PRCH - Earnings call transcript Q1 2022

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Walter Ruddy

Good afternoon, everyone. And thank you for participating in Porch Group’s First Quarter 2022 Conference Call. We issued our first quarter earnings press release today and furnished our related 8-K to the SEC. The press release can be found on our Investor Relations website at ir.porchgroup.com Joining us today are 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 our InsurTech Division.

Before we go further, I would 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. response May questions, XX, in as management’s including today, of XXXX, discussion, to reflects your view, Today’s only. We to do update obligations or revise not this information. undertake any

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

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

section Group. a our deep turn into company’s The quarter Founder to XXXX me Porch Matt? this and also As guidance can be along over available company’s conclusion Ehrlichman, Relations dive team business. that, results, provide the of covering at will XXXX for website this Chairman Today Matt in addition a with reminder, first presentation and call to website. be KPIs, presenter’s the And of the slide will Investor the presentation CEO, let Insurance after commentary and shortly porchgroup.com. on replay webcast will the the follow of found on with

Matt Ehrlichman

and we're the Walter. confidence in home everybody. disclosed the unique our so and strong performance Porch expectations. continued it. revenue profit previously business strategy give guidance have announcing Appreciate sixth success again, this quarterly insurance public and strong the This should across All results highlight quarter marks markets. results, and the financial company of These afternoon, Once Thanks, meeting right. far in certainly Group's and Good affirming our services.

the expected a KPIs competitive later initiatives by an months, the started, Before revenues. XX% is strengthen that thoughts. and contribute some over joined Kornick, first going are we happening pick in been minutes quarter market last XXXX for today results InsurTech our to of We'll I'll provide to we the to is up nor are the to not five In and position. to well noting of blind continues will update a that my what's the the Adam to related segment, to The Insurance broad-based The provide and of the is particular, then seeing news are on Group few strategy performing the little deeper lumped financial markets. President business we've good housing Clearly, gotten our stuff. and into includes and and get share working. others dig into challenges to perform reinsurance I'm take is report. which our

states with this against and pricing us Porch’s year-over-year, EBITDA against and were data perform specific while from today XXXX, margins improved announce to in affirming our come. we're we three a and same that in full approval up At insurance expectations, to with to excited percentage received year simultaneously progress opportunity time, more using was official strategic of massive start XXXX EBITDA adjusted filed guidance. by point, and Case us. XX revenue to continue the revenue We XXX% near-term QX, full that's making front points of have in proprietary

strong insurance, our Approximately both recurring our BXB come impacted revenue to decline. is fees growing others a impact and said, being created parts expected But expected in more material Yes, housing assumptions SaaS is housing guidance. business revenue from faster business be feel our be this as the market. homes built we we've the As of to a a into would thus be even which as not the we would of to we sold. engine shifts market. if and our susceptible year XX% slowing as the by are seen far of level of of neither market, And noted, slowing yes, which and was housing

unique continue in levers right through are to drive many our growth, large to so we're slower and ahead journey so. our early this do housing and with expect we Given a to strategy opportunity given performing presents market

are doing those well fees gain By to home helped grow. outlines home large strategic software, that provide strategy we BXB software to select to generate new companies in software improve verticals to from businesses BXB as We here win recurring For slide to services a service industries. these homeownership unique journey. so, help ongoing revenue and X Porch, We those in and their and consumers. early as buying access

stream revenues we consistent to relationship. BXBXC we by homebuyers, With most the can ongoing a create we them home Insurance helping the revenue services on essential focus when consumers, warranty to given and transaction of recurring purchase the sell are of durable with and generate services. we

who predictive. seeding the requirements reinsurers, the Here risk, more the third of majority the to in risk insurance, and operate us capital get both levels, of capital-light we expected this vast with a an business carry rapidly to scale bulk allowing and to premiums with volatility party manner

here our top priorities with of for six. slide So number same X, tweak to remain XXXX one the the starting on

only consumer variety of our front our key So number software companies ways also and in but of consumers more for in mortgage app continue and conversion to our consumer market; increase early more sell are also our and embed transactions. and is products a one, We've in geographies. intend to and to software, vertical get to embedded We've into it provide our providing to products software get core to digital with rates, one home to app experiences, working partners inspectors. our order go-to grow an every homebuyer to not launched extend buyer Floify increase access and within to insurance we consumers. launching new BXBXC tools new just to access our advanced expanded our This increase transactions. far more our rates conversion of us experiences four, profitably, in get rapidly delight. and entirely two, a unique to we both a consumers, including way business, BXBXC Three, our new to insurance Number to services on audience

received pricing leverage Again, and the our Six, Porch’s filed here I'm a a With in plan. to you five, Nebraska insurance As may our when recent of improve home data over little year they select and approval for what to cover were a insights states. in operating about expansion later into At excited Wyoming, unique our platform most remember, our first warranty key acquired insurance offer priority. announcement six it on HOA, we'll states. out warranty its to now and ago, insurance start first to and had build maintenance create full our relates We're we number continue as Number we services data use to products. states. section. own in insurance M&A XX we Adam our will products change in also pricing a and home protection integrating in to

focus cost and Certainly, we larger of be scaling M&A the As capital to to given last valuation and do on the shift in one of our systems the financial where market integration on the our is our working we platform view private excited financial remain public can relative and capital, promises. right about future how prior here the once importance our can prioritizing the gaps lighter growth exist, in acquisitions discussed the XXXX of accelerate acquired and companies focus as the that market a of controls in we would quarter, look more to reporting. year we over going

So turn first Heimbigner it to Marty results. discuss Marty? quarter with CFO that, our our I'll to over

