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Sep 30, 2024
Porch Q3 2024 Earnings Report
Reported record profitability and reciprocal exchange application approved.
Key Takeaways
Porch Group reported strong operational performance in Q3 2024, achieving record profitability with a GAAP net income of $14.4 million and an Adjusted EBITDA of $16.9 million. The approval of the Reciprocal Exchange formation is a key milestone for the company. Porch also repurchased $43 million of unsecured notes, reducing the outstanding balance due in September 2026.
Total revenue was $111.2 million.
GAAP net income reached $14.4 million, a $20.1 million improvement year-over-year.
Adjusted EBITDA improved by $8.1 million to $16.9 million compared to the prior year.
The company repurchased $43 million of unsecured notes, reducing debt.
Porch
Porch
Forward Guidance
Porch Group revised its full-year 2024 guidance, expecting revenue to grow low single digits, with increased guidance for Revenue less Cost of Revenue and Adjusted EBITDA. The guidance assumes a 2024 full year loss ratio of 68%.
Positive Outlook
- Revenue in 2024 is expected to grow low single digits.
- Revenue Less Cost of Revenue guidance has increased.
- Adjusted EBITDA guidance has increased.
- Full year 2024 loss ratio of 68% is assumed.
- Gross Written Premium is expected to be $460m to $470m.
Challenges Ahead
- Prior year Revenue included the impact of the Vesttoo matter in Q3 2023 and the divestiture of EIG in January of this year.
- Catastrophic weather further in excess of historical experiences, would create downside to the lower end of the range.
- Revenue is expected between $440m to $455m, previously $450m to $470m
- Revenue Less Cost of Revenue is expected between $200m to $210m, previously $190m to $200m.
- Adjusted EBITDA is expected between $(7.5)m to $2.5m, previously $(20)m to $(10)m.