Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a homeowners insurance and vertical software platform, today shared details about its upcoming in-person Investor Day, scheduled for December 5, 2024 starting at 9am Eastern in New York and virtually.

The event will provide key updates and insights into the Company’s strategy, growth plans and opportunities. Topics to be covered include:

  • Financial targets1,2 including Adjusted EBITDA of $50 million in 2025 and $100 million in 2026
  • How Porch’s new Insurance Services segment is expected to operate, including path to grow to $600+ million in gross written premium by 2026, and expectation of generating higher margins and profits post the Reciprocal launch
  • Details about many of Porch’s businesses including how they create advantages for the homeowners insurance business
  • The significant opportunity with Porch’s data business and its new Home Factors product which helps carriers and other companies understand more details about properties to assess risk
  • The company’s capital philosophy to support sustainable growth
  • Adjustments to financial reporting segments and related KPIs

“With the approval of the Reciprocal and the related structuring of the business to align with what we think is optimal, we are at an inflection point as a company. The Investor Day marks a milestone for Porch as we share our roadmap we believe will lead to sustained growth, increased profits, and value creation for our shareholders,” said Matt Ehrlichman, Chief Executive Officer. “We are excited to showcase why we believe the launch of the Porch Insurance will be transformational and highlight the many opportunities across our business units.”

Attendance and Webcast Information

Advanced registration is required for in-person attendance. For additional information, please contact IR@porch.com.

All are invited to listen to the live webcast or replay of the Investor Day which will be accessible, along with the presentation, on the Porch website events page.

1)

See Non-GAAP Financial Measures section for the definition. Porch Group is not providing reconciliations of expected Adjusted EBITDA for future periods to the most directly comparable measures prepared in accordance with GAAP because the Company is 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 the Company’s control.

2)

See Non-GAAP Financial Measures Section. Porch is providing guidance and targets based on current market conditions and expectations as of the date of this presentation. Actual results may vary due to various risks and uncertainties. Please refer to the Forward-Looking Statements safe harbor for further detail. This medium-term target represents Porch Shareholder Interests following the expected launch of PIRE and sale of HOA to PIRE in January 2025. For the avoidance of doubt, this medium-term target does not include the future results of PIRE or HOA; while we expect to consolidate their results into Porch GAAP financial statements, the PIRE and HOA results will be allocated to non-controlling interests and not to Porch shareholders, and will therefore be excluded from Adjusted EBITDA.

About Porch Group

Porch Group, Inc. ("Porch") is a homeowners insurance and vertical software platform. Porch's strategy to win in homeowners insurance is to leverage unique data for advantaged underwriting, provide the best services for homebuyers, and protect the whole home. The long-term competitive moats that create this differentiation come from Porch's leadership in home services software-as-a-service and its deep relationships with approximately 30 thousand companies that are key to the home-buying transaction, such as home inspectors, mortgage, and title companies.

To learn more about Porch, visit ir.porchgroup.com.

Forward-Looking Statements

Certain statements in this release may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although we believe that our plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning our financial outlook, guidance, and targets, possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. Forward-looking statements in this presentation also include expectations regarding whether the reciprocal is the optimal structure for our insurance business and the benefits financial and otherwise thereof, including any expectations that the reciprocal will result in higher margins and a more predictable financial profile and equip our insurance operations to scale profitably in the future. These statements may be preceded by, followed by, or include the words “believe,” “estimate,” “expect,” “project,” “forecast,” “may,” “will,” “should,” “seek,” “plan,” “scheduled,” “anticipate,” “intend,” or similar expressions.

Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any future transactions that have not been completed as of the date of this filing, including the licensure and formation of the reciprocal, the sale of our insurance carrier subsidiary, Homeowners of America Insurance Company (“HOA”), to the reciprocal, and the commencement of the reciprocal’s operations. You should understand that the following important factors, among others, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:

(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) our 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 possibility that a decline in our share price would result in a negative impact to our insurance carrier subsidiary’s, Homeowners of America Insurance Company (“HOA”), surplus position and may require further financial support to enable HOA to meet applicable regulatory requirements and maintain financial stability rating; (8) the uncertainty and significance of the known and unknown effects on our insurance carrier subsidiary, Homeowners of America Insurance Company (“HOA”), and us due to the termination of a reinsurance contract following of fraud committed by Vesttoo Ltd. (“Vesttoo”), including, but not limited to, the outcome of Vesttoo’s Chapter 11 bankruptcy proceedings; our ability to successfully pursue claims arising out of the 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; (9) uncertainties related to regulatory approval of insurance rates, policy forms, insurance products, license applications, acquisitions of businesses, or strategic initiative, and other matters within the purview of insurance regulators (including the discount associated with the shares contributed to HOA); (10) the ability of the Company and its affiliates to consummate the sale of HOA to the reciprocal exchange and to commence operations of the reciprocal exchange; (11) our ability to successfully operate its businesses alongside a reciprocal exchange; (12) our ability to implement our plans, forecasts and other expectations with respect to the reciprocal exchange business after the completion of the formation and to realize expected synergies and/or convert policyholders from its existing insurance carrier business into policyholders of the reciprocal exchange; (13) potential business disruption following the formation of the reciprocal exchange; (14) reliance on strategic, proprietary relationships to provide us 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; (15) the ability to develop new, or enhance existing, products, services, and features and bring them to market in a timely manner; (16) changes in capital requirements, and the ability to access capital when needed to provide statutory surplus; (17) our ability to timely repay our outstanding indebtedness; (18) 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; (19) retaining and attracting skilled and experienced employees; (20) costs related to being a public company; and (21) other risks and uncertainties discussed in Part II, Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as those discussed in Part II, Item 1A, “Risk Factors,” in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and 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.

We caution you that the foregoing list may not contain all the risks to forward-looking statements made in this release.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this release primarily on our current expectations and projections about future events and trends we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described above and elsewhere in this release. We disclaim any obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

This release includes Adjusted EBITDA (Loss), which is a non-GAAP financial measure. 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; 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.

You should not consider the non-GAAP financial measures included in this release in isolation, as a substitute to or superior to financial performance measures determined in accordance with GAAP. The principal limitation of the non-GAAP financial measures included in this release 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 the non-GAAP financial measures included in this release, 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, the non-GAAP financial measures included in this release reflect the exercise of management judgment about which income and expense are included or excluded in determining the non-GAAP financial measures included in this release.

Investor Relations Contact: Lois Perkins, Head of Investor Relations Porch Group, Inc. Loisperkins@porch.com

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