Marty Heimbigner

afternoon, and everyone. good Matt Thanks,

strong remainder our parallel, and position us of report well putting is to very track keeping us XXXX for Matt able in is and performing great business to was excellent results As the for achieve mentioned, an another on quarter, EBITDA across second and hires XXXX. controls address under with IT shareholders, Sarbanes-Oxley law. to organizations obligations for including internal key In compliance accelerated have our and breakeven adjusted accounting the our the we the of half

quarter Looking comparison first of at results Slide impressive. our is the X, year-over-year

the For of revenue increase XXXX, Porch of Group's million $XX.X year grew same total first prior million, $XX.X ahead quarter expectations. XXX% of an the quarter and from to

approximately revenue revenue was from point eight in margin EBITDA EBITDA visibility a loss strong our million QX. revenue the improvement. million the line QX, of negative written And expectations. addition provided year-over-year performance, In was nice improvement weeks XX%, $X Adjusted percentage was we We XX with our XX%, a cost guidance already less in $XXX year. a prior annual into which adjusted were quarter. seasonally ago Gross was good had in premium about when healthy is a low QX, to

pleased the up with what less adjusted gross performance. which XXXX to million, basis XXX year are revenue up year-over-year X% full and XX% of XX% revenue, adjusted XXXX use EBITDA are guidance year guidance we EBITDA also points million, negative remains profitability full year-over-year. so margin a improvement, $XXX our of We a unchanged, and close affirming of as approximately with this year of our dollar performance measure certainly business produces margin far guidance cost improved EBITDA $XXX and revenue year-over-year of

the margins continue EBITDA of to invest our the internal long-term is underlying Because of breakeven strong, medium-term for well second We achieving in are half of to XX% growth acquisition to manage fixed target much able confident address XXXX integrations our these control cost and our our and initiatives, of business structure as we environment. goal in to strategic as are adjusted the of and our of margins. expenses be growth

our written insurance pleased share progress gross here are the in we'll be more presentation. $XXX expect what to we and million later business, about with Additionally, we premium

excited KPIs. Officer, segments to are the Matthew Neagle Porch. to QX, With the we momentum our and our over Operating it Chief Given turn at operating I'll ongoing performance about that, discuss strong and

Matthew Neagle

I continues Thanks, feel perform to the as and performed time, Marty, here and slide XX. on business We over certainly agree. good how you how about has hello, it everyone. see

report strategy initial year revenue a growth integrations and the that XXXX. strong XX% set most positive initiatives the areas acquisition, mid-XXXX. and track The that such with of the see can -- on is potential which current year-over-year comfortable have this Floify for in then years. housing expected we remains in the significant as largely our into from upside landed operating and to as are You relationships jump our factors in weather, timing of softness expectations app the KPI the share given our with our we Texas, reinsurance performance reinsurance of be guidance XXXX Other include results to for can XXXX. that We our market for muted CSE to the which on and our within assumed built consumers may XX rollout on and QX I'll of impact feel also guidance segments unusual and been first especially factors.

growing Turning generate are from recurring from generate to software slide elements of our strategic fees the million transactions. is both valuable, software segments. revenue revenues most produce fastest. We our Overall, $XXX BXB vertical We The SaaS approximately XXXX. and our segment expected through this and revenue XX. to in two in revenue

retention expected XXXX. which XX% is growing revenue insurance and overall of high business revenue, in our recurring other The of is rapidly segment and portion contribute is to also

reminder. thinks a our current a worth about I few believe valuation, one As things are

expected half see $XXX subscription This services. or comes here million of can our fees revenue company revenue fees. our is on and companies software BXB overall vertical high-margin and monthly that from approximately to pay The stream for You revenue us XX% XX software slide approximately is near of year this alone segment revenue.

being; built the markets software Rhino or with and [ph]. key acquired important three ISN, high-quality most large have accelerated and companies in leading the Floify We vertical

quarter. a Similarly, substantially So depending only range, SaaS would market for mid-XX% and slide business stream loan. be written insurance of will million revenue percentage represent multiples approximately in of to fees, retain have more XX. highlight recognize expected we'll us a We'll lower the in P&L the capital as if This other higher be revenue would insurance be the This revenue premiums risk requires that gross $XXX a that on an and contrasts risk traditional overall. reinsurance capital means our and vast with expected majority than our approach of experience volatility in more would is less levels with business comps recognize on respective clear the Porch’s quite companies. premiums

our In step-up. industry data Our alone, that multiples capital-light is do be an and do, and higher written $XXX become will insurance with noise. we more recognized Despite and in million revenues ignore the fast a premium, time. long-term also working execute and Value any context. rapidly the consistent, that advantages. business our there this though this margin continue will advantages and be our any insert would over on companies growth and If CAC well, clear dislocation the predictable software to of substantial near-term and in considering our business, be we scale were exactly combination long-term valuation would to certain InterTech substantial the meantime, high our continue are strategy, profitability margins only insurance what we should us gross aren't plus gives basis effectively

to quarter in get prior drive in growth as saw help companies SaaS to more to large increase the is more You to of in KPIs. companies strategy to can slide runway software see the consumers our we Beginning these up number XX% improvement from per is QX turn unique per per month, in in we was company average our $XXX approximately many and our here companies to to on approximately then than continue is of year. with here sell the we fees of There continuous work from same QX with XX, we XXXX. more revenue years The in up as approximately continuing BXB growth consumers services. which access more month Revenue to continue XX,XXX with we as quarter first XX,XXX per company from as modules ahead. substantial opportunity these

growth between net As expect sustainable we more company XXXX in QX but adds be saw new noted XXXX. and QX versus to grow, in XXXX is previous calls, to I XXXX, of we in what a we reasonable continue XXXX expect slowly pace – what to during we

that will during QX no RWS, were include X,XXX I there will acquisitions note QX, approximately While would add which companies.

