Doma's Q1 2022 Results Show Continued Market Share Gains Fueled by Tech-Driven Value Creation in Refinance, Despite Mortgage Market Headwinds
Doma Holdings (NYSE: DOMA) reported Q1 2022 results, revealing a 40% increase in market share to 1.4%, despite total revenues dropping by 12% to $112 million. Retained premiums and fees decreased by 10%, while gross profit fell 73% to $7 million. The company remains committed to achieving EBITDA profitability by 2023, focusing on home purchases amid rising interest rates and low housing supply. Significant cost reductions of approximately $30 million are expected, alongside a narrowed strategic focus on its Doma Intelligence platform.
- Market share increased by 40% year-over-year to 1.4%.
- Enterprise closed orders grew by 38% year-over-year.
- Significant cost reductions will save approximately $30 million annually.
- Total revenues decreased by 12% year-over-year.
- Retained premiums and fees dropped by 10%.
- Gross profit declined by 73% from the previous year.
Management reaffirms commitment to achieving EBITDA profitability in 2023 as the company continues to focus on delivering differentiated value to the home purchase market
First Quarter 2022 Business Highlights(1):
-
Market share of
1.4% , up40% versus Q1 2021(2) -
Total revenues of
$112 million -
Retained premiums and fees of
$52 million -
Gross profit of
$7 million -
Adjusted gross profit of
$10 million -
Closed orders down (16)% versus Q1 2021, Enterprise closed orders up
38% versus Q1 2021 - Open orders down (14)% versus Q1 2021
"Doma's mission is, and always has been, to make it easier for people to buy a home," said
Doma's year over year decline in retained premiums and fees reflects the challenges faced by the overall mortgage market, which saw a steep decline in refinance transactions in Q1 2022 and a tightening purchase market. Doma's market share gains were driven by outperformance in refinance transactions which were down
"While we believe the mortgage market will continue to face significant challenges this year, we are confident in our ability to continue to drive market share gains in both the refinance and purchase markets," said
(1) |
|
Reconciliations of retained premiums and fees, adjusted gross profit, and the other financial measures used in this press release that are not calculated in accordance with generally accepted accounting principles in |
(2) |
|
To calculate market share, Doma's purchase and refinance closed orders are divided by total industry purchase and refinance closed order statistics as published by the |
(3) |
|
Doma completed its business combination with |
First Quarter 2022 Growth Drivers and Recent Business Highlights
-
Market share growth of
40% year over year, climbing to1.4% in Q1 2022 vs.1.0% in Q1 2021 -
Strong outperformance in refinance order volume in our enterprise segment, representing closed order growth of
38% year over year, driven by the continued adoption of our Doma Intelligence technology among lender referral partners, including by 11 new bank and non-bank mortgage originators and the expansion of existing enterprise business into new states -
A refocusing of resources to a narrower set of strategic initiatives that will allow the Company to target investment almost exclusively within the home purchase market and drive differentiated, tech-led value to home buyers and sellers in a time when interest rates have risen at a rate not seen in 28 years and where housing inventory remains at historic lows, including:
- The exploration of a Doma Intelligence-driven purchase offering for existing and new lender referral partners.
-
Significant reductions in cost structure across the Company to align with reduced refinance volume and investment in moving additional purchase transactions onto the Doma Intelligence platform. This includes the recent workforce reduction that will result in approximately
$4 million $30 million - A re-scoped and streamlined investment plan across efforts to expand into home warranty and appraisal; and
- Optimization of customer acquisition strategies and geographic expansion within the home purchase market that facilitate faster and more cost-effective growth.
