Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a
leading vertical software company reinventing the home services and
insurance industries, ahead of its second quarter 2023 earnings,
today announced an estimated $18 million catastrophic weather
(“cat”) impact in the second quarter of 2023, due to extreme
weather events in June.
The second quarter is often the worst and
riskiest weather quarter of the year for Porch. The second quarter
2023 was on track until extreme weather events occurred, including
wind, thunderstorm and hail events in Texas in mid and late June,
which resulted in an estimated $5.0 billion1 in combined
industry-wide claims. This will negatively impact operating
results2 in the second quarter within the Insurance Segment. Porch
preliminarily estimates the extreme weather resulted in a $18
million loss, net of third-party reinsurance. These were uncommon
cat weather events compared to historic trends and therefore not
included within our full year 2023 guidance.
“I’m proud of our team for serving our customers
quickly and effectively after these difficult weather events. At
Porch, our experienced underwriters continue to use our unique data
and analysis of historic trends to evaluate risk when writing
insurance policies. Like everyone in the industry, we cannot
predict these unfortunate and uncommon weather events, but we will
continue to seek to increase prices to ensure we are setup well as
we look ahead. Outside of this event, our business is performing
well, and we continue to expect to launch the Porch Insurance
Reciprocal Exchange later this year, once approved by the Texas
Department of Insurance.” Matt Ehrlichman, Chief Executive
Officer.
Porch will provide a further update when it
reports its second quarter financial results for the period ended
June 30, 2023, after markets close on Tuesday, August 8, 2023.
1 Source: Property Claims Services Catastrophe
Bulletin for events 2348 and 2351.
2 Referring to Revenue less cost of revenue,
Adjusted EBITDA and Net Loss.
Q2 2023 Earnings Conference
Call
Porch management will host a live webinar to
discuss the financial results and business followed by Q&A on
Tuesday, August 8, 2023, at 5:00 p.m. Eastern time (2:00 p.m.
Pacific time). A presentation to accompany the discussion will be
posted on the company website along with a press release and other
supplemental financial information.
All are invited to listen to the event by
registering for the webinar link. A replay of the webinar will also
be available in the Investors section of Porch’s corporate
website.
About Porch Group
Seattle-based Porch Group, Inc., the vertical
software platform for the home, provides software and services to
approximately 30,600 home services companies such as home
inspectors, mortgage companies and loan officers, title companies,
moving companies, real estate agencies, utility companies, and
warranty companies. Through these relationships and its multiple
brands, Porch Group provides a moving concierge service to
homebuyers, helping them save time and make better decisions on
critical services, including insurance, warranty, moving, security,
TV/internet, home repair and improvement, and more. To learn more
about Porch Group, visit porchgroup.com or porch.com.
Investor Relations
Contact:
Lois Perkins, Head of Investor RelationsPorch Group,
Inc.Loisperkins@porch.com
Forward-Looking Statements
Certain statements in this release may be
considered “forward-looking statements” within the meaning of the
“safe harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. Although the Company believes that
its plans, intentions, and expectations reflected in or suggested
by these forward-looking statements are reasonable, the Company
cannot assure you that it will achieve or realize these plans,
intentions, or expectations. Forward-looking statements are
inherently subject to risks, uncertainties, assumptions, and other
factors which could cause actual results to differ materially from
those expressed or implied by such forward-looking statements.
Generally, statements that are not historical facts, including
statements concerning the Company’s possible or assumed future
actions, business strategies, events, or results of operations, are
forward-looking statements. These statements may be preceded by,
followed by, or include the words “believes,” “estimates,”
“expects,” “projects,” “forecasts,” “may,” “will,” “should,”
“seeks,” “plans,” “scheduled,” “anticipates,” “intends,” or similar
expressions.
The forward-looking statements in this release
provide preliminary information based on the Company’s current
estimates and expectations, and remain subject to change and
finalization based on management’s ongoing review of results of the
quarter and completion of all quarter-end close processes. The
estimates and assumptions underlying the forward-looking
statements, while considered reasonable by Porch and its management
at the time they are made, are inherently uncertain. Factors that
may cause actual results to differ materially from current
expectations include, but are not limited to: (1) expansion plans
and opportunities, and managing growth, to build a consumer brand;
(2) the incidence, frequency, and severity of weather events,
extensive wildfires, and other catastrophes; (3) economic
conditions, especially those affecting the housing, insurance, and
financial markets; (4) expectations regarding revenue, cost of
revenue, operating expenses, and the ability to achieve and
maintain future profitability; (5) existing and developing federal
and state laws and regulations, including with respect to
insurance, warranty, privacy, information security, data protection
and taxation, and management’s interpretation of and compliance
with such laws and regulations; (6) the Company’s reinsurance
program, which includes the use of a captive reinsurer, the success
of which is dependent on a number of factors outside management’s
control, along with reliance on reinsurance to protect us against
loss; (7) uncertainties related to regulatory approval of insurance
rates, policy forms, insurance products, license applications,
acquisitions of businesses or strategic initiatives, including the
reciprocal restructuring, and other matters within the purview of
insurance regulators; (8) reliance on strategic, proprietary
relationships to provide the Company with access to personal data
and product information, and the ability to use such data and
information to increase transaction volume and attract and retain
customers; (9) the ability to develop new, or enhance existing,
products, services, and features and bring them to market in a
timely manner; (10) changes in capital requirements, and the
ability to access capital when needed to provide statutory surplus;
(11) the increased costs and initiatives required to address new
legal and regulatory requirements arising from developments related
to cybersecurity, privacy, and data governance and the increased
costs and initiatives to protect against data breaches,
cyber-attacks, virus or malware attacks, or other infiltrations or
incidents affecting system integrity, availability and performance;
(12) retaining and attracting skilled and experienced employees;
(13) costs related to being a public company; and (14) other risks
and uncertainties discussed in Part I, Item 1A, “Risk Factors,” in
the Company’s Annual Report on Form 10-K (“Annual Report”) for the
year ended December 31, 2022, and in Part II, Item 1A, “Risk
Factors,” in our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2023, as well as those discussed in subsequent
reports filed with the Securities and Exchange Commission (“SEC”),
all of which are available on the SEC’s website at www.sec.gov.
Nothing in this release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. You
should not place undue reliance on forward-looking statements,
which speak only as of the date of this release. Unless
specifically indicated otherwise, the forward-looking statements in
this release do not reflect the potential impact of any
divestitures, mergers, acquisitions, or other business combinations
that have not been completed as of the date of this release. Porch
does not undertake any duty to update these forward-looking
statements, whether as a result of changed circumstances, new
information, future events or otherwise, except as may be required
by law.
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