Porch Group, Inc 8-K/A, filed Mar 16, 2022

Porch Group, Inc. (PRCH)

8-K/A 2022-03-16 For: 2022-03-01

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Added on April 06, 2026

About this 8-K/A

Porch Group, Inc filed this 8-K/A on March 16, 2022, reporting on events of March 1, 2022.

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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Delaware		001-39142		83-2587663
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

2200 1st Avenue South, Suite 300
Seattle, Washington	98134
(Address of principal executive offices)	(Zip Code)

Exhibit No.		Description
99.1		Updated Earnings Press Release, dated March 16, 2022
99.2		Updated Investor Presentation, dated March 16, 2022
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

PORCH GROUP, INC.

By:	/s/ Martin L. Heimbigner
	Name:	Martin L. Heimbigner
	Title:	Chief Financial Officer

	Fourth quarter 2021								Full year 2021
($ thousands)	Preliminary			Change		Final			Preliminary			Change		Final
Revenue		51,581			-		51,581			192,433			-		192,433
Operating loss		(20,846	)		2,473		(18,373	)		(85,838	)		2,473		(83,365	)
GAAP net (loss)		(22,582	)		2,473		(20,109	)		(109,079	)		2,473		(106,606	)
Adj. EBITDA (loss)		(7,848	)		2,473		(5,375	)		(26,493	)		2,473		(24,020	)

	December 31,
	2021			2020
Assets
Current assets
Cash and cash equivalents	$	315,741		$	196,046
Accounts receivable, net		28,767			4,268
Short-term investments		9,251			—
Reinsurance balance due		228,416			—
Prepaid expenses and other current assets		14,338			4,080
Restricted cash		8,551			11,407
Total current assets		605,064			215,801
Property, equipment, and software, net		6,666			4,593
Operating lease right-of-use assets		4,504			—
Goodwill		225,654			28,289
Long-term investments		58,324			—
Intangible assets, net		129,830			15,961
Restricted cash, non-current		500			—
Long-term insurance commissions receivable		7,521			3,365
Other assets		684			378
Total assets	$	1,038,747		$	268,387

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	6,965		$	9,203
Accrued expenses and other current liabilities		37,675			9,905
Deferred revenue		201,085			5,208
Refundable customer deposit		15,274			2,664
Current portion of long-term debt		150			4,746
Losses and loss adjustment expense reserves		61,949			—
Other insurance liabilities, current		40,024			—
Total current liabilities		363,122			31,726
Long-term debt		414,585			43,237
Operating lease liabilities, non-current		2,694			—
Refundable customer deposit, non-current		—			529
Earnout liability, at fair value		13,866			50,238
Private warrant liability, at fair value		15,193			31,534
Other liabilities (includes $9,617 and $3,549 at fair value, respectively)		12,242			3,798
Total liabilities		821,702			161,062
Commitments and contingencies (Note 16)
Stockholders’ equity
Common stock, $0.0001 par value:		10			8
Authorized shares – 400,000,000 and 400,000,000, respectively
Issued and outstanding shares – 97,961,597 and 81,669,151, respectively
Additional paid-in capital		641,406			424,823
Accumulated other comprehensive loss		(259	)		—
Accumulated deficit		(424,112	)		(317,506	)
Total stockholders’ equity		217,045			107,325
Total liabilities and stockholders’ equity	$	1,038,747		$	268,387

	2021			2020			2019
Revenue	$	192,433		$	72,299		$	77,595
Operating expenses⁽¹⁾:
Cost of revenue		58,725			17,562			21,500
Selling and marketing		84,273			41,665			56,220
Product and technology		47,005			28,546			30,992
General and administrative		85,795			28,199			52,011
Gain on divestiture of businesses		—			(1,442	)		4,994
Total operating expenses		275,798			114,530			165,717
Operating loss		(83,365	)		(42,231	)		(88,122	)
Other income (expense):
Interest expense		(5,757	)		(14,734	)		(7,134	)
Change in fair value of earnout liability		(18,519	)		—			—
Change in fair value of private warrant liability		(15,389	)		2,427			—
Gain (loss) on extinguishment of debt		5,110			5,748			(483	)
Investment income and realized gains, net of investment expenses		701			—			—
Other income (expense), net		340			(6,931	)		(7,484	)
Total other income (expense)		(33,514	)		(13,490	)		(15,101	)
Loss before income taxes		(116,879	)		(55,721	)		(103,223	)
Income tax benefit (expense)		10,273			1,689			(96	)
Net loss	$	(106,606	)	$	(54,032	)	$	(103,319	)
Induced conversion of preferred stock		—			(17,284	)		—
Net loss attributable to common stockholders	$	(106,606	)	$	(71,316	)	$	(103,319	)

Loss per share - basic	$	(1.14	)	$	(1.96	)	$	(3.31	)
Loss per share - diluted (Note 19)	$	(1.14	)	$	(2.03	)	$	(3.31	)

Shares used in computing basic loss per share		93,884,566			36,344,234			31,170,351
Shares used in computing diluted loss per share		93,884,566			36,374,215			31,170,351

	Year Ended December 31,
	2021			2020			2019
Net loss	$	(106,606	)	$	(54,032	)	$	(103,319	)
Other comprehensive income (loss):
Current period change in net unrealized loss, net of tax		(259	)		—			—
Comprehensive loss	$	(106,865	)	$	(54,032	)	$	(103,319	)

	Redeemable Convertible												Additional						Total
	Preferred Stock						Common Stock						Paid-in			Accumulated			Stockholders’
	Shares			Amount			Shares			Amount			Capital			Deficit			Equity (Deficit)
Balances as of January 1, 2019		42,104,419		$	119,000			20,475,883		$	205		$	10,615		$	(160,662	)	$	(149,842	)
Retroactive application of recapitalization⁽¹⁾		(42,104,419	)		(119,000	)		8,937,724			(202	)		119,202			—			119,000
Adjusted balance, beginning of period		—			—			29,413,607			3			129,817			(160,662	)		(30,842	)
Cumulative effect of a change in accounting principle		—			—			—			—			—			507			507
Net loss		—			—			—			—			—			(103,319	)		(103,319	)
Stock-based compensation		—			—			—			—			35,972			—			35,972
Issuance of Series B and Series C redeemable convertible preferred stock⁽¹⁾		—			—			3,944,897			—			37,274			—			37,274
Issuance of common stock for acquisitions		—			—			271,287			—			479			—			479
Adjustment to purchase price consideration		—			—			—			—			(290	)		—			(290	)
Issuance of common stock warrants		—			—			—			—			168			—			168
Vesting of restricted stock awards issued for acquisitions		—			—			516,539						—			—			—
Proceeds from issuance of redeemable convertible preferred stock warrants		—			—			—			—			4			—			4
Exercise of stock options		—			—			74,980			—			110			—			110
Shares repurchased		—			—			(23,488	)		—			(42	)		—			(42	)
Balances as of December 31, 2019		—		$	—			34,197,822		$	3		$	203,492		$	(263,474	)	$	(59,979	)
Net loss		—			—			—			—			—			(54,032	)		(54,032	)
Stock-based compensation		—			—			—			—			10,660			—			10,660
Stock-based compensation - earnout		—			—			1,976,332			—			636			—			636
Issuance of Series B and Series C redeemable convertible preferred stock⁽¹⁾		—			—			682,539			—			4,836			—			4,836
Conversion of convertible notes to Series C redeemable convertible preferred stock⁽¹⁾		—			—			198,750			—			1,436			—			1,436
Repurchase of redeemable convertible preferred stock		—			—			(75,162	)		—			(480	)		—			(480	)
Issuance of common stock warrants		—			—			—			—			44			—			44
Vesting of restricted stock awards issued for acquisitions		—			—			472,141			—			—			—			—
Issuance of common stock for acquisitions		—			—			785,330			—			6,898			—			6,898
Exercise of stock options and warrants		—			—			505,711			—			1,029			—			1,029
Net share settlement of common stock options and restricted stock units		—			—			1,189,911			—			—			—			—
Shareholder contribution		—			—			—			—			17,584			—			17,584
Inducement to convert preferred stock		—			—			—			—			(17,284	)		—			(17,284	)
Impacts of recognition of contingent beneficial conversion feature		—			—			—			—			(5,208	)		—			(5,208	)
Conversion of common stock warrants into common stock		—			—			1,705,266			—			—			—			—
Conversion of redeemable convertible preferred stock warrants into common stock		—			—			702,791			—			11,029			—			11,029
Recapitalization and PIPE financing		—			—			35,304,052			5			239,722			—			239,727
Tax impacts of recapitalization		—			—			—			—			187			—			187
Earnout liability		—			—			4,023,668			—			(50,238	)		—			(50,238	)
Cancellation of redeemable convertible preferred stock repurchase liability		—			—			—			—			480			—			480
Balances as of December 31, 2020		—		$	—			81,669,151		$	8		$	424,823		$	(317,506	)	$	107,325

												Accumulated
						Additional						Other			Total
	Common Stock					Paid-in			Accumulated			Comprehensive			Stockholders’
	Shares			Amount		Capital			Deficit			Loss			Equity
Balances as of January 1, 2021		81,669,151		$	8	$	424,823		$	(317,506	)	$	—		$	107,325
Net loss		—			—		—			(106,606	)		(259	)		(106,865	)
Stock-based compensation		—			—		15,631			—			—			15,631
Stock-based compensation - earnout		—			—		22,961			—			—			22,961
Issuance of common stock for acquisitions		2,042,652			1		35,706			—			—			35,707
Contingent consideration for acquisitions		—			—		6,685			—			—			6,685
Reclassification of earnout liability upon vesting		—			—		54,891			—			—			54,891
Reclassification of private warrant liability upon exercise		—			—		31,730			—			—			31,730
Vesting of restricted stock awards		2,549,223			—		—			—			—			—
Exercise of stock warrants		11,521,412			1		126,768			—			—			126,769
Exercise of stock options		1,700,557			—		4,326			—			—			4,326
Income tax withholdings		(1,521,398	)		—		(28,940	)		—			—			(28,940	)
Capped call transactions		—			—		(52,913	)		—			—			(52,913	)
Transaction costs		—			—		(262	)		—			—			(262	)
Balances as of December 31, 2021		97,961,597		$	10	$	641,406		$	(424,112	)	$	(259	)	$	217,045

	CORPORATE			INSURANCE			VERTICAL SOFTWARE			Consolidated
Adjusted EBITDA (loss)	$	(14,476	)	$	5,922		$	3,180		$	(5,375	)
		N/A			37	%		9	%		-10	%
Less:
Acquisition and related expense		795			29			-			824
Loss on re-measurement of warrants		(2,132	)		-			-			(2,132	)
Loss on re-measurement of earnout liability		3,131			-			-			3,131
Revaluation of contingent consideration		(2,427	)		-			563			(1,864	)
Non-cash bonus expense		(1,378	)		-			-			(1,378	)
Non-cash stock-based compensation		6,489			400			2,342			9,231
Non-cash long-lived asset impairment charge		50			-			285			335
Other, net		(38	)		0			(78	)		(115	)
Depreciation and amortization		597			1,001			4,000			5,598
Income tax expense (benefit)		(1,135	)		778			2			(356	)
Interest expense		1,348			444			(332	)		1,460
Net income (loss)	$	(19,775	)	$	3,269		$	(3,603	)	$	(20,109	)

	2021		2021
Monetized Services Revenue	$	34,366	$	137,383
Other Operating Revenue		17,215		55,050
Total Revenue	$	51,581	$	192,433

	CORPORATE			INSURANCE			VERTICAL SOFTWARE			Consolidated
Revenue	$	-		$	16,060		$	35,520		$	51,581
Cost of Revenue	$	-		$	2,725		$	11,412		$	14,137
Revenue Less Cost of Revenue	$	-		$	13,335		$	24,108		$	37,443
		N/A			83	%		68	%		73	%

Revenue	$	-		$	16,060		$	35,520		$	51,581
Cost of Revenue	$	-		$	2,725		$	11,412		$	14,137
Sales & Marketing (Variable)	$	287		$	8,065		$	10,089		$	18,440
Contribution Margin	$	(287	)	$	5,271		$	14,019		$	19,003
		N/A			33	%		39	%		37	%

Sales & Marketing (Fixed)	$	905		$	473		$	3,816		$	5,195
Product & Technology	$	6,003		$	621		$	6,223		$	12,847
General & Administrative	$	11,407		$	(64	)	$	7,991		$	19,335
Total Operating Expenses	$	18,602		$	11,820		$	39,531		$	69,954
Operating Loss	$	(18,602	)	$	4,240		$	(4,011	)	$	(18,373	)

	Insurance						Vertical Software						Total
($ thousands)	Preliminary			Final			Preliminary			Final			Preliminary			Final
Revenue		16,060			16,060			35,520			35,520			51,581			51,581
Revenue Less Cost of Revenue		16,775			13,335			24,108			24,108			40,883			37,443
Revenue Less Cost of Revenue %		104	%		83	%		68	%		68	%		79	%		73	%
Contribution Margin		8,711			5,271			14,019			14,019			22,443			19,003
Contribution Margin %		54	%		33	%		39	%		39	%		44	%		37	%
GAAP net (loss)		N/A			N/A			N/A			N/A			(22,582	)		(20,109	)
Adj. EBITDA (loss)		3,449			5,922			3,180			3,180			(7,848	)		(5,375	)
Adj. EBITDA %		21	%		37	%		9	%		9	%		-15	%		-10	%