- Management affirmation that the Company remains on its previously communicated timeline to achieve adjusted EBITDA profitability in 2023
- Named as one of Inc.'s Best Workplaces of 2022, for the second year in a row
2022 Full Year Outlook (1):
-
GAAP Financial Measures
-
For the full year, Doma expects gross profit of between
$71 million $86 million
-
For the full year, Doma expects gross profit of between
-
Non-GAAP Financial Measures
-
Doma expects retained premiums and fees of between
$220 million $240 million -
Doma expects ratio of adjusted gross profit to retained premiums and fees between
39% and42% -
Doma expects adjusted EBITDA between negative
$120 million $100 million - Doma intends to reach adjusted EBITDA positive in 2023
-
Doma expects retained premiums and fees of between
Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as retained premiums and fees, adjusted gross profit and adjusted EBITDA, have not been prepared in accordance with
Conference Call Information
Doma will host a conference call at
The telephonic version of the call can be accessed by dialing:
Participant Toll Free Dial-In Number: (844) 615-6508
Participant International Dial-In Number: (918) 922-3146
Conference ID: 5534256
The live webcast of the call will be accessible on the Company’s website at investor.doma.com. Approximately two hours after conclusion of the live event, an archived webcast of the conference call will be accessible from the Investor Relations section of the Company’s website for twelve months.
About
Doma is a real estate technology company that is disrupting a century-old industry by building an instant and frictionless home closing experience for buyers and sellers. Doma uses proprietary machine intelligence technology and deep human expertise to create a vastly more simple and affordable experience for everyone involved in a residential real estate transaction, including current and prospective homeowners, mortgage lenders, title agents, and real estate professionals. With Doma, what used to take days can now be done in minutes, replacing an arcane and cumbersome process with a digital experience designed for today’s world. To learn more visit doma.com.
Forward-Looking Statements Legend
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The absence of these words does not mean that a statement is not forward-looking. Such statements are based on the beliefs of, as well as assumptions made by information currently available to Doma management. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics, projections of market opportunity, total addressable market ("TAM"), market share and competition. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectation of Doma’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict, will differ from assumptions and are beyond the control of Doma.
These forward-looking statements are subject to a number of risks and uncertainties, including changes in business, market, financial, political and legal conditions; risks relating to the uncertainty of the projected financial information with respect to Doma; future global, regional or local economic, political, market and social conditions, including due to the COVID-19 pandemic; the development, effects and enforcement of laws and regulations, including with respect to the title insurance industry; Doma’s ability to manage its future growth or to develop or acquire enhancements to its platform; the effects of competition on Doma’s future business; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those other factors described in the "Risk Factors" section of the documents filed by Doma from time to time with the
