PRCH - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Walter Ruddy

Good afternoon, everyone. And thank you for participating in Porch Group’s Fourth Quarter and Full Year Conference Call.

Joining us today are Matt Ehrlichman, Porch Group’s Founder, CEO, Chairman and President [ph]; Marty Heimbigner, Porch Group’s CFO; Matthew Neagle, Porch Group’s COO; and Nicole Pelley, Porch Group’s SVP of Product and Technology.

Before we go further, I’d like to read from 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 includes -- including in response to your questions reflects management’s view, as of today, March 1, 2022, only. any update undertake information. revise not do obligations or to this We

plans from we statements on or business for and consider looking make which our current are conditions, anticipated those our strategy Additionally, These forward or expectations about we And and forward-looking will statements acquisitions uncertainties, our information. or pending the completed future assumptions. financial business and based impacts factors results in could additional to described risk subject filings to risks to actual SEC statements. encourage cause and differ from you materially performance

of presentation, to press SEC. tables non-GAAP included For on its located best the GAAP take reconciliation -- question to into through allotted earnings submit earnings today’s and log time. it submit with measures during the the release measures the to do discussed with chat and during in refer on comparable To function. will please within the today’s please all questions call, porchgroup.com most Management file webinar a

including CEO, forward Matt? Porch milestones, our to Matt our covering over provide QX looking founder and available me also and the on well. Chairman year profitability. an porchgroup.com this M&A the presentation company’s this end As a turn of of conclusion and of filing presenter’s that, the in presentation will information, Today team on found to after let shortly will KPIs, for Relations slide will the company’s performance, call on webcast XXXX guidance addition and And website replay and the can section results, at Ehrlichman, Group. XXXX as the SEC update be with product, follow future commentary Investor reminder, the be website

Matt Ehrlichman

mortgage, today? want home service Good Thanks, title, with market strategic off highlight leading an here. to our I to share we provider public solidified to moving in continue a I company. exceptional first Walter. including XXXX. expected kick position to was roofing, software verticals of us handful year in First, as as companies a things Hello, to inspection, home It everybody. as a nicely and grow be

nationwide, to with relationships consumers across unique Insurance, and we labor, make now and states moving, differentiated home we Insurance more. companies provide now experience products Second, homeownership to quotes at to these XX help full a to offer service local a advantaged time and services in easy. moving continue meet digital offer moments own moving full Home We integrating internet TV, and protection full are and plan. In leverage maintenance create Warranty and

were out margins Third, million start of strong, we to forward and XXXX $XXX provided monetize our plan financial the results XXXX, our revenue year. demonstrating when we the execute was laid XXXX. in At improve public at we million our guidance trailing went for ability $XX the our and platform,

business and Our growth was margin. revenue adjusted which revenue, finished margin XX.X% margin, in negative contribution XXX% of EBITDA XXXX less revenue year-over-year, XX% million cost at $XXX.X XX%

and we how year net of revenue, improves adjusted which gross of note the correct financial GAAP further both going this which from cover for their America account This process, business, In revenue, at is less to nor fundamentals adjustment terms is was million approach. on of HOA’s claim and accounting to closing specifically, cost of approach impact EBITDA $X.X revenue has his under revenue remarks business in then revenue Homeowners to to been Marty its our disclosure. end margins. cost revenue historical HOA’s revenue obviously that a and fee our had follow no in we it to revenue,

$XXX.X acquisition business, planned guidance performing Warranty revenue expected and approximately is the acquisition, $XX million expect for $X on close Services from planned percentage mid-XXXX and we we which both $XXX or just base in from million dollar in continued million Residential EBITDA improvements from which adjusted signed of XXXX, we the well Revenue and yesterday. the CSE million, to RWS, anticipate at and business the looking basis. So extremely XXXX growth is

points to EBITDA EBITDA expect deliver performance. We margin our in an well than better as XXX as actual of basis adjusted improvement adjusted improvement, dollar

and we are midterm our in We XXXX, for for revenue. premium our XXXX, year-over-year. time manage expect are expected XXXX. getting we premium million deep for the $XXX the guiding compared towards also dives full double reiterate written XXXX timeline expected to to the in later profitability, to almost the In Whereas of future our target first of is which written and in for to to in year gross half gross billion discussion second providing $X.X

to looking I lot it. am a forward So share. to

in. dig Let’s

consistent important and we Insurance. had by helped such who BXBXC in we ownership So services as buying home so, their revenue, executing homebuyers, helping as looking to recurring we to and gain BXB software on early services build at industry generate the doing success Starting And six, the priorities from with and XXXX here to seven, we revenues verticals unique home software our in generate of help transaction the XXXX. well home to slide the ongoing for top slide grow. companies access have improve provide to by strategy journey our purchase services of as strategic select

products including into build vertical both Platform QX conversion and continue embed software select order And one, products Five, Four, for Insurance competitive in key of and to the our these to sell variety With acquire Marty? to services accelerate continue consumers to extend rapidly rates. in year of Data that ways increase to to insights BXBXC in experiences get consumer discuss number get a key pricing to improve profitably, products. launching more and Insurance start Porch’s our lastly, access So more full companies, geographies. our such experiences our I core our for unique to our transactions. Two, and to leverage app we Three, continue out over software our companies to to increase our companies. XXXX. of new grow front and new guidance to and in business consumers and to growth and consumer our turn strategic Heimbigner, CFO early accretive that, as warranty and results then, our Marty that will unique moats in it deepen to to and our go-to-market.

