Porch Group, Inc. Files Q3 2024 10-Q

Ticker: PRCH · Form: 10-Q · Filed: 2024-11-07T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, financials, software

Related Tickers: PRCH

TL;DR

Porch Group (PRCH) filed its Q3 2024 10-Q. Check financials.

AI Summary

Porch Group, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter of 2024, detailing financial performance and operational updates. The company is based in Seattle, WA, and operates in the pre-packaged software industry.

Why It Matters

This filing provides investors with a crucial update on Porch Group's financial health and strategic direction for the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that could reveal significant risks or opportunities for the company.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is September 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on November 7, 2024.

What is the primary business of Porch Group, Inc. according to the SIC code?

According to the Standard Industrial Classification code 7372, Porch Group, Inc. is in the Services-Prepackaged Software industry.

Where is Porch Group, Inc. headquartered?

Porch Group, Inc. is headquartered at 411 1st Avenue S., Suite 501, Seattle, WA 98104.

What was the former name of Porch Group, Inc.?

The former name of Porch Group, Inc. was PropTech Acquisition Corp, with a date of name change on August 5, 2019.

Filing Stats: 4,639 words · 19 min read · ~15 pages · Grade level 16 · Accepted 2024-11-07 17:19:45

Key Financial Figures

Filing Documents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) 3 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) 4 Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) 5 Condensed Consolidated Statements of Cash Flows (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8 Note 1. Description of Business and Summary of Significant Accounting Policies 8 Note 2. Revenue 12 Note 3. Investments 14 Note 4. Fair Value 16 Note 5. Property, Equipment, and Software 19 Note 6. Intangible Assets and Goodwill 19 Note 7. Debt 20 Note 8. Stockholders' Equity and Warrants 21 Note 9. Stock-Based Compensation 22 Note 10. Reinsurance 22 Note 11. Unpaid Losses and Loss Adjustment Reserve 25 Note 12. Other Income (Expense), Net 25 Note 13. Income Taxes 25 Note 14. Commitments and Contingencies 26 Note 15. Business Disposition 26 Note 16. Segment Information 26 Note 17. Net Income (Loss) Per Share 28

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 47

— OTHER INFORMATION

PART II — OTHER INFORMATION 48

Legal Proceedings

Item 1. Legal Proceedings 48

Risk Factors

Item 1A. Risk Factors 48

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 49

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 49

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 49

Other Information

Item 5. Other Information 50

Exhibits

Item 6. Exhibits 51

SIGNATURES

SIGNATURES 52 2 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PORCH GROUP, INC. Condensed Consolidated Balance Sheets (Unaudited) (all numbers in thousands unless otherwise stated, except per share data) September 30, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 206,728 $ 258,418 Accounts receivable, net 21,318 24,288 Short-term investments 31,843 35,588 Reinsurance balance due 103,429 83,582 Prepaid expenses and other current assets 17,027 13,214 Deferred policy acquisition costs 16,575 27,174 Restricted cash and cash equivalents 9,950 38,814 Total current assets 406,870 481,078 Property, equipment, and software, net 21,141 16,861 Goodwill 191,907 191,907 Long-term investments 165,935 103,588 Intangible assets, net 73,273 87,216 Other assets 8,138 18,743 Total assets $ 867,264 $ 899,393 Liabilities and Stockholders' Deficit Current liabilities Accounts payable $ 5,145 $ 8,761 Accrued expenses and other current liabilities 46,946 59,396 Deferred revenue 251,777 248,683 Refundable customer deposits 13,126 17,980 Current debt 150 244 Losses and loss adjustment expense reserves 100,610 95,503 Other insurance liabilities, current 73,753 31,585 Total current liabilities 491,507 462,152 Long-term debt 398,882 435,495 Other liabilities 53,918 37,429 Total liabilities 944,307 935,076 Commitments and contingencies (Note 14) Stockholders' deficit Common stock, $ 0.0001 par value: 10 10 Authorized shares – 400 million and 400 million, at September 30, 2024, and December 31, 2023, respectively Issued and outstanding shares – 118.9 million (1) and 97.1 million, at September 30, 2024, and December 31, 2023, respectively Additional paid-in capital 709,364 690,223 Accumulated other comprehensive loss ( 1,058 ) ( 3,860 ) Accumulated deficit ( 785,359 ) ( 722,056 ) Total stockholders' deficit ( 77,043 ) ( 35,683 ) Total liabilities and stockholders' deficit $ 867,264 $ 899,393 ______________________________________ (1) Includes 18.3 m

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