Porch (PRCH) 17 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Walter Ruddy	Head of Investor Relations & Treasury
Matt Glover	Gateway Group, Inc. IR
Matthew Ehrlichman	Chief Executive Officer, Chairman and Founder
Marty Heimbigner	Chief Financial Officer
Matthew Neagle	Chief Operating Officer
Adam Kornick	President of InsurTech Division
Jason Helfstein	Oppenheimer
John Campbell	Stephens Inc.
Jason Kreyer	Craig-Hallum
Dan Kurnos	The Benchmark Company
Mike Grondahl	Northland Capital Markets
Ben Sherlund	Cantor Fitzgerald
Ken Wong	Guggenheim Securities

Call transcript

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Walter Ruddy

[Call Starts Abruptly] Matt Ehrlichman, Porch Group’s CEO, Chairman and Founder; Marty Heimbigner, Porch Group’s CFO; Matthew Neagle, Porch Group’s COO; and Adam Kornick, President of Porch Group’s InsurTech Division.

Before we go further, I'd like to read the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Today's discussion may contain forward-looking statements, including, but not limited to, statements regarding Porch's expectations or predictions of future financial or business performance or conditions, business strategy and plans, and anticipated impacts from pending or completed acquisitions.

Forward-looking statements are inherently subject to risks, uncertainties and assumptions, and they are not guarantees of future performance.

You should not put undue reliance on these statements.

SEC. such discussed involve in under public with that including and Porch's understand filings items the the the should forward-looking risks statements uncertainties, recent You Risk Factors to Such materially indicated time the factors from which on cause those and available by SEC are updated performance actual may from results SEC, in subsequent or filings be Porch’s with website, may statements. the such time to differ any otherwise, alter forward-looking and obligation expressly any or no result otherwise update, changed future revise required whether under new is Porch law. of statement, obligation disclaims a except as information, to by circumstances, events as or today's remarks, measures. financial In non-GAAP will we to certain refer also Definitions disclaimers of in available Slide financial presentation. the are found these legal X non-GAAP measures on of the reconciliation most these to XX refer of measures, please of measures financial directly the GAAP a tables on the to non-GAAP the Also beginning Slide comparable for presentation.

this I porchgroup.com. for additional to this also remind disclaimers for conclusion at the the We such presentation that will such legal of on you company's would like refer shortly after webcast website information. be to everyone replay available

company found it CEO, the Porch will For please those the with webinar turn will Matt? the along Matt into within on Ehrlichman, presentation And presenters' let follow the also its that presentation of submit Porch Founder submit function and has log Chairman that a The can available chat through of best it to the the take Group be slide made with Group. Zoom during over today’s commentary. and me website. platform. that, like all questions a on to question you Management to presentation, do would allotted time.

Matthew Ehrlichman

highlights begin, plan excited across which value you. performance home for driving excellent including cover SaaS divestitures. second execution I'll It's growth delivering To shortly. off ambitious fleet Walter. adjusted strong QX I'm for here be in is past our quarter shareholders. us against our performing these XXXXearnings second revenue, our expansion versus our Certainly, conference Thank Good with into is business, in afternoon XXX% our for great and year-over-year to for Thank our quarter second performance you, up adjacent to you call. quarter And our joining everybody. with QX verticals. into service is Porch XXXX million of $XX.X was get which

Mario, doubled. about the year. As the QX annual at almost of compared million are revenue these QX revenue $XXX more QX rate. north rate. and $XXX well revenue around shortly, exit million again We share to XXXX but expectations results now, guidance And a quarter, will previous run we we raising for annual to run revenue left are exceeding

modules America by As that Homeowners us you'll is our software that for from an in here company companies. catalyst footprint talk that more see get for industry. provides at for title guiding their we software us the or important the confidence slowing acquisition these gross HOA premium up our software we're changes ability are $XXX in with XXXX the strategy. to a our year. growing rapidly expands not important last for the This BXB are balance in growth, quarter. companies. acquisition the million our into of completing acquisition an outperformance Selling After variants, announced We'll and of QX, into for that expect home; of our the housing to profile more macro more written acquisition COVID-XX of access softening previously the of also from particular very Insurance market and To-date, for of Rynoh, of business excited increasing XXXX to now to execution the about our is start the to seeing today software guided from million our companies, later helping revenue; our to more KPIs, SaaS the performance on. consumers driven whether services to sell our for the any with we we year, $XXX XXXX in gives and which

hand to our priorities. and So Marty articulated through to more before in go financial I first previously company detail, revisit strategy it let me over XXXX performance our

industries to BXB we've stress helping us access customers So our who looking home and strategy, on we're software in allows homebuyers, BXBXC now, of grow. software by here at insurance. move. industry. important them of this, and generate revenues executing are we Certainly time, money moving, been as recurring to facilitate to familiar to as and From services as by transactional many well during after. to the It our like and help positioned help roofing revenues, in help massive which save By the purchase early software you going leading so, gain services title company with we strategy services Slide generate vertical unique home provide inspection, has us companies X, the consistent a doing we

access of top then to Slide consumers three, to, to their services these providing have modules and of consumers, software embedded; in priorities more from deeply additional all more to leads the our sell these starting services to more more X, of or particular, move-related kinds two, companies of one, So are which these services. companies providing at become Porch provide

can of expand insurance acquisition where experience, companies we title Four, with QX in of all our we're we inspectors data consumer unique year. and brands and advantages. refinance more more strategic happier good. and M&A this lastly, manage and connect is home our general latest to to for platform. helping help buyers of carrier with continue to use look U.S. they companies, property homebuyers services, on home our than more home software agent, earlier; all like focus than example XX% in where full Rynoh bringing Five, the advertisers purchases As stack U.S. help and a transactions threat managing the we XX% customer with as is we leverage agency,

And looking is QX that, over the for our guidance business our I'll with XXXX. each turn Marty and performing updated discuss strong. remainder Results of our these Marty? So well to it Heimbigner, of areas. against CFO very to are

Marty Heimbigner

Thanks, Matt.

