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Sep 30, 2023
Porch Q3 2023 Earnings Report
Porch Group reported positive Adjusted EBITDA and revenue growth, driven by the Insurance segment.
Key Takeaways
Porch Group reported a 67% increase in total revenue to $129.6 million and Adjusted EBITDA of $8.8 million for Q3 2023. The company is focused on ongoing profitability through underwriting actions, software module launches, and cost reduction initiatives.
Total revenue increased by 67% to $129.6 million.
GAAP net loss improved to $(5.7) million compared to $(84.5) million in the prior year.
Adjusted EBITDA reached $8.8 million, a significant increase from the prior year's loss of $(10.9) million.
The company had $458.4 million in unrestricted cash plus investments at the end of the quarter.
Porch
Porch
Forward Guidance
Porch Group increased its full year 2023 guidance, expecting revenue of ~$415 million, revenue less cost of revenue of ~$190 million, and Adjusted EBITDA of ~$(52) million. Gross Written Premium is expected to be ~$500 million.
Positive Outlook
- Revenue ~$415m
- ~50% YoY growth
- Revenue Less Cost of Revenue ~$190m
- Adj. EBITDA1 ~$(52)m
- 2023 Gross Written Premium2 ~$500m
Challenges Ahead
- Assumes cat weather in Q4 is in line with historic trends with a 35% gross loss ratio
- This would be higher than the $110 5-year average
- Catastrophic weather events in excess of historic trends occurring in the fourth quarter of the year are excluded from guidance and from this target.
- Adjusted EBITDA is a non-GAAP measure.
- Porch Group is not providing reconciliations of expected Adjusted EBITDA (loss) for future periods to the most directly comparable measures prepared in accordance with GAAP