Marty Heimbigner

Thank joining Thanks, and good call afternoon, the for Matt, everyone. today. you

turn business results. and to Let’s our the

growth business our teams. anticipated at performing the start $XXX.X the the we mentioned our was at than more to well. We year looking entered guidance. Porch by to a XXX% of was revenue of year beginning and great million very we Ending As the Group million year $XXX exceed XXXX is the the of testament certainly and work

can and Revenue the contribution revenue on cost versus margin the a fourth margin was see, As results XX% was year-over-year in to XXXX XXX% slide QX was of every fourth up comparison was quarter XX%. quarter of our were strong growth nicely XX%, you adjusted nine, Revenue less year of measure. XXXX. $XX.X negative by million. the EBITDA from improved All prior

a claims of gross guidance with on to previous for the at of number of reported. guidance. fee Instead, this of number EBITDA finished to Thus, we We as the a HOA’s reflected on our $XXX.X results finished included revenue margin revenue, revenue claims in contract $XXX revenue than had basis historically performing year, of issue guidance million had of have and at $X.X million with year Adjusted on improvement negative slide as our XX, $XXX.X would in EBITDA XXXX, in here our for our XX, booked financial because previous been. it been we revenue actual lines impact comparison expense of continuing XXXX. reflected the guidance. should be the ceding. negative XX.X% as look $XXX.X reinsurance each estimate this appropriately net no at not of The assumption have an million as the from this million guidance have better ended As revenue, XX% adjusted million December loss of change year accounted for been

and adjusted of company and margin. our substantial we year. first the four the a XX, was public growth over a in as show annual Xx compound XX% EBITDA business Here rate on transformative XXXX, a last the improvements slide a improvement years, performance

of our unaudited released to quick few on move a we we for ended comments the results report status annual the today, for XXXX our the financial quarter Before XXXX, XXXX. earlier of XX, end December

file as the added XX the given internal Group our a the earnings with expect Porch audited from filer financial we controls financial Oxley large As press XXXX. of today, the the and We after we acquisitions time our XX, without December year Sarbanes particularly and in to end, further from filing the to March to determine of the form became note, public do not today over and regulations due has by related XX-K effort unreasonable XX, XX XX, to as Of reduced XX expanded detailed year days form in days requirements associated first report our or we Porch could expense, our company, and XX-K filing Oxley file accelerated XXB-XX our completed. material on to being annual Form expect reporting. and earlier results have weaknesses Sarbanes release that complexity publish our

understand file environment will reported included the We release expect press control internal financial unaudited when assured in change financial and our we our results XX-K. plans solid issues XXXX. the here have to we statements in Rest Form our the with significantly not address

let’s the we which to XXXX continue. to in Now, momentum turn expect fully

at announced revenue million of closed figures we cost RWS. guiding measure of the in mentioned, the $XXX revenue, guidance but into use take following Matt less revenue consideration the start, These $XXX profitability. to gross not are of a and and acquisitions as and As million CSE we in what

our to slight lower some the saw together two plan services slight to with acquisitions movers, less better revenue do a mix of sold and have consumers we impacts, be to service. profile revenue and expect with expect cost in we close continue margin what margin a lower in to RWS margin percentage XXXX, convert CSE as shift We bit we

are are In terms of basis and doubling that we be close for segment, margin margin. Insurance guiding X% EBITDA EBITDA written we that a million, margin dollar approximately also also than marching like produces to year-over-year if of also to more targets. adjusted XXX exceeds negative to adjusted to performs we XXXX We revenue towards gross adjusted even performance. $XXX want improvement, improved We EBITDA, our are providing well XXXX. Related which guidance, to adjusted EBITDA are premium from long-term our guiding to points clear we note guidance year-over-year would

here. we excited the are ongoing and about We momentum are performance seeing

premium. slide in revenue growth, written revenue cost and XX, XX% can we expect, growth growth to growth strong of XX% year-over-year less you in Turning XX% see the revenue gross

we estimation call, acquisitions. earnings XXXX noted $XXX QX year of our impact our pro full forma million XXXX revenue During inclusive as of announced

With with the that we and is adjustment Porch to measures pleased $XXX accretive we are with been all would the growth HOA’s figure On seeing. revenue strategic rapidly have accelerating growing M&A. and recognition million. are

expected on made is significant in in $XX You revenue, can four years million XX, adjusted to the margins. XX% long-term here towards to time, business see growth grow has the $XXX At XX% in from that target rate. business EBITDA strides a compound our consistent where and slide annual same revenue the million

will and operations call. improvement us we which our in With adjusted target and will for adjusted our over and dollar to up discuss half Officer, later to XXXX XXXX, the that, in Matthew discuss the Neagle margins, I profitable forward Operating it in the another to expect We KPIs. step loss EBITDA second will EBITDA represent XXXX segments operating nice full Chief of turn set our of importantly our year

Matthew Neagle

everyone. look in segments Marty. XXXX Hello, jump you, we first at and guidance our performance our then for will Thank will for KPI I operating share and QX.

$XXX and see slide and SaaS nearly the software of revenues segment million largest in Overall, BXB our and is recurring most fees an can the Of fees on our to almost and in expected of revenue XXXX. be software is is you this, approximately to are revenue the We fastest. million, expected services XXXX. increase XX, through our Xx BXB transactions. generate from growing strategic from portion valuable, be As software elements vertical $XXX

written is year-over-year rapidly, is Insurance in approximately to expected The overall its This own business revenue, other scale, our of XX% our our high being to it business companies. in is too XXX% Insurance valuable of competitive represents revenue. which expected fastest million revenue, growing premium. InsurTech retention of XX% $XXX be in demonstrates believe we one This right XX% as particularly highly and is recurring the growth of Considering gross our insurance important operation, only in revenue segment approximately growth our expectation advantages and growing and the XXXX. $XXX of is of million it portion our

continues we KPIs. Turning year average up our in perform of is QX last to to XX more saw year-over-year Beginning slide XX,XXX and business the which growth is companies well. from XX,XXX, our It to XXX% clear number growth. or in with companies, than approximately

company is $XXX from is quarter you look approximately per XX% per month, If year. up at in revenue the month, which prior QX per same

a as less can Just prior versus per transactional in to and fewer company typically revenue reminder, lower in due QX, see years, revenue the as is you homebuyers in offseason. as QX there’s

company. certain in seen new with companies lower mortgage growth We have namely revenue strong verticals, per being

is net have something growth expect of rate to XXXX, the new somewhat slow ads which previously. discussed we company We in

with are having the XX, recording strong million quarter, as for We to monetized celebrate with growth. types excited lot is growing in the the we the represents which service, you XX% XX% momentum. service a all to X In us continue fastest moving to If still XXX,XXX saw which and services, growth year-over-year. next QX, see per Insurance services year-over-year of of increase we is monetized a XXXX a of $XXX slide milestone with monetized across go year.

