of 166% from total revenue of $72.3 million for the full year 2020.
    • Revenue less cost of revenue for the full year 2021 was $137.1 million or 71% of total revenue for the full year 2021, compared to $54.7 million or 76% of total revenue for the full year 2020.
    • Contribution margin was $78.8 million for the full year 2021 or 41% of total revenue for the full year 2021, compared to $22.4 million or 31% of total revenue for the full year 2020.
    • GAAP net loss for the full year of 2021 totaled $109.1 million, compared to a GAAP net loss of $54.0 million for the full year 2020.
    • Adjusted EBITDA loss, a non-GAAP metric, for the full year 2021 totaled $26.5 or -13.8% of total revenue), an improvement on a percentage basis from the Adjusted EBITDA loss of $18.3 million or -25% of total revenue for the full year 2020.

    Segment Results for the Full Year 2021

    • Vertical Software revenue for the full year 2021 was $137.2 million, revenue less cost of revenue was $96.6 million or 70% of full year Vertical Software revenue, contribution margin was $57.4 or 42% of Vertical Software revenue, and Adjusted EBITDA was $20.7 million or 15% of Vertical Software revenue
    • Insurance revenue was $55.3 million, revenue less cost of revenue $40.6 million or 73% of Insurance revenue, contribution margin was $23.8 million or 43% of Insurance revenue and Adjusted EBITDA was $6.5 million or 12% of Insurance revenue
    • Insurance gross written premium for the year was $307 million.

    Acquisition of Residential Warranty Services
    On February 28th Porch signed a definitive agreement for the acquisition of certain businesses relating to home warranty products and inspector-centric software and services from Residential Warranty Services, Inc. (“RWS”). Total consideration is $33 million including $29 million of cash, $4 million of Porch stock and additional contingent consideration tied to the performance of a recently launched business line. Of the total consideration, $4.95 million was paid at signing. Full year 2022 revenue impact to Porch is expected to be approximately $8 million, with approximately $10 million of expected annualized revenue. The acquisition is targeted to close in early Q2 2022.

    Full Year 2022 Financial Outlook
    Porch provides guidance based on current market conditions and expectations.

    2022E Guidance1
    Gross Written Premium

    ~$600M

    (95% year-over-year growth)
    Revenue

    ~$320M

    (66% year-over-year growth)
    Revenue Less Cost of Revenue

    ~$210M

    (53% year-over-year growth)
    Adj. EBITDA

    ~-9% and >-$26.5M

    (>400 basis points of Adj EBITDA margin improvement)

    1 Guidance includes impact of announced but not yet closed acquisitions of CSE and RWS

    Porch is not providing reconciliations of expected Adjusted EBITDA margin or contribution margin for future periods to the most directly comparable measures prepared in accordance with GAAP because Porch is unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of Porch’s control.

    Previous revenue guidance of $195 million included the assumption of HOA’s claims fee revenue continuing to be booked on a gross basis as it had historically. Instead, this estimate of $7.5 million should have been reflected as a contra claims expense and not as revenue because of our reinsurance ceding. Thus, our guidance number would have been $187.5 million of revenue had we reflected this change. The actual financial results, of $192.4 million of revenue for the year ended December 31, 2021, have appropriately accounted for this issue with no net impact on Adjusted EBITDA loss as reported.

    Porch also announced a Form 12b-25 filing with the SEC today providing for a fifteen (15) calendar day extension for its Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Porch Group became a large accelerated filer as of December 31, 2021 and due to the related expanded requirements associated with the Sarbanes-Oxley Act of 2022 and the reduced filing time from 90 days to 60 days after year end, Porch requires additional time to complete and file its Annual Report on Form 10-K.