per XX, strong year-over-year types As XX% growth. you we continued us all XXX,XXX saw QX, with services over can the see as as continue monetized for our in QX and XXXX to representing of are slide home see service, next. services on monetized improving efforts. nice across our insurance We a growth recording year-over-year Insurance $XXX moving increase quarter, and we from sales XX% warranties the a step-up fastest-growing with

jump vertical begin deep Insurtech our software our Adam Let's two operating now into dive I'll insurance jump in President related disclosure Kornick, to segments. a updates business. our into the to additional and of take and division can

generally for the we with QX work with are the being business. Software On a this XX% the QX our QX revenue, we the left-hand fees this, realized segment. we side of in and slide prior revenue XX, transactional revenue. companies this segment of the Of We from total million balance Adjusted provide substantial BXB increase SaaS from aspect results generate the consumers for of who margins XX% year EBITDA serve. our given QX, lower the Vertical $XX.X and in seasonal majority of

service As for in for segment. more our from QX almost quarters. you customers QX, historically QX against us ARR, and our year generates a more we and transactional spot to quarter a $XXX is seasonality in perspective at over full reminder, in also Adam, are revenue our guidance. which software Insurance our good then million a those lowest companies

Adam Kornick

Thanks, Matthew.

XXXX, QX million. higher that was rapidly margins. quarter reminder our low Insurance a On side, RWS CSE. right-hand is continues grow we In do gross adding this demonstrate and before revenue strong and million, $XXX year were premiums seasonally business to Segment $XX.X and the written QX

SaaS margins We are much for derived Given rates the we carrier similar Plus, predictability, fees, segment margins adjusted of commissions, margin. insurance ceding had insurance see, reinsurance see insurance EBITDA and and typical you from revenue margins. with approach underlying as commissions our revenue, underlying you can our capital-light BXB to very to around XX% as retention fees. strong

a product warranty is We different lower-cost investments. than HOA privileged which nicely insurance our to has expansion and and the in Fundamentally, proprietary in strong a high-margin typically demand, requirements, CAC, and profitable one create all rapid business agency others history, access have insurance given profitable this. for are pre-acquisition, of and strong to capital to with which already were of helps and geographic is business our despite that low underwriting will underwriting a the we volatility continue our opportunity. cost data business improve larger like lower

On $XXX insurance our customer XX% on Here to rolling our end XX, year. had XXXX, with of policy we at per Slide XX an the of and approximately regard average an basis insurance-specific per QX retention of of as rate we KPIs policies, in business. generating XX-month we're a XXX,XXX revenue March

we in We'll into now a see products insurance. related insurance states. our dig to can few offer You now other own topics XX

an First, in Insurance California acquisition the we update the on XXXX. fall signed CSE, of

closing continue the in anticipate still work mid-XXXX. and process regulatory We through to likely

performance. Slide carrier at XX, HOA's can looking strong you continued Here only on of and Note, see underwriting MGA. underlying our is Homeowners America this

Our is receive included any distribution commissions not undervalue. sell and here policies without they as agency

we With past industry's to have ratio Texas includes the industry. the average challenging five This that versus performed favorably XX%. broader the loss year compared underwriters years, in XXXX. saw homeowners Over the XX% an

a performed ratio XXXX that over loss the in of saw events the by premiums, weather was points where we state XXX% XXX to have see currently majority our well underwriting represents overall industry Texas. Texas time. couple of The carrier how loss in of ratio. driven severe There the data are Our

non-catastrophe attritional is claims. loss and ratio, continue you all which First, broken to have non-lever out

of is average if These would still versus average growing can I believe figures our that industry high see U.S. to tech-enabled back segment XX% of XXXX, faster the industry over that capital-light prior in well. some the the adjusted XXXX recorded looking five loss we XX% XX%. model ratio even the full last are you consistently pay environment the year You been averaging performance And years. light margin. loss across comparisons more. the exception, at attractive, industry-wide at EBITDA very with Separately, blue in positive reason from XXXX, we a where look platforms, can even was the a note we has XX% our insurance our show here

tied our geographic to results be As to expand, we via continue less diversification. Texas underwriting to

in our improve. As we continue data, continue course to proprietary only to more pricing will accuracy bring

reasons in partners. And the a our Our solid favorable well important macro in our annual renewals our as relationships historical have as different underwriting is difficult we maintaining performance of have to one performed insurance with we backdrop.

slide and to model an turn update transfers. Let's our XX capital-light for on XXXX the VA

We proud long-term metrics. partnerships our of our with are

As see the you underwriting we can three-year profitable strive see to [indiscernible]. XXXX on from XX, here over over our period access slide prior for XX% to of and us XXXX, to this a retain without the in line the business We our broader need with provide insurance business have rapidly allowed we to as industry. grow our has of we same plans, capital premiums

initiative, challenging was for While globally were national XXXX a carriers. well year positioned last the for we insurance

Given maintained the and reinsurers in underwriting discussed overall our [indiscernible]. previous relationships industry reinsurance good we results with for than XXXX the slides, the better have

had of the Our in In reinsurance program total, generally XX% April respectively. are XXXX reinsurance approximately and guidance. we move the what XXXX, renews share on XX% January given to loss assumed year, in of I our premiums, market, relationship more X retaining expectations why we building than X previous of our excess for and

with proprietary advantages of mines. underwriting because the are both this of strong results. fee believe of line to we while the and managing is underwriting profitable more expectations than done those and as our cost different in Again, of our and create better growth data and more historic with guidance. have We overall commission. the consistently reinsurance ahead market We Strong this performance results and utilize effectively effective

feel with the challenging in the pricing any and As trans about seen of did of of reinsurance. are continue increases retention renewals We with XXXX we've change noted put we before, the insurance in in grow and we light we rates indices number in advance the backdrop good when loan, place that community consumers XXXX especially to not helping have growth, these of references.

to continue We are agents confident carrier insurance and operations and for deliver reinsurers, consumers, in scale our our ability to independent departments.