Turning X, XX, the quarter ended our for results now financial June to Slide XXXX.

QX total our a for $X was to Rynoh from revenue which largest year-over-year. million revenue million break consistently was $XX.X Rynoh’s revenue significant acquisitions quarter million, Our is XXX% increased to increase as compared million $X.X divestitures, $XX.X separate XXXX, and added expected year-over-year QX with an revenues to the We QX as our total million, ongoing full only growth. revenue to million acquired $XX.X QX has shown $XX.X is XXX% not in seasonally. organic and of incremental XXXX XXXX out year in mainly quarter. platform add announce out because them create in growth. them earlier Adjusting we in is past do

, negative performed at and XX%, Slide expectations less XX% $XX line the levels QX, EBITDA respectively. above Looking in million. with margin cost million the loss margin $X.X outperformed our adjusted we our X internal at In and margin, Margins revenue revenue by XX%, in guidance contribution range at to revenue

in occurring. period For which our of is the a higher business, QX probability events significant Insurance have weather

between higher compared approach take in to February series a a loss a our of such, and were the four Texas April this conservative for As prior. there as catastrophe-related and major years whole, quarter insurance that the volumes planning it storms industry out, led as for in as we of turned to

approximately incurred these each QX, impact we However, been to would hundred line points been financial margins results $X.X quarter, three is million million $X of muted. if the basis given in our which In normal than averages. our XXX Thus a of is weather related with revenue loss, historical higher to reinsurance in in higher. cost system, weather had catastrophe-related have

earned in Given we variability you'll slide. previous catastrophe-related margins as loss in full plan our remain on line guidance some see next QX, with XXXX in for the year

our As per there companies well. some seasonality revenue more and a revenue typically for quarters, higher which increases QX QX those are transaction in revenue, reminder, in in business company. our homebuyers because two service is as

QX we don't guidance, than noting QX. is lower quarterly above set seasonally nicely While QX expected be QX are is that revenue and we trending to

year-over-year XXX% a a public Slide guidance year. now million be of fourth to the our consecutive guidance are business in As raising million This stated $XXX would our is Rynoh IPO we of raise . months the eight growth. and $XXX on from XX, momentum at $XXX our revenue This million our you company as full our given for the from here to previously acquisition, see million $XXX

we the pleased with are We continued are seeing. momentum

loss guidance XX% XX% less We adjusted our contribution a margin cost tightening of XX%, range our full EBITDA year XX%. of at approximately XXXX margin guidance to of are revenue full negative approximately year and are reiterating at negative to revenue

and invest to and marketing such in further as growth data insurance We R&D key expansion, platform opportunities sales chosen industry. within inspection have the and our

a guidance XXX%. is updated year-over-year in million As to Rynoh be $XX even X of million is EBITDA was versus from aggressively almost our we VXX HOA, be adjusted XXXX $XXX expected Overall, XXXX x Of as note, improvement long-term in to expected for revenue, acquisitions. growth growth. margin and invest layered

expected from Only anticipated revenues XXXX from revenue was move-related very services, of to XX% On had a the from coming revenue of subscriptions, BXB move-related includes can insurance this. from right to QX not SaaS XX, of post-move services. XX% XXXX revenue and coming and changed, Slide distribution platforms XX% software summer revenue The services. see in coming our is our also side service and distribution you We be from of business of has services. post-move XX% are corresponding XX% which

on see approximately our , here over range key XX% XXXX meet of XX for I'll XX% provide the to to targets negative continue we Matthew Operating margin to margin Chief and to adjusted Neagle margin loss contribution now indicators negative to the As can for an XXXX. anticipate our QX update call you EBITDA for Slide performance our turn a track Officer, year. XX% in on

Matthew Neagle

in and Thanks, everyone. our with I’ll Marty. public KPIs hello, commentary. And jump

we so, the slide business. First a and comment this quick how managing on are

can see, improvements our contribution As we margins time. made also our over substantial EBITDA in margin you adjusted and have

EBITDA our right we're already ability our approaching that is fact, are consistently managing targets, toward in adjusted fixed substantial particular target, In This margin long-term year our primarily variable to means contribution by in expenses. level which which we today. clear includes R&D, the to expenses each our progress margin long-term all

we percentage each As EBITDA we have will previously to a specific business manage year adjusted target. our discussed,

So given of We attractive, further as to given sufficiently see targets our increased to adjusted margin as next a use manage let's to the of plan in in key portion drive build and guidance, we will large two to With marketing to very revenue investments slide continues and revenue front given in and ambition of of are so not growth. R&D massive sales and - a ahead to perform KPIs. fund loss you TAM continued business. the investments our and EBITDA our can to the us that, progress go ahead our

with growth which KPIs Beginning is saw strong than the per is which year-over-year. average right, XX% more which If companies left, growth call year-over-year strong. a quarter XX% you to XX,XXX, quarter month, $XXX.XX company of revenue companies, up $X,XXX, I'll average and the very look our per on number on the the also in to this up the here, were in we in strong