    In preparing the Company’s financial statements as of and for the year ended December 31, 2021, the Company identified material weaknesses in its internal controls over financial reporting. While these material weaknesses create a reasonable possibility that an error in financial reporting may go undetected, no material adjustments, restatement or other revisions to previously issued financial statements are expected to be required. Porch currently expects to finalize its financial results and file its 2021 Annual Report on Form 10-K by March 16, 2022 (the expiration date of the extension period). Such a filing within the periods noted is considered timely.

    Conference Call        
    Porch management will host a conference call today (March 1, 2022) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). The presentation will be accompanied by a slide presentation available on the Investor Relations section of the Company’s website. A question-and-answer session will follow management’s prepared remarks.

    All are invited to listen to the event by registering for the webinar here.

    If you have any difficulty connecting with the conference call or webcast, please contact Porch’s investor relations team at (949) 574-3860 or PRCH@gatewayir.com.

    A replay of the webinar will also be available in the Investors section of Porch’s corporate website.

    About Porch Group
    Seattle-based Porch Group, the vertical software platform for the home, provides software and services to more than 24,000 home services companies such as home inspectors, mortgage companies and loan officers, title companies, moving companies, real estate agencies, utility companies, and warranty companies. Through these relationships and its multiple brands, Porch provides a moving concierge service to homebuyers, helping them save time and make better decisions on critical services, including insurance, warranty, moving, security, TV/internet, home repair and improvement, and more. To learn more about Porch, visit porchgroup.com or porch.com.

    Forward-Looking Statements
    Certain statements in this release 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 future events or Porch Group, Inc.’s (“Porch”) future financial or operating performance. For example, projections of future revenue, contribution margin, Adjusted EBITDA and other metrics, business strategy and plans, and anticipated impacts from pending or completed acquisitions, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.

    These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Porch and its management at the time they are made, are inherently uncertain.  Factors that may cause actual results to differ materially from current expectations include, but are not limited to:  (1) expansion plans and opportunities, including recently completed acquisitions as well as future acquisitions or additional business combinations; (2) costs related to being a public company; (3) litigation, complaints, and/or adverse publicity; (4) the impact of changes in consumer spending patterns, consumer preferences, local, regional and national economic conditions, crime, weather, demographic trends and employee availability; (5) further expansion into the insurance industry, and the related federal and state regulatory requirements; (6) privacy and data protection laws, privacy or data breaches, or the loss of data; (7) the duration and scope of the COVID-19 pandemic and its continued effect on the business and financial conditions of Porch; and (8) other risks and uncertainties described in Porch’s most recent Form 10-K/A and subsequent reports filed with the Securities and Exchange Commission (the “SEC”), such as Porch’s quarterly reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, as well as in its subsequent reports on Form 8-K, all of which are available on the SEC’s website at www.sec.gov.

    Nothing in this release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this release. Porch does not undertake any duty to update these forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law. 

    Non-GAAP Financial Measures
    This release includes one or more non-GAAP financial measures, such as Adjusted EBITDA (loss), Adjusted EBITDA (loss) as a percentage of revenue, contribution margin, and average revenue per monetized service.

    Porch defines Adjusted EBITDA (loss) as net income (loss) adjusted for interest expense, net, income taxes, other expenses, net, depreciation and amortization, certain non-cash long-lived asset impairment charges, stock-based compensation expense and acquisition-related impacts, including compensation to the sellers that requires future service, amortization of intangible assets, gains (losses) recognized on changes in the value of contingent consideration arrangements, if any, gain or loss on divestures and certain transaction costs. Adjusted EBITDA (loss) as a percentage of revenue is defined as Adjusted EBITDA (loss) divided by GAAP total revenue. Contribution margin is defined as revenue less all variable expenses, including cost of revenue, variable marketing and sales. Average revenue per monetized services in quarter is the average revenue generated per monetized service performed in a quarterly period. When calculating average revenue per monetized service in quarter, average revenue is defined as total quarterly monetized service revenues generated from monetized services.