If any of these risks materialize or Doma’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Doma does not presently know or that Doma currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Doma’s expectations, plans or forecasts of future events and views as of the date of this press release. Doma anticipates that subsequent events and developments will cause Doma’s assessments to change. However, while Doma may elect to update these forward-looking statements at some point in the future, Doma specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Doma’s assessment as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Key Operating and Financial Indicators |
||||||||
|
|
|||||||
|
Three Months Ended |
|||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
(in thousands, except for open and
|
|||||||
Key operating data: |
|
|
|
|||||
Opened orders |
|
35,192 |
|
|
|
41,084 |
|
|
Closed orders |
|
27,347 |
|
|
|
32,650 |
|
|
|
|
|
|
|||||
GAAP financial data: |
|
|
|
|||||
Revenue (1) |
$ |
112,207 |
|
|
$ |
127,796 |
|
|
Gross profit (2) |
$ |
7,134 |
|
|
$ |
26,414 |
|
|
Net loss (3) |
$ |
(50,026 |
) |
|
$ |
(11,758 |
) |
|
Non-GAAP financial data (4): |
|
|
|
|||||
Retained premiums and fees |
$ |
51,605 |
|
|
$ |
57,458 |
|
|
Adjusted gross profit |
$ |
10,370 |
|
|
$ |
29,121 |
|
|
Ratio of adjusted gross profit to retained premiums and fees |
|
20 |
% |
|
|
51 |
% |
|
Adjusted EBITDA |
$ |
(44,905 |
) |
|
$ |
(3,277 |
) |
|
_________________ |
||
(1) |
Revenue is comprised of (i) net premiums written, (ii) escrow, other title-related fees and other, and (iii) investment, dividend and other income. |
|
(2) |
Gross profit, calculated in accordance with GAAP, is calculated as total revenue, minus premiums retained by third-party agents, direct labor expense (including mainly personnel expense for certain employees involved in the direct fulfillment of policies) and direct non-labor expense (including mainly title examination expense, provision for claims, and depreciation and amortization). In our consolidated income statements, depreciation and amortization is recorded under the “other operating expenses” caption. |
|
(3) |
Net loss is made up of the components of revenue and expenses. |
|
(4) |
Retained premiums and fees, adjusted gross profit and adjusted EBITDA are non-GAAP financial measures. |
|
Non-GAAP Financial Measures
Retained premiums and fees
The following table reconciles our retained premiums and fees to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:
|
|
Three Months Ended |
||||
|
|
2022 |
|
2021 |
||
|
|
(in thousands) |
||||
Revenue |
$ |
112,207 |
|
$ |
127,796 |
|
Minus: |
|
|
|
|||
Premiums retained by third-party agents |
|
60,602 |
|
|
70,338 |
|
Retained premiums and fees |
$ |
51,605 |
|
$ |
57,458 |
|
Minus: |
|
|
|
|||
Direct labor |
|
27,798 |
|
|
17,979 |
|
Provision for claims |
|
4,611 |
|
|
3,249 |
|
Depreciation and amortization |
|
3,236 |
|
|
2,707 |
|
Other direct costs (1) |
|
8,826 |
|
|
7,109 |
|
Gross Profit |
$ |
7,134 |
|
$ |
26,414 |
|
__________________ |
||
(1) |
Includes title examination expense, office supplies, and premium and other taxes. |
|
Adjusted gross profit
The following table reconciles our adjusted gross profit to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:
|
|
Three Months Ended |
||||||
|
|
2022 |
|
2021 |
||||
|
|
(in thousands) |
||||||
Gross Profit |
$ |
7,134 |
|
$ |
26,414 |
|||
Adjusted for: |
|
|
|
|||||
Depreciation and amortization |
|
3,236 |
|
|
2,707 |
|||
Adjusted Gross Profit |
$ |
10,370 |
|
$ |
29,121 |
|||
Adjusted EBITDA
The following table reconciles our adjusted EBITDA to our net loss, the most closely comparable GAAP financial measure, for the periods indicated:
|
Three Months Ended |
|||||||
|
2022 |
|
2021 |
|||||
|
(in thousands) |
|||||||
Net loss (GAAP) |
$ |
(50,026 |
) |
|
$ |
(11,758 |
) |
|
Adjusted for: |
|
|
|
|||||
Depreciation and amortization |
|
3,236 |
|
|
|
2,707 |
|
|
Interest expense |
|
4,207 |
|
|
|
3,360 |
|
|
Income taxes |
|
185 |
|
|
|
125 |
|
|
EBITDA |
$ |
(42,398 |
) |
|
$ |
(5,566 |
) |
|
Adjusted for: |
|
|
|
|||||
Stock-based compensation |
|
11,393 |
|
|
|
2,289 |
|
|
Change in fair value of Warrant and Sponsor Covered shares liabilities |
|
(13,900 |
) |
|
|
— |
|
|
Adjusted EBITDA |
$ |
(44,905 |
) |
|
$ |
(3,277 |
) |
|
The following table reconciles our adjusted gross profit to our adjusted EBITDA, for the periods indicated:
|
|
Three Months Ended |
||||||
|
|
2022 |
|
2021 |
||||
|
|
(in thousands) |
||||||
Adjusted Gross Profit |
$ |
10,370 |
|
|
$ |
29,121 |
|
|
Minus: |
|
|
|
|||||
Customer acquisition costs |
|
15,925 |
|
|
|
9,895 |
|
|
Other indirect costs (1) |
|
39,350 |
|
|
|
22,503 |
|
|
Adjusted EBITDA |
$ |
(44,905 |
) |
|
$ |
(3,277 |
) |
|
__________________ |
||
(1) |
Includes corporate support, research and development, and other operating costs. |
|
Outlook reconciliations
The following tables reconcile the ranges of expected retained premiums and fees to expected gross profit and the ranges expected adjusted gross profit to expected gross profit, which, in each case, is the most comparable GAAP measure, for the full year ended
|
Year Ended |
|||||
|
Low |
|
High |
|||
|
(in thousands) |
|||||
Retained premiums and fees |
$ |
220,000 |
|
$ |
240,000 |
|
Minus: |
|
|
|
|||
Estimated adjustments (1) |
|
149,000 |
|
|
154,000 |
|
Gross Profit |
$ |
71,000 |
|
$ |
86,000 |
|
|
Year Ended |
|||||||
|
Low |
|
High |
|||||
|
(in thousands) |
|||||||
Gross Profit |
$ |
71,000 |
|
|
$ |
86,000 |
|
|
Adjusted for: |
|
|
|
|||||
Depreciation and amortization |
|
15,000 |
|
|
|
15,000 |
|
|
Adjusted Gross Profit |
$ |
86,000 |
|
|
$ |
101,000 |
|
|
|
|
|
|
|||||
Outlook for Other Key Operating Indicators |
|
|
|
|||||
Ratio of adjusted gross profit to retained premiums and fees |
|
39 |
% |
|
|
42 |
% |
|
Adjusted EBITDA |
$ |
(120,000 |
) |
|
$ |
(100,000 |
) |
|
With respect to our guidance on adjusted EBITDA, the Company is not able to provide a quantitative reconciliation without unreasonable efforts to the most directly comparable GAAP financial measure, which would be net loss, due to the high variability, complexity and low visibility with respect to certain items such as income taxes and changes in the fair value of Warrant and Sponsor Covered shares liabilities. We expect the variability of these items to have a potentially unpredictable and potentially significant impact on future GAAP financial results, and, as such, we also believe that any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.
__________________ |
||
(1) |
Estimated adjustments include direct labor, provision for claims, depreciation and amortization, and other direct costs (which includes title examination expense, office supplies, and premium and other taxes). |
|
|
||||||||
Consolidated Statements of Operations |
||||||||
|
|
|||||||
|
Three months ended |
|||||||
(In thousands, except share and per share information) |
2022 |
|
2021 |
|||||
Revenues: |
|
|
|
|||||
Net premiums written (1) |
$ |
95,666 |
|
|
$ |
107,992 |
|
|
Escrow, other title-related fees and other |
|
16,113 |
|
|
|
18,575 |
|
|
Investment, dividend and other income |
|
428 |
|
|
|
1,229 |
|
|
Total revenues |
$ |
112,207 |
|
|
$ |
127,796 |
|
|
|
|
|
|
|||||
Expenses: |
|
|
|
|||||
Premiums retained by Third-Party Agents (2) |
$ |
60,602 |
|
|
$ |
70,338 |
|
|
Title examination expense |
|
5,981 |
|
|
|
4,853 |
|
|
Provision for claims |
|
4,611 |
|
|
|
3,249 |
|
|
Personnel costs |
|
77,793 |
|
|
|
43,464 |
|
|
Other operating expenses |
|
22,754 |
|
|
|
14,165 |
|
|
Total operating expenses |
$ |
171,741 |
|
|
$ |
136,069 |
|
|
|
|
|
|
|||||
Loss from operations |
$ |
(59,534 |
) |
|
$ |
(8,273 |
) |
|
|
|
|
|
|||||
Other (expense) income: |
|
|
|
|||||
Change in fair value of Warrant and Sponsor Covered Shares liabilities |
|
13,900 |
|
|
|
— |
|
|
Interest expense |
|
(4,207 |
) |
|
|
(3,360 |
) |
|
Loss before income taxes |
$ |
(49,841 |
) |
|
$ |
(11,633 |
) |
|
|
|
|
|
|||||
Income tax expense |
|
(185 |
) |
|
|
(125 |
) |
|
Net loss |
$ |
(50,026 |
) |
|
$ |
(11,758 |
) |
|
|
|
|
|
|||||
Earnings per share: |
|
|
|
|||||
Net loss per share attributable to stockholders - basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.17 |
) |
|
Weighted average shares outstanding common stock - basic and diluted |
|
323,890,562 |
|
|
|
67,418,142 |
|
|
__________________ |
||
(1) |
Net premiums written includes revenues from a related party of |
|
(2) |
Premiums retained by Third-Party Agents includes expenses associated with a related party of |
|
|
||||||||
Consolidated Balance Sheets |
||||||||
|
|
|
|
|||||
(In thousands, except share information) |
|
|
|
|||||
Assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
319,436 |
|
|
$ |
379,702 |
|
|
Restricted cash |
|
2,784 |
|
|
|
4,126 |
|
|
Investments: |
|
|
|
|||||
Fixed maturities |
|
|
|
|||||
Held-to-maturity debt securities, at amortized cost (net of allowance for credit losses of |
|
62,416 |
|
|
|
67,164 |
|
|
Mortgage loans |
|
1,141 |
|
|
|
2,022 |
|
|
Other long-term investments |
|
325 |
|
|
|
325 |
|
|
Total investments |
$ |
63,882 |
|
|
$ |
69,511 |
|
|
Receivables (net of allowance for credit losses of |
|
12,496 |
|
|
|
15,498 |
|
|
Prepaid expenses, deposits and other assets |
|
10,844 |
|
|
|
15,692 |
|
|
Lease right-of-use assets |
|
26,701 |
|
|
|
— |
|
|
Fixed assets (net of accumulated depreciation of |
|
52,801 |
|
|
|
45,953 |
|
|
Title plants |
|
13,952 |
|
|
|
13,952 |
|
|
|
|
111,487 |
|
|
|
111,487 |
|
|
Total assets |
$ |
614,383 |
|
|
$ |
655,921 |
|
|
|
|
|
|
|||||
Liabilities and stockholders’ equity |
|
|
|
|||||
Accounts payable |
$ |
3,891 |
|
|
$ |
6,930 |
|
|
Accrued expenses and other liabilities |
|
35,477 |
|
|
|
54,149 |
|
|
Lease liabilities |
|
27,659 |
|
|
|
— |
|
|
Senior secured credit agreement, net of debt issuance costs and original issue discount |
|
144,858 |
|
|
|
141,769 |
|
|
Liability for loss and loss adjustment expenses |
|
82,534 |
|
|
|
80,267 |
|
|
Warrant liabilities |
|
6,067 |
|
|
|
16,467 |
|
|
Sponsor Covered Shares liability |
|
1,916 |
|
|
|
5,415 |
|
|
Total liabilities |
$ |
302,402 |
|
|
$ |
304,997 |
|
|
|
|
|
|
|||||
Stockholders’ equity: |
|
|
|
|||||
Common stock, 0.0001 par value; 2,000,000,000 shares authorized at |
|
33 |
|
|
|
33 |
|
|
Additional paid-in capital |
|
554,552 |
|
|
|
543,070 |
|
|
Accumulated deficit |
|
(242,604 |
) |
|
|
(192,179 |
) |
|
Accumulated other comprehensive income |
|
— |
|
|
|
— |
|
|
Total stockholders’ equity |
$ |
311,981 |
|
|
$ |
350,924 |
|
|
Total liabilities and stockholders’ equity |
$ |
614,383 |
|
|
$ |
655,921 |
|
|
Quarterly Results of Operations and Other Data
The following tables set forth our selected unaudited quarterly consolidated statements of operations data for each of the quarters indicated. The information for each quarter has been prepared on a basis consistent with our audited consolidated financial statements, and reflect, in the opinion of management, all adjustments, which consist only of a normal, recurring nature that are necessary for a fair statement of the financial information contained in those financial statements. Our historical results are not necessarily indicative of the results that may be expected in the future. The following quarterly financial data should be read in conjunction with our consolidated financial statements.
Consolidated Statements of Operations
|
Three Months Ended |
|||||||||||||||||||||||||||||||||||
(In thousands) |
March
|
|
June
|
|
September
|
|
December
|
|
March
|
|
June
|
|
September
|
|
December
|
|
March
|
|||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net premiums written |
$ |
56,817 |
|
|
$ |
86,334 |
|
|
$ |
103,587 |
|
|
$ |
98,870 |
|
|
$ |
107,992 |
|
|
$ |
109,271 |
|
|
$ |
141,491 |
|
|
$ |
116,598 |
|
|
$ |
95,666 |
|
|
Escrow, other title-related fees and other |
|
13,174 |
|
|
|
13,382 |
|
|
|
16,742 |
|
|
|
17,977 |
|
|
|
18,575 |
|
|
|
20,065 |
|
|
|
20,452 |
|
|
|
20,493 |
|
|
|
16,113 |
|
|
Investment, dividend and other income |
|
818 |
|
|
|
707 |
|
|
|
743 |
|
|
|
663 |
|
|
|
1,229 |
|
|
|
650 |
|
|
|
639 |
|
|
|
588 |
|
|
|
428 |
|
|
Total revenues |
$ |
70,809 |
|
|
$ |
100,423 |
|
|
$ |
121,072 |
|
|
$ |
117,510 |
|
|
$ |
127,796 |
|
|
$ |
129,986 |
|
|
$ |
162,582 |
|
|
$ |
137,679 |
|
|
$ |
112,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Premiums retained by Third-Party Agents |
$ |
33,102 |
|
|
$ |
56,006 |
|
|
$ |
67,024 |
|
|
$ |
64,011 |
|
|
$ |
70,338 |
|
|
$ |
65,181 |
|
|
$ |
91,596 |
|
|
$ |
71,330 |
|
|
$ |
60,602 |
|
|
Title examination expense |
|
3,865 |
|
|
|
3,322 |
|
|
|
4,624 |
|
|
|
4,393 |
|
|
|
4,853 |
|
|
|
5,500 |
|
|
|
5,289 |
|
|
|
6,495 |
|
|
|
5,981 |
|
|
Provision for claims |
|
1,783 |
|
|
|
3,040 |
|
|
|
5,242 |
|
|
|
5,272 |
|
|
|
3,249 |
|
|
|
6,807 |
|
|
|
6,685 |
|
|
|
4,594 |
|
|
|
4,611 |
|
|
Personnel costs |
|
35,718 |
|
|
|
32,737 |
|
|
|
36,197 |
|
|
|
38,874 |
|
|
|
43,464 |
|
|
|
53,954 |
|
|
|
62,410 |
|
|
|
78,306 |
|
|
|
77,793 |
|
|
Other operating expenses |
|
10,640 |
|
|
|
10,286 |
|
|
|
10,210 |
|
|
|
12,149 |
|
|
|
14,165 |
|
|
|
17,181 |
|
|
|
21,693 |
|
|
|
26,912 |
|
|
|
22,754 |
|
|
Total operating expenses |
$ |
85,108 |
|
|
$ |
105,391 |
|
|
$ |
123,297 |
|
|
$ |
124,699 |
|
|
$ |
136,069 |
|
|
$ |
148,623 |
|
|
$ |
187,673 |
|
|
$ |
187,637 |
|
|
$ |
171,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Loss from operations |
$ |
(14,299 |
) |
|
$ |
(4,968 |
) |
|
$ |
(2,225 |
) |
|
$ |
(7,189 |
) |
|
$ |
(8,273 |
) |
|
$ |
(18,637 |
) |
|
$ |
(25,091 |
) |
|
$ |
(49,958 |
) |
|
$ |
(59,534 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Change in fair value of warrant and Sponsor Covered Shares liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,478 |
) |
|
|
11,169 |
|
|
|
13,900 |
|
|
Interest expense |
|
(2,112 |
) |
|
|
(1,123 |
) |
|
|
(1,193 |
) |
|
|
(1,151 |
) |
|
|
(3,360 |
) |
|
|
(4,451 |
) |
|
|
(4,531 |
) |
|
|
(4,519 |
) |
|
|
(4,207 |
) |
|
Loss before income taxes |
$ |
(16,411 |
) |
|
$ |
(6,091 |
) |
|
$ |
(3,418 |
) |
|
$ |
(8,340 |
) |
|
$ |
(11,633 |
) |
|
$ |
(23,088 |
) |
|
$ |
(34,100 |
) |
|
$ |
(43,308 |
) |
|
$ |
(49,841 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Income tax expense |
|
(175 |
) |
|
|
(241 |
) |
|
|
(204 |
) |
|
|
(223 |
) |
|
|
(125 |
) |
|
|
(211 |
) |
|
|
(170 |
) |
|
|
(421 |
) |
|
|
(185 |
) |
|
Net loss |
|
(16,586 |
) |
|
|
(6,332 |
) |
|
|
(3,622 |
) |
|
|
(8,563 |
) |
|
|
(11,758 |
) |
|
|
(23,299 |
) |
|
|
(34,270 |
) |
|
|
(43,729 |
) |
|
|
(50,026 |
) |
|
Reconciliation of GAAP to Non-GAAP Measures
The following tables present our reconciliation of GAAP measures to non-GAAP measures for the historical periods indicated.
Retained premiums and fees
|
Three Months Ended |
||||||||||||||||||||||||||
(In thousands) |
|
|
|
|
September
|
|
December
|
|
March
|
|
June
|
|
September
|
|
December
|
|
March
|
||||||||||
Revenue |
$ |
70,809 |
|
$ |
100,423 |
|
$ |
121,072 |
|
$ |
117,510 |
|
$ |
127,796 |
|
$ |
129,986 |
|
$ |
162,582 |
|
$ |
137,679 |
|
$ |
112,207 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premiums retained by Third-Party Agents |
|
33,102 |
|
|
56,006 |
|
|
67,024 |
|
|
64,011 |
|
|
70,338 |
|
|
65,181 |
|
|
91,596 |
|
|
71,330 |
|
|
60,602 |
|
Retained premiums and fees |
$ |
37,707 |
|
$ |
44,417 |
|
$ |
54,048 |
|
$ |
53,499 |
|
$ |
57,458 |
|
$ |
64,805 |
|
$ |
70,986 |
|
$ |
66,349 |
|
$ |
51,605 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct labor |
|
16,314 |
|
|
13,898 |
|
|
14,892 |
|
|
17,050 |
|
|
17,979 |
|
|
20,902 |
|
|
23,948 |
|
|
26,787 |
|
|
27,798 |
|
Provision for claims |
|
1,783 |
|
|
3,040 |
|
|
5,242 |
|
|
5,272 |
|
|
3,249 |
|
|
6,807 |
|
|
6,685 |
|
|
4,594 |
|
|
4,611 |
|
Depreciation and amortization |
|
1,116 |
|
|
899 |
|
|
1,221 |
|
|
2,579 |
|
|
2,707 |
|
|
3,021 |
|
|
1,978 |
|
|
2,615 |
|
|
3,236 |
|
Other direct costs(1) |
|
5,137 |
|
|
4,898 |
|
|
6,314 |
|
|
4,186 |
|
|
7,109 |
|
|
7,561 |
|
|
10,073 |
|
|
10,322 |
|
|
8,826 |
|
Gross Profit |
$ |
13,357 |
|
$ |
21,682 |
|
$ |
26,379 |
|
$ |
24,412 |
|
$ |
26,414 |
|
$ |
26,514 |
|
$ |
28,302 |
|
$ |
22,031 |
|
$ |
7,134 |
|
__________________ |
||
(1) |
Includes title examination expense, office supplies, and premium and other taxes. |
|
Adjusted gross profit
|
Three Months Ended |
||||||||||||||||||||||||||
(in thousands) |
|
|
|
|
September
|
|
December
|
|
|
|
|
|
September
|
|
December
|
|
March
|
||||||||||
Gross Profit |
$ |
13,357 |
|
$ |
21,682 |
|
$ |
26,379 |
|
$ |
24,412 |
|
$ |
26,414 |
|
$ |
26,514 |
|
$ |
28,302 |
|
$ |
22,031 |
|
$ |
7,134 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
1,116 |
|
|
899 |
|
|
1,221 |
|
|
2,579 |
|
|
2,707 |
|
|
3,021 |
|
|
1,978 |
|
|
2,615 |
|
|
3,236 |
|
Adjusted Gross Profit |
$ |
14,473 |
|
$ |
22,581 |
|
$ |
27,600 |
|
$ |
26,991 |
|
$ |
29,121 |
|
$ |
29,535 |
|
$ |
30,280 |
|
$ |
24,646 |
|
$ |
10,370 |
|
Adjusted EBITDA
|
Three Months Ended |
|||||||||||||||||||||||||||||||||||
(in thousands) |
|
|
|
|
September
|
|
December
|
|
March
|
|
June
|
|
September
|
|
December
|
|
March
|
|||||||||||||||||||
Net loss (GAAP) |
$ |
(16,586 |
) |
|
$ |
(6,332 |
) |
|
$ |
(3,622 |
) |
|
$ |
(8,563 |
) |
|
$ |
(11,758 |
) |
|
$ |
(23,299 |
) |
|
$ |
(34,270 |
) |
|
$ |
(43,729 |
) |
|
$ |
(50,026 |
) |
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Depreciation and amortization |
|
1,116 |
|
|
|
899 |
|
|
|
1,221 |
|
|
|
2,579 |
|
|
|
2,707 |
|
|
|
3,021 |
|
|
|
1,978 |
|
|
|
2,615 |
|
|
|
3,236 |
|
|
Interest expense |
|
2,112 |
|
|
|
1,123 |
|
|
|
1,193 |
|
|
|
1,151 |
|
|
|
3,360 |
|
|
|
4,451 |
|
|
|
4,531 |
|
|
|
4,519 |
|
|
|
4,207 |
|
|
Income taxes |
|
175 |
|
|
|
241 |
|
|
|
204 |
|
|
|
223 |
|
|
|
125 |
|
|
|
211 |
|
|
|
170 |
|
|
|
421 |
|
|
|
185 |
|
|
EBITDA |
$ |
(13,183 |
) |
|
$ |
(4,069 |
) |
|
$ |
(1,004 |
) |
|
$ |
(4,610 |
) |
|
$ |
(5,566 |
) |
|
$ |
(15,616 |
) |
|
$ |
(27,591 |
) |
|
$ |
(36,174 |
) |
|
$ |
(42,398 |
) |
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Stock-based compensation |
|
308 |
|
|
|
282 |
|
|
|
355 |
|
|
|
1,550 |
|
|
|
2,289 |
|
|
|
3,713 |
|
|
|
3,004 |
|
|
|
11,040 |
|
|
|
11,393 |
|
|
COVID-related severance costs |
|
— |
|
|
|
1,385 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Change in fair value of warrant and Sponsor Covered Shares liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,478 |
|
|
|
(11,169 |
) |
|
|
(13,900 |
) |
|
Adjusted EBITDA |
$ |
(12,875 |
) |
|
$ |
(2,402 |
) |
|
$ |
(649 |
) |
|
$ |
(3,060 |
) |
|
$ |
(3,277 |
) |
|
$ |
(11,903 |
) |
|
$ |
(20,109 |
) |
|
$ |
(36,303 |
) |
|
$ |
(44,905 |
) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220510005527/en/
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FAQ
What were Doma's Q1 2022 revenue figures?
How much did Doma's market share grow in Q1 2022?
What is Doma's outlook for EBITDA profitability?
What cost-saving measures is Doma implementing?
What happened to Doma's gross profit in Q1 2022?