We the Certainly, grow. inspectors impact generate will meaningful sale. We division We per number back make volume. to the XX,XXX growing with pandemic strong out given continue QX where more outside metric online expect of continuing in acquisition. more this growth continued and business customers help continue companies to to we help add states modules. InsurTech of revenue this, the Home get services to has a consumers bounce in to, but, here. ways. We software their what revenue success back our doing BXB our more generate more to companies additional per we SaaS companies valuable. these we good, pausing sell Rynoh X,XXX are homebuyers, we Of insurance the this we believe access provide software at more company it felt new rate. do services offering the to companies in our during high-value software number services are to come to industry. Other roll we transaction a our one-time of QX, within Should will than in due are for from QX home We and and after We we to to in pandemic inspection only not grow more continue more approximately continue sales. look

XX. the to go Slide Let’s next slide,

We all continue services. of monetized to growth types across see strong

year-over-year XXX,XXX which year-over-year. monetized crossed monetized represents we quarter, a QX, growth, service, quarter the in This saw increase XX% per and for $XXX services XX% we

key services growth focused which as monetized the are result Importantly, per service. in insurance, such revenue is higher on, in services coming from we

We our as bodes the think with we own insurance which are rates future. we lead seeing higher conversion well offering, for

So as back home quarter. or introduce expand for over expect revenue high-value deep our I'll states, perhaps our to continue to over warranty insurance more service other discuss average that, we Matt to as into as monetized to solar, per it hand such the as time. well the offerings services we With increase dives

Matthew Ehrlichman

wrap We'll M&A. Thanks, our update with Matthew. Marty. Thanks, on then and business, we'll first insurance

business. division, leading agency aspects Adam? like to Kornick, I'd our introduce and President who's InsurTech So, is our insurance all of the of Adam

Adam Kornick

nice for recently, roles, Allstate as of at Aviva data Progressive then Chief focus Officer leading decade Thanks, Analytics teams joining worked at Chief a Data in a and more I and variety on at Very Matt. Technologist today. leadership the analytics.

So, strategy. to XX, visit our and business I turning insurance Slide should

Overall, period know, sell unique We This risk premium small lower lower property loss InsurTech build a software expected this commission. premium through growing a with and was losses. expected large amount geographies capital which Within levels. acquisition. we as you agency get within of hold reinsurers what stack to system limits Uri a around reinsurance data the homebuyers, is with our or coverage. premium a than million we most that Storm vertical in Porch typical about to before believe is means leverage we we and the weather yet on weather MGA, paid risk XX% in a have a even as XOL operate carrier means large our twelve our carrier we be fast When approximately through policy low early homeowner, paid in-house third-party don't is policies to will of has cost see then, for currently we over states, massive where access well in a QX hit catastrophe our HOA events we and business. that As or of the full to systems. of light in event volatility retention we're only our the our like provides XX% following of policy limit month third-party recognized before period us $X commission sell and in doable, There a excess expected worse reinsurance our

when favorable we results overall impacted more position. Our less remain in financial are a

on we increase and profits. its at While, time may somewhat increased our hold the premium

revenue, the software We general high on continue in continues of operate that and top our to lead sits vertical we capital services same platform. be software to structure, will the margin core light our of Insurance on top with platform.

million from we're Our guiding of and the XXXX division now up growth, the $XXX quarter. year, strong shown to for from premium guidance gross million InsurTech has $XXX last

over strong science engage is data as well year actuary layer is in for losses. insurance Listing there in states, I opportunity for launch performance we're on even note meaning to launch in receiving a rent offering prior regulatory states and year Tennessee these of HOA we proprietary which house substantial given XX will incremental both and recently ratio to that one Utah non-CAT a the teams full states will newer loss Illinois, We our the gross track time, very the into us. within will insurance some report approval performing variation acquisition. improved launched to only for by We our that quarter. We shortly. our continue are remain further seeing expand XX that

Marty million we years, of be revenue typical carriers earlier, about as reinsurers catastrophe serviced across that QX, expense in for season. are than our rates historically overall cost in shareholders. Storm based a incurred had ensure increases mentioned ensure As be well consumers partners events more Porch in there to and increase. $X already future returns will expectation and on into of That to and the the expected should both to high can both for appropriate. Matt? When profit rate filed we such reinsurance have Uri be After

Matthew Ehrlichman

Thank you, Adam.

Okay.

discuss M&A. So let's

detection excited I we patented of in mid for software, the SaaS selected QX, Rynoh profile Their visibility closed different mentioned, which integrates correctly consumer company into amount to settlement It visibility than reconciliation, provider then into all monitoring, located Rynoh Since is to and acquisition a other closing through real $X through of open small, continuous add leading valuable It All reporting. over division. more monitored and the Rynoh disbursements that process, company companies It's with InsurTech the closing worth XX daily details agents. the providing means flows Rynoh. is integrations flows validates has has XX.X are - by million It's the with made. but that trillion. it's their closing fraud it certainly homeowners transactions has as that protect The estate we a a applications for So, transaction Rynoh fund has are gets title platforms. and insight to and This auditing, title us premium. visibility consumers closing the banks. transaction warranty company the inception, spend. strategic our solution. the rate And insurance a will software solutions the mortgage an Virginia. very for paying which end-to-end escrow other account and is can their companies in and software easily Rynoh

homebuyers technology. home industry home a U.S. that refinance companies help demonstrates acquisition create title to time low During becomes the purchases to expanding with inspection I Similar to in is a services to moving title XX% were customers. ISN, XX% companies. We'll cost all now space. very software ability Porch and providing partner leader than protected of to before, early these in meet inspectors, M&A grow Porch’s done their mentioned our with software in the XXXX, Highlighted what more similar and experience home immediately strategic Porch them the we've access as at Rynoh strategy. on better for execute by another of and This QX for residential U.S.

home. For insurance for their new example, by helping set a of

grow sales As the we invest more title and company into R&D to becomes valuable, then more can marketing and into faster.