    Porch management uses these non-GAAP financial measures as supplemental measures of Porch’s operating and financial performance, for internal budgeting and forecasting purposes, to evaluate financial and strategic planning matters, and to establish certain performance goals for incentive programs.  Porch believes that the use of these non-GAAP financial measures provides investors with useful information to evaluate Porch’s operating and financial performance and trends and in comparing Porch’s financial results with competitors, other similar companies and companies across different industries, many of which present similar non-GAAP financial measures to investors. However, Porch's definitions and methodology in calculating these non-GAAP measures may not be comparable to those used by other companies.  In addition, Porch may modify the presentation of these non-GAAP financial measures in the future, and any such modification may be material.

    You should not consider these non-GAAP financial measures in isolation, as a substitute to or superior to financial performance measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude specified income and expenses, some of which may be significant or material, that are required by GAAP to be recorded in Porch’s consolidated financial statements. Porch may also incur future income or expenses similar to those excluded from these non-GAAP financial measures, and Porch’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures reflect the exercise of management judgment about which income and expense are included or excluded in determining these non-GAAP financial measures.

    You should review the tables accompanying this release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure. Porch is not providing reconciliations of non-GAAP financial measures for future periods to the most directly comparable measures prepared in accordance with GAAP.  Porch is unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of Porch’s control. 


    PORCH GROUP, INC.
    Condensed Consolidated Statements of Operations
    Three Months and Years Ended December 31, 2021 and 2020
    (all numbers in thousands, except share amounts, unaudited)

         Three Months Ended December 31,  Year Ended December 31,
         2021     2020     2021 2020 
    Revenue $51,581  $18,596  $192,433  $72,299 
    Operating expenses(1):              
    Cost of revenue  10,697   4,310   55,284   17,562 
    Selling and marketing  23,635   11,222   84,271   41,665 
    Product and technology  12,847   10,422   47,005   28,546 
    General and administrative  25,248   12,660   91,711   28,199 
    Gain on divestiture of businesses  —   —   —   (1,442)
    Total operating expenses  72,427   38,614   278,271   114,530 
    Operating loss  (20,846)  (20,018)  (85,838)  (42,231)
    Other income (expense):                
    Interest expense  (1,461)  (4,405)  (5,757)  (14,734)
    Change in fair value of earnout liability  (3,131)  —   (18,519)  — 
    Change in fair value of private warrant liability  2,132   2,427   (15,389)  2,427 
    Gain (loss) on extinguishment of debt  —   4,671   5,110   5,748 
    Investment income and realized gains, net of investment expenses  253   —   701   — 
    Other income (expense), net  115   (4,881)  340   (6,931)
    Total other income (expense)  (2,092)  (2,188)  (33,514)  (13,490)
    Loss before income taxes  (22,938)  (22,206)  (119,352)  (55,721)
    Income tax benefit  356   1,722   10,273   1,689 
    Net loss $(22,582) $(20,484) $(109,079) $(54,032)
    Induced conversion of preferred stock  —   (17,284)  —   (17,284)
    Net loss attributable to common stockholders $(22,582) $(37,768) $(109,079) $(71,316)
                 
    Loss per share - basic $(0.23) $(0.93) $(1.16) $(1.96)
    Loss per share - diluted $(0.25) $(0.93) $(1.16) $(2.03)
                 
    Shares used in computing basic loss per share  97,862,144   40,499,732   93,884,566   36,344,234 
    Shares used in computing diluted loss per share  98,588,325   40,499,732   93,884,566   36,374,215 
                 
          (1)   Amounts include stock-compensation expense, as follows:         
      Three Months Ended December 31, Year Ended December 31,
      2021  2020  2021  2020 
    Cost of revenue $—  $1  $1  $2 
    Selling and marketing  696   1,715   5,584   1,901 
    Product and technology  1,701   4,629   7,223   5,248 
    General and administrative  6,834   3,410   25,784   4,145 
      $9,231  $9,755  $38,592  $11,296 


