8-K - PRCH - Equibles

Common stock, par value $0.0001

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date Earliest Event Reported):

March 30, 2021

PORCH GROUP, INC.

(Exact name of registrant as specifiedin its charter)

Delaware	001-39142	83-2587663
(State or Other Jurisdiction<br><br> <br>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)

(855) 767-2400

(Registrant’s telephone number,including area code)

Not Applicable

(Former Name or Former Address, if ChangedSince Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br><br> <br>Symbol(s)	Name of each exchange on<br><br> <br>which registered
Common stock, par value $0.0001	PRCH	The Nasdaq Stock Market LLC
Warrants, each exercisable for one share of common stock at an exercise price of $11.50 per share	PRCHW	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

On March 30, 2021, Porch Group, Inc. issued an earnings release and held a conference call regarding its financial results for the quarterly period and year ended December 31, 2020. A copy of the earnings release is furnished as Exhibit 99.1 hereto and a copy of the slide presentation used during such conference call is furnished as Exhibit 99.2 hereto.

The information contained in Item 2.02 of this Current Report on Form 8-K (including Exhibits 99.1 and 99.2 hereto) is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.	Description
99.1*	Press Release issued by Porch Group, Inc. dated March 30, 2021.
99.2*	Investor Presentation dated March 30, 2021.
104	Cover Page Interactive Data File (formatted as Inline XBRL).
*	This Exhibit is furnished<br> herewith and will not be deemed “filed” for purposes of Section 18 of the Exchange Act or deemed to be incorporated by reference<br> into any filing under the Securities Act or the Exchange Act except as otherwise expressly stated herein.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PORCH GROUP, INC.
By:	/s/ Martin L. Heimbigner
	Name:	Martin L. Heimbigner
	Title:	Chief Financial Officer

Date: March 31, 2021

Exhibit 99.1

Porch Group Reports Strong Fourth Quarter andFull Year 2020 Financial Results

Company Increases Full Year 2021 Revenue Guidanceto $175 Million, Representing 140% Year-over-Year Growth

SEATTLE,WA, March 30, 2021 – Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ:PRCH), a leading vertical software company reinventing the home services and insurance industries, today reported financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 and Recent Operational Highlights

·	Closed<br> business combination with PropTech Acquisition Corporation, bringing a leading vertical<br> software and services platform for the home to the public market.
·	Announced<br> four strategic acquisitions (Homeowners of America, V12, PalmTech and iRoofing) that<br> marked the Company’s ambitions in InsurTech and strengthened Porch’s rapidly<br> expanding platform for home service companies and homeowners.
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·	Expanded<br> leadership team with key appointments, including Adam Kornick as president of Insurtech,<br> Matthew Cullen as general counsel and secretary, Joshua Steffan as VP and group GM, Inspection<br> and Real Estate, Andrew Beck as head of Contractor Tools SaaS, Malcolm Conner leading Porch’s<br> Home Services group, and Manisha Patel as VP of finance.
---	---

Fourth Quarter 2020 Financial Results

Total revenue for the fourth quarter of 2020 was $19.5 million, an increase of 7% from $18.3 million in the fourth quarter of 2019. When adjusting for past divestitures by the Company, year-over-year growth was 34%, up from $14.5 million in the fourth quarter of 2019 pro forma. The increase in total revenue was driven by selling software to more companies and significantly increasing both the B2B SaaS fees and transaction revenue generated per company.

Cost of revenue as a percentage of total revenue for the fourth quarter of 2020 was 22%.

Adjusted EBITDA loss, a non-GAAP metric, for the fourth quarter of 2020 totaled $3.2 million (or -17% of total revenue), an improvement from Adjusted EBITDA loss of $9.3 million (or -51% of total revenue) in the fourth quarter of 2019, and an improvement from Adjusted EBITDA loss of $8.1 million (or -56% of total revenue) pro forma adjusted for past divestitures in the fourth quarter of 2019.

As of December 31, 2020, cash, cash equivalents, and restricted cash totaled $207.5 million.

Full Year 2020 Financial Results

Total revenue for the full year 2020 increased 28% to $73.2 million from $56.0 million in 2019 pro forma adjusted for past divestitures. 2019 as-reported total revenue included $77.6 million in revenue contribution from previously divested businesses. The $73.2 million in total revenue for 2020 exceeded the Company’s guidance of $72 million.

