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Jun 30, 2024
Porch Q2 2024 Earnings Report
Porch Group reported a solid performance in the second quarter, with revenue growth driven by the Insurance segment and improved profitability actions.
Key Takeaways
Porch Group reported a 12% increase in total revenue to $110.8 million for Q2 2024. The company's GAAP net loss improved by $22.6 million compared to the prior year, and the Adjusted EBITDA Loss improved by $8.4 million. The results were broadly in line with plan despite a significant weather event in Houston.
Total revenue increased by 12% to $110.8 million, driven by the Insurance segment.
GAAP net loss improved to $64.3 million from $87.0 million in the prior year.
Adjusted EBITDA Loss improved to $34.8 million from $43.1 million in the prior year.
Gross written premium for the Insurance segment was $117 million with approximately 232 thousand policies in force.
Porch
Porch
Forward Guidance
Porch Group updated its full year 2024 guidance due to catastrophic weather events, including a May Houston event and Hurricane Beryl.
Positive Outlook
- Strong performance in areas within the company's control, such as underwriting performance and attritional losses in insurance.
- Price increases in the software business.
- Strong cost control measures.
- Revenue guidance remains unchanged at $450m to $470m.
- Gross Written Premium guidance remains unchanged at $460m to $480m.
Challenges Ahead
- Two significant catastrophic weather events impacted profit guidance.
- A $23 million May Houston catastrophic event.
- Hurricane Beryl is expected to result in $30 million in claims cost of revenue net of reinsurance in Q3 2024.
- Revenue Less Cost of Revenue guidance decreased to $190m to $200m (previously $230m to $240m).
- Adjusted EBITDA guidance decreased to $(20)m to $(10)m (previously $2.5m to $12.5m).