    PORCH GROUP, INC.
    Statements of Comprehensive Income
    Years Ended December 31, 2021 and 2020
    (all numbers in thousands, except share amounts, unaudited)

         Year Ended December 31, 
         2021     2020 
    Net loss $(109,079) $(54,032)
    Other comprehensive income (loss):      
    Current period change in net unrealized loss, net of tax  (259)  — 
    Comprehensive loss $(109,338) $(54,032)


    PORCH GROUP, INC.
    Condensed Consolidated Balance Sheets
    Years Ended 2021 and 2020
    (all numbers in thousands, except share amounts, unaudited)

      December 31,
      2021     2020 
    Assets        
    Current assets        
    Cash and cash equivalents $315,741  $196,046 
    Accounts receivable, net  27,121   4,268 
    Short-term investments  9,251   — 
    Reinsurance balance due  228,416   — 
    Prepaid expenses and other current assets  10,167   4,080 
    Restricted cash  8,551   11,407 
    Total current assets  599,247   215,801 
    Property, equipment, and software, net  6,666   4,593 
    Operating lease right-of-use assets  4,504   — 
    Goodwill  225,654   28,289 
    Long-term investments  58,324   — 
    Intangible assets, net  129,830   15,961 
    Restricted cash, non-current  500   — 
    Long-term insurance commissions receivable  9,167   3,365 
    Other assets  684   378 
    Total assets $1,034,576  $268,387 
             
    Liabilities and Stockholders’ Equity        
    Current liabilities        
    Accounts payable $6,965  $9,203 
    Accrued expenses and other current liabilities  33,246   9,905 
    Deferred revenue  203,816   5,208 
    Refundable customer deposit  15,274   2,664 
    Current portion of long-term debt  150   4,746 
    Losses and loss adjustment expense reserves  61,949   — 
    Other insurance liabilities, current  40,024   — 
    Total current liabilities  361,424   31,726 
    Long-term debt  414,585   43,237 
    Operating lease liabilities, non-current  2,694   — 
    Refundable customer deposit, non-current  —   529 
    Earnout liability, at fair value  13,866   50,238 
    Private warrant liability, at fair value  15,193   31,534 
    Other liabilities (includes $9,617 and $3,549 at fair value, respectively)  12,242   3,798 
    Total liabilities  820,004   161,062 
    Commitments and contingencies (Note 16)        
    Stockholders’ equity        
    Common stock, $0.0001 par value:  10   8 
    Authorized shares – 400,000,000 and 400,000,000, respectively        
    Issued and outstanding shares – 97,961,597 and 81,669,151, respectively      
    Additional paid-in capital  641,406   424,823 
    Accumulated other comprehensive loss  (259)  — 
    Accumulated deficit  (426,585)  (317,506)
    Total stockholders’ equity  214,572   107,325 
    Total liabilities and stockholders’ equity $1,034,576  $268,387 


    PORCH GROUP, INC.
    Condensed Consolidated Statements of Cash Flows
    Three Months and Years Ended December 31, 2021 and 2020
    (all numbers in thousands, unaudited)

