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Mar 31, 2023
Porch Q1 2023 Earnings Report
Porch Group reported Q1 2023 results with revenue increasing 37% year-over-year.
Key Takeaways
Porch Group reported first-quarter revenue of $87.4 million, a 37% increase compared to the previous year. The company faced challenges in the reinsurance market, impacting revenue less cost of revenue and GAAP net loss. Despite these challenges, Porch Group is focused on key operational successes and anticipates Adjusted EBITDA profitability in the second half of the year.
Total revenue increased by 37% to $87.4 million compared to Q1 2022.
Filed an application with the Texas Department of Insurance to form the Porch Insurance Reciprocal Exchange.
Successfully launched Porch Warranty product with differentiated protection and services for consumers and across multiple channels.
Insurance gross written premium for the quarter was $115 million with approximately 376 thousand policies.
Porch
Porch
Forward Guidance
Porch Group reaffirms its full-year 2023 guidance, anticipating revenue between $330M and $350M, and projects positive Adjusted EBITDA profitability in the second half of 2023.
Positive Outlook
- Strong revenue growth in Insurance is expected.
- Relatively flat YoY growth is projected for Vertical Software.
- Focus on carefully managing costs.
- Expect positive Adjusted EBITDA profitability in the second half of 2023 and beyond.
- 2023 gross written premium expected to be around $500M.
Challenges Ahead
- Additional weather exposure in the first half of the year could lead to higher claims volumes.
- Catastrophic weather conditions in excess of historic norms could create downside to the lower end of the revenue range.
- If the Gross Loss Ratio for 2023 is worse than the assumption of 62%, results could be worse than the provided range.
- If the housing market declines more than the assumption of 18%, results could be worse than the provided range.
- A loss is expected in the first half of 2023 before higher risk policies are non-renewed and before the existing insurance premium per policy increases have taken full effect.