- Porch Group (PRCH) recently reported its Q2 2022 earnings. These are the details.
Porch Group (PRCH) recently reported its Q2 2022 earnings. Below are the highlights.
Q2 2022 Financial Results
– Total revenue for the second quarter of 2022 was $70.8 million, an increase of $19.5 million from $51.3 million in the second quarter of 2021.
– Revenue less cost of revenue for the second quarter of 2022 was $42.2 million or 59.6% of total revenue, compared to $31.8 million or 62.0% of total revenue for the second quarter of 2021.
– GAAP net loss for the second quarter of 2022 totaled $26.4 million, compared to a GAAP net loss of $16.3 million for the second quarter of 2021.
– Adjusted EBITDA loss for the second quarter of 2022 totaled $14.3 million or -20.2% of total revenue, compared to an Adjusted EBITDA loss of $9.9 million or -19.3% of total revenue for the second quarter of 2021. Second quarter profitability has been and is expected to continue to be lower than the second half of the year due to the seasonality of insurance loss costs primarily in Texas, concentrated in the second-quarter months, as well as an increase in Sarbanes-Oxley-related consulting expense to ensure controls work is completed with time for testing ahead of the year-end audit.
Full Year 2022 Financial Outlook
Porch Group provided updated guidance based on current market conditions and expectations, with the CSE acquisition no longer included and auto insurance no longer anticipated to be offered in 2022:
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Previous 2022E Guidance |
Updated 2022E Guidance |
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Revenue~$320M |
∆ Drivers: Removal of CSE acquisition; Small macroeconomic adjustment; Increase of ~$50M unrestricted cash at EOY (CSE purchase price) |
Revenue~$290M |
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Vertical Software Revenue~$190M |
Insurance Revenue~$130M |
Vertical Software Revenue~$175M |
Insurance Revenue~$115M |
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Revenue Less Cost of Revenue~$210M |
Revenue Less Cost of Revenue~$195M |
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Adj. EBITDA~-9% and > -$26.5M |
Adj. EBITDA ~-10% and >-$30.0M |
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Gross Written Premium ARR at YE 20221~$600M |
Gross Written Premium Recorded in 20221~$520M |
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KEY QUOTES:
“Porch Group delivered solid revenues and operating performance in the second quarter, and we are continuing to execute on our strategy of providing software to more home services companies involved in the home buying process while helping consumers with key services such as insurance. Our continued growth, despite impacts from inflation and a slowdown in the housing market, highlights the recurring nature of our insurance and software revenues and our strong strategic position. As we move into the second half of the year, macroeconomic headwinds may persist, but we look forward to continued improvement in revenue and margins, advancing the integrations of our acquired business units, and progressing our capital-light, differentiated home insurance business model. We are laser-focused on driving the business toward profitability, without sacrificing progress against our key strategic growth initiatives.”
– Matt Ehrlichman, founder and Chief Executive Officer of Porch Group
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