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Sep 30, 2022
Porch Q3 2022 Earnings Report
Porch Group's third quarter results reflected a revenue increase of 20% year-over-year, with significant impacts from weather and housing market conditions.
Key Takeaways
Porch Group reported a 20% increase in revenue year-over-year, reaching $75.4 million for the third quarter of 2022. The company faced macroeconomic headwinds, including weather-related events like Hurricane Ian, which impacted insurance claims costs and overall profitability, resulting in a GAAP net loss of $86.4 million, which includes a $57.1 million goodwill and intangible impairment. Despite these challenges, Porch Group is focusing on long-term growth and anticipates Adjusted EBITDA profitability in the second half of 2023.
Total revenue reached $75.4 million, a $12.6 million increase from Q3 2021.
Volatile weather and inflation-related insurance claims increased cost of revenue.
GAAP net loss totaled $86.4 million, impacted by a $57.1 million goodwill and intangible impairment.
Adjusted EBITDA loss totaled $(13.0) million, or -17.2% of total revenue.
Porch
Porch
Forward Guidance
Porch Group updated its full year 2022 financial outlook, expecting revenue of approximately $275 million, Vertical Software revenue of approximately $154 million, Insurance Revenue of approximately $121 million, Revenue Less Cost of Revenue of approximately $175 million, Adj. EBITDA to be greater than -$48.0M, and 2022 Gross Written Premium of approximately $520 million.
Positive Outlook
- Tracking towards Adjusted EBITDA profitability in the second half of 2023
- Actively engaged in solutions to improve the capital efficiency and lower volatility at our insurance business
- Making progress on key initiatives to position us for continued strong growth anticipated throughout 2023
- Utilizing Porch Group's proprietary data in insurance pricing after filing and receiving approval from 5 states
- Home warranty launched in the State of Florida, now offering warranties across 49 states
Challenges Ahead
- Lower-than-expected home sales
- Worse-than-expected weather, including Hurricane Ian
- Higher insurance claims costs
- Revenue ~$290M (previous guidance) to Revenue ~$275M (updated guidance)
- Adj. EBITDA1~-10% and > -$30.0M (previous guidance) to Adj. EBITDA1 ~-17% and >-$48.0M (updated guidance)