additional jump related operating segments. our into disclosure now Let’s two to

software QX, and SaaS XX. vertical rate. million work serve. EBITDA is of we Adjusted with slide you revenue First, this, seen we segment, Of our in $XX.X of here revenue aspect BXB QX given are segment this this million $XXX balance companies who transactional We with have generally majority margins in for from on the consumers QX, run the fees generate business. realize seasonal lower which in the

a $XX.X year. If Segment represents and demonstrate our grocery of grow and strong to million XXXX, you approximately XX% as look margins. we million, slide rate, $XXX on than revenue This gross annualized Insurance were representing In was XX, the run $XXX QX rapidly premium. business premiums continues written more ended million.

in at policies our rolling margin. prorated per is commissions the reinsure of As XX% XXX,XXX see, QX, and on year, is per end approximately are this revenue we seasonality QX, part on and fee customer from business, Briefly there are underlying we you $XXX reminder, slower an a basis XXXX, Thus, less, conditions insurance carrier while we recognized being quarters, margins, some average as strong drive as retention. generating had Insurance XX% we typically majority customer sunk. are significant policyholders and had segment fees. across ceding including when adjusted EBITDA revenue still but of with the of a QX KPIs, of insurance December XX-month the our of commissions, had an revenue of year We

deep dives will We the off kick for now quarter. this

well past a goals our to M&A, will and to you update performance, milestones. Nicole then Nicole provide leads Porch update. First, as hear Pelley, over on Technology from including you. will longer as And Matt who Product at product term and

Nicole Pelley

doing excited I update consumer an that where afternoon, here. sense app with Porch and of consumer There’s am to work home moving simplify Good to help so our really for our Platform, teams a Matthew. between, are opportunity in our share proud and everyone. on much experience. the our everything the give are and we improving am to I from Thanks, heading

the helping which customers First, products, is vision that transactional share our move experience properties, centralized I will delights Porch our that make Home their Insurance insights and key two, and services comprised experience we And by about software Platform take the pricing vertical which to integrates number a revenues drives home consumer for home consumer use Warranties. people and a moment the and and as easier. such products, to first, and with improve proprietary unique Data Platform, ingest a of,

Our in software native our specific consumer way. services integrate includes experience seamless companies very so API’s, a can and

process. consumers, flow provide an rates QX experience mortgage deployed is available for It companies digital transaction to way For We beta only by in conversion concierge home to another example, in inspection the a closed relationship. and Insurance completed XXXX and companies. revenue, engage we our have completion also in extend and be homebuyers. our app app of their can embedding a to entire launched nearly to increase To-date, as consumers consumer as

ahead So quick into and demo. a let’s jump go

help Turning easy. our believe they consumer we gets checklists XX, When information the inspection, services with keep want of us, help when to will the for slide number their we the moving a contextually we build home-related managing a help when by consumers home XX. need of consumer their to download consumer next what consumer move, increase with home The their in started to a slide manage homeowner. them the complete. to is and entire encourage gets number the We with makes the relevant, accomplish on new increase app we supplementary home. all and can here the services We relationship their able app to need with that them is help long-term it them knowing a providing

you Today can handyman with and to of movers, make insurance internet, time prioritized also easier we purchase. to that change more. address, services easier it systems, see security Here and TV, is hope and continue we over to intend

consumers consumer their can their appliance majority home. the and be details details The and report this included home Next we age know care Home is the with easy makes to keep of information. access system with of pre-populated more. imported for approximate Inspection take model, include a Report of already about making app system the home and system, that Any details into model will find track it number This app, section other up inspection report. in My inspection on the based their our of where and their reports Home

Looking filter ahead, app, the Porch see insights. be filter very this of high it’s size with to right their will knowing for to consumer proprietary and to and regularly, user a that consumer a say furnace. the provide reactions notify our to user unique been their replace a fun able we the specific will purchase can of furnace, given area model of by what furnace delight I to the recall the to who number remind link

to home. on make the Porch consumers app manage Here XX, slide want app to the we help to become their

available app purchase contacts our store the ongoing. As and track we use home in their involved all is more will of the consumers across products, and that make all to we the software professionals consumer

getting We much started just coming years in across are experiences. app on ahead have so our and our the digital

are of the We rates. conversion terms higher early in to opportunity days drive

means and closing next? preview. poised of yet services, differentiated with -- built, title Porch to instantly complete provide home. you, what’s has a booking it’s believe to I and -- yet the we attaching and process, Here’s it in manage mortgage that and software mortgage key inspection the we the So are close, We Not what that, has as quick turn such home the With at but the pricing future with become insurance move going. Porch Only and software. Porch point-of-sale where new over This not back this for will app can software, that need consumers paying on to Matt. inspection simplify as their end-to-end facilitating been is headed.

Matt Ehrlichman

saw like everything get the looks what for positive some next it feedback. about building, few am that last team revisions, the everything exciting clear, has very live corner certainly early, that that and to there, are up the call. is to again years, excited the get of been else that except very you be slide and Let’s I

two So final I’d wrap dives. deep earnings call to with like today

M&A First is to our related performance.

have past. what are providing concrete more on the to related we XX, Here data mentioned slide in we

significant We the growth into have the when to Porch and consistent Platform. of accelerate demonstrated acquisitions ability them layering

acquisition companies on revenue to the acquired XXXX, growth in X% XX% and the by in achieved in prior improved So at half average Porch year first XXXX. average the of on

ISN, five be In would addition performance a Home Protect information on Homeowners American has quite thought Porch largest acquisitions done, ever the to overall it we of America, to Floify. basis on this and provide one-time measure, Rynoh, useful, specific useful

go-to-market. of post XXXX. and can see and believe for at for years is annual in scale QX the momentum growth the a scaling, XX% our into speaks the rate. from was you XXXX. three growth had XX%, continuing prior since XX% ownership for over acquired impact was largely I acquired XXXX. acquired early XXXX Protect compounded XX% grown show slide, the XX% acquisition. a last the will early American nicely their policies unlocking acquisition, Homeowners large during rapidly of with similar XXXX, XX% growth years three growth too after a record the Floify improved and growth has was strong are As the say to opportunity years Porch to over results and with XXXX. we us was QX grown through the growth layering economics It about transactional XXXX, Porch’s of XX% explosively had and In ISN businesses. the strong It’s to this with in on warranty Rynoh at to data of been strong year middle monetization, yet year prior growing to the for unit to compounded in Home track prior in a CAGR XXXX, business we a the increased itself. for XX% has almost premium to America doubled prior in thrilled years. Revenue written growth with are seeing story. post-Porch three gross combination a has there’s

signed our and inspection-centric Warranty RWS also yesterday, loan quarter one This we the I and certain the parts closing XXXX. will a to home point Residential noted, CRM today more am expect in agents with the closing as newest strategy. I us to across proof acquisition business forward. providing expect of strong embed specific excited which better home I platform opportunity is for space, another regulatory companies. substantial acquisition or country, full annual make RWS distribute was the the power officers. -- and is through Home Services than announce RWS. software Insurance We strategy and note we inspection warranties the that soon our and the key will experience Floify the and process very into be consumers products Warranty companies early operate X,XXX expected real They of Warranty approval. estate check to With for the move second helps call subject in inspection also of in of software, business