XX. page to Turning

point-of-sale enhancements, We are consumer disusing excited to which share a product Floify the now are live offering. mortgage for

improve consumers to compare the beta way getting easier have when for applicants insurance, to rates on provide homebuyers we to loan, Now, the making within are it carats. as easy require. these month launched from and homeowners the We integrated multiple last

to easier. are excited process home help a officers to to the We better with higher experience conversion continue loan and provide making customers our buying

As officers subset of capabilities to always, out seen them. from to reactions resistant simplify We've how another unique see and example a stats. believe positive roll we of first loan features customers' our help

first pricing want data using Homeowners customers. to improve accuracy Lastly, here update on milestone for the an get slide property Porch's on exciting I XX. of of the America, proprietary to

has As discussed about to. unique only Porch have past, data access we that in properties the

are rollover this We price the those data confident price to low for to the insurance belongings. raise will of and able be risk consumers

get We we data demonstrated changes valuations. years new utilizing data the By in approval XX-plus to set came our successfully and file that data and of implement model, have safe inspection can new pricing. able claims now vesting, in from we pricing non-insurance Porch's were leverage file

location of our use of water So our part have Virginia here of Georgia far, as the pricing. and states of Arizona, approved the

the in data here of fleet lower water The that cost is [indiscernible]. Our than [indiscernible]. would shows consumer incur

in for have data on based of the now can one pricing underwriting. inspection locations. the This recent fields is booked insurance We that example uncover only appropriate report

data issues continue looking condition, more the permitting home identified material, then and we Looking age, in piping more. evaluate system and we're to of ahead, reef number

create advantages to this we We will growth, to owners drive incorporate for a pricing models our continue in difficult is profitable be of and start to and over our just to ahead a to turn to insurance runway improve about back able platform. will a to what and pricing in that, first Winning accuracy, have With leverage is and continue we it foremost Matt. repo. to long I'll refine

Matt Ehrlichman

shareholders, progress. our It's current encouragement on up note with The patient. of the the I'm a I'll Adam. you, great, wrap great in focus illogical. a and Thank long-term short-term be market, that's view, for work about our equity happening fundamentals brief is there. proud

we'll in margin a have be massive the that grow and advantages in continue industries. great truly nicely, here business to a a winner become has unit even so and to company but more have We generational revenues the we opportunity to economic With expect our great, multiple providing strategic believe homeowners we home win advantages, verticals. of our and we over profitable key software believe companies to we to service able expected and With time. demand build largest most insurance we'll today, that data one

So sufficient looking cash execute on ahead, to have we our strategy.

continue four to shareholder-friendly We integrating prior for the with controls we've QX, maturity place, fired have gone board on to a more and strategic We of and competitive prioritizing solid and progress do team making we where strong since remainder execute, declassification. strides moats done great make than progress the ensuring to approach had And We're public, announced are your acquisitions of that I'm convertible and adding results. We'll substantial we governance the our years XXXX. take continue excellent that, up toward we've note. what the in consistent deliver make questions. just and management our that of past deepens appropriate will

the So and ahead go open Q&A, line can appreciate it. for I'd Walter, you up if

Walter Ruddy

Thanks, Matt.

for XX sell-side taking We'll purchased questions. questions We have approximately minutes analysts. by from start

John Oppenheimer. Campbell Jason from comes from Helfstein Stephens. question from First

John Campbell

okay? Can you hear guys, me

Matt Ehrlichman

Hey, are John. you How doing?

John Campbell

doing my taking Doing for Thanks questions. well. well,

in I running the get and state. acquisition. a kind of of each little to up since So into Matt, handful expanded states it you takes know guys time of have bit HOA a

impressive recurring like in got -- the feel the obviously some You some and the launched over of early to and they we've pretty time. state But pre-porch the there win build revenue days has of the up at business states, I HOA looked stages. in to then was growth, filings,

I'm that with of assuming seeing if the kind any guys And state to impact with guidance, those you're new for kind you're if So full year? regards your of curious ownership? under also

Matt Ehrlichman

the things really it top. expansion, Adam and then one it's many that team geographic we off great with been one that on. kick -- progress, think, Adam layer and and, executed of have have made obviously, I'll focused The on I well his

do So all for was is company going of good what a this the in place a is than a to little actually when a is certainly year that we a team we the obviously start models kudos state, which John, been ideal being that accomplishment. from launched X place. has states "Hey, particular sudden to a think for things this later, team, in conservative one states, home, that this is artificially XX in where in more of has now the consumer but we while, say, pricing to first we a more all particular quite

then increase data make we we're they But So we'll seeing. the portion able or by would XX months that aren't much policy. the spread loop of than the and after to give price to that months it we to amount as the bringing be of take from over impact. more And varies it's that as down making mistakes. consumers just feedback any process, in, get you're data see sure start that your to state start pricing in significant six sell point, space, out start you start revenue, meaningful recognizing sell of course to of our really that to then a you you before because that And a

is seen performance. what of aggressive, And with say it. anything betting overly want have assuming past But in what year, significance terms in not would on we're in else states. much for would say line missed being how you -- we're on top we're there I new we that certainly we're I in I this So terms of to lay