      Year Ended December 31, 
      2021  2020 
    Cash flows from operating activities:      
    Net loss $(109,079) $(54,032)
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation and amortization  16,386   6,644 
    Amortization of operating lease right-of-use assets  1,861   — 
    Loss on sale and impairment of long-lived assets  595   895 
    Gain on extinguishment of debt  (5,110)  (5,748)
    Loss on remeasurement of debt  —   895 
    Gain on divestiture of businesses  —   (1,442)
    Loss on remeasurement of Legacy Porch warrants  —   2,584 
    Loss (gain) on remeasurement of private warrant liability  15,389   (2,427)
    Loss (gain) on remeasurement of contingent consideration  (2,244)  1,700 
    Loss on remeasurement of earnout liability  18,519   — 
    Stock-based compensation  38,592   11,296 
    Amortization of premium/accretion of discount, net  1,317   — 
    Net realized gains on investments  67   — 
    Interest expense (non-cash)  998   7,488 
    Deferred taxes  —   (30)
    Other  1,055   7 
    Change in operating assets and liabilities, net of acquisitions and divestitures       
    Accounts receivable  (1,260)  203 
    Reinsurance balance due  (15,343)  — 
    Prepaid expenses and other current assets  (1,151)  (2,587)
    Accounts payable  (11,779)  4,092 
    Accrued expenses and other current liabilities  (17,757)  (15,946)
    Losses and loss adjustment expense reserves  (22,417)  — 
    Other insurance liabilities, current  15,969   — 
    Deferred revenue  56,287   2,206 
    Refundable customer deposits  11,324   (3,521)
    Deferred income tax benefit  (9,760)  — 
    Long-term insurance commissions receivable  (5,802)  (3,365)
    Operating lease liabilities, non-current  (2,141)  — 
    Other  (9,297)  2,419 
    Net cash used in operating activities  (34,781)  (48,669)
    Cash flows from investing activities:      
    Purchases of property and equipment  (972)  (279)
    Capitalized internal use software development costs  (3,718)  (2,601)
    Purchases of short-term and long-term investments  (24,006)  — 
    Maturities, sales of short-term and long-term investments  21,694   — 
    Acquisitions, net of cash acquired  (256,430)  (7,791)
    Net cash used in investing activities  (263,432)  (10,671)
    Cash flows from financing activities:      
    Proceeds from recapitalization and PIPE financing  —   305,133 
    Distribution to stockholders  —   (30,000)
    Transaction costs - recapitalization  —   (5,652)
    Proceeds from debt issuance, net of fees  413,537   66,190 
    Repayments of principal and related fees  (46,965)  (81,640)
    Proceeds from issuance of redeemable convertible preferred stock, net of fees  —   4,714 
    Capped call transactions  (52,913)  — 
    Proceeds from exercises of warrants  126,741   — 
    Proceeds from exercises of stock options and Legacy Porch warrants  4,288   911 
    Income tax withholdings paid upon vesting of restricted stock units  (29,136)  — 
    Repurchase of stock  —   (42)
    Net cash provided by financing activities  415,552   259,614 
    Net change in cash, cash equivalents, and restricted cash $117,339  $200,274 
    Cash, cash equivalents, and restricted cash, beginning of period $207,453  $7,179 
    Cash, cash equivalents, and restricted cash end of period $324,792  $207,453 


    PORCH GROUP, INC.
    Consolidated Statements of Equity
    Years Ended December 31, 2021 and 2020
    (all numbers in thousands, unaudited)