For Porch will it industry. other working partners position industries values. and just visions that for offerings unique strengthens products we leading market of to will plug the clearly with home the after our and a great right together our align make in changes into inspection fit strategic and RWS’ warranty years as with many inspection in great

on Here XX. slide

expect which segment. software As and between of be based recurring million BXB in is split on part will we mentioned, impact revenue revenue. contribute Insurance in $X fees revenue annualized RWS our warranty, approximately XXXX is to and million This of $XX

has CAGR of Regarding a growth, approximately RWS three-year X.X%.

this Given it’s driving million, price, multiple. lastly, $XX strategically slightly cash was And expect than very of in RWS slightly to products, million the growth profitable be in the relevant unique which XXXX of we rate Xx business we to is and expect purchase fully $XX accelerate more business. or and

today revenue high continue to our M&A growth, ability businesses light our margin premium. vertical moment our gross grow execute. and a to and and of advantages take revenue in consistent guidance as insurance platform $XXX the to capabilities XXXX, want million demonstrated I in and wrap, and of business, strong we our leverage $XXX demonstrated expect by capital million targets. software revenue we written path profitability and mid-term our share updates to In on XXXX, In before to to we So

On and to Then the milestones on our target $X.X of some provide of next profitability the second following we provide half getting additional in slide on disclosure XXXX. the related an update mid-term I slide, XXXX IPO. at revenue to shared our will billion the target

beginning operations EBITDA XX% away why aren’t operate demonstrating underlying At this Porch contribution in profitable the visibility X% from XXXX, margins, potential. on provide half help in of slide XXXX to far second full very profitably. at our guidance XXXX. So year slide we high adjusted XX, are very here operated the negative into And to profit and of targeting XXXX of can we margin,

of is can software you XX, Selling, pie onboarding, million XXXX our upselling sales services. sales XX% retaining and related Slide approximately consumers. of marketing incenting, in tied see in expense to blue As supporting, marketing to in BXB majority and the companies, on is to the of $XX chart and and

So on such direct-to-consumer and teams mail team, our agent programs. our Moving of be Insurance all by Concierge limited it will spend, more Home as American Protect’s direct

bind Here expansion. as more such as margin create to self-service online, we to creates for it capabilities, continue the opportunity ability insurance

the growth. We to some build Porch of As and platform and app for invest as our scale. technology across These time. into the long-term aggressively many digital expenses, deployment wanted of insurance businesses capital new over the our have related to historically for pricing integrations investments include verticals, operating out other fixed highlight specifically our creation larger consumer areas data of and development which be these we do experiences, invested in expenses as we for at key continuing strategic of integration of need product and modules investments, and and bets to across the proprietary platform, other SOX our not fixed development software and improvements of of such of systems

continue we see margins look there fixed and slow to improve. to is rates opportunity ahead, growth expense As

schedule in XXXX. previous we our of We number on this after to target here internal wanted billion. of towards $X.X our progress ahead mid-term of a revenue Slide last years remain revisit thing So and XX, our mid-term target confident our are strong in

entrance As verticals, on a via we company, demand and public the we new impact Insurance our discussed becoming business. software the growth our substantial through M&A, during the in of existing path we the to into the likely revenue growth, for corresponding verticals believe process are expanding creates and data

we with mover and large right at massive XXXX. our opportunity. with business. please are the great build to up Q&A. words, Walter, In be brands a against than TAM, you open in for take questions. other X% for Lastly, fired And as year. And To penetrated levers well, I had we our if and would am revenue, we that, recap, less started. your we for have just management getting billion strategy can up team billion $X.X a marketing will scaling $XXX enduring now the

Walter Ruddy

Thanks, Matt.

is question from Jason Oppenheimer. from First Helfstein

Jason Helfstein

Thanks. guys. going two. Hey, ask am I to

not systems market have the and InsurTech one majority InsurTech The seem risk. like on is run way do to that you business, of offering. the properly you because risk the lately which the InsurTech, to So risk, the view your really assess of companies does sell of these may not part that

the maybe I the so guess, do growth the we And kind looking something quarter of community same -- need to to for? at? that while InsurTech message is the forma multi-year type model there rates And are get that while for help we in just and can wait second, Thanks. others not that how to that detail, out pro of appreciate it’s understand investment it’s you then InsurTech, or organic do us XX-K maybe you the the is

Matt Ehrlichman

the second? to I want you one, the do can and Matthew, then take first

Matthew Neagle

Sure.

your capital-light things the which of are feel a So reinsurance get so share ability more a is capital-light that and to community. question, able approach. the we that investor though the insurance our next to our strategy Insurance the how quarter, we reality a confident with I do mean, strategy our in say be operating And is, can with to have, of some I approach what the I a will in looks that is detail low-volatility will to I business. think is Jason, we dive What point one we out we can approach, like is it’s holistically. -- continue our in we do, deeper

of I our can the in Some now. here programs We January. of reinsurance details renewed share some

in We will renew another part April.

bit of we And a work so, do. have to little

will what together, are that XXXX. will with And is, we only so that we market share thinking I hardened. get The we as guys of has generally all wrapped thing for the reinsurance share about you

pretty have have everybody, ratio much have way to impacting of are an perspective, But an we we that partner. data, operate charging attractive are attritional including reinsurers to does are loss and to more we even us. it with proprietary our we we well so, And and the going done historically business, -- access backdrop, access that’s because from mean

is -- you we so one. maybe confidence the gives to that And -- add employed know to then if to have it out us InsurTech. anything we I want don’t investors, to the And strategy that just in terms getting the of Matt, right