Adam Kornick

Yeah.

panning comfortable by described, running guidance that business. and Matt the just of the we're we've that saying do we we're would sum I think all things up and how in I how given out as sort those that with that's

profitable that great feel process have. growth we that we leading So about to the what's

John Campbell

And follow-up, Makes I shorts sense. mean just speaks at the obviously, gloves fire I in stock, And to taken I business, of approach. of kind right your as then, kind the think as want the I a you think for of much you've itself. the back the strides in as kind Matt, professional and continued take off

either pull the me. a of You're evidence arena seeing pretty or cannot for that backing your announced a if angle of the with just an maybe you approval vision. better I than just it. But think clearly you man state a I data that's here, the good what shorts That's long-term minute is have can that kind use you into data, worthless

collecting basis I And a daily model extent kind transforming So big your that your the get just just over time, software? -- want of and to maybe get and your back just a envision take you then on a a the take on of data the recap. of as you're to how kind step type

Matt Ehrlichman

-- can feel agree I execute in best thing the appreciate just you. said what well, it to is results. with and the very I I tell the ignore It's as people of team, know the ahead for up the in for confident as is business. showing Yeah, I Marty mean can well, you do heck us to question, noise John. the company. -- see think business I And the you I the out

things of who about of systems our lower can able portion demand our that most a then price CAC. we is secondly, that access to lowers through consumers mopectively. insurance, are cost. have I the huge And large at building to be obviously, data, one homebuyers talked a who US the very think and our going can that insurance important And we've get company, two

in But at through software our but valuable home an the our point about information we because the industry, all inspection three in is market because know excited share in home. and system. about means of of not documenting home we about on that hours the XX% here the a happen inspections It that will We the update uniquely properties or year, that last huge and country amount we're flowing four about properties everything this person do update, the progress. home our some haven't provided are just for

would a just information occasionally it's data how so people think sit they it when to data with of And because -- any almost be these will can be about think not If is does anyone that we that don't scientist an questions this one those people disbelief those for a tell living, valuable. I were this valuable, insurance people I actuary hear that go valuable? down or

pay have or the pages a that of home the You XX home. includes take information for about

valuable I to can information able to that think we more be to able use be price incredibly that's effectively.

So continue initiative. to we're to there will and It think, want do about show you're we'll excited I results our excited about execute. it. just Adam, time, I add thing in well? that Anything up over the as know you'd and

Adam Kornick

Yeah.

I'd less to talk say I think well. this is results show great to like more, place it. would a and I you do and said it

So I bet my goal.

John Campbell

Thanks guys.

Matt Ehrlichman

Thanks John.

Walter Ruddy

John. Thanks

from question from Helfstein Next Jason Oppenheimer.

Jason Helfstein

Yeah, hi.

So that InsurTech first, pressure. of the we're is inflationary things hearing with one

Thanks. think why any second, about other And acquisitions know don't then much talk multitasking, actually you already manage mix or factors? because well-insulated I it, you the you're from if it? margins were you How to year-over-year. maybe it versus this So I'm how was plan down but covered of gross

Matt Ehrlichman

want Marty, margin, you you And then, gross can do to Adam, like. take inflationary you if the take question?

Marty Heimbigner

Sure.

Adam Kornick

Jason, really given home in think the focus this. the that of driving inflation values the is what's HOA, US is So place a in I to lot

think to So coverage to home census constant of adjust two or things A the an uses insured index home. value price quality about, the HOA

that renewal by digits, of premium. is no low value -- use a the today, home that and double So increasing so corresponding index in there's as and publicly index we increase every

to low And into changes aware measures we So products that take the then we filed inflation XXXX. from inflationary designed that have and account. average in the in separately addition, – double-digit of we're metric insurance of percentages HOA price the HOA in fact

that product homes real, when we with agree the is them addressing particularly housing but two US in we both in those inflation things pricing. we're the design completely put So together, with and changing

Matt Ehrlichman

Marty?

Marty Heimbigner

America. Yes. And primarily later correct our fact we in business. the -- then margin Jason, the the you're was prior XXXX, versus acquired less year. the of That the warranty XX% in year, of cost Protect, Home September, acquired that quarter XXXX of American on April in revenue Homeowners in of first we revenue XX% reflects in

of So XXXX. compare XXXX, had for just related the to our the up in that first claims cost of is what we warranty the When We and both did business you're seeing entity. have risk-bearing you the insurance agency quarter insurance revenue there show in not expenses a business business.

with Business. a So pure Agency Software year Vertical the our was more Company prior of

lower less margin. And so explains of that the of revenue cost cost revenue

Adam Kornick

guided what we reiterate, exactly And had is to Jason, just we QX what in and what we're seeing the year to for expected. had

So communicated we've certainly nothing that than what was different previously.