               Accumulated  
          Additional    Other Total
      Common Stock Paid-in Accumulated Comprehensive Stockholders’
      Shares Amount Capital Deficit Loss Equity (Deficit)
    Balances as of January 1, 2020  34,197,822  $3  $203,492   $ (263,474) $—  $(59,979)
    Net loss —   —  —   (54,032)  —   (54,032)
    Stock-based compensation —   —  10,660   —   —   10,660 
    Stock-based compensation - earnout 1,976,332   —  636   —   —   636 
    Issuance of Series B and Series C redeemable convertible preferred stock 682,539   —  4,836   —   —   4,836 
    Conversion of convertible notes to Series C redeemable convertible preferred stock 198,750   —  1,436   —   —   1,436 
    Repurchase of redeemable convertible preferred stock (75,162)  —  (480)  —   —   (480)
    Issuance of common stock warrants —   —  44   —   —   44 
    Vesting of restricted stock awards issued for acquisitions 472,141   —  —   —   —   — 
    Issuance of common stock for acquisitions 785,330   —  6,898   —   —   6,898 
    Exercise of stock options and warrants 505,711   —  1,029   —   —   1,029 
    Net share settlement of common stock options and restricted stock units 1,189,911   —  —   —   —   — 
    Shareholder contribution —   —  17,584   —   —   17,584 
    Inducement to convert preferred stock —   —  (17,284)  —   —   (17,284)
    Impacts of recognition of contingent beneficial conversion feature —   —  (5,208)  —   —   (5,208)
    Conversion of common stock warrants into common stock 1,705,266   —  —   —   —   — 
    Conversion of redeemable convertible preferred stock warrants into common stock 702,791   —  11,029   —   —   11,029 
    Recapitalization and PIPE financing 35,304,052   5  239,722   —   —   239,727 
    Tax impacts of recapitalization —   —  187   —   —   187 
    Earnout liability 4,023,668   —  (50,238)  —   —   (50,238)
    Cancellation of redeemable convertible preferred stock repurchase liability —   —  480   —   —   480 
    Balances as of January 1, 2021 81,669,151  $8  $424,823   $(317,506) $—  $107,325 
    Net loss —   —  —   (109,079)  (259)  (109,338)
    Stock-based compensation —   —  15,631   —   —   15,631 
    Stock-based compensation - earnout —   —  22,961   —   —   22,961 
    Issuance of common stock for acquisitions 2,042,652   1  35,706   —   —   35,707 
    Contingent consideration for acquisitions —   —  6,685   —   —   6,685 
    Reclassification of earnout liability upon vesting —   —  54,891   —   —   54,891 
    Reclassification of private warrant liability upon exercise —   —  31,730   —   —   31,730 
    Vesting of restricted stock awards 2,549,223   —  —   —   —   — 
    Exercise of stock warrants 11,521,412   1  126,768   —   —   126,769 
    Exercise of stock options 1,700,557   —  4,326   —   —   4,326 
    Income tax withholdings (1,521,398)  —  (28,940)  —   —   (28,940)
    Capped call transactions —   —  (52,913)  —   —   (52,913)
    Transaction costs —   —  (262)  —   —   (262)
    Balances as of December 31, 2021 97,961,597  $10  $641,406  $(426,585) $(259) $214,572 


    PORCH GROUP, INC.
    Adjusted EBITDA (loss)
    Three Months Ended December 31, 2021
    (all numbers in thousands, unaudited)

       
    CORPORATE
    		 
    INSURANCE
    		 
    VERTICAL SOFTWARE
    		 
    Consolidated  
    Adjusted EBITDA (loss)$(14,476) $3,449  $3,180  $(7,848)
      N/A   21%  9%  -15%
    Less:               
    Acquisition and related expense 795   29   -   824 
    Loss on re-measurement of warrants (2,132)  -   -   (2,132)
    Loss on re-measurement of earnout liability 3,131   -   -   3,131 
    Revaluation of contingent consideration (2,427)  -   563   (1,864)
    Non-cash bonus expense (1,378)  -   -   (1,378)
    Non-cash stock-based compensation 6,489   400   2,342   9,231 
    Non-cash long-lived asset impairment charge 50   -   285   335 
    Other, net (38)  0   (78)  (115)
    Depreciation and amortization 597   1,001   4,000   5,598 
    Income tax expense (benefit) (1,135)  778   2   (356)
    Interest expense 1,348   444   (332)  1,460 
       Net income (loss)$(19,775) $796  $(3,603) $(22,582)
                    


    PORCH GROUP, INC.
    Adjusted EBITDA
    Twelve Months Ended December 31, 2021
    (all numbers in thousands, unaudited)