Cost of revenue as a percentage of total revenue for the full year 2020 was 24%, continuing to demonstrate the high margins of Porch’s vertical software platform.

Adjusted EBITDA loss, a non-GAAP metric, for the full year 2020 totaled $17.5 million (or -24% of total revenue), an improvement from Adjusted EBITDA loss of $32.0 million (or -57% of total revenue) in 2019 pro forma adjusted for past divestitures.

Fourth Quarter 2020 Key Performance Indicators (KPIs)

Software and services to companies:

·	Average<br> number of companies increased to 11,150 from 10,800 in Q3 2020
·	Average<br> revenue per company per month increased 32% to $583 from $450 in Q4 2019
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Monetized services for consumers:

·	Number<br> of monetized services was approximately 170,000 in Q4 2020, with Porch monetizing insurance<br> on a per sale basis with its in-house insurance agency. This was similar volume of total<br> monetized services in Q4 2019 when Porch was previously monetizing insurance on a per quote<br> basis.
·	Average<br> revenue per monetized service increased 36% to $103 in Q4 2020 from $78 in Q4 2019
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Management Commentary

“The fourth quarter marked a strong finish to a successful and transformative year for Porch,” said Matt Ehrlichman, founder, chairman and CEO. “We delivered strong results for the full year 2020, highlighted by 34% revenue growth when adjusting for past divestitures and a 2x improvement in Adjusted EBITDA margin. Achieving these results in the face of a pandemic and a transformational merger is a testament to our team, our partners, our customers, and the resilience of our operating model.

“Overall, our vertical software platform with SaaS and transaction monetization is working extremely well, as evidenced by approximately 85% year-over-year revenue growth rate expected in Q1 2021. We continue to have success generating more revenue per monetized service as we focus on higher value services like insurance. After we close the Homeowners of America acquisition, which is expected to occur in Q2, we plan to expand its footprint beyond the six states it operates in today, which we expect to significantly improve our long-term growth rates and value per monetized service.

“We entered 2021 with accelerating momentum, deep competitive moats, a massive $320 billion total addressable market, and a multiple pronged growth strategy, which we expect will enable us to grow rapidly for a long period of time. We believe this is only the beginning of our journey to build a truly great and enduring company.”

Full Year 2021 Financial Outlook

Porch provides guidance based on current market conditions and expectations. The Company emphasizes that its guidance is subject to various important cautionary factors, including those referenced in the section entitled "Forward-Looking Statements" below. These factors include ongoing risks and uncertainties associated with the COVID-19 pandemic.

For the first quarter of 2021, the Company forecasted total revenue to be approximately $23 million, representing approximately 85% growth compared to total revenue in the first quarter 2020 pro forma adjusted for past divestitures.

For the full year of 2021, Porch raised its 2021 revenue outlook from $170 million to $175 million, representing 140% year-over-year revenue growth. Porch continues to expect approximately 25% of 2021 total revenue to be from B2B SaaS fees, approximately 65% of revenue from B2B2C move-related services which includes recurring insurance revenue, and approximately 10% of revenues from post-move services. Porch reiterated its 2021 guidance for contribution margin, defined as total revenue less all variable expense, of 40%, an improvement from 31% and 19% in 2020 and 2019 respectively, pro forma adjusted for past divestitures. The Company expects Adjusted EBITDA margin of -10% to -16% for the full year of 2021, which is an improvement from -24% in 2020 and -57% in 2019 pro forma adjusted for past divestitures.

Conference Call

Porch management will host a conference call today (March 30, 2021) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). The presentation will be accompanied by a slide presentation available on the Investor Relations section of the Company’s website. A question-and-answer session will follow management’s prepared remarks.

All are invited to listen to the event by registering for the webinar here.

To access the webinar by telephone, please see below:

Or Mobile one-tap:

US: +16699006833,,83672374549# or +14086380968,,83672374549#

Or Telephone:

Dial (for higher quality, dial a number based on your current location):

US: +1 669 900 6833 or +1 408 638 0968 or +1 346 248 7799 or +1 253 215 8782 or +1 646 876 9923 or +1 301 715 8592 or +1 312 626 6799

Webinar ID: 836 7237 4549

Passcode: 031990

International numbers available: https://gatewayir.zoom.us/u/kbSf25i2nO

If you have any difficulty connecting with the conference call or webcast, please contact Porch’s investor relations team at (949) 574-3860 or PRCH@gatewayir.com.

