Porch Group, Inc. (“Porch Group,” “Porch” or “the Company”)
(NASDAQ: PRCH), a leading vertical software company reinventing the
home services and insurance industries, today announced it will
report fourth quarter financial results ended December 31, 2023,
after markets close on Thursday, March 7, 2024. The business
performed well in the fourth quarter, with 2023 Revenue and
Adjusted EBITDA expected to be ahead of guidance1.
Conference Call
Porch management will host a live webinar to discuss the
financial results and business followed by Q&A on Thursday,
March 7, 2024, 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 here. A replay of the webinar will also be available in the
Investors section of Porch’s corporate website.
1 The Company’s previously provided full year 2023 guidance was
Revenue of $415 million and Adjusted EBITDA of $(52) million.
About Porch Group
Seattle-based Porch Group, Inc., the vertical software and
insurance platform for the home, provides software and services to
approximately 30,700 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.
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 preliminary results for the
fourth quarter and year ended December 31, 2023, 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 preliminary financial information presented in
this release are estimates based on information available to
management as of the date of this release, have not been reviewed
or audited by our independent registered accounting firm, and are
subject to change. There can be no assurance that the Company’s
actual results will not differ from the preliminary financial
information presented in this release. The preliminary financial
information presented in this release should not be viewed as a
substitute for full financial statements prepared in accordance
with GAAP.
These forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by the Company 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
against loss; (7) the uncertainty and significance of the known and
unknown effects on the Company's insurance carrier subsidiary,
Homeowners of America Insurance Company (“HOA”), and the Company
due to the termination of a reinsurance contract following the
allegations of fraud against Vesttoo Ltd. (“Vesttoo”), including,
but not limited to, the outcome of Vesttoo’s Chapter 11 bankruptcy
proceedings; the Company's ability to successfully pursue claims
arising out of the alleged fraud, the costs associated with
pursuing the claims, and the timeframe associated with any
recoveries; HOA's ability to obtain and maintain adequate
reinsurance coverage against excess losses; HOA’s ability to stay
out of regulatory supervision and maintain its financial stability
rating; and HOA’s ability to maintain a healthy surplus; (8)
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; (9) 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; (10) the ability to develop new, or enhance existing,
products, services, and features and bring them to market in a
timely manner; (11) changes in capital requirements, and the
ability to access capital when needed to provide statutory surplus;
(12) 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; (13) retaining and attracting skilled and experienced
employees; (14) costs related to being a public company; and (15)
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, in Part II, Item 1A,
“Risk Factors,” in our Quarterly Reports on Form 10-Q for the
quarters ended March 31, 2023, June 30, 2023, and September 30,
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. The Company 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.
Non-GAAP Financial Measures
This release includes non-GAAP financial measures, such as
Adjusted EBITDA (Loss).
We define Adjusted EBITDA (Loss) as net income (loss) adjusted
for interest expense; income taxes; depreciation and amortization;
gain or loss on extinguishment of debt; other expense (income),
net; impairments of intangible assets and goodwill; provision for
doubtful accounts related to reinsurance, or related recoveries;
impairments of property, equipment, and software; stock-based
compensation expense; mark-to-market gains or losses recognized on
changes in the value of contingent consideration arrangements,
earnouts, warrants, and derivatives; restructuring costs;
acquisition and other transaction costs; and non-cash bonus
expense.
Our management uses these non-GAAP financial measures as
supplemental measures of our operating and financial performance,
for internal budgeting and forecasting purposes, to evaluate
financial and strategic planning matters, and to establish certain
performance goals for incentive programs. We believe that the use
of these non-GAAP financial measures provides investors with useful
information to evaluate our operating and financial performance and
trends and in comparing our financial results with competitors,
other similar companies and companies across different industries,
many of which present similar non-GAAP financial measures to
investors. However, our definitions and methodology in calculating
these non-GAAP measures may not be comparable to those used by
other companies. In addition, we may modify the presentation of
these non-GAAP financial measures in the future, and any such
modification may be material.
You should not consider these non-GAAP financial measures in
isolation, as a substitute to or superior to financial performance
measures determined in accordance with GAAP. The principal
limitation of these non-GAAP financial measures is that they
exclude specified income and expenses, some of which may be
significant or material, that are required by GAAP to be recorded
in our consolidated financial statements. We may also incur future
income or expenses similar to those excluded from these non-GAAP
financial measures, and the presentation of these measures should
not be construed as an inference that future results will be
unaffected by unusual or non-recurring items. In addition, these
non-GAAP financial measures reflect the exercise of management
judgment about which income and expense are included or excluded in
determining these non-GAAP financial measures.
We have not provided reconciliations of non-GAAP financial
measures for future periods to the most directly comparable
measures prepared in accordance with GAAP. We are unable to provide
these reconciliations without unreasonable effort because certain
information necessary to calculate such measures on a GAAP basis is
unavailable or dependent on the timing of future events outside of
our control.
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version on businesswire.com: https://www.businesswire.com/news/home/20240212029688/en/
Investor Relations Lois Perkins, Head of Investor
Relations Porch Group loisperkins@porch.com
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