        CORPORATE INSURANCE VERTICAL SOFTWARE Consolidated
    Adjusted EBITDA (loss) $(53,760) $6,533  $20,733  $(26,493)
       N/A   12%  15%  -13.8%
    Less:            
    Acquisition and related expense  5, 331   29   -   5,360 
    Loss on re-measurement of warrants  15,389   -   -   15,389 
    Loss on re-measurement of earnout liability  18,519   -   -   18,519 
    Revaluation of contingent consideration  (2,807)  -   563   (2,244)
    Non-cash stock-based compensation  33,180   876   4,537   38,592 
    Non-cash long-lived asset impairment charge  252   -   298   550 
    Other, net  (81)  (1)  (259)  (341)
    Loss on extinguishment of debt  (5,099)  -   (11)  (5,110)
    Depreciation and amortization  2,915   3,432   10,039   16,386 
    Income tax benefit  (8,139)  (1,788)  (346)  (10,273)
    Interest expense  4,739   508   510   5,757 
       Net income (loss) $(117,959) $3,477  $5,402  $(109,079)


    PORCH GROUP, INC.
    Monetized Services Revenue
    Three Months and Year Ended December 31, 2021
    (all numbers in thousands, unaudited)

     2021 2021
    Monetized Services Revenue$34,366 $137,383
    Other Operating Revenue 17,215  55,050
       Total Revenue$51,581 $192,433


    PORCH GROUP, INC.
    Revenue Less Cost of Revenue and Contribution Margin
    Three Months Ended December 31, 2021
    (all numbers in thousands, unaudited)

       CORPORATE   INSURANCE   VERTICAL
    SOFTWARE    		   Consolidated 
    Revenue $-  $16,060  $35,520  $51,581 
    Cost of Revenue $-  $(715) $11,412  $10,697 
    Revenue Less Cost of Revenue $-  $16,775  $24,108  $40,883 
       N/A  104%  68%  79%
             
             
    Revenue $-  $16,060  $35,520  $51,581 
    Cost of Revenue $-  $(715) $11,412  $10,697 
    Sales & Marketing (Variable) $287  $8,065  $10,089  $18,440 
    Contribution Margin $(287) $8,711  $14,019  $22,443 
       N/A  54%  39%  44%
               
             
    Sales & Marketing (Fixed) $905  $473  $3,816  $5,195 
    Product & Technology $6,003  $621  $6,223  $12,847 
    General & Administrative $11,407  $5,849  $7,991  $25,248 
    Total Operating Expenses $18,602  $14,293  $39,531  $72,427 
    Operating Loss $(18,602) $1,767  $(4,011) $(20,846)

     

    PORCH GROUP, INC.
    Revenue Less Cost of Revenue and Contribution Margin
    Twelve Months Ended December 31, 2021
    (all numbers in thousands, unaudited)

       CORPORATE   INSURANCE   VERTICAL SOFTWARE   Consolidated 
    Revenue $-  $55,283  $137,150  $192,433 
    Cost of Revenue$-  $14,693  $40,591  $55,284 
    Revenue Less Cost of Revenue $-  $40,590  $96,559  $137,149 
      N/A   73%  70%  71%
                     
                    
    Revenue $-  $55,283  $137,150  $192,433 
    Cost of Revenue $-  $14,693  $40,591  $55,284 
    Sales & Marketing (Variable) $2,444  $16,763  $39,111  $58,317 
    Contribution Margin $(2,444) $23,828  $57,448  $78,832 
       N/A   43%  42%  41%
                     
                     
    Sales & Marketing (Fixed) $5,416  $7,059  $13,479  $25,954 
    Product & Technology$26,675  $1,055  $19,276  $44,005 
    General & Administrative$58,100  $14,197  $19,414  $91,711 
    Total Operating Expenses $92,635  $53,766  $131,870  $278,271 
    Operating Loss$(92,635) $1,517  $5,280  $(85,838)

    Investor Relations Contacts:   
    Walter Ruddy, Head of Investor Relations & Treasury
    Porch Group, Inc.
    (206) 715-2369
    walter@porch.com

    Matt Glover/Alex Thompson
    Gateway Group, Inc.
    (949) 574-3860
    PRCH@gatewayir.com

    Porch Press contact:
    Catherine Adcock
    Gateway Group, Inc.
    (949) 386-6332
    PRCH@gatewayir.com


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