A replay of the webinar will also be available in the Investor Relations section of Porch’s corporate website.

About****Porch Group

Seattle-based Porch Group, the vertical software platform for the home, provides software and services to more than 11,150 home services companies such as home inspectors, moving companies, real estate agencies, utility companies, and warranty companies. Through these relationships and its multiple brands, Porch provides a moving concierge service to homebuyers, helping them save time and make better decisions on critical services, including insurance, moving, security, TV/internet, home repair and improvement, and more. To learn more about Porch, visit porchgroup.comor porch.com.

2020Financial Information; Non-GAAP Financial Measures

Some of the financial information and data contained in this press release, such as Adjusted EBITDA, Adjusted EBITDA margin and contribution margin, has not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). Porch defines Adjusted EBITDA as net income (loss) plus interest expense, net, income tax expense (benefit), other expense, net, and depreciation and amortization, certain non-cash long-lived asset impairment charges, stock-based compensation expense and acquisition-related impacts, including compensation to the sellers that requires future service, amortization of intangible assets, gains (losses) recognized on changes in the value of contingent consideration arrangements, if any, gain or loss on divestures and certain transaction costs. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of total revenue. Contribution margin is defined as revenue less all variable expenses, including cost of revenue, market, and sales. See the reconciliation table below for more details regarding these non-GAAP measurements, including the reconciliation of historical non-GAAP figures to the nearest comparable GAAP measure.

Porch is not providing reconciliations of expected Adjusted EBITDA, Adjusted EBITDA margin or contribution margin for future periods to the most directly comparable measures prepared in accordance with GAAP because Porch is unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unbailable or dependent on the timing of future events outside of our control.

Porch uses these non-GAAP measures to compare Porch’s performance to that of prior periods for budgeting and planning purposes. Porch believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing Porch’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Porch's method of determining these non-GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and Porch does not recommend the sole use of these non-GAAP measures to assess its financial performance. Porch management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP.

You should review the following reconciliation of non-GAAP measures to the nearest comparable GAAP measures, and not rely on any single financial measure to evaluate Porch’s business:

	Q4 2020			Q4 2019			FY 2020			FY 2019
Net loss	$	(18,060	)	$	(20,480	)	$	(51,609	)	$	(103,319	)
Interest expense		5,311			6,851			14,734			7,134
Income tax (benefit) expense		(1,691	)		82			(1,691	)		96
Depreciation and amortization		1,623			1,992			6,644			7,377
Other expense, net		(4,670	)		483			(2,791	)		7,966
Non-cash long-lived asset impairment<br> charge		71			1,028			611			1,534
Non-cash stock-based compensation		9,864			359			11,103			34,855
Revaluation of contingent consideration		200			(300	)		1,700			(300	)
Acquisition and related (income) expense		805			697			1,862			7,821
Gain on divestiture of a business		—			—			(1,442	)
SPAC transaction bonus		3,350			—			3,350			—
Adjusted EBITDA (loss)	$	(3,197	)	$	(9,288	)	$	(17,529	)	$	(36,836	)
Adjusted EBITDA (loss) from Divested<br> business		—			(1,176	)		—			(4,807	)
Proforma Adjusted EBITDA (loss)	$	(3,197	)		(8,112	)	$	(17,529	)		(32,029	)
	FY 2020			FY 2019
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Revenue	$	73,216		$	77,595
Cost of Revenue		17,562			21,500
Revenue- Cost of Revenue		55,654			56,095
Variable Selling &<br> Marketing and Advertising		32,661			43,942
Contribution Margin	$	22,993		$	12,153
Contribution Margin % of revenue		31	%		16	%
Proforma Contribution Margin					19	%

Investor Relations Contact:

Gateway Investor Relations

Cody Slach, Matt Glover

(949) 574-3860

PRCH@gatewayir.com

Porch Group, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

	2020			2019
Revenue	$	73,216		$	77,595
Operating expenses^(1)^:
Cost of revenue		17,562			21,500
Selling and marketing		41,768			56,220
Product and technology		28,298			30,992
General and administrative		28,387			52,011
(Gain) loss on divestiture of businesses		(1,442	)		4,994
Total operating expenses		114,573			165,717
Operating loss		(41,357	)		(88,122	)
Other income (expense):
Interest expense		(14,734	)		(7,134	)
Other income (expense), net		2,791			(7,967	)
Total other income (expense)		(11,943	)		(15,101	)
Loss before income taxes		(53,300	)		(103,223	)
Income tax (benefit) expense		(1,691	)		96
Net loss	$	(51,609	)	$	(103,319	)
Induced conversion of preferred stock		(17,284	)		—
Net loss attributable to common stockholders	$	(68,893	)	$	(103,319	)
Net loss attributable per share to common stockholders:
Basic	$	(1.90	)	$	(3.31	)
Diluted	$	(1.90	)	$	(3.31	)
Weighted-average shares used in computing net loss attributable per share to common stockholders:
Basic		36,344,234			31,170,351
Diluted		36,344,234			31,170,351

Porch Group, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

			2019
Assets
Current assets
Cash and cash equivalents	196,046		$	4,179
Accounts receivable, net	4,661			4,710
Prepaid expenses and other current assets	3,891			1,285
Restricted cash	11,407			—
Total current assets	216,005			10,174
Property, equipment, and software, net	4,593			6,658
Goodwill	28,289			18,274
Intangible assets, net	15,961			9,832
Restricted cash, non-current	—			3,000
Long-term insurance commissions receivable	3,365			—
Other assets	378			530
Total assets	268,591		$	48,468
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable	8,903		$	4,806
Accrued expenses and other current liabilities	9,991			17,071
Accrued acquisition compensation	—			8,624
Deferred revenue	4,870			3,333
Refundable customer deposit	2,664			3,167
Current portion of long-term debt (includes 0 and 11,659 at fair value, respectively)	4,746			20,461
Total current liabilities	31,174			57,462
Long-term debt	43,237			40,659
Refundable customer deposit, non-current	529			3,107
Earnout liability, at fair value	50,442			—
Other liabilities (includes 3,549 and 6,784 at fair value, respectively)	3,798			7,219
Total liabilities	129,180			108,447
Commitments and contingencies (Note 12)
Stockholders’ equity (deficit)
Common stock, 0.0001 par value:	8			3
Authorized shares – 400,000,000 and 52,575,160
Issued and outstanding shares – 81,669,151 and 34,197,822
Additional paid-in capital	454,486			203,492
Accumulated deficit	(315,083	)		(263,474	)
Total stockholders’ equity (deficit)	139,411			(59,979	)
Total liabilities and stockholders’ equity (deficit)	268,591		$	48,468

All values are in US Dollars.

Porch Group, Inc.

Consolidated Statements of Cash Flows

(In thousands)

	2020			2019
Cash flows from operating activities:
Net loss	$	(51,609	)	$	(103,319	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		6,644			7,377
Loss on sale and impairment of long-lived assets		895			1,088
Loss (gain) on extinguishment of debt		(5,748	)		483
Loss on remeasurement of debt		895			6,159
Loss (gain) on divestiture of businesses		(1,442	)		4,994
Loss on remeasurement of warrants		2,584			2,090
Loss (gain) on remeasurement of contingent consideration		1,700			(300	)
Stock-based compensation		11,409			35,972
Warrants issued for services		—			315
Interest expense (non-cash)		7,488			2,369
Deferred taxes		(30	)		29
Other		(200	)		236
Change in operating assets and liabilities, net of acquisitions and divestitures
Accounts receivable		16			(1,840	)
Prepaid expenses and other current assets		(2,398	)		603
Long-term insurance commissions receivable		(3,365	)		—
Accounts payable		3,793			2,361
Accrued expenses and other current liabilities		(15,860	)		7,704
Deferred revenue		1,868			(803	)
Refundable customer deposits		(3,521	)		6,122
Other		(1,788	)		(978	)
Net cash used in operating activities		(48,669	)		(29,335	)
Cash flows from investing activities:
Purchases of property and equipment		(279	)		(477	)
Capitalized internal use software development costs		(2,601	)		(4,096	)
Divestiture of businesses, net of cash disposed		—			(750	)
Acquisitions, net of cash acquired		(7,791	)		116
Net cash used in investing activities		(10,671	)		(5,208	)
Cash flows from financing activities:
Proceeds from recapitalization and PIPE financing		305,133			—
Distribution to stockholders		(30,000	)		—
Transaction costs - recapitalization		(5,652	)		—
Proceeds from debt issuance, net of fees		66,190			31,300
Repayments of principal and related fees		(81,640	)		(202	)
Proceeds from issuance of redeemable convertible preferred stock, net of fees		4,714			3,274
Repurchase of stock		(42	)		—
Proceeds from exercises of stock options and warrants		911			114
Net cash provided by financing activities		259,614			34,486
Change in cash, cash equivalents, and restricted cash	$	200,274		$	(57	)
Cash, cash equivalents, and restricted cash, beginning of period	$	7,179		$	7,236
Cash, cash equivalents, and restricted cash end of period	$	207,453		$	7,179