Matt Ehrlichman

question. last Yes. and Sure. then will growth on hit thing add to organic the I Well,

the just revenue different, the revenue at to it a think margins, our just underlying is talking dramatically that less business, reinsurers is The margin we different. Jason, is results cede peers day, comes results, dramatically are the and are amount cost just down just out that about. different -- end I the different of fundamentally fundamentally to you margin than the

results significantly in and of different And so this just performance the story it the for fundamentally loss underlying is actual because investor terms is of us part an different. is just education

And just share over time. so, we that will

the In I growth take terms that. question, of will organic

Not don’t the those acceleration really we break ours helping Porch other faster, grow of there. definitive we is just we to and organic also of But that acquired, past acquisitions one of credit specifically, seen acquisitions goes that we that as is our are businesses have also largest to of to data super grow did provide just data shared have talked there out grow only that through business sure clear. As is an the added faster. note we those I’d they make about, benefit. have our growth the companies today do ways and acceleration believe platform. the we have Obviously, we

had about, As XXXX acquisitions you if last the had done year we January acquired talked XXXX. assume of been Marty as X,

Our forma would been that XXXX pro assumed $XXX at acquired million time. revenue on based the have revenue

without revenue and in that And you which compare XX% compare RWS, to like that I million, which can XXXX, XXXX to so would $XXX.X CSE you growth. would for million is XX% revenue growth be be can or $XXX and mentioned, it

data making points available, So just that’s are clear. different we the so

Jason Helfstein

Thank you.

Walter Ruddy

from from is Holly question James Next Stephens.

James Holly

How Hey question. you? are for guys. Thanks the taking

hundred you from margin it of progression Is improvement for first bps here, point. again new jumping to in gross a expectations Can each talk some hire the are So margins. given year same still of our the here? seeing about just kind of kind us improvements one the we

-- long-term something as you about talked So kind a about time over is as of still have margins think XX% EBIT far that to target?

Matt Ehrlichman

Yeah. Sure. long-term. our And in we of for put there today terms that target out the adjusted XX% EBITDA

We in business. underlying of continue the to profitability the confident feel

last that so margin contribution I that gross sort As am metric continue long-term metric, yeah, you confident we can of. from as feel. in to the margin from well, see but year XX% only not

James Holly

more then warranty there Home you American it’s two envisioning are between one from And and are plus then here? of how here kind any and they can talk and now, to forward Got RWS the us to project of the business about go synergies and Okay. progressing what on kind you you. that the just going

Matt Ehrlichman

warranty so be that be more how your buy natural the today. is but opportunity is warranty, home and early the homes, in easily to we but also be Yeah. protect able able it’s our opportunity not bundle maintain is homebuyers systems. know to I’d an We of strategically number right? think think there effectively. time that price insurance, warranties of many that that say risk one of also noted, to buying warranties more only a We that appliances to over as model serial to opportunity be the there different what business, assess process, I able than us because get to more though, time need for your from do able to significant because to is with think and can gives home it Clearly, then home make the we effectively we the data we future

warranty and easier it start team there together We for opportunities making consumers. bringing work. and We is, the and I are to maintenance going insurance some then of services, think really am and about excited is completely The those handyman are just services tech bespoke.

So, yeah, as I mentioned, we are very excited about the growth that we had there.

James Holly

Thank That’s it. you, it. guys. right. All Appreciate

Matt Ehrlichman

you. Thank

Walter Ruddy

Next comes Benchmark. from Daniel from question Kurnos

Daniel Kurnos

Thanks.

that million quarter? I the quick the that guess maybe flow Just or through all does a to for of in HOA, that most Marty annualized $X.X impacts did is housekeeping,

Marty Heimbigner

The month impacts early in of nine HOA acquired was period -- all three $X.X part it that million for them our so Group was the April quarters. we and

Daniel Kurnos

right. from Matt launch stuff included two all questions, [ph] one kind mean forward laid outlook. it. you in Okay. other of Got looking anything that usage, I you data just All your out this haven’t the premise BXC

to and XXXX. in half back help of talking this through, I market regulators just exit from are going about magnitude in us think So of initiatives, year the you BXC meaningfully of that benefit know kinds the to of order those contribute

of little kind through us bit help a Just that more? think

Matthew Neagle

I ability our and mean access right gives and I a won’t going yeah, the that’s focus but plans say I that some the unique Because up it’s core will have consumer, reach much It to time. obviously are. at And point we Porch. clearly early till properties But, in opportunity look what that consumers, timing on to another as our lever opportunity. wouldn’t going to us for change creating those count in opening rebrand to selling big ways businesses of us. Yeah. we big was our that this are, ahead, we start to it’s new into software of have a as XXXX. Clearly I it

us that are see for data in of in about and is very it a our our to come that pricing priorities So future earnings forward proof points to XXXX, and start we help to call to and same and then, how as time. demonstrating the definitively I the can noted able is with as laying think is top priorities looking one over through be leveraging we out

wouldn’t ahead XXXX, but have for to insurance, material yeah, the yes XXXX, that again, So way impact as look will we a that help for you expect us. in certainly I revenue recognize

Daniel Kurnos

sort on kind cuff. now sold for think estate has given this I that and model this second you of How unique in about I you actually to that you verticals of RWS dataset something got and had the real a a might similar and that in? Exela interested an little then off be agents. partnership opportunities your know through products have as you expanding that asset-light response is to lot And Exela like mentioned that asset-light bit you have a unique moved other of ago But example asked a do your

Matthew Neagle

consumers across it’s a and a use opportunity our plug I significant insurance out to at are are reality doing partnership meet there where as Yeah, and companies with well. very different that into really points we have take those of to partners who point of there to right? Yeah. help in based XX,XXX the way we now your and some the will we is clearly as partners is software, home gone moving historically because there, experiences landscape lot on these warranty have deep this into able one And sell proof now to and that an be and deep respect, businesses also, question. for opportunities. larger us all partnerships integrations in partnered their We to then are

come there over some mean time. So more certainly to I

Daniel Kurnos

Thanks, Matt.

