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Dec 31, 2024
Porch Q4 2024 Earnings Report
Estimated Revenue:$108M
+6.7% YoY
Estimated EPS:$0.0585
+131.2% YoY
Key Takeaways
Porch Group, Inc. reported a total revenue of $100.4 million for the fourth quarter of 2024. The company achieved a GAAP net income of $30.5 million, a significant improvement from the prior year's loss, and an Adjusted EBITDA of $41.8 million, surpassing expectations. This performance was driven by operational excellence and a focus on profitability, alongside strategic moves like the formation of Porch Insurance Reciprocal Exchange.
Total revenue for Q4 2024 was $100.4 million, a decrease of 12% year-over-year, primarily due to non-recurring revenue in the prior year.
GAAP net income reached $30.5 million in Q4 2024, a substantial improvement of $33.0 million compared to a net loss in Q4 2023.
Adjusted EBITDA for Q4 2024 was $41.8 million, an improvement of $30.1 million from the prior year, exceeding expectations.
The company formed the Porch Insurance Reciprocal Exchange (PIRE) in January 2025, transitioning towards a commission and fee-based, higher-margin model, and raised its 2025 Adjusted EBITDA outlook to $60 million at the mid-point.
Porch
Porch
Porch Revenue by Segment
Revenue by Segment
Insurance Services Revenue
CapyFin.comSoftware & Data Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
Porch Group provides full year 2025 guidance for Porch Shareholder Interests, excluding the future results of PIRE or HOA, with an Adjusted EBITDA target of $55 million to $65 million.
Positive Outlook
- Raising 2025 outlook for Adjusted EBITDA to $60 million at the mid-point of guidance.
- Formation of Porch Insurance Reciprocal Exchange (PIRE) is expected to lead to a simpler, commission and fee-based, higher margin model.
- The transaction with PIRE is expected to deliver more predictable and higher-margin financial results for Porch Group Shareholders.
- The company's strategy to win in homeowners insurance involves deploying leading vertical software solutions and leveraging unique data for advantaged underwriting.
- The reinsurance program for PIRE and HOA renews on April 1st, 2025, with the Porch Group captive continuing to provide reinsurance coverage under the current program.
Challenges Ahead
- Guidance does not include the future results of PIRE or HOA, which will be consolidated into GAAP financial statements but excluded from Revenue, Gross Profit, and Adjusted EBITDA for shareholder interests.
- The company is unable to provide reconciliations of non-GAAP financial measures for future periods to GAAP measures without unreasonable effort.
- Certain information necessary for GAAP reconciliation is unavailable or dependent on the timing of future events outside of the company's control.
- The success of the reciprocal exchange is dependent on factors outside management's control, including its ability to maintain financial stability ratings and a healthy surplus.
- The company's ability to realize expected synergies and convert policyholders from existing insurance carrier business to PIRE policyholders is an expectation, not a guarantee.
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Key Statistics
Market Cap
$953M
P/E Ratio
-14.10
Sector
N/A
Industry
N/A
52-Week High
$19
52-Week Low
$3.78
Reciprocal Written Premium
$112
Average Number of Companies
27.06K
Monetized Services
218.74K
Average Revenue per Monetized Service
$390