Exhibit 99.2

Copyright 2021 Porch Group, Inc. All rights reserved 2 DISCLAIMERS 2 Forward - Looking Statements Certain statements in this presentation may be considered “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 generally relate to future events or Porch Group, Inc . ’s (“Porch”) future financial or operating performance . For example, projections of future revenue, contribution margin, Adjusted EBITDA and other metrics, business strategy and plans, and anticipated impacts from pending or completed acquisitions, are forward - looking statements . In some cases, you can identify forward - looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology . Such forward - looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements . These forward - looking statements are based upon estimates and assumptions that, while considered reasonable by Porch and its management, are inherently uncertain . Factors that may cause actual results to differ materially from current expectations include, but are not limited to : ( 1 ) the ability to recognize the anticipated benefits of Porch’s December 2020 business combination (the “Merger”) with PropTech Acquisition Corporation (“PropTech”), which may be affected by, among other things, competition and the ability of the combined company to grow and manage growth profitably, maintain key commercial relationships and retain its management and key employees ; ( 2 ) expansion plans and opportunities, including future and pending acquisitions or additional business combinations ; ( 3 ) costs related to the Merger and being a public company ; ( 4 ) litigation, complaints, and/or adverse publicity ; ( 5 ) the impact of changes in consumer spending patterns, consumer preferences, local, regional and national economic conditions, crime, weather, demographic trends and employee availability ; ( 6 ) privacy and data protection laws, privacy or data breaches, or the loss of data ; ( 7 ) the impact of the COVID - 19 pandemic and its effect on the business and financial conditions of Porch ; and ( 8 ) other risks and uncertainties described in our filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www . sec . gov . Nothing in this presentation should be regarded as a representation by any person that the forward - looking statements set forth herein will be achieved or that any of the contemplated results of such forward - looking statements will be achieved . You should not place undue reliance on forward - looking statements, which speak only as of the date they are made . Porch does not undertake any duty to update these forward - looking statements, except as may be required by law . 2020 Financial Information ; Non - GAAP Financial Measures Some of the financial information and data contained in this presentation, such as Adjusted EBITDA, Adjusted EBITDA Margin, Contribution Margin, and Gross Written Premium have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”) . Porch defines Adjusted EBITDA as net income (loss) plus interest expense, net, income tax expense (benefit), other expense, net, and depreciation and amortization, certain non - cash long - lived asset impairment charges, stock - based compensation expense and acquisition - related impacts, including compensation to the sellers that requires future service, amortization of intangible assets, gains (losses) recognized on changes in the value of contingent consideration arrangements, if any, gain or loss on divestures and certain transaction costs . Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenue . Contribution Margin is defined as revenue less all variable expenses, including cost of revenue, marketing and sales . Gross Written Premium represents the total dollars of insurance premium sales based on date of contract execution . Porch is not providing reconciliations of expected Adjusted EBITDA, Adjusted EBITDA Margin, Contribution Margin, or Gross Written Premium for future periods to the most directly comparable measures prepared in accordance with GAAP because Porch 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 our control . Porch uses these non - GAAP measures to compare Porch’s performance to that of prior periods for budgeting and planning purposes . Porch believes these non - GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Porch’s results of operations . Porch believes that the use of these non - GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing Porch’s financial measures with other similar companies, many of which present similar non - GAAP financial measures to investors . Porch's method of determining these non - GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and Porch does not recommend the sole use of these non - GAAP measures to assess its financial performance . Porch management does not consider these non - GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP . The principal limitation of these non - GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Porch’s financial statements . In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non - GAAP financial measures . In order to compensate for these limitations, management presents non - GAAP financial measures in connection with GAAP results . Other companies may calculate Adjusted EBITDA, Adjusted EBITDA Margin, Contribution Margin, Gross Written Premium and other non - GAAP measures differently, and therefore Porch’s Adjusted EBITDA, Adjusted EBITDA Margin, Contribution Margin, Gross Written Premium and other non - GAAP measures may not be directly comparable to similarly titled measures of other companies . Use of Projections This presentation contains financial forecasts of Porch, namely Porch’s projected revenue, Contribution Margin, Adjusted EBITDA, Adjusted EBITDA Margin, and Gross Written Premium for 2021 . Porch’s independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation, and accordingly, did not express an opinion or provide any other form of assurance with respect thereto for the purpose of this presentation . These projections should not be relied upon as being necessarily indicative of future results . The projected financial information contained in this presentation constitutes forward - looking information . The assumptions and estimates underlying such projected financial information are inherently uncertain and are subject to a wide variety of significant business, economic, competitive and other risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information . See “Forward - Looking Statements” above . Actual results may differ materially from the results contemplated by the projected financial information contained in this presentation, and the inclusion of such information in this presentation should not be regarded as a representation by any person that the results reflected in such projections will be achieved .

