Porch Group Inc. · Q3 2022 earnings

Briefing

Porch Group's third quarter results reflected a revenue increase of 20% year-over-year, with significant impacts from weather and housing market conditions.

Porch Group reported a 20% increase in revenue year-over-year, reaching $75.4 million for the third quarter of 2022. The company faced macroeconomic headwinds, including weather-related events like Hurricane Ian, which impacted insurance claims costs and overall profitability, resulting in a GAAP net loss of $86.4 million, which includes a $57.1 million goodwill and intangible impairment. Despite these challenges, Porch Group is focusing on long-term growth and anticipates Adjusted EBITDA profitability in the second half of 2023.

• Total revenue reached $75.4 million, a $12.6 million increase from Q3 2021.
• Volatile weather and inflation-related insurance claims increased cost of revenue.
• GAAP net loss totaled $86.4 million, impacted by a $57.1 million goodwill and intangible impairment.
• Adjusted EBITDA loss totaled $(13.0) million, or -17.2% of total revenue.

Headline financials

Revenue & EPS history

Porch Group updated its full year 2022 financial outlook, expecting revenue of approximately $275 million, Vertical Software revenue of approximately $154 million, Insurance Revenue of approximately $121 million, Revenue Less Cost of Revenue of approximately $175 million, Adj. EBITDA to be greater than -$48.0M, and 2022 Gross Written Premium of approximately $520 million.