Doma's Q4 Results Demonstrate Significant Progress Towards Achieving Profitability in 2023; Delivers Full Year Adjusted EBITDA Within Revised 2022 Guidance
Doma Holdings reported its fourth-quarter 2022 results, revealing total revenues of $96 million, an 11% decline from Q3 2022. Retained premiums and fees fell 17% to $35 million. However, the company saw a 25% increase in gross profit, reaching $9 million, and a 20% rise in adjusted gross profit to $14 million. The adjusted EBITDA loss narrowed to $16 million from $30 million in Q3 2022. Doma highlighted its strategy for profitability in 2023 and its technological advancements aimed at improving home affordability. The company remains focused on cost-saving measures and efficient technology deployment in the mortgage sector.
- Adjusted EBITDA loss improved to $16 million from $30 million in Q3 2022.
- Gross profit increased by 25% to $9 million compared to Q3 2022.
- Adjusted gross profit rose by 20% to $14 million.
- The company is on track to achieve adjusted EBITDA profitability in 2023.
- Total revenues decreased by 11% to $96 million versus Q3 2022.
- Retained premiums and fees decreased by 17% to $35 million.
- Total closed orders fell by 31% compared to Q3 2022.
- Purchase closed orders down 26% and refinance closed orders down 36%.
Fourth Quarter 2022 Business Highlights(1):
-
Total revenues of
$96 million 11% versus Q3 2022
-
Retained premiums and fees of
$35 million 17% versus Q3 2022
-
Gross profit of
$9 million 25% versus Q3 2022
-
Adjusted gross profit of
$14 million 20% versus Q3 2022
-
Adjusted EBITDA loss of
$16 million $30 million
-
Purchase closed orders down
26% versus Q3 2022, Refinance closed orders down36% versus Q3 2022, and Total closed orders down31% versus Q3 2022
"We are now seeing the tangible benefits of the significant actions we took last year to protect our bottom line and to achieve our industry transforming vision," said
Doma's
"We are pleased to deliver full year 2022 adjusted EBITDA within our revised guidance range and to have made progress towards achieving profitability," 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) |
Doma completed its business combination with |
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
Dial-in Details: To access the call by phone, please go to this link (registration link), and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
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 Part I, Item 1A - “Risk Factors” of our Annual Report on Form 10-K for the year ended
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 |
|
Year ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
(Unaudited - in thousands, except for open and closed order numbers) |
||||||||||||||
Key operating data: |
|
|
|
|
|
|
|
||||||||
Opened orders |
|
11,602 |
|
|
|
43,247 |
|
|
|
93,534 |
|
|
|
178,689 |
|
Closed orders |
|
10,505 |
|
|
|
37,042 |
|
|
|
71,953 |
|
|
|
136,428 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP financial data: |
|
|
|
|
|
|
|
||||||||
Revenue (1) |
$ |
96,374 |
|
|
$ |
137,679 |
|
|
$ |
440,181 |
|
|
$ |
558,043 |
|
Gross profit (2) |
$ |
9,197 |
|
|
$ |
22,031 |
|
|
$ |
30,829 |
|
|
$ |
103,261 |
|
Net loss (3) |
$ |
(109,418 |
) |
|
$ |
(43,729 |
) |
|
$ |
(302,209 |
) |
|
$ |
(113,056 |
) |
Non-GAAP financial data (4): |
|
|
|
|
|
|
|
||||||||
Retained premiums and fees |
$ |
35,279 |
|
|
$ |
66,349 |
|
|
$ |
178,705 |
|
|
$ |
259,598 |
|
Adjusted gross profit |
$ |
13,982 |
|
|
$ |
24,646 |
|
|
$ |
46,848 |
|
|
$ |
113,582 |
|
Ratio of adjusted gross profit to retained premiums and fees |
|
40 |
% |
|
|
37 |
% |
|
|
26 |
% |
|
|
44 |
% |
Adjusted EBITDA |
$ |
(16,387 |
) |
|
$ |
(36,303 |
) |
|
$ |
(134,914 |
) |
|
$ |
(71,592 |
) |
_________________ |
|
(1) |
Revenue is comprised of (i) net premiums written, (ii) escrow, other title-related fees and other, and (iii) investment, dividend and other income. Net loss is made up of the components of revenue and expenses. |
(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 |
|
Year ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
(Unaudited - in thousands) |
|
(Unaudited - in thousands) |
||||||||||||
Revenue |
$ |
96,374 |
|
$ |
137,679 |
|
$ |
440,181 |
|
$ |
558,043 |
||||
Minus: |
|
|
|
|
|
|
|
||||||||
Premiums retained by third-party agents |
|
61,095 |
|
|
71,330 |
|
|
261,476 |
|
|
298,445 |
||||
Retained premiums and fees |
$ |
35,279 |
|
$ |
66,349 |
|
$ |
178,705 |
|
$ |
259,598 |
||||
Minus: |
|
|
|
|
|
|
|
||||||||
Direct labor |
|
14,665 |
|
|
26,787 |
|
|
86,573 |
|
|
89,616 |
||||
Provision for claims |
|
1,154 |
|
|
4,594 |
|
|
16,740 |
|
|
21,335 |
||||
Depreciation and amortization |
|
4,785 |
|
|
2,615 |
|
|
16,019 |
|
|
10,321 |
||||
Other direct costs (1) |
|
5,478 |
|
|
10,322 |
|
|
28,544 |
|
|
35,065 |
||||
Gross Profit |
$ |
9,197 |
|
$ |
22,031 |
|
$ |
30,829 |
|
$ |
103,261 |
||||
__________________ |
|
| (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 |
|
Year ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
(Unaudited - in thousands) |
|
(Unaudited - in thousands) |
||||||||||||
Gross Profit |
$ |
9,197 |
|
$ |
22,031 |
|
$ |
30,829 |
|
$ |
103,261 |
||||
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
4,785 |
|
|
2,615 |
|
|
16,019 |
|
|
10,321 |
||||
Adjusted Gross Profit |
$ |
13,982 |
|
$ |
24,646 |
|
$ |
46,848 |
|
$ |
113,582 |
||||
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 |
|
Year ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
(Unaudited - in thousands) |
|
(Unaudited - in thousands) |
||||||||||||
Net loss (GAAP) |
$ |
(109,418 |
) |
|
$ |
(43,729 |
) |
|
$ |
(302,209 |
) |
|
$ |
(113,056 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
4,785 |
|
|
|
2,615 |
|
|
|
16,019 |
|
|
|
10,321 |
|
Interest expense |
|
4,800 |
|
|
|
4,519 |
|
|
|
18,080 |
|
|
|
16,861 |
|
Income taxes |
|
(1,988 |
) |
|
|
421 |
|
|
|
(1,242 |
) |
|
|
927 |
|
EBITDA |
$ |
(101,821 |
) |
|
$ |
(36,174 |
) |
|
$ |
(269,352 |
) |
|
$ |
(84,947 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
6,293 |
|
|
|
11,040 |
|
|
|
33,687 |
|
|
|
20,046 |
|
Severance costs |
|
11,218 |
|
|
|
— |
|
|
|
19,613 |
|
|
|
— |
|
|
|
31,461 |
|
|
|
— |
|
|
|
65,207 |
|
|
|
— |
|
Long-lived asset impairment |
|
32,027 |
|
|
|
— |
|
|
|
32,027 |
|
|
|
— |
|
Change in fair value of Warrant and Sponsor Covered shares liabilities |
|
(786 |
) |
|
|
(11,169 |
) |
|
|
(21,317 |
) |
|
|
(6,691 |
) |
Accelerated contract expense |
|
5,221 |
|
|
|
— |
|
|
|
5,221 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(16,387 |
) |
|
$ |
(36,303 |
) |
|
$ |
(134,914 |
) |
|
$ |
(71,592 |
) |
The following table reconciles our adjusted gross profit to our adjusted EBITDA, for the periods indicated:
|
Three Months Ended |
|
Year ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
(Unaudited - in thousands) |
|
(Unaudited - in thousands) |
||||||||||||
Adjusted Gross Profit |
$ |
13,982 |
|
|
$ |
24,646 |
|
|
$ |
46,848 |
|
|
$ |
113,582 |
|
Minus: |
|
|
|
|
|
|
|
||||||||
Customer acquisition costs |
|
6,324 |
|
|
|
18,251 |
|
|
|
47,926 |
|
|
|
55,208 |
|
Other indirect costs (1) |
|
24,045 |
|
|
|
42,698 |
|
|
|
133,836 |
|
|
|
129,966 |
|
Adjusted EBITDA |
$ |
(16,387 |
) |
|
$ |
(36,303 |
) |
|
$ |
(134,914 |
) |
|
$ |
(71,592 |
) |
__________________ |
|
| (1) | Includes corporate support, research and development, and other operating costs. |
Consolidated Statements of Operations |
|||||||||||
|
Year ended |
||||||||||
(Unaudited - in thousands, except share and per share information) |
2022 |
|
2021 |
|
2020 |
||||||
Revenues: |
|
|
|
|
|
||||||
Net premiums written (1) |
$ |
385,253 |
|
|
$ |
475,352 |
|
|
$ |
345,608 |
|
Escrow, other title-related fees and other |
|
52,008 |
|
|
|
79,585 |
|
|
|
61,275 |
|
Investment, dividend and other income |
|
2,920 |
|
|
|
3,106 |
|
|
|
2,931 |
|
Total revenues |
$ |
440,181 |
|
|
$ |
558,043 |
|
|
$ |
409,814 |
|
|
|
|
|
|
|
||||||
Expenses: |
|
|
|
|
|
||||||
Premiums retained by Third-Party Agents (2) |
$ |
261,476 |
|
|
$ |
298,445 |
|
|
$ |
220,143 |
|
Title examination expense |
|
18,261 |
|
|
|
22,137 |
|
|
|
16,204 |
|
Provision for claims |
|
16,740 |
|
|
|
21,335 |
|
|
|
15,337 |
|
Personnel costs |
|
259,939 |
|
|
|
238,134 |
|
|
|
143,526 |
|
Other operating expenses |
|
93,219 |
|
|
|
79,951 |
|
|
|
43,285 |
|
|
|
65,207 |
|
|
|
— |
|
|
|
— |
|
Long-lived asset impairment |
|
32,027 |
|
|
|
— |
|
|
|
— |
|
Total operating expenses |
$ |
746,869 |
|
|
$ |
660,002 |
|
|
$ |
438,495 |
|
|
|
|
|
|
|
||||||
Loss from operations |
$ |
(306,688 |
) |
|
$ |
(101,959 |
) |
|
$ |
(28,681 |
) |
|
|
|
|
|
|
||||||
Other (expense) income: |
|
|
|
|
|
||||||
Change in fair value of Warrant and Sponsor Covered Shares liabilities |
|
21,317 |
|
|
|
6,691 |
|
|
|
— |
|
Interest expense |
|
(18,080 |
) |
|
|
(16,861 |
) |
|
|
(5,579 |
) |
Loss before income taxes |
$ |
(303,451 |
) |
|
$ |
(112,129 |
) |
|
$ |
(34,260 |
) |
|
|
|
|
|
|
||||||
Income tax benefit (expense) |
|
1,242 |
|
|
|
(927 |
) |
|
|
(843 |
) |
Net loss |
$ |
(302,209 |
) |
|
$ |
(113,056 |
) |
|
$ |
(35,103 |
) |
|
|
|
|
|
|
||||||
Earnings per share: |
|
|
|
|
|
||||||
Net loss per share attributable to stockholders - basic and diluted |
$ |
(0.93 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.56 |
) |
Weighted average shares outstanding common stock - basic and diluted |
|
326,042,708 |
|
|
|
177,150,914 |
|
|
|
62,458,039 |
|
__________________ |
|
| (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 |
|||||||
|
|
||||||
(Unaudited - in thousands, except share information) |
2022 |
|
2021 |
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
78,450 |
|
|
$ |
379,702 |
|
Restricted cash |
|
2,933 |
|
|
|
4,126 |
|
Investments: |
|
|
|
||||
Fixed maturities |
|
|
|
||||
Held-to-maturity debt securities, at amortized cost (net of allowance for credit losses of |
|
90,328 |
|
|
|
67,164 |
|
Available-for-sale debt securities, at fair value (amortized cost of |
|
58,254 |
|
|
|
— |
|
Mortgage loans |
|
297 |
|
|
|
2,022 |
|
Other invested assets |
|
— |
|
|
|
325 |
|
Total investments |
$ |
148,879 |
|
|
$ |
69,511 |
|
Receivables (net of allowance for credit losses of |
|
21,292 |
|
|
|
15,498 |
|
Prepaid expenses, deposits and other assets |
|
8,124 |
|
|
|
15,692 |
|
Lease right-of-use assets |
|
18,634 |
|
|
|
— |
|
Fixed assets (net of accumulated depreciation of |
|
39,383 |
|
|
|
45,953 |
|
Title plants |
|
14,533 |
|
|
|
13,952 |
|
|
|
46,280 |
|
|
|
111,487 |
|
Total assets |
$ |
378,508 |
|
|
$ |
655,921 |
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
||||
Accounts payable |
$ |
2,909 |
|
|
$ |
6,930 |
|
Accrued expenses and other liabilities |
|
28,892 |
|
|
|
54,149 |
|
Leases liabilities |
|
27,489 |
|
|
|
— |
|
Senior secured credit agreement, net of debt issuance costs and original issue discount |
|
154,790 |
|
|
|
141,769 |
|
Liability for loss and loss adjustment expenses |
|
82,070 |
|
|
|
80,267 |
|
Warrant liabilities |
|
347 |
|
|
|
16,467 |
|
Sponsor Covered Shares liability |
|
219 |
|
|
|
5,415 |
|
Total liabilities |
$ |
296,716 |
|
|
$ |
304,997 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, 0.0001 par value; 2,000,000,000 shares authorized at |
|
33 |
|
|
|
33 |
|
Additional paid-in capital |
|
577,483 |
|
|
|
543,070 |
|
Accumulated deficit |
|
(494,787 |
) |
|
|
(192,179 |
) |
Accumulated other comprehensive income |
|
(937 |
) |
|
|
— |
|
Total stockholders’ equity |
$ |
81,792 |
|
|
$ |
350,924 |
|
Total liabilities and stockholders’ equity |
$ |
378,508 |
|
|
$ |
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 |
||||||||||||||||||||||||||||||||||
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net premiums written |
$ |
98,870 |
|
|
$ |
107,992 |
|
|
$ |
109,271 |
|
|
$ |
141,491 |
|
|
$ |
116,598 |
|
|
$ |
95,666 |
|
|
$ |
108,926 |
|
|
$ |
94,488 |
|
|
$ |
86,173 |
|
Escrow, other title-related fees and other |
|
17,977 |
|
|
|
18,575 |
|
|
|
20,065 |
|
|
|
20,452 |
|
|
|
20,493 |
|
|
|
16,113 |
|
|
|
14,366 |
|
|
|
12,627 |
|
|
|
8,902 |
|
Investment, dividend and other income |
|
663 |
|
|
|
1,229 |
|
|
|
650 |
|
|
|
639 |
|
|
|
588 |
|
|
|
428 |
|
|
|
452 |
|
|
|
741 |
|
|
|
1,299 |
|
Total revenues |
$ |
117,510 |
|
|
$ |
127,796 |
|
|
$ |
129,986 |
|
|
$ |
162,582 |
|
|
$ |
137,679 |
|
|
$ |
112,207 |
|
|
$ |
123,744 |
|
|
$ |
107,856 |
|
|
$ |
96,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums retained by Third-Party Agents |
$ |
64,011 |
|
|
$ |
70,338 |
|
|
$ |
65,181 |
|
|
$ |
91,596 |
|
|
$ |
71,330 |
|
|
$ |
60,602 |
|
|
$ |
74,638 |
|
|
$ |
65,141 |
|
|
$ |
61,095 |
|
Title examination expense |
|
4,393 |
|
|
|
4,853 |
|
|
|
5,500 |
|
|
|
5,289 |
|
|
|
6,495 |
|
|
|
5,981 |
|
|
|
5,146 |
|
|
|
3,709 |
|
|
|
3,425 |
|
Provision for claims |
|
5,272 |
|
|
|
3,249 |
|
|
|
6,807 |
|
|
|
6,685 |
|
|
|
4,594 |
|
|
|
4,611 |
|
|
|
6,310 |
|
|
|
4,665 |
|
|
|
1,154 |
|
Personnel costs |
|
38,874 |
|
|
|
43,464 |
|
|
|
53,954 |
|
|
|
62,410 |
|
|
|
78,306 |
|
|
|
77,793 |
|
|
|
73,233 |
|
|
|
60,481 |
|
|
|
48,432 |
|
Other operating expenses |
|
12,149 |
|
|
|
14,165 |
|
|
|
17,181 |
|
|
|
21,693 |
|
|
|
26,912 |
|
|
|
22,754 |
|
|
|
23,637 |
|
|
|
20,656 |
|
|
|
26,172 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33,746 |
|
|
|
31,461 |
|
Long-lived asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,027 |
|
Total operating expenses |
$ |
124,699 |
|
|
$ |
136,069 |
|
|
$ |
148,623 |
|
|
$ |
187,673 |
|
|
$ |
187,637 |
|
|
$ |
171,741 |
|
|
$ |
182,964 |
|
|
$ |
188,398 |
|
|
$ |
203,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Loss from operations |
$ |
(7,189 |
) |
|
$ |
(8,273 |
) |
|
$ |
(18,637 |
) |
|
$ |
(25,091 |
) |
|
$ |
(49,958 |
) |
|
$ |
(59,534 |
) |
|
$ |
(59,220 |
) |
|
$ |
(80,542 |
) |
|
$ |
(107,392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Change in fair value of warrant and Sponsor Covered Shares liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,478 |
) |
|
|
11,169 |
|
|
|
13,900 |
|
|
|
5,193 |
|
|
|
1,438 |
|
|
|
786 |
|
Interest expense |
|
(1,151 |
) |
|
|
(3,360 |
) |
|
|
(4,451 |
) |
|
|
(4,531 |
) |
|
|
(4,519 |
) |
|
|
(4,207 |
) |
|
|
(4,489 |
) |
|
|
(4,584 |
) |
|
|
(4,800 |
) |
Loss before income taxes |
$ |
(8,340 |
) |
|
$ |
(11,633 |
) |
|
$ |
(23,088 |
) |
|
$ |
(34,100 |
) |
|
$ |
(43,308 |
) |
|
$ |
(49,841 |
) |
|
$ |
(58,516 |
) |
|
$ |
(83,688 |
) |
|
$ |
(111,406 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Income tax benefit (expense) |
|
(223 |
) |
|
|
(125 |
) |
|
|
(211 |
) |
|
|
(170 |
) |
|
|
(421 |
) |
|
|
(185 |
) |
|
|
(136 |
) |
|
|
(425 |
) |
|
|
1,988 |
|
Net loss |
$ |
(8,563 |
) |
|
$ |
(11,758 |
) |
|
$ |
(23,299 |
) |
|
$ |
(34,270 |
) |
|
$ |
(43,729 |
) |
|
$ |
(50,026 |
) |
|
$ |
(58,652 |
) |
|
$ |
(84,113 |
) |
|
$ |
(109,418 |
) |
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 |
||||||||||||||||||||||||||||||||||
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Revenue |
$ |
117,510 |
|
$ |
127,796 |
|
$ |
129,986 |
|
$ |
162,582 |
|
$ |
137,679 |
|
$ |
112,207 |
|
$ |
123,744 |
|
$ |
107,856 |
|
$ |
96,374 |
|||||||||
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums retained by Third-Party Agents |
|
64,011 |
|
|
70,338 |
|
|
65,181 |
|
|
91,596 |
|
|
71,330 |
|
|
60,602 |
|
|
74,638 |
|
|
65,141 |
|
|
61,095 |
|||||||||
Retained premiums and fees |
$ |
53,499 |
|
$ |
57,458 |
|
$ |
64,805 |
|
$ |
70,986 |
|
$ |
66,349 |
|
$ |
51,605 |
|
$ |
49,106 |
|
$ |
42,715 |
|
$ |
35,279 |
|||||||||
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Direct labor |
|
17,050 |
|
|
17,979 |
|
|
20,902 |
|
|
23,948 |
|
|
26,787 |
|
|
27,798 |
|
|
23,890 |
|
|
20,220 |
|
|
14,665 |
|||||||||
Provision for claims |
|
5,272 |
|
|
3,249 |
|
|
6,807 |
|
|
6,685 |
|
|
4,594 |
|
|
4,611 |
|
|
6,310 |
|
|
4,665 |
|
|
1,154 |
|||||||||
Depreciation and amortization |
|
2,579 |
|
|
2,707 |
|
|
3,021 |
|
|
1,978 |
|
|
2,615 |
|
|
3,236 |
|
|
3,747 |
|
|
4,251 |
|
|
4,785 |
|||||||||
Other direct costs(1) |
|
4,186 |
|
|
7,109 |
|
|
7,561 |
|
|
10,073 |
|
|
10,322 |
|
|
8,826 |
|
|
8,016 |
|
|
6,224 |
|
|
5,478 |
|||||||||
Gross Profit |
$ |
24,412 |
|
$ |
26,414 |
|
$ |
26,514 |
|
$ |
28,302 |
|
$ |
22,031 |
|
$ |
7,134 |
|
$ |
7,143 |
|
$ |
7,355 |
|
$ |
9,197 |
|||||||||
| ________________ | |
| (1) | Includes title examination expense, office supplies, and premium and other taxes. |
Adjusted gross profit
|
Three Months Ended |
||||||||||||||||||||||||||||||||||
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gross Profit |
$ |
24,412 |
|
$ |
26,414 |
|
$ |
26,514 |
|
$ |
28,302 |
|
$ |
22,031 |
|
$ |
7,134 |
|
$ |
7,143 |
|
$ |
7,355 |
|
$ |
9,197 |
|||||||||
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Depreciation and amortization |
|
2,579 |
|
|
2,707 |
|
|
3,021 |
|
|
1,978 |
|
|
2,615 |
|
|
3,236 |
|
|
3,747 |
|
|
4,251 |
|
|
4,785 |
|||||||||
Adjusted Gross Profit |
$ |
26,991 |
|
$ |
29,121 |
|
$ |
29,535 |
|
$ |
30,280 |
|
$ |
24,646 |
|
$ |
10,370 |
|
$ |
10,890 |
|
$ |
11,606 |
|
$ |
13,982 |
|||||||||
Adjusted EBITDA
|
Three Months Ended |
||||||||||||||||||||||||||||||||||
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net loss (GAAP) |
$ |
(8,563 |
) |
|
$ |
(11,758 |
) |
|
$ |
(23,299 |
) |
|
$ |
(34,270 |
) |
|
$ |
(43,729 |
) |
|
$ |
(50,026 |
) |
|
$ |
(58,652 |
) |
|
$ |
(84,113 |
) |
|
$ |
(109,418 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Depreciation and amortization |
|
2,579 |
|
|
|
2,707 |
|
|
|
3,021 |
|
|
|
1,978 |
|
|
|
2,615 |
|
|
|
3,236 |
|
|
|
3,747 |
|
|
|
4,251 |
|
|
|
4,785 |
|
Interest expense |
|
1,151 |
|
|
|
3,360 |
|
|
|
4,451 |
|
|
|
4,531 |
|
|
|
4,519 |
|
|
|
4,207 |
|
|
|
4,489 |
|
|
|
4,584 |
|
|
|
4,800 |
|
Income taxes |
|
223 |
|
|
|
125 |
|
|
|
211 |
|
|
|
170 |
|
|
|
421 |
|
|
|
185 |
|
|
|
136 |
|
|
|
425 |
|
|
|
(1,988 |
) |
EBITDA |
$ |
(4,610 |
) |
|
$ |
(5,566 |
) |
|
$ |
(15,616 |
) |
|
$ |
(27,591 |
) |
|
$ |
(36,174 |
) |
|
$ |
(42,398 |
) |
|
$ |
(50,280 |
) |
|
$ |
(74,853 |
) |
|
$ |
(101,821 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Stock-based compensation |
|
1,550 |
|
|
|
2,289 |
|
|
|
3,713 |
|
|
|
3,004 |
|
|
|
11,040 |
|
|
|
11,393 |
|
|
|
8,255 |
|
|
|
7,746 |
|
|
|
6,293 |
|
Severance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,828 |
|
|
|
4,567 |
|
|
|
11,218 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33,746 |
|
|
|
31,461 |
|
Long-lived asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,027 |
|
Change in fair value of warrant and Sponsor Covered Shares liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,478 |
|
|
|
(11,169 |
) |
|
|
(13,900 |
) |
|
|
(5,193 |
) |
|
|
(1,438 |
) |
|
|
(786 |
) |
Accelerated contract expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,221 |
|
Adjusted EBITDA |
$ |
(3,060 |
) |
|
$ |
(3,277 |
) |
|
$ |
(11,903 |
) |
|
$ |
(20,109 |
) |
|
$ |
(36,303 |
) |
|
$ |
(44,905 |
) |
|
$ |
(43,390 |
) |
|
$ |
(30,232 |
) |
|
$ |
(16,387 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005228/en/
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Source:
FAQ
What were Doma's total revenues for Q4 2022?
How much did Doma's adjusted EBITDA loss improve in Q4 2022?
What is the expected impact of Doma's strategies in 2023?
How did the mortgage market affect Doma's performance in Q4 2022?
