NASDAQ$PRCH

Porch Group Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported record profitability and reciprocal exchange application approved.

Porch Group reported strong operational performance in Q3 2024, achieving record profitability with a GAAP net income of $14.4 million and an Adjusted EBITDA of $16.9 million. The approval of the Reciprocal Exchange formation is a key milestone for the company. Porch also repurchased $43 million of unsecured notes, reducing the outstanding balance due in September 2026.

  • Total revenue was $111.2 million.
  • GAAP net income reached $14.4 million, a $20.1 million improvement year-over-year.
  • Adjusted EBITDA improved by $8.1 million to $16.9 million compared to the prior year.
  • The company repurchased $43 million of unsecured notes, reducing debt.

Headline financials

Total Revenue

$111M

Previous: $130M-14.2%
EPS

$0.12

Previous: -$0.06+300.0%
Reciprocal Written Premium

$139M

Previous: $154M-9.7%
Monetized Services

245.2K

No prior period
Average Revenue per Monetized Service

$377.00

No prior period
Capital Expenditures

-$331K

Previous: -$776K+57.3%
Free Cash Flow

$14.1M

Previous: -$6.52M+315.5%
Net Income

$14.4M

Previous: -$5.74M+350.4%
Operating Income

-$2.5M

Previous: $199K-1358.3%
Gross Profit

$64.1M

Previous: $76.6M-16.3%
Cash & Equivalents

$207M

Previous: $343M-39.7%
Total Assets

$867M

Previous: $967M-10.3%
R&D Expense

$14.6M

Previous: $14.4M+0.8%
Stock-Based Comp

$6.74M

Previous: $6.98M-3.5%

Revenue & EPS history

Porch · Revenue · Quarterly

$111M

Q3 2024-14.2%vs Q3 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Porch Group revised its full-year 2024 guidance, expecting revenue to grow low single digits, with increased guidance for Revenue less Cost of Revenue and Adjusted EBITDA. The guidance assumes a 2024 full year loss ratio of 68%.

Tailwinds

  • Revenue in 2024 is expected to grow low single digits.
  • Revenue Less Cost of Revenue guidance has increased.
  • Adjusted EBITDA guidance has increased.
  • Full year 2024 loss ratio of 68% is assumed.
  • Gross Written Premium is expected to be $460m to $470m.

Headwinds

  • Prior year Revenue included the impact of the Vesttoo matter in Q3 2023 and the divestiture of EIG in January of this year.
  • Catastrophic weather further in excess of historical experiences, would create downside to the lower end of the range.
  • Revenue is expected between $440m to $455m, previously $450m to $470m
  • Revenue Less Cost of Revenue is expected between $200m to $210m, previously $190m to $200m.
  • Adjusted EBITDA is expected between $(7.5)m to $2.5m, previously $(20)m to $(10)m.

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 Q3 2024

Historical avgQ3 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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