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Jun 30, 2022
Porch Q2 2022 Earnings Report
Porch Group's Q2 2022 performance was marked by solid revenue growth, driven by strategic execution and acquisitions, although profitability was impacted by seasonality and increased expenses.
Key Takeaways
Porch Group reported a 38% year-over-year increase in revenue, reaching $70.8 million in the second quarter of 2022. The company's net loss increased to $26.4 million, and the adjusted EBITDA loss was $14.3 million. Porch Group is focused on driving the business toward profitability.
Total revenue increased by 38% year-over-year to $70.8 million.
Revenue less cost of revenue was $42.2 million, representing 59.6% of total revenue.
GAAP net loss totaled $26.4 million.
Adjusted EBITDA loss was $14.3 million, or -20.2% of total revenue.
Porch
Porch
Forward Guidance
Porch Group updated its full year 2022 guidance, with revenue expected to be approximately $290 million. The company anticipates an increase of approximately $50 million in unrestricted cash at the end of the year due to the termination of the CSE Insurance acquisition.
Positive Outlook
- Revenue to be approximately $290M
- Vertical Software Revenue to be approximately $175M
- Insurance Revenue to be approximately $115M
- Revenue Less Cost of Revenue to be approximately $195M
- Gross Written Premium Recorded in 2022 to be approximately $520M
Challenges Ahead
- Removal of CSE acquisition
- Small macroeconomic adjustment
- Adj. EBITDA ~-10% and >-$30.0M
- Auto insurance no longer anticipated to be offered in 2022.
- Second quarter profitability has been and is expected to continue to be lower than the second half of the year due to the seasonality of insurance loss costs primarily in Texas, concentrated in the second-quarter months, as well as an increase in Sarbanes-Oxley-related consulting expense to ensure controls work is completed with time for testing ahead of the year-end audit.