Copyright 2021 Porch Group, Inc. All rights reserved Presenters Matt Ehrlichman CEO & Founder, Porch Group matt@porchgroup.com www.porchgroup.com Marty Heimbigner CFO, Porch Group marty@porchgroup.com Matthew Neagle COO, Porch Group maneagle@porchgroup.com 3

Copyright 2021 Porch Group, Inc. All rights reserved Software & Services for Companies Access to Consumers Deliver Services Porch has a unique strategy in the home services industry. 1. Porch provides software and services to home services companies such as home inspection and moving and helps these companies grow . 2. Through these companies, Porch gains early access to homebuyers and helps save time, stress, and money during the move . 3. Porch generates B2B2C transactional revenues by facilitating the purchase of key services such as insurance. Porch, the Vertical Software Platform for the Home 4

Copyright 2021 Porch Group, Inc. All rights reserved 6 Key Focus Areas for 2021 1. Increase number of companies using our vertical software 2. Increase access to consumers from software companies 3. Increase B2B2C transaction revenue per consumer 4. Continue to scale our InsurTech business 5. Help brands and advertisers improve their mover marketing 6. Pursue strategic and accretive M&A opportunities 5

Copyright 2021 Porch Group, Inc. All rights reserved 7 Q4 2020 and FY 2020 Results Ahead of Guidance Q4 2020 Q4 2020 Q4 2019 PF Q4 2019 Revenue $19.5M $14.5M $18.3M YoY Growth PF 34% Adj EBITDA % - 17% - 56% - 51% Adj EBITDA $ $ - 3.2M - $8.1M - $9.2M Full Year 2020 Actual Guidance Revenue $73.2M $ 72M YoY Revenue Growth 28% 26% Adj EBITDA % - 24% - 25% Adj EBITDA $ $ - 17.5M $ - 18M to - $19M (1) PF stands for Pro Forma to account for the removal of financial results related to past divested businesses. (2) Reconciliation to non - GAAP measures are available in the Appendix of the presentation. (1) (2)

Copyright 2021 Porch Group, Inc. All rights reserved 8 Balance Sheet Expected Cash post - warrants and HOA: ~$230M • $159M from assumed cash exercise of all warrants • $80M in cash purchase price to HOA in Q2 Total Long - Term Debt: $40M Capital Structure • Total shares outstanding as of Dec 31, 2020: ~81.7M • Warrants (assuming all cash exercised): + ~14.3M • HOA acquisition shares + ~1M Total Shares Outstanding PF: ~97M In addition to the above, when team RSUs vest or team options both vest and are exercised, it will be added to total shares outstanding above. This relates to pre - SPAC Porch options and RSUs which rolled over and the ~11M share MIP pool from the SPAC merger agreement, some of which will be granted soon with long - term vesting and some of which may be granted in future years. (1) Of the 81.7M shares outstanding as of March 17, 4 million shares are still restricted by the earnout provisions. (2) The $159M total cash raised and 14.3M share dilution related to warrants assumes that all public and private warrants are exe rci sed for $11.50 per share. Fewer than all the outstanding public and private warrants may be exercised, lowering the cash raised and the dilution correspondingly. (3) Porch currently assumes that it will complete the Homeowners of America acquisition with $80M in cash and approximately $20M in equity, rather than the option of $100M in cash with no equity. This transaction is subject to customary closing conditions and regulatory approval and closing is expected in Q2. Cash position is strong, with primary use expected for M&A (1) (2) (3) (2) (3)