Matt Ehrlichman

Thanks Dan.

Walter Ruddy

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

Ben Sherlund

Thanks for my taking Hey guys. questions.

be This million will XXXX here we XXX So at revenues looking second, which you RWS roughly going guide that midpoint issued how framework your you one sorry out. your should XQ on contribution, of back the for to implies the, about the guidance. framework initial think laid the our at XXXX

in estimating so you And X.X been that I have into including revenue? if XXXX claims are fee you million guidance HOA assume framework.

thinking there? should this by increasing the Thank of your question about are having we you So prior be revenue guidance thinking however now your are including in you at and roughly in you updated the my midpoint $XX including were is, million is are should originally XQ about framework you you. we much as this range how not or

Matt Ehrlichman

actually recognition we would approach continue historical from going before million revenue Yeah, guidance been But $X the to but XXXX have HOA clear, to number. Yeah. which had revenue million I mean, would to of $XX revenue for in point RWS builds we higher. XXXX -- plus the clearly that been had provided guidance guidance was just be $XXX or plus today from CSE have make sure included $XX just is million million clear yeah, million $XXX.X the that up script forward.

Ben Sherlund

Okay.

impact spread the I it the quarter. wasn’t was that said you And nine in through so, or million $X.X bit am confused little so months, the just fourth

Marty Heimbigner

Yeah.

months guidance entire that So at accounting our of that we the changed and the fourth nine so quarter $XXX.X million properly for in total is stated issue impacted the revenue. year they full the

Ben Sherlund

you guys. all Thanks Okay. to

Matt Ehrlichman

Ben. Thanks,

Walter Ruddy

question Ken is next The from Thanks. Guggenheim. Wong from

Ken Wong

Hey. Great. my question. taking Thank you for

an echo. Can guys okay. me Okay. hear Hear you

Matt Ehrlichman

Yes.

Ken Wong

Hello.

Matt Ehrlichman

an to got Ken. We have echo

Ken Wong

Okay.

Let me see just I no give me second one think….

Walter Ruddy

Ken. to we we Wong, Ken and to back will then Mike from Grondahl go Northland come maybe

Mike Grondahl

roughly about of number XX,XXX. year Yeah. Thanks its do from number you inorganic for companies that organic while. this it and XXXX? we saying didn’t average go increased between really think Can XX,XXX out and break you much a to XX,XXX slow guys. about and have been for How The slowdown

Matthew Neagle

I out. report that can we Yeah. don’t

was. of we First number acquisition -- and into acquired we what that you of all all, by number. companies on we our organic we versus accelerating don’t our report -- kind going energy when then but generally quarter, of Then the is tell obviously

because not our our only on, is it’s improving businesses. our product software or continued across focus have selling, to our see offerings of we growth also but So businesses

at the the We have same we so but the we growth far, pleased have continue been rate. with expect to success indicated, rate don’t

better the And continue and which to benefit this of we they four, so than we guidance accelerated XXXX that this that quarter. have business did so quarter is we five, In expected give. is

-- So continue specific time. but we a as see growth growth we towards continue lower a will rate, we at guiding to are we not this at rate to just see expected

Mike Grondahl

is app Matt going out to moving go-to-market Porch that talk little described, demos the find is the bit going could email a about consumer about it. maybe the Porch And you that the the concierge were of that to then the the strategy how and And be some Got you through for app? in contact. with

Matt Ehrlichman

as and with the consumers. that for make in I interacting But we will Nicole start have then layer today well. approach same

our early digital that on those proprietary and into meeting team we give app us unique very software consumers. calls focused to with other the both so on we are moments provide as and focused and is integrating companies So those access experiences that those the consumers offer through the close companies and in

inspection. for a somebody home gets So example,

Let’s them app by additional and information inspection provide supplementary go downloading right. the ahead that

that the real that to download we make to that type and easier approach as or with incentive the about that’s app companies so be risk then to consumer go. to we moving process be mortgage are that others, of able think And same the companies title

Mike Grondahl

experience or that..? So it into will that embedded be

Matt Ehrlichman

take the Floify. acquisition completed from insurance in the we just who approach for embedding Our to just been moment has for had been, it’s And on the be embed separate since those the different going really are I the to partner again experiences we very an consumers with. as example have working to through will is successful app us our of able reinforce, companies but that Floify teams been

to right. to in able close natural getting do a are to launch We thing be -- such

their to now course. as well process insurance APIs embed that are the those built completing into a these platform software use able consumer use application experiences in, different different So So right? loan be loan those we ways just of is our

Nicole Pelley

go-to-market, companies to have we the is plan our just that software sale. that primarily right echo through I’d

of get for in with apps the inspection talked And area make, your a and live your inspection just now. are home customers. with insurance We We inspection the closed Matt my into it like data really Floify. about companies embedding your right report easy through details

these need part and be to then continuing to and mails. they of the help them as services just add to all value able their with more customers more So

long-term can build ongoing. consumers this relationship those with we So

Mike Grondahl

Thank you.

Walter Ruddy

back, Go Ken.

Ken Wong

this hear Right. me Can guys time. you okay

Walter Ruddy

you, doing? are How Got Ken.

Ken Wong

Okay. Fantastic.

doing great. are You

quick a about I questions and the when just think EBITDA So think but really we targets, business. long-term your appreciate

EBITDA how on strategy. the those should guys strategy prioritize relative a part about You been M&A baked targets that, have to somewhat on and of very the a willingness key M&A? remains guess to that successful think I we that

Marty Heimbigner

EBITDA. substantial that Well, generally, a are of money amount acquired not losing of we have companies

showed our get with of targets. take them accelerate we generally we those And companies, generally. growth expect with able as companies backwards and wouldn’t layer to the line it as So those to margin us we we today we in are as

our last And done to have year and over is as public this plan a do what being so, to we change continue company.

companies long-term targets. margin are We those part companies long-term and same that those impacts to our strategy don’t acquiring still of think improving targets. driving We those

Ken Wong

it. Got

So or more of about of you have the back let’s part with step profile more just type you prefer as Thank guys of guys wouldn’t companies that financial almost probably regardless? to, broadly tuck-in that just apply you say, acquisitions a you the you. as done think -- see the

Matt Ehrlichman

take targeting from be away going long-term able not companies would our achieve we being are target. that Generally, Yeah. us to to

margin fits accelerate looking we So competitive be for both accretive, are and strategic are our our going we but to goals. going aligned to we companies with that advantages, are

Ken Wong

Got it.