In terms million at Rynoh due in April $X.X million for and of details, XXXX. cash we in the $XX.X cash closing in acquired of

We full million the revenue million expect Rynoh Porch’s to to XXXX $X for generate $X that in of XXXX year with close. year post occurring

As million to Marty $X.X QX. mentioned, Rynoh revenue Porch’s contributed in

the products of to the very approximately at sales base. and contribution we marketing scaling as companies the next the invest gross margin Rynoh and title operate over business the margins to expand in business Porch’s. expect We breakeven profile in expanding of years at couple we The similar to provide customer is

the to are team So the we thrilled welcome to group. Rynoh Porch

wrap I remains strategy our our remains the M&A of important strong. pipeline M&A dive, that As and an I say deep will then

and who KPIs. M provide governance, independent directors Saade welcoming our an Director to had Lead We our just to Independent into title second Maurice strong for we We performance. as &A providing companies expand growth recently financial We demonstrated We outlook. and full delivered Lam experience Tulloch strong and excellent insurance. year Rachel folks, with quarter. Rynoh Board two and new added So as recap, acquired now both revenue and to across our raised software Javier

We excited are as future year growth potential. well the remainder XXXX, about very our as of the and

to we're lots deep predictable modes business this market growth a after. with levers massive have and We going drive of in competitive

the management that's So, team.

for Walter, Q&A? can We the questions. will you take up open your please line now

Walter Ruddy

Thank you, Matt.

questions. questions have approximately from taking Porch’s by We'll sellside start analysts. for thirty We minutes

Helfstein from comes from Oppenheimer. question first Our Jason

Jason Helfstein

Can me? you hear

Matthew Ehrlichman

are How Hey, Jason. you?

Jason Helfstein

go. I two, that’s Here I was questions start. visit. guess, we at time, two okay. to the Surprised added Three –

adjustment services? come out the then $X Just, and from, in with you and because, of of insurance, you’ve called quarter, comps clear, And you're Rynoh million quarter, because CAT higher the kind providing do $X not inspections – make the it so or million that generally cat? insurance. upside, did to be period that we to moves CAT actually And to not maybe post-move then, second where just going each title are so can

like it's So insurance it's - to And software. software inspections of title are moves You so agent. actually and the maybe kind the less - business, Right? to similar help right? more

question, that's three I kind like of guess. So

Matthew Ehrlichman

there Great no, Jason, in software But, inspection that software is to one, on software very systems yes, other Maybe with want you No, two. add think our one those or first of last Yes. on layer Yes. companies. companies great. - much about color provide start if Marty sell where questions. and some I'll to like ISN title like Rynoh is anything now, home we just of we sell top

to their about anything help from again, similar few to these have not insurance consumers through help the So vertical can and came first be now Rynoh able moving that Marty to to insurance. Quickly $X.X quarter. another to those business. then, QX just but the noted contributed penetrated We're Obviously, add, we are able areas. we into beat a in It's a the that title can million businesses we better our two you then, on talking experience. deeply not businesses, And be grow.

is insurance obviously, that, of outside so growing quickly. And

SaaS selling grow seeing like from just And that bit we're to I revenue, just that it note up You by more talked breaking that gross can we That $XXX was to more will CAT number that break even a services do just insurance operate, though software we nicely. very we that's system that is specifically unusual, it can the modules was premium unless is around these design Matthew atypical our companies losses grow nicely. those plan big also something provide driver. insurance BXB Overall, a million is, of which again through, the and I would it seeing QX thing the in first atypical, written out, but see show both guide. KPI in we certainly on kind that’s companies say increasing impact. QX, revenue, wasn't of side, up is you like really an really see guide industry, the in we're attractive that that BXB show software and into about then, more and And system not the when the a very last it I of question atypical. of QX. for there big think where atypical is also are

So, to our would when occasionally, of QX, there call performance this we kind quarter. some weather expect strange out are as it in I on go, but typical not

Jason Helfstein

Thanks. Yes.

Walter Ruddy

The you. Thank from from Campbell John Stephens.. next question comes

John Campbell

Hey How afternoon. doing? you Good guys. are

Matthew Ehrlichman

Good to see you.

John Campbell

the you. to Good see Yes. Congrats M&A. on continued

– making million I But Rynoh, do, think, right? are $X be this just I guys guess, that from standalone this. the hit was You year a Is $X was on This definitely Marty some to smart Rynoh press but sub-year. to least, it you expected a deals. appears from missing pretty just you contributed and tuck-in basis guys on million

Marty Heimbigner

from date $X for quarter. then million year full the will fall QX our also strongest out acquisition. the million pointed and $X was that their seasonally year that It's correct. of into the That's And

can and figure QX you out So that help QX.

John Campbell

going And into Okay. that's all post-move?

