NASDAQ$PRCH

Porch Group Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Porch Group reported a solid performance in the second quarter, with revenue growth driven by the Insurance segment and improved profitability actions.

Porch Group reported a 12% increase in total revenue to $110.8 million for Q2 2024. The company's GAAP net loss improved by $22.6 million compared to the prior year, and the Adjusted EBITDA Loss improved by $8.4 million. The results were broadly in line with plan despite a significant weather event in Houston.

  • Total revenue increased by 12% to $110.8 million, driven by the Insurance segment.
  • GAAP net loss improved to $64.3 million from $87.0 million in the prior year.
  • Adjusted EBITDA Loss improved to $34.8 million from $43.1 million in the prior year.
  • Gross written premium for the Insurance segment was $117 million with approximately 232 thousand policies in force.

Headline financials

Total Revenue

$111M

Previous: $98.8M+12.2%
EPS

-$0.65

Previous: -$0.66+1.5%
Reciprocal Written Premium

$117M

Previous: $143M-18.2%
Monetized Services

231.2K

No prior period
Average Revenue per Monetized Service

$395.00

No prior period
Capital Expenditures

-$86K

Previous: -$672K+87.2%
Free Cash Flow

-$64.4M

Previous: -$87.6M+26.5%
Net Income

-$64.3M

Previous: -$87M+26.0%
Operating Income

-$52.5M

Previous: -$159M+67.1%
Gross Profit

$19.2M

Previous: $17.4M+10.1%
Cash & Equivalents

$274M

Previous: $266M+3.3%
Total Assets

$876M

Previous: $1.05B-16.3%
R&D Expense

$14.7M

No prior period
Stock-Based Comp

$7.11M

Previous: $6.4M+10.9%

Revenue & EPS history

Porch · Revenue · Quarterly

$111M

Q2 2024+12.2%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Porch Group updated its full year 2024 guidance due to catastrophic weather events, including a May Houston event and Hurricane Beryl.

Tailwinds

  • Strong performance in areas within the company's control, such as underwriting performance and attritional losses in insurance.
  • Price increases in the software business.
  • Strong cost control measures.
  • Revenue guidance remains unchanged at $450m to $470m.
  • Gross Written Premium guidance remains unchanged at $460m to $480m.

Headwinds

  • Two significant catastrophic weather events impacted profit guidance.
  • A $23 million May Houston catastrophic event.
  • Hurricane Beryl is expected to result in $30 million in claims cost of revenue net of reinsurance in Q3 2024.
  • Revenue Less Cost of Revenue guidance decreased to $190m to $200m (previously $230m to $240m).
  • Adjusted EBITDA guidance decreased to $(20)m to $(10)m (previously $2.5m to $12.5m).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+8.3%

Avg return

Earnings day

+11.8%

Avg return

5 days after

+18.4%

Avg return

30 days after

67%

16 / 24 earnings

Positive

+74.1%

Q4 2024

Best reaction

-36.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%+20.7%+21.3%
Q3 2025+1.0%-4.3%-11.9%
Q1 2025+67.4%+67.0%+71.3%
Q4 2024+74.1%+82.6%+95.0%
Q3 2024+58.8%+47.8%+141.7%
Q2 2024-32.4%-26.0%-26.0%
Q1 2024+4.3%-14.8%-41.2%
Q4 2023+22.0%+26.3%+44.7%
Q3 2023+37.4%+50.7%+211.6%
Q2 2023-9.5%-12.7%-36.3%
Q1 2023+26.8%+22.4%+37.6%
Q4 2022-25.5%-32.6%-27.2%
Q3 2022-36.5%-31.5%+18.8%
Q2 2022+9.9%+21.8%-3.1%
Q1 2022+2.0%+30.3%-2.0%
Q4 2021-20.9%+15.8%-19.9%
Q3 2021+8.0%+2.9%-29.8%
Q2 2021-9.9%-17.1%-0.2%
Q1 2021+6.5%+16.3%+20.8%
Q2 2020+7.3%+5.0%-20.7%
Q4 2020+5.2%+7.0%-20.5%
Q3 2020+0.9%+0.2%+11.3%
Q1 2020+0.0%+0.0%-0.6%
Q4 2019+1.5%+4.2%+6.4%
Q3 2019
Q2 2019
Q1 2019

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