Jason Helfstein

pro probably there the just you be just follow-up, acquisitions XX-Q, when or a in there formas not? file then, quick And will the

Matthew Neagle

MD&A disclosures statements segment have the in of our further on that breakout segment. portion financial provides We the

Jason Helfstein

you. thank Great,

Adam Kornick

Jason. Thanks,

Walter Ruddy

Thanks, from Ryan Jason. The KBW. from question comes next Tomasello

Ryan Tomasello

my strong housing. start fluid taking in congrats for backdrop Nice year. Thanks the XXXX the see guidance, and to you to such might questions a everyone. have reaffirm on Hi the

But specific singles You all. case business.= at offsetting headwinds the can if elaborated outlook maybe with your changed say across in the for trends year areas certain if has you others, the than that's stronger segments business on the at in larger different video all the of

Adam Kornick

we our can our I Yeah. as some of our The guidance. our Most result speak prepared and we XX% insurance. -- market, in the had remarks, revenue the that. to had housing in recurring majority, that, fact, we a a -- from into it said are or impact but software slowing built bit of either revenue seeing as are we anticipated little

per on and get well deeper a our say, there actually example. they're basis, you an as If businesses, our some some of models because insulated into, of inspection real pricing estate are seat

A better into to change year. lot and bit little built this we'll guidance and our is enough anticipated a this feel not than fundamentally So that. there, have our overall, of this we but it for not doing guidance enough like to

Ryan Tomasello

the slow insurance across rates? is what early there, I is extent And realize Got tax there commentary filing stats how guess congrats initial the the are steal XX the products or it's rollout the data launching of but it, platform? still any today data, actually and that days on avid on going,

Marty Heimbigner

So…

Adam Kornick

Go a... take you Marty ahead, can

Marty Heimbigner

Yeah.

consumers set ensure an it to out for we for want customers. officers as in is launched for of the have initial And we controlled So experience always loan it great. manner. do, and We a rolling we're

the conversion product. While about we are we don't rates share excited publicly,

of and loan it's homeowners a really just then think UI. great certain the we're you're borrowers use who where officers, division, like the insurance from segments need stuff. that hearing when They such love there really things working builder -- Some insurance the case, our doing manual as they as are just especially that with builders

integrated have it. about that and they experience so so it's found super seamlessly excited valuable. And But we're really it into

Ryan Tomasello

for Great. questions. taking And thanks the

Matt Ehrlichman

Ryan. Thanks

Walter Ruddy

Ryan. Thanks

Wedbush. from Arounian from comes question Next Ygal

Ygal Arounian

Hey guys. afternoon. Good

on First, little they're reinsurance the coming on relationships. like of hanging of But more the underwritten premium. renewals. challenges bit just on the and time, at in sounds the you're It kind a to same expected as the

to the given of might hang normal environment, help to make the to half you evolves close can something to that And second revert us year. halfway trend to as think more? think it that Just about how were is does Just sense next maybe into year? get to on the in how and levels, you that through back how about expect kind we

Matt Ehrlichman

and take jump that Adam, you in want to one?

Adam Kornick

Yes, absolutely.

year. is So, thing for those I always the contracts with a main start almost

of for of than But time year. in the expect we would more can year any not a It the everything than some to year the one from of to cases. contract. see So less variations I'm be end on not

that So, loss. co-sharing assets as a as of well of And variation we we wouldn't see any expect. then our would couple includes there reinsurance program excess

So, use we together. those

a and So, have be a we're on co-share, the buying less any yet And view I protects right loss, bit us. but design don't think we access what XXXX. little might we will of for be that more seeing

the of to that tackle lines. different we'll that strong we're and have something really that's capability partnerships advantage comfortable through and those we the think but in I ability manage by taking

Adam Kornick

to on software, monetized appreciating help overall there's growth And overall, vertical year-over-year Thanks. growth But the it revenue. slowed -- less just from exposure your in services, the Can looking you housing down just about of like at was the the the time, on think sequentially us then the XQ. is just Okay. the revenue Is that same certainly XQ, kind through looks moving the the up think seasonality? ever. pieces exposure monetized Is the housing service market? it services. by on at I And was far the you're such then monetized highest per talking

So, what's there in Thanks. on that going number?

Matthew Neagle

in of I'll really focusing services, Sure. per to monetized on we notably strategy can for because revenue monetized I been, It core insurance to is, higher-value this. service has focus upside start of most with We've high-value be to a continues per us strategy those and and revenue first services. service. speak warranty. communicated on that see

and that services. impact focused where value a have So, just on the been the success lot higher of of we expected is

of now. us anything certainly to QX. between if don't I is -- more certainly add at terms want to seeing And In I number work that's anything unexpected. But of there growth see I services, that say know seasonality and don't monetized material QX in would to expect we're QX. would you

Matt Ehrlichman

would say No, it's seasonality. I just generally

the cycle typically in years, from works. little a just of a QX. That's see previous can you'll see to how tick You bit QX back

Ygal Arounian

Great. Thank you so much.

Walter Ruddy

Thank you, Ygal.

Next question Ages comes from Berenberg. Justin with

Justin Ages

Hi. doing everyone How’s

Matt Ehrlichman

question. for the Good.Thanks. Thanks

Justin Ages

gross headcount market. that just going to that million premiums. was was more the a in states, obviously on But there. of $XXX a up? little for maintained it a but terms in first it people take more to I that Is dig that hoping need deeper? to of You hoping to Yes. hire to written in more get this go Just going to bit Good what's up thing? get

Matt Ehrlichman

us add a to years That's them. I'll a able that handful there's for go through but mean, the looks ahead of we're like, starts reasons of of I to being levers of what us next that one lot It of more excited to this companies. with about are go. just set

is go-to-market us access core then our -- to more software consumers. again, those selling companies to more companies provide interestingly, more So and

able with consumer insurance, embedding our app, those access to to on. insurance with the that going them deploying even their can we and key help is pie, we consumer. more inflow to far be get on then services consumers which what new of Now focus like introduce consumer tactics to majority into talked we access like when about getting to companies we software, we're our and other also companies vast there's bring their were But

for So expanding into products. too. to warranty we'll and able be we our funnel insurance protect steps There insurance, be cross-sell exactly, can might to you're customers. we geographies to able more to There's insurance customers for make home. that to to be own bundle there's other those other for There's be then, volume fully the right. to things, to And that yes, of continue the products such multiple bundle a that where together grow in as do that both us and able obviously opportunity sense warranty insurance sell

ours, that very, levers of forward. of of base a our So very customers we be would at Last go that -- pull are that of renew a consumers high insurance that they we'll different as of comment number rate.

renewal rate So just we that XX% noted.

next you to So you get year. the roll forward into that move as

Justin Ages

the does Thank That's know would we're early early the it helpful. briefly Just port a and just switching I good it's and helpful. right. returns there then update after kind of mentioned been bit, -- that last All How on be and you this gears quarter. connectivity? testing being you any quarter it new

Matt Ehrlichman

the a focused We're about Sure. on larger app. rolling set helpful closed feedback is lots opportunity has the positive, remain how of can share we're currently on in experience, out customers. of very we been what app -- The excited thoughts we with to improve can our beta. The very the

to the have to from beta unique incorporate data consumer provide experiences. is closed And we of that we we're the a a a middle lot of this update, provide the perspective, of big move opportunity looking to can We out year. some our in have timing

but So excited. still we're early,

Marty Heimbigner

we'll our deeper that is insights dive as able I be do did today, deep a I into the as product app to certain And to would some we each quarter. deep dive and do provide some Justin, typically point, we point. through, forward at go join some imagine what we leader look At

Justin Ages

you. to the answer Thank the question, guys. appreciate I

Matt Ehrlichman

Thanks, Justin

Walter Ruddy

question Dan next from The comes Justin. Kurnos from Thanks, Benchmark...

Dan Kurnos

proof Matt, can the click Hi, in on everybody. the data just we double points quarter.

it's anticipating. ahead think of while And to not thought three people states, of consider, a probably what I that is that, still had going would I I'm of half. ahead sure, meaningfully, kind but I your back be us it of what schedule. were most it's think was schedule,

any kind it's it's flows whether there through. that XQ, get to of you any And year, whether to some thinking changes future this you're time we it. real question. any or do guidance But actually data prior not start know your said, You of I to first those have system. maybe did not framework is as guidance how about whether there, this XQ, of the some have it's prior that, through That's bulk did obviously, typically the about see the for that flush proof updated I an because points believe my upside talked your embedded way year, it? anyway the But, into opportunities how of take

Matt Ehrlichman

Yeah.

I think question. Thanks, Dan. I appreciate the

be the updates. So to start yes, able was excited I to

having late got the just expectation approval this from states. an for I think not generally, even year and was file,

different a think to few The up always they're obviously, have going there's current ones would about. things So of couple a I – sleeve.

to of stage that having other get So more states work states this block back first There's from take have approval and it this we'd one first out we be and set who gotten roll three approval. of pricing additional able is data states. to

would that as second – more that on be And using is block provide go. will So data. the updates we we then

get comment, very, from able actuarial Adam, that, beyond we're clear want yet confident make bring to sequential But we're structure that to through that make as specific and the updates then we it states. the able some going work his add flowing data into communicating this and already you And are to create our very I'll that go. we to that be that. so just highlighted would at that we obviously, of on filings timing more in I work to will. data and will teams. get as through additional anything, is mean, it bringing go hard we want able really being data organized if section Adam, convicted would value approval be to to and is we teams Last science and data provide to because additional and No

as things of number a there's share so go. we And we can that

expect we're would provide to to Adam, dissection you this in give another And on seeing. able to I to point update so an want be add? what year else some deep anything

Adam Kornick

I'm it on get proud really the At done time. I'm excited, this this and time, could team of

Matt Ehrlichman

Yeah.

Dan Kurnos

have interesting of And incremental And of also outlook. be balance guess, know and Awesome. of Matt, investments commentary the I you we Matt, lot helpful. marketplace, at lot about then, cash look a there's I the as been might that on your tweaks Clearly, it of a to all growth. kind around joke you M&A of stuff. I timing sheet. and

marketing year you are out. want How it about upside been the easier kind end thinking puts But year, flexibility. I consistent to Obviously, have to at could the opportunities the seem heard we've up you where later as this guidance. that be of sort and of messier, I there your of from know companies guys you EBITDA. So maybe let's of say, know token getting gets other kind you other kind reaffirmed takes? pull

data year of So into it, trying layered I'm – thought in keep you of to process place just given, this into primers deeper help start guidance your go and the things maybe but understand level at benefiting of the like outside lot just from as XXXX? without you you've again, that us a the you've a higher

Matt Ehrlichman

$XXX have in be: quarter of we couple the cash million first Yes. here. will yes, A quick leaving one, thoughts

-- kind we companies. XX equity, to valuation there's private and usually so we're even ago, -- into quite view, mean, our that interest to could But again, of zero and takes acquisitions. I while using to kind choose we zero M&A. have say, And months move do X I'll of it run multiples Certainly, go fully in to in for have go certainly, able well for just our capitalized use to we to a plan.

so And to some makes solid now, opportunities. is, think do you'll do no at a look clean, Maybe prudent that is so, thing. really hear, where have we and thing the end right? execute an sense, go just small our it And then, I year, just but there's the wouldn't anything M&A do, of some perspective. we the could see interesting present world And year, from just as and the to substantial expect

Dan Kurnos

Nice the I it. appreciate year, start it. right. Matt. All to Got Thanks.

Matt Ehrlichman

Thanks, Dan.

Walter Ruddy

Thanks, Dan. from comes The Loop Mark question from next Schappel

Mark Schappel

okay? me you can hear Guys,

Matt Ehrlichman

Yes, Mark.

Mark Schappel

Matt, progress on on companies taking you some us module. some in model? you if making, inspection a my I pay-at-close you're give the the I for you appreciate wondering signing just question. relatively home question update of up large the just was new an could

Matt Ehrlichman

Yes. I continuing take can just that there. to briefly. We're make progress

able We take to to wrap continue which consumer is unique close out. your to the into to into it payment fee, mortgage. report happy working It's the get for non-trivial now, bring talking to a and make consumer experience and nothing updates is the really obviously experience. inspection it it. up the We're them signed But and right with to progress team formal hard your to inspectors be

Marty Heimbigner

you to which is think -- large will set inspectors, that's going have They signed up say, of some signing of I terms telling yes. very of wins. In largest ones, be the just just up a

the come, more sure, I'm throughout So go we as to year.

Mark Schappel

great. you. Okay, Thank

Matt Ehrlichman

Mark. Thanks,

Walter Ruddy

Mark. Thanks,

Next Cantor. comes Sherlund question from from Ben

Ben Sherlund

you metrics this to ISN. points Any you data initial have a for had Thanks a on guys. changed provide can revenue presentation marketing how I the drivers. consumer Hey, through as your Maybe company, has taking on In how a XXXX? and follow-up, just funnel help lot changed on questions. has estimate then But since disclosed rights many funnel marketing customers one since my a few then. public

Matt Ehrlichman

Great question.

on technology we is thing, fall. as We can only but something a have the aren't you We new anything consumer I note leapfrog is, some be for to where dive providing can it, we that an today about done, Ben, there with would been. really of the we've The example. it useful as talked note that work think, a deep app

to purchasing do, during same that's inspectors, some that So tackling, same all those front we're that to were able consumers getting phase. consumers, for you provide to we in number things better of far quickly. your to that and blocking flow, just all get to embed in that scenes, about. all new Or easier larger a technology, these well, access experience access that that experience you well, consumers we now come there If are on But that as a home create people way insurance to can the excited of those of behind just right? thing, the an a virtually the consumers going that's are are certainly companies and leveraging board implementation of

the it's we've to past. talked what in about similar So

Ben Sherlund

drivers. Okay, great. That's one maybe revenue on then helpful. And the

out Looking filings that the Can you acquisitions million AHP were? with the also There's break VXX, million Rynoh, over these you a Floify. for acquisitions in line made reported for XXXX you a what HOA, about in other acquisitions and through XXXX $XX.X revenue. help understand there contributed us $XX to little

Matt Ehrlichman

we typically some, Yeah. done publicly. for that we've are wouldn't that that There highlight things very reasons, is some small, competitive

we've little in that bucket. done it's So, things

Ben Sherlund

fall they there what like segment any can provide color Is into? on you would

Matt Ehrlichman

recently mean, that warranty things American in obviously, we've the The the segment done things Vertical we've done the just Protect acquisitions for be segment, is company RWS, most Home America, talked about in segment. the I generally our that the Insurance in and for of Insurance the that most the are would space Software on we of part, that Homeowners more side. thing

Ben Sherlund

Thanks Okay. guys.

Matt Ehrlichman

Ben. Thanks,

Walter Ruddy

Mike The question Northland. from Ben. from comes Thanks, Grondahl next

Mike Grondahl

inspection per the in that leads fee industry, have. guys. that? seeing And that getting customer home of you any or offering thanks just home free? quick seeing anything it relates Are One, waiving you the in are as change Any for they activity? transaction Hey, inspections? to Are kind around the you Two you're questions. change in

Matt Ehrlichman

market before I busy with season. bit we're more has good hot. engage set is to engage a the into there's we're are In areas, us peak time the some is just leading We're little some that right Certainly, indicators given come speak additional together, that which to slowdown. still complete out that. seeing seeing us a can solution to It's they of for I building certain get inspectors. modules. pretty a of Sure. some mean changes opportunities the

And in don't because it have in we the yet the but people against markets, so a behavior see competitive in we inspections. works us highlighted past of will change, say, inspectors, sometimes waive fundamental

What so that a softens, little of market means as the and it's just bit muted of are some that. the for And ups see less is you'll us. downs

Mike Grondahl

on quick any then And it. marketing. mover update Got

Matt Ehrlichman

excited Yes. I'm excited. We're about marketing. mover

We disclosed that have some program. big up signed have logos, which we for haven't publicly

marketing the in fully unique their around site, mover and check team, are out organized they if VXX offering, Our we you space. are their

We team, that marketing. type data that have we best exciting, other the about. we're want that an the and offerings for talked the some the who it's unique to people of we in do have but addition And to building of just stuff out opportunity

Marty Heimbigner

the other seen that these and of are in that advertisers customers. a buying on And than far anybody like Yes. take site offering it's a we for given from market, people have unique are homes else. that advertisers would Mike, I encourage, to go we've that earlier brands there's great our knowledge impacts who look, vXXdata.com to to actually you in and and some data terms

So, I'd to. that's you point what

Mike Grondahl

you. Thank Great.

Walter Ruddy

it his to final Thanks with With back up turn Mike. that, remarks. to Matt wrap I'll

Matt Ehrlichman

I the to great appreciate appreciate quarter, on the who's thanks, rest team, everybody, care. year. it. day. it's With We're the Porch for stay going the track, Have to a do we again, to joining. Again, just great Take start We looking questions. what great that, of do.

Porch (PRCH) 11 May 222022 Q1 Earnings call transcript