Matthew Ehrlichman

a It BXB Rynoh is revenue. So, provides, subscription company. software

into line. software it BXB So goes

John Campbell

pop then, a guys it. companies serve That's there. results KPIs, saw average good - good really the was Got on you And Okay. The helpful. really there. that

of quarter. right a of the think you I think of but an a over the average end the quarter, X,XXX I that companies, start mentioned metric Matthew, little it's is maybe

good you thinking off guys but of that Am right, at pretty the exited what about the you So the it provide a don't jumping point quarter quarter? at for I maybe was if I end can, and probably know guessing I'm XQ.

Matthew Neagle

We at strong quarters. the of the couple the of And Obviously, did about in what share excited it lot of don't growth remain invest of acceleration full kind of this and we're in end a last We comeback to starting a over of Rynoh number companies companies we strength the a sales helped. marketing. the Yes, saw see quarter. was lot there.

the QX like higher do QX to and has and So what we trend. in not feel just growth ongoing rate saw than But do expect expect QX growth, we at we QX. good we

John Campbell

on kind think the what to Okay. is HOA flush legacy? on - premiums, is versus written have much Matt, million this hit of ago $XXX might you way there lift how second the And but I the out a of a that gross

Matthew Ehrlichman

Yes.

break of the In our full Obviously, tender terms flows entities those out kind terms gross between how of agency we premium now stack, through. agency in very it is MGA are, much this of and carrier/ versus is versus how don't it our agency, sold point, the connected at HOA. written

don't are both we say that growing out, nicely. will it split I As really

are our grow Obviously, faster the we're can certainly overall we as our results and So, sales system plug agency-driven into expected, just nicely. growing very as you at see a to HOA, in able it much rate.

So, good yes, we group. that feel about the of overall performance

John Campbell

guys. Thanks stuff. Good

Matthew Ehrlichman

John. Thanks,

Walter Ruddy

next Kreyer Craig-Hallum. from Jason The question you. from Thank comes

Jason Kreyer

with topic. Sticking me. Two Rynoh Thank Hi. the you. for

kind disclose transactions wondering you're any XX% all today. touching how overlap between then, ISM and just of of And talked there of seeing right Rynoh now there is the kind existing, of about is can if about that you much you've ISM? with to quantify, an So, footprint way

If does much increase you it? in that Rynoh, how pulled

Matthew Ehrlichman

a question. It's Yes. great

out given Rynoh reach consumers platform reaching sense the the number a platform certainly, the both deal. We're has, So, break just, it's not overall. kind of that like, has now a reason certainly, to given ISM and the apply we're good the you for going get here the And and estimate. those can two of

there. in companies a our sure team and on - very the integrated. before, moment acquisition to pretty be can is reach, the data going I that is get inspection not breaking in do ourselves unique. moments sense homeowners reach but what and to what home of to be unique on just to make to fully similar easy that exciting that companies, to squarely able right will for So is I the gets are title our Porch out has journey. time, they the work napkin some there overlap is where do you really very But map mentioned strategy that ballpark will plays companies still to so like we say, specifically, buying homebuyers, back the early This meet embedding in at

got And whole new a software so, vertical expand into. sell now have and to we and go sell that we into into and

now very the room terms pretty So, with unique the of metrics and lots homebuyers. are space have in in unique, to access the I of the would title say run, we overall

Jason Kreyer

Got it.

to the the it this into timeframe, operations? long it terms take business In At can you and do think to about does talked and data about that start your point of kind becomes utilize leverage you integration Rynoh operations? how integrate sets these of smarter what data

Matthew Ehrlichman

Yes.

and Let then and crack it is feel data me of free impacts take if there timing to Adam how the just to broadly you platform layer, in your want business terms with anything - of across in. with terms is the team layer as and industries. able we But running, already Jason, do other and being off with, systems Rynoh to working you team the in software start a

But these around break bets down those, As number is the structure making, that be this platform with R&D mentioned we able dataset of data areas, large properties. before, there proprietary one to we're is one a of big investment of our to big

to in that a which able consumer. used So business price can be to in be help is most across one of the this ways, be risk, effectively variety business it to Adam for then our of assess able

parts see platform that, our big and built This not impact business. work to impact is where to it data, Just our able a good of be it data work situation or certainly. a is short-term to to year XXXX that a insurance start a doing of we're make meaningful be on then plus get into data like with other that our able can property

Adam Kornick

guess, of in helps a add ways. platform. of the I businesses would really They the I around so, the And topic well Matt, just insurance data couple important

predict not creates helps like offer So for can the of U.S. something to a it what and because move. only we'll that to And And acquire one, the during then, losses, And through data second really just that growing our can especially really someone significant is is it consumer us effortless but CAT Rynoh, consumer experience, better and that And those having know we one us are the frictionless advantage. the their durable our going just helps our lower, make create in I things not come we really number unique doing that factor key the you that consumers people's into consumers collecting. a price. the I view we're can if in it is And safer insurance-specific, reassurance. so, guess, out that two price, you're think am price about all data excited of lower at I risk with lower the because

warranty you where else or something future we in inside home. do we home So if about we know could something the do like could think actually what's the

to I take think it back acquisition out. that. and can We've We comes we friction the then can really straight price better. got economics,

that data some I about are those things talk with So generally.

Matthew Ehrlichman

No, great it's a call.

the If the before that's or I in companies. really really mentioned models through here appliances lot opportunity. you one make home the warranty, - a datasets know of the that of obviously a title And incredible comes

and it's the product, of where at company insurance build money. the for not it to chose right consumer If offer hard imagine home price who you of their paid in premium, type the know to insurance to in right application we consumers save going can how they there terms we're the what the

opened up of lots this that's stuff so, acquisition. through And

Jason Kreyer

Perfect. the Thanks it. guys. color Appreciate for

Matthew Ehrlichman

to Good you. see

Walter Ruddy

next from from The question you. Dan comes Thank Kurnos Benchmark.

Dan Kurnos

on going doing? you with to we're same the How guys. really Hey, panelist. Just, Jason jumped

try going we get up. all to set this to are So

questions, if be of Just kind also of helpful just kind in a of that backdrop things. think what's trajectory your On T's, remind of guys refresher. market business really macro I interesting, I the a looking Matt, kind of at at peak. going Rynoh, but home It'd people inspections, and housing lot this know you of case right, kind get just and of we the couple super growth kind to of So Maybe, we're underlying first, to trajectory on. to be on at helpful about that of then is basic with would sound a home going the good solar good And the saw nice there, warranty.

InsurTech just to underlying about said the growth going things, additive when you're growth we here? maybe, still think to eventually account? kind going it the there. case rate this growth does plus like is company. profile Or guess, when profile forward? Is how of the aggregate stay of to you the and that have accelerate growth Historically, take you those tuned I company to them of a Or factors VXX? all So, we'll But, profile sort do buy into you've

Matthew Ehrlichman

Yes. Thanks, Dan for the questions.

growth, In are of is sales in amount may the terms I think meaningful some increase there that driven company's transactions. of think we've is have the some something that misunderstood, seen the people which macro, been home probably I by do believe that

see sales New So go we'll home of obviously, have all, actually inspection. it transactions home slow inspections their of that reality home and waive power, interest similarly, up much. get sale sales across actually as number But more start them, of up, into that industry to total more gone we virtually shifted sellers the is down, didn't market homebuyers more rates down the Right? homebuyers as home and inspection. as went and buyers is, the change home volume more to significantly. typically transactions whole And home the a

that for COVID-XX us, said, at that. of as just or forward, impact ramp anything can from so, we not view whole like ramp seeing that we're it as trends. as of and we're macro an seeing like the it much And look much anything up FDS, from Marty but not you And macro variants a up of

macro barely and grow just independent a just it’s of so So, in scratching business, continued surface business early that opportunity large our and the game impacts. the is, such terms the that in of market to our reality we're the is

would in we the think things internal we out it have forward useful. in $X.X be growth, to mean this terms look that would the billion One, that that revenue point mid-term. I to slide continue and highlight you would past bring target that I of two in shown where have it, in and point I As and I up

We that good that expect that. side on business we But there the left we haven't still and that the we feel for - growth feel still we highlight of would do rate about a highlight number defined years. in XX% to ongoing XX%

break $XXX obviously, here, But layer out growth. million new acquisition Rynoh as had The don't in you do the again, said, HOA layered $XX highlights, we Marty organic - other in the the , and from point VXX we can we when million this see of we like in acquisitions.

use And so, able a get you that sense just another can that's data to help to for be it. point

Dan Kurnos

kind Yes, maybe base it. offline touch There but that. we'll Got around Rynoh, on more is of

Adam, to panic possibly on quick organic for mind written about you think footprint? but you the Just, since geographic maybe just your don’t between expansion existing you versus a guide either How just upside. maybe then again, on the being said follow-up gross accelerate just we able and if do premium that breakout you

Adam Kornick

Yes.

So I Matt. that, answer can

I it of from break new and out specifically, and but we So don't think see existing strong lot demand we consumers. expansion. Renewal geographic policies a of

approval So it what is thing in results. And this more I launched we states. is, in we recently is we two main working, up showing it we've said say the received our see takeaways in then, Illinois,

track close. in states from geographies for filings post other so pipeline We regulatory or that months the we're have to first and the XX additional XX XX on

So showing things about those all it's good up. and we feel

Dan Kurnos

Awesome. it. Thanks Appreciate guys.

Dan. Okay,

Walter Ruddy

question Thank from you. The comes Grondahl Mike from Northland. next

Mike Grondahl

Rynoh of X,XXX and inspectors One to Yes. your or your is, impact, a growth old related ex sales companies the coming those say Thanks coming Two platform platform? back and still back how to emphasis And inspection sales bigger many questions. had would potential? in in guys. are sort your companies that home to you than

Matthew Neagle

we industry. know for the them to it specific it We to and we the because, I break can don't reaching of entire trends. even contributed break out say hard me out would be Yes. all are out

have said, platform, But QX be think than optimistic expect reaching sales just on back extra think it customer part because, we as growth, we in because it so, faster the ongoing And could and But success out market. them. good is they the QX to and to back do folks about also be otherwise, that coming first were but of we either do we will QX. we coming

Mike Grondahl

any secondly, you've concierge the features you've tweaks Got that on added and made? moving to then, And it. update just or just any any

Matthew Neagle

improve. We continue to

who that on MPS phenomenal service. really experience for use people have We our

You use we to How in are more get we consumer. it. we interested consumers how get do more services per do

the we App. of things consumer is about that talked have One

And team on hard our consumer so, work App. is the at

ability coverages to an course and consumers have course, able the insurance to improvements lead able of with then communicated, as we're with HOA And we're continue has lead we previously where customers HOA, the expansion coverage, app the have now As of integrated acquired nice uptick and that seen our our using one later of to close have integrated in to first offering. that HOA we year. is, when other this we HOA

Mike Grondahl

you. Thank

Walter Ruddy

Thank you. comes Sherlund from The next question from Cantor. Ben

Ben Sherlund

my taking for Thanks guys. Hey, question.

some So XQ, we try that forward? ballpark products driving understand you keep us maybe seen transactions from we upside? if excited help what to here, Or of you're going ex you about acceleration maybe if HOA, are products most what nice you've flat kind revenues could

Matthew Ehrlichman

reference number to in services? Are you about talking of

Ben Sherlund

No, just in terms of monetization.