Copyright 2021 Porch Group, Inc. All rights reserved 10 KPIs – Software & Services to Companies (1) Porch management defines average companies in a quarter as the number of home services companies across all of Porch’s home s erv ices verticals that ( i ) had reoccurring revenue contracts with us and (ii) generated revenue each month, averaged across a quarterly period. (2) Average revenue per account per month in quarter is defined as the average revenue per month generated across all Porch home ser vices company customer accounts in a quarterly period. Q1 Q2 Q3 Q4 (1) (2)

Copyright 2021 Porch Group, Inc. All rights reserved 11 KPIs – Reoccurring B2B2C Services for Consumers (1) Monetized services per quarter is defined as the total number of unique services from which Porch generated revenue, includin g, but not limited to, new insurance customers, completed moving jobs, security installations, TV/internet installations or other home projects, measured over a quarterly period. (2) Average revenue per monetized services in quarter is defined as average revenue generated per monetized service performed in a q uarterly period. Q1 Q2 Q3 Q4 (1) (2)

Copyright 2021 Porch Group, Inc. All rights reserved 13 Revenue Growth in Q1 2021 Expected to be approximately 85% YoY * PF stands for Pro Forma and is defined as excluding divestitures that occurred during 2019 and the first half of 2020, afte r g iving effect to all such divestitures as if they had occurred on January 1, 2018. Q1 2021 does not include HOA (expected to close in Q2) and is the hardest 2020 comp (pre - COVID)

Copyright 2021 Porch Group, Inc. All rights reserved 14 With M&A for full Q1 2021, Revenue Growth expected to be ~170% YoY Assuming HOA and the other Q1 acquisitions had closed Jan 1, 2021, Q1 2021 estimated at ~$34M in revenue Incremental growth with full quarter of HOA, V12, and other M&A * PF stands for Pro Forma and is defined as excluding divestitures that occurred during 2019 and the first half of 2020, afte r g iving effect to all such divestitures as if they had occurred on January 1, 2018. 2021 Q1 Expected Revenue assumes a full quarter of revenue from HOA, V12, and other announced acquisitions in Q1 2021.

Copyright 2021 Porch Group, Inc. All rights reserved Note: Numbers noted as PF are Pro Forma results which exclude the financial results of certain Porch businesses divested duri ng 2019 and the first half of 2020, after giving effect to all such divestitures as if they had occurred on January 1, 2018. (1) Based on internal estimates, Porch believes without the COVID - 19 pandemic, it would have been estimating $85M in revenue for the 2020 year. Had this occurred, 2020 and 2021E revenue growth would have been 49% and 106%, respectively. (2) B2B includes recurring fees paid by Companies to Porch for SaaS and other services. (3) B2B2C (Moving Services) includes revenue predominantly related to selling consumers insurance, moving, security and TV/intern et with the vast majority of these consumers being provided to Porch on a reoccurring basis by companies. (4) B2B2C and B2C (Post - Move Services) includes revenue predominantly related to connecting consumers with contractors across home m aintenance and improvement projects with these consumers originating from both 1) companies on a reoccurring basis, and 2) di rec t - to - consumer channels. 16 2021E Revenue: 140% Growth; 90% Recurring or Reoccurring (2) (3) (4)

Copyright 2021 Porch Group, Inc. All rights reserved Reiterating 2021 Contribution Margin % and Adj EBITDA % Guidance 17 Contribution Margin: Includes all variable expenses and is approaching long - term 50% targets. Adj EBITDA %: Each year we expect to demonstrate a meaningful improvement in Adjusted EBITDA margin, showing consistent progress toward our long - term target of 25%. 2018PF 2019PF 2020 2021E Long - Term (targeted) Contribution Margin 7% 19% 31% 40% 50% Adj. EBITDA Margin - