Porch Group’s Investor Day to Highlight 2026 $100m Adj EBITDA Target(1,2)
Porch Group (NASDAQ: PRCH) announced its upcoming Investor Day scheduled for December 5, 2024, in New York. The company will present its strategic roadmap, including financial targets of $50 million Adjusted EBITDA in 2025 and $100 million in 2026. Key focus areas include the new Insurance Services segment, targeting $600+ million in gross written premium by 2026, the Home Factors data product for risk assessment, and the company's capital strategy. The event will showcase how the Porch Insurance launch is expected to be transformational for the business.
Porch Group (NASDAQ: PRCH) ha annunciato il suo prossimo Investor Day, previsto per il 5 dicembre 2024, a New York. L'azienda presenterà la sua roadmap strategica, inclusi obiettivi finanziari di 50 milioni di dollari di EBITDA rettificato nel 2025 e 100 milioni di dollari nel 2026. Le aree chiave di interesse includono il nuovo segmento dei Servizi Assicurativi, con l'obiettivo di raggiungere oltre 600 milioni di dollari in premi lordi scritti entro il 2026, il prodotto Home Factors per la valutazione del rischio e la strategia di capitale dell'azienda. L'evento dimostrerà come il lancio di Porch Insurance sia previsto per essere trasformativo per l'azienda.
Porch Group (NASDAQ: PRCH) anunció su próximo Investor Day programado para el 5 de diciembre de 2024, en Nueva York. La empresa presentará su hoja de ruta estratégica, incluyendo objetivos financieros de 50 millones de dólares en EBITDA ajustado para 2025 y 100 millones de dólares en 2026. Las áreas clave de enfoque incluyen el nuevo segmento de Servicios de Seguros, que tiene como objetivo más de 600 millones de dólares en primas brutas emitidas para 2026, el producto Home Factors para la evaluación de riesgos y la estrategia de capital de la empresa. El evento mostrará cómo se espera que el lanzamiento de Porch Insurance sea transformador para el negocio.
Porch Group (NASDAQ: PRCH)는 2024년 12월 5일 뉴욕에서 예정된 Investor Day를 발표했습니다. 회사는 2025년에 5천만 달러의 조정 EBITDA와 2026년에 1억 달러라는 재무 목표를 포함한 전략 로드맵을 발표할 예정입니다. 주요 초점 분야는 2026년까지 6억 달러 이상의 총 서면 보험료 목표를 가진 새로운 보험 서비스 부문, 위험 평가를 위한 홈 팩터 데이터 제품, 그리고 회사의 자본 전략입니다. 이 이벤트는 Porch Insurance의 출범이 사업에 얼마나 혁신적일 것으로 기대되는지를 보여줄 것입니다.
Porch Group (NASDAQ: PRCH) a annoncé sa prochaine Journée Investisseur prévue pour le 5 décembre 2024 à New York. L'entreprise présentera sa feuille de route stratégique, y compris des objectifs financiers de 50 millions de dollars d'EBITDA ajusté en 2025 et 100 millions de dollars en 2026. Les domaines clés d'intérêt incluent le nouveau segment des Services d'Assurance, visant à atteindre plus de 600 millions de dollars de primes brutes émises d'ici 2026, le produit Home Factors pour l'évaluation des risques et la stratégie de capital de l'entreprise. L'événement mettra en avant à quel point le lancement de Porch Insurance est attendu pour être transformateur pour l'entreprise.
Porch Group (NASDAQ: PRCH) hat seinen bevorstehenden Investor Day für den 5. Dezember 2024 in New York angekündigt. Das Unternehmen wird seinen strategischen Fahrplan vorstellen, einschließlich finanzieller Ziele von 50 Millionen Dollar bereinigtem EBITDA für 2025 und 100 Millionen Dollar für 2026. Zu den wichtigsten Fokusbereichen gehören das neue Segment Versicherung Dienstleistungen mit dem Ziel, über 600 Millionen Dollar an brutto geschriebenen Prämien bis 2026 zu erreichen, das Produkt Home Factors zur Risikobewertung und die Kapitalstrategie des Unternehmens. Die Veranstaltung wird zeigen, wie der Start von Porch Insurance voraussichtlich transformational für das Geschäft sein wird.
- Targeting $100M Adjusted EBITDA by 2026
- Insurance Services segment projected to reach $600M+ in gross written premium by 2026
- Expected higher margins and profits post Reciprocal launch
- None.
Insights
The upcoming Investor Day announcement contains significant forward-looking financial targets that warrant attention. The
However, investors should approach these projections with caution. The lack of GAAP reconciliation for Adjusted EBITDA targets and the company's current market cap of
The strategic pivot towards insurance services through the Reciprocal launch represents a significant business model evolution. The integration of property data through Home Factors for risk assessment could provide a competitive advantage in underwriting accuracy. This vertical integration strategy combining software, data and insurance operations has potential synergies but also increases operational complexity.
The projected
The event will provide key updates and insights into the Company’s strategy, growth plans and opportunities. Topics to be covered include:
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Financial targets1,2 including Adjusted EBITDA of
$50 million $100 million -
How Porch’s new Insurance Services segment is expected to operate, including path to grow to
$600 + million in gross written premium by 2026, and expectation of generating higher margins and profits post the Reciprocal launch - Details about many of Porch’s businesses including how they create advantages for the homeowners insurance business
- The significant opportunity with Porch’s data business and its new Home Factors product which helps carriers and other companies understand more details about properties to assess risk
- The company’s capital philosophy to support sustainable growth
- Adjustments to financial reporting segments and related KPIs
“With the approval of the Reciprocal and the related structuring of the business to align with what we think is optimal, we are at an inflection point as a company. The Investor Day marks a milestone for Porch as we share our roadmap we believe will lead to sustained growth, increased profits, and value creation for our shareholders,” said Matt Ehrlichman, Chief Executive Officer. “We are excited to showcase why we believe the launch of the Porch Insurance will be transformational and highlight the many opportunities across our business units.”
Attendance and Webcast Information
Advanced registration is required for in-person attendance. For additional information, please contact IR@porch.com.
All are invited to listen to the live webcast or replay of the Investor Day which will be accessible, along with the presentation, on the Porch website events page.
1) |
See Non-GAAP Financial Measures section for the definition. Porch Group is not providing reconciliations of expected Adjusted EBITDA for future periods to the most directly comparable measures prepared in accordance with GAAP because the Company is unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of the Company’s control. |
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2) |
See Non-GAAP Financial Measures Section. Porch is providing guidance and targets based on current market conditions and expectations as of the date of this presentation. Actual results may vary due to various risks and uncertainties. Please refer to the Forward-Looking Statements safe harbor for further detail. This medium-term target represents Porch Shareholder Interests following the expected launch of PIRE and sale of HOA to PIRE in January 2025. For the avoidance of doubt, this medium-term target does not include the future results of PIRE or HOA; while we expect to consolidate their results into Porch GAAP financial statements, the PIRE and HOA results will be allocated to non-controlling interests and not to Porch shareholders, and will therefore be excluded from Adjusted EBITDA. |
About Porch Group
Porch Group, Inc. ("Porch") is a homeowners insurance and vertical software platform. Porch's strategy to win in homeowners insurance is to leverage unique data for advantaged underwriting, provide the best services for homebuyers, and protect the whole home. The long-term competitive moats that create this differentiation come from Porch's leadership in home services software-as-a-service and its deep relationships with approximately 30 thousand companies that are key to the home-buying transaction, such as home inspectors, mortgage, and title companies.
To learn more about Porch, visit ir.porchgroup.com.
Forward-Looking Statements
Certain statements in this release may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although we believe that our plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning our financial outlook, guidance, and targets, possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. Forward-looking statements in this presentation also include expectations regarding whether the reciprocal is the optimal structure for our insurance business and the benefits financial and otherwise thereof, including any expectations that the reciprocal will result in higher margins and a more predictable financial profile and equip our insurance operations to scale profitably in the future. These statements may be preceded by, followed by, or include the words “believe,” “estimate,” “expect,” “project,” “forecast,” “may,” “will,” “should,” “seek,” “plan,” “scheduled,” “anticipate,” “intend,” or similar expressions.
Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any future transactions that have not been completed as of the date of this filing, including the licensure and formation of the reciprocal, the sale of our insurance carrier subsidiary, Homeowners of America Insurance Company (“HOA”), to the reciprocal, and the commencement of the reciprocal’s operations. You should understand that the following important factors, among others, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:
(1) expansion plans and opportunities, and managing growth, to build a consumer brand;
(2) the incidence, frequency, and severity of weather events, extensive wildfires, and other catastrophes;
(3) economic conditions, especially those affecting the housing, insurance, and financial markets;
(4) expectations regarding revenue, cost of revenue, operating expenses, and the ability to achieve and maintain future profitability;
(5) existing and developing federal and state laws and regulations, including with respect to insurance, warranty, privacy, information security, data protection, and taxation, and management’s interpretation of and compliance with such laws and regulations;
(6) our reinsurance program, which includes the use of a captive reinsurer, the success of which is dependent on a number of factors outside management’s control, along with reliance on reinsurance to protect against loss;
(7) the possibility that a decline in our share price would result in a negative impact to our insurance carrier subsidiary’s, Homeowners of America Insurance Company (“HOA”), surplus position and may require further financial support to enable HOA to meet applicable regulatory requirements and maintain financial stability rating;
(8) the uncertainty and significance of the known and unknown effects on our insurance carrier subsidiary, Homeowners of America Insurance Company (“HOA”), and us due to the termination of a reinsurance contract following of fraud committed by Vesttoo Ltd. (“Vesttoo”), including, but not limited to, the outcome of Vesttoo’s Chapter 11 bankruptcy proceedings; our ability to successfully pursue claims arising out of the fraud, the costs associated with pursuing the claims, and the timeframe associated with any recoveries; HOA's ability to obtain and maintain adequate reinsurance coverage against excess losses; HOA’s ability to stay out of regulatory supervision and maintain its financial stability rating; and HOA’s ability to maintain a healthy surplus;
(9) uncertainties related to regulatory approval of insurance rates, policy forms, insurance products, license applications, acquisitions of businesses, or strategic initiative, and other matters within the purview of insurance regulators (including the discount associated with the shares contributed to HOA);
(10) the ability of the Company and its affiliates to consummate the sale of HOA to the reciprocal exchange and to commence operations of the reciprocal exchange;
(11) our ability to successfully operate its businesses alongside a reciprocal exchange;
(12) our ability to implement our plans, forecasts and other expectations with respect to the reciprocal exchange business after the completion of the formation and to realize expected synergies and/or convert policyholders from its existing insurance carrier business into policyholders of the reciprocal exchange;
(13) potential business disruption following the formation of the reciprocal exchange;
(14) reliance on strategic, proprietary relationships to provide us with access to personal data and product information, and the ability to use such data and information to increase transaction volume and attract and retain customers;
(15) the ability to develop new, or enhance existing, products, services, and features and bring them to market in a timely manner;
(16) changes in capital requirements, and the ability to access capital when needed to provide statutory surplus;
(17) our ability to timely repay our outstanding indebtedness;
(18) the increased costs and initiatives required to address new legal and regulatory requirements arising from developments related to cybersecurity, privacy, and data governance and the increased costs and initiatives to protect against data breaches, cyber-attacks, virus or malware attacks, or other infiltrations or incidents affecting system integrity, availability, and performance;
(19) retaining and attracting skilled and experienced employees;
(20) costs related to being a public company; and
(21) other risks and uncertainties discussed in Part II, Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as those discussed in Part II, Item 1A, “Risk Factors,” in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and in subsequent reports filed with the Securities and Exchange Commission (“SEC”), all of which are available on the SEC’s website at www.sec.gov.
We caution you that the foregoing list may not contain all the risks to forward-looking statements made in this release.
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this release primarily on our current expectations and projections about future events and trends we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described above and elsewhere in this release. We disclaim any obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
This release includes Adjusted EBITDA (Loss), which is a non-GAAP financial measure. We define Adjusted EBITDA (Loss) as net income (loss) adjusted for interest expense; income taxes; depreciation and amortization; gain or loss on extinguishment of debt; other expense (income), net; impairments of intangible assets and goodwill; impairments of property, equipment, and software; stock-based compensation expense; mark-to-market gains or losses recognized on changes in the value of contingent consideration arrangements, earnouts, warrants, and derivatives; restructuring costs; acquisition and other transaction costs; and non-cash bonus expense.
You should not consider the non-GAAP financial measures included in this release in isolation, as a substitute to or superior to financial performance measures determined in accordance with GAAP. The principal limitation of the non-GAAP financial measures included in this release is that they exclude specified income and expenses, some of which may be significant or material, that are required by GAAP to be recorded in our consolidated financial statements. We may also incur future income or expenses similar to those excluded from the non-GAAP financial measures included in this release, and the presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures included in this release reflect the exercise of management judgment about which income and expense are included or excluded in determining the non-GAAP financial measures included in this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241203948672/en/
Investor Relations Contact:
Lois Perkins, Head of Investor Relations
Porch Group, Inc.
Loisperkins@porch.com
Source: Porch Group, Inc.
FAQ
What are Porch Group's (PRCH) Adjusted EBITDA targets for 2025 and 2026?
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