Matthew Ehrlichman

The rep per service?

Ben Sherlund

Yes.

Matthew Ehrlichman

it. Got Yes. Yes.

want Matt, a come back So, more add. in our is purchased on strategy, would during that move. are just anything you to the services layer you focus if that can there and high-value I can is the take to place first I which

HOA value on we Both more deeper more chain we insurance sale going help up insurance as it's go platform, used as and of our put also that but to. insurance the we than of a quarter, into big get volume revenue the so, HOA, in towards then to And HOA. we per with through is going that, strategy, per get kind energy had on brought drive this as we rev impact we service. saw improvement as more to The

general on number. seeing we're insurance focused on. is that where seeing we're impact certainly But our across that certainly are and other improvements we're services We where is focused

Ben Sherlund

acquisition. on HOA a lead any are maybe states the In HOA from where then, on And the insurance friction post group, on providers seeing way and group the the states? you great. the Okay, insurance are insurance insurance in those you quick with follow-up active

Adam Kornick

I can that, Ben. take

can. So, the I’d that their we help of partners grow our and say, provide customer best promise experience we our all for Porch business across them that

it’s agencies. make industry everyone reinsurers, with we carriers promise including of a that's so, huge a available And market. our massive a And

that to partnership and value. we and people showing with to lot partner is a that deliver with partnership think into So people we’ve can space there we of – been

and what communicating and we're that's back that's doing what with that's we're working So great. we're hearing

Ben Sherlund

Thanks, Great. guys. Okay.

Matthew Ehrlichman

Thanks, matt.

Walter Ruddy

Guggenheim. Ken question next Wong The comes you. Thank from from

Ken Wong

Great. Thanks my for for Rynoh questions couple A taking question. me. of

it but primary the of look grow we like value largely sounds that I a the from to we think, revenue some So, services. value have guess, we – extracting laid it from you drive interesting the transaction is to more it and the couple you see Rynoh of around be be - extract Is how or pretty Or think of years the going I can out as incremental upside a guys meaningfully? should data. out, software strategy Porch? guys line is synergistic, could this you it's platforms from data to can

Matthew Ehrlichman

expect as I where I we our as more we them add more sell there to title a grow. do mean, of would to capabilities strategy help in is software can executed we've them inspection help There think their about it, business exactly how Ken, BXB companies. levers. of space those, tools things the lots provide software that in modules. to we certainly, is number and And

So we to revenue that question, software Absolutely. do to expect the Yes. grow.

really more prior we modules start and of those software happier. to significantly more are their set be to a they transactional okay, those revenue those sales that marketing in can companies as offer the sudden, of in generate it’s a were the both just now a revenue yearend right? what we've you number Because for acquisition. additional and happens As to become can are in - as generate will hard just all the able scale companies, so are that consumers economics And yearend ways sell these from also and of economics previously than to Right? what we compelling, take solutions to we happens valuable seen companies, what companies cases past of where

very faster in part strategy little our and there. and and bit a of go homebuyers. that be able to Clearly, all one. we clear and are get Part it's a get for work in That's time to five can two. to R&D, more us marketing, to now go more get it'll channel that more meet just we be takes grow you're invest So working, sales And get able but to invest onboard. companies

value with we as not So, question be does zero these there to created. mean overlap get between, overlap more will is as Yes, companies title is access it help more previously tools, a that homebuyers it inspection? and but and

and are of with to we those We only consumers. now, right companies with those is conversion rates them services get points getting consumer multiple the opportunities there touch consumers. for that is our lastly, to net that so us help is impactful data. That subset to business Because important with that then there touch And to different to continue with a increase the key through those points shouldn't and interact multiple be underestimated. yes, is

obviously to And the we build the understand better. that to homeowner is can create so, understand property there – better, value

be forward. can we look able to as better them So serve we

like our a is just meaningful we So, inspection, yes, home opportunities strategic there and look ahead. mind is

Ken Wong

follow-up quick just a And Matt. Thanks, for it. Marty. Got

is the one-time half? through of sequentially any think like you're be generically guess other aware just assuming three, looks should of up QX, about million. the it recognize you guess, Rynoh, you to said we seasonal or kind the the flattish I I of it most but of guide, look we got chop that $X right issues the for So, If in the way as that kind kind we year. at I in back

Marty Heimbigner

there. think, I about QX homebuyer It’s correctly and clearly, country. moving heavy across are thinking QX you're No, it the

why And there. QX was heaviest Rynoh’s quarter so, that's

Matthew Neagle

it full QX. point got, would The books just I the for on Ken wasn't a

Marty Heimbigner

Yes.

Matthew Neagle

You wouldn't the do X.X. line straight a of

Ken Wong

Thanks, guys.

Walter Ruddy

can line, question the position And the an update of coming cash next you. company? on you Thank the from please give the

Marty Heimbigner

Certainly.

Ken Wong

guys. you, Thank

Marty Heimbigner

currently today, that Those June support us making. We investments we've our little at had data have all in experience. about believe we got well to vertical platforms systems, we insurance very Certainly, business, $XXX million Ken. we're our talked investments software expansion, the here investing are debt. in consumer that positions that the XX, cash. Thanks, and We've

good in we're think balance with on the position sheet. cash we So a the

Walter Ruddy

have and the more. from for product about making experience? And the can provide one you on the Thank time investments – I you. update Probably can one offerings an and line, you please consumer in you're the

Marty Heimbigner

I take one. Yes, can that

place clear lead aggressively XX% R&D just XX start the into think we're minus because can and our We're we that is it's and doing XX, to to for other minus in XXXX, long-term at it think EBITDA with areas. investing growth. adjusted I I'd the contribution margins

investing make making Xx between XXXX. will we about a I'll data We've little EBITDA platform. year. As XXXX are stated, our highlight each of about showing bit progress variety few. percentage and have briefly almost a investments. we We're against And adjusted talked improvement we a a actually

our We in and are because and that we data else nobody have unique properties both homebuyers has. investing privilege insights platform, into

of the can a can water in The and bad place So, understanding to be Matt roof. mentioned, number foundation know insurance. risk is things model the All pricing impactful at crack as homeowners like is the things make those an such learn appliances, we hot huge for and if the there in system issue a attic.

risk. we good this there price Adam best And bad applications the call. that, other are for that throughout both So rates Matt and can and risk increase for mentioned

Matthew Neagle

consumer chooses. acquisition, is the insurance learned things, we to the add this, as mentioned such would Matt company I the thing with The Rynoh other

platform. that those to investment So, of make believe we and to continued need all things in long-term our us lead data a

one other App. I'll mentioned is I highlight, which the just quick consumer The

hands We’re deeply consumers’ of invest that all year. end excited solutions. we And get into to by the the into SaaS

functionality we ways, up and in in purchase for a then just process and building the out members. business, shows of experience insurance And the modules. the simplifying that new for are investing companies is So, last one our expansion, geographic our number

is overall, consumer are to the lots there growth areas experience. investing of a and long-term where we So, both improve for

Walter Ruddy

the When being line. EBITDA anticipate breakeven? you do from more one Thanks

Matthew Ehrlichman

is slide. it's I'll take The a that. And us. pull up choice that, reality this for

or We think choice. would a year to just that, haven't specific anything we set that or like want I emphasize about target how but

margin year. this we're guiding with to contribution XX% clearly, So

all takes account expenses. Our variable contribution into margin

those sales, and implementation that So the management onboarding of BXB the teams our and tied support then all of teams all account consumer. expenses all our companies downstream software and variable to

contribution any teams, line. claim assurance margin handling the that teams, into is our moving of that agents, support all Our burdened concierge of

largely to, contribution adjusted EBITDA fixed below So expenses. is margin

So R&D and G&A primarily.

of means contribution And R&D next this most we're investments, really so, is year, if at is, not to of even our right? lot of what margin, significant aggressively. you're A a it going XX% that year And clearly, investing impact not portion going even. it's impact

really of Some go us blocks it company. a build a big allow will is big building to that

So, the we're really overnight. progress. are going way EBITDA one I make start showing you would to profits think go feel on we leap will expect that like and progress forward, in this consistent our driving it, we how going can adjusted have each to you and continue huge expect in we year. to year show focusing But should to nice not this see about

of margin. we're that EBITDA clear clear very very the to continuing toward that step in control target, It’s business. that it's XX% that just long-term that So we're

You what about that again, then But is that's the generate We constraint, confident set slide. those see should and you ongoing. can't margins the constraint. it time. feel to over after target, go really these, as again will we feel which on that EBITDA do long-term EBITDA expect and ability invest our that we'll aggressively And margin

Walter Ruddy

taking HOA to something am And suggesting, you are seem Has you're the our you. retention MGA took not the final missing I insurance or HOA I something? of the I XX% Or question, whereas and believe originally Thank about XX% thought a group. business XX%. to be changed?

Matthew Ehrlichman

insurance No, nothing from this of don't out We much revenue has how changed. our point. break comes at

premium written we commission of our lower third-party so, premium I paid premium. that rate then of that get get gross the commission, seed commission we previously guide everything And say, the $XXX a gross consistent. carrier, we but commission, to higher communicated that that companies. terms of million than revenue in reinsurance A we've from x And should how paid agency remains when we are obviously, written we higher the premium gross generate then about and the we two from

nothing So, there. changed has

Marty Heimbigner

XX% point just insurance on highlighting that I are Matt, there, the premiums that what HOA that seeded think it's that is and XX, Slide XX% off you of made retains.

off retain. not is the we we of earned, rate that but what versus it's that commission the So, business seed being magnitude the

Walter Ruddy

you. that for that concludes And have Thank today. we the questions

Matthew Ehrlichman

of investments we're and to what terms say, those here the the you soon. involved. appreciate call. Well, in in continued like and briefly. for in continue we're then, let for a allow performance, that that see Like for to I you the up Credit do company. great and making enduring wrap I and we QX me just the Porch a XXXXperformance, thank all partnership great Porch are said, go about interest to all performance. care. joining the really to I seeing truly team thank And build Take that us you just with ongoing on excited are we'll to

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