Matt Ehrlichman

we successful far, that… so And at been have

Ken Wong

to be going guys for been lot, have Marty, but guys. doing a Thanks you That’s tough well.

Matt Ehrlichman

Ken. Thanks,

Walter Ruddy

Thanks.

We a impact one terms in will take are market you business? seeing the quick of from of audience. your What the housing on

Matthew Neagle

stable not So May have impact XXXX, through we but been there forward a now impact. the tremendous about XXXX pandemic seen some in going we recovered Yeah, so. that it’s was relatively COVID have really from during and

Matt Ehrlichman

hedge inspection. the industry transactions, got a year does that home purchases of and works they hedge, as top volume will inspection homeowners inspection we and percentage, natural inspection have was the the their getting as when just and home people also were of are home industry market of the fewer home the general homes, our slows, a more create given home how buying last that’s that add booming the dynamics a home given I funnel just

should suppose, a is in thing, I we takes the what the there so seen into impact substantial we macro are for guidance stress XXXX And we seeing market. haven’t and account our housing note and

Walter Ruddy

One couple you seen should months? last thoughts of give any over Thanks. the or stock the can pressure more from audience, the

Matt Ehrlichman

view tell to the the I the including getting -- across results, noise. take we I itself. buckets matter my to the ignore the companies, company the to and view would quick is business. give will two If team of but of question four is fact SPAC, value last that to months clear beginning months, margins I itself. and will generally them not suppose, me short-term I strong public wondering Jason’s companies, companies, the even expect, we at I were lumped that have that just around just noise, We noise. estate-related it’s we speaks we over been pressure quite guidance performed the have across I and companies stock went that, when companies. what if gone I points. care continue this build many we say four via for there more point, the views. XXXX struggled. have groups growth believe these believe mean public insurance-related I And three, different of real again and last the these Maybe to of the earlier into would of I our I Sure. was three we told that the get performance I a think of months mean, as

in margin caught that that different our is profiles getting just even and are we so, are their different though underperformance, model, different is performing. revenue completely streams And business business performance and strategy, a our diversified

$XXX million is $XXX premium insurance. valuation that my of it’s our view And So will of Vertical revenue and deliver of guidance to million the gross company in care itself. separately, take written we XXXX clear Software me of against

Walter Ruddy

Tomasello from next KBW. question Thanks from Ryan The Matt.

Ryan Tomasello

and questions okay? Hey, me for having like guys. taking for you the are on Thanks

Matt Ehrlichman

Yes.

Ryan Tomasello

see Software I there recently through you pricing you more Matt, discuss pushed that power I the across you on I side. increases inspection broadly. can Vertical that guess, Great. was the brands the hoping know some price

that, to going can as how you curious base So, inspection discuss terms if a contemplates that performed within that and the meaningful rollout and the client there near-term see follow-on that opportunities expectations you if module has from how product? of the the new pay-at-close for is and across to a relative additional contribution product, guidance in existing XXXX

Matthew Neagle

with And I regular us offer inflation, topic to pricing evaluate pricing, first it’s of companies for pricing to we been can there basis. we have across certainly, timely so believe a dynamics take our we Matt. this, we a speak we And value, their generally we look improvements do lot believe businesses. our market these value-based lot further as a acquire software going to, given will the on internally. expect I to be taking of a approach we a that are

ISN. a just specifically price and did forecasted We certain didn’t the of impact out about there, roll increase asked You happen. a amount team and it

that. testament we we so to so certainly I was is that businesses. And our these ability deep some companies just to bigger power that to what of are And do so power. our their a valuable more have me offer increase help that to going only they which it’s from a how be mean is these value pricing part moving pricing software us of we into business, to and on can bigger to

In terms…

Matt Ehrlichman

in be I that they and there pricing. some happen. We see next to forecast Before might attrition built of certain you Matthew said didn’t one, go thing on want a what conservative amount one the to impact. essentially clarify we on estimates

paying Matthew, for part things, a then, to on incentives creates to go was positive much companies and very that pricing. consumer then it to back so Two move also more And those want aspect in with pay-at-close access. that to switch

gone We impact our into have also title pricing lastly, also has well. on side consumer also. there is software then And the rolled pricing that out

to months. market course last have six, the about over talked insurance increased have tied pricing we how the nine So along of this we with

pricing And to Matthew so have our knowledge with ahead out before. just the With changes been strategy also. of has that get also been there those reinsurance out ahead about talked of what of market, our we part of

Matt Ehrlichman

that excited There of is of some are have have partners The a to signed The short on excited been pay-at-close. key about story we team about. on it are who on very we forward moving part [inaudible], be that. ours

We their into have has upside but to plan, bit plan. included team a the little the

some that our product for think could of we business off it that that we nice business. takes tailwinds for And can, so the see part like if from

Ryan Tomasello

putting market Great. Maybe an dynamics I follow-on Porch. think question environment a the audience dynamics XXXX to could particularly out, beyond and if you for to industry inspections that, say, to And the digest probably the called then high XX%? could the thinking then, more around sensitivity. what think I business very sense to headcount, big new saying the what of would around any around waived being say I it that being it. how through fundamentals, guidance XX% has the absent assuming declining around and just various of of for And that that I segments. are various the flow there business, get And if into react continuing you that, hear pandemic. -- refi Floify, are kind market say, through I the are at the you a But a nuance housing in excluded you I a home how the get declining more sensitivity business as point guess, you finer know would be if housing think we of a you did helpful weakening sales hypothetically How, a of XX%, level, is the really an that example? guess

Matt Ehrlichman

Yeah.

way on things subscription liked SaaS is they might price not the companies it’s we the of fee. though, that the One normal Floify, transactional software side, on price a does about price that like that other

the And its really isn’t and that directly, on very that it’s market handles home down. are there its volume business and to so, Floify impact segments Even purchase-oriented. of of exposure with focused small on revenue refinance up going portion refinancing, the that doesn’t

don’t that exposure market a So into have Maybe there. the understood no, perspective from the previously. wasn’t Floify in we changes fully

of XX% between of deep-dive the highlighted market. thing at again, housing Matthew future one in insurance an show before, to really to the able interesting I think to sensitivity But it’s that fees be being revenue, which our of that SaaS revenue and the just very revenue. together in majority the XX% predictable represents Vertical core very BXB our consistent, is the our recurring Software

have little And so it’s there just that small our so a grow revenue of is in even bit of terms decline. will if much really through conversion sensitivity. just And a we even opportunity would of upside portion there’s that

stress, assumptions XXXX housing everything that market based in seen. on slowing So, we around built just to the guide have I again, into would the want we have

So that point. is built-in at this

Ryan Tomasello

Thanks.

Matt Ehrlichman

Thanks, Ryan.

Walter Ruddy

Thanks.

Mark from from question Schappel Next Loop.

Matt Ehrlichman

Hey, Mark.

and I next audio Walter, will and that ahead to you mute we bad go one? think having a you. the are connection with go

Walter Ruddy

will We jump to Justin Ages Berenberg. from

Justin Ages

Thanks the question. for Hi. How doing? are you guys taking

Matt Ehrlichman

Hey, Justin.

Justin Ages

of can Just an provide services now? ones, you some for Vertical update Software or title a of couple market of stand quick share inspection the like guys where you

Matthew Neagle

of otherwise, on I and see, we increasing We don’t market share can a have don’t do that. share do that take our doing though, imply We periodically, so But going are is an update numbers share. snapshots, What we quarterly is will do at market time. committing are periodically number we that growing to and report can you deep-dive to out that. to this -- basis. on companies,

Matt Ehrlichman

have in just X as handles acquired those would can software is what suppose share than the to Obviously, home And ahead. our time and a of businesses volume applications million at previously, purchases. which I title we we XX% Floify, was of expect grow more terms was. the we handling what U.S. had reinforce it all year communicated the we we look about loan that

data the was that So point. last

Justin Ages

little kind one a revenue kind the the me right. faster the the gross all can growing under between growing give delta premiums insurance of more than That’s All you of and -- help similarly the Thanks. color these that written synergies and products of that. Is understand helpful. then us bringing And revenue roof?

Matthew Neagle

revenue what was a in specifically of our versus Are gross written as saying guidance? you percentage QX premium XXXX

Justin Ages

Yeah.

gets Let’s to it.

Matthew Neagle

There in the thing of account that There impact Yeah. I -- we of have impacted for been to some the HOA well seasonality would keep -- there. light have how would claims mind have been QX. is that would as some fee think the in

that year. this around been have XX% We

are of improving point. stable think next little a this about you that we more a I And year, bit it as at number so, but a would have -- stable more

Justin Ages

All Thanks, Appreciate it. right. guys.

Matt Ehrlichman

Thanks, Justin.

Walter Ruddy

from And Wedbush. turning to Ygal Arounian

Ygal Arounian

feels on an looks opportunity I basis. just want manage It it app. really afternoon, your to by ongoing back go like home connect Good guys. feels great homeowner the interesting with kind an Hey. it directly to like a -- way of and to the to

of if And is what So been across actually broadly that its And investment through? what do it. question, going the about a it’s Is you kind is conversion does given contributor help not M&A what a through going lot holes, cost-effective? to and going still pushing then does not thoughts warranty year, are M&A Thanks. a past products way given to huge in just the going there, keep you insurance fill? of in you have into that, over the but are over what the a And pipeline the channel kind around how why business? channel, not you you and it -- for achieve the the benefits filled, retention last it M&A behind doing guys years, lot you on helping you and just kind think do you the second of that M&A push of it effort How improve are the of done deeper couple expecting your obviously are there’s have changed is pulled more to narrow lot just are? you of where current

Nicole Pelley

if if you second I want to, one, Matt, first app. think, on so want the take one, the you So, the to

customers able to on their help so with go-to-market, to being them to our with there all relationship warranty relationship build their move our within more strategy. so just services being a need during they where so move services the BXBXC customers adding much these long-term as the we then them access company, So go help primary build long-term you we value the that continue believe opportunity with home. insurance And through to and and this able and

to to this at services, only I us the see So it’s all not us the long-term is app move. a relationship for going build but point. beyond move, with strategy also me just, us the could some key to continue help direct-to-consumer the

to to us be for so able help consumers much to our there is think companies. opportunity I these

that’s will direct-to-consumer our future. so go-to-market in go And to where then focus start. we efforts potentially the And

Matt Ehrlichman

right? are of a the we many And homebuyers, key just advantage there, the And customers for I reason Yeah. why us we U.S. have here do you because who opportunity -- so but have I huge there be for the deals. we more, we and do well. to aren’t we I And will have the and our But, M&A, in of pressure other up us. the going terms least you continue with of agree hanging we as to I with start lots the yeah, working well transactions purchases may I don’t would terms go go more will of to will expensive open a lowest reach. customers then look in is mean M&A is ahead, then in expect platform fruit certainly that clear feel that as that to

great bringing one be in deals do when presents are able We to new capitalized to talent to were team the right itself. the

then strategy. be warranty other the perhaps we for looking to insurance to And services existing verticals can companies are is are be software for across well into think and be and would whether not be execute that for we areas. platform services three software our the I in our generally, to fits new categories over would in those time, consumers today other the go verticals deeper opportunities new consumers our layer There good might we in verticals. enter that able as

Ygal Arounian

Great. Okay.

you expect out when launch a have I the follow-up say apps did missed may quick you Just it there? of

Nicole Pelley

Yeah.

will in I would be we closed beta of a closed timeframe. year We of are middle right beta the the now, expect out

Ygal Arounian

Okay. Thanks, guys.

Matt Ehrlichman

Thanks.

Walter Ruddy

portion your Matt the last call of concludes the That to comments. Q&A. for related

Matt Ehrlichman

appreciate interest the I for everybody and the just I the questions. Thanks No. time.

like. said, excited is are and year I we positioned going as what are, just to We where about next this look

on you have forward great... With the seeing next coming that, [Ends So call a looking Abruptly] up. all we are to

Porch (PRCH) 2 Mar 222021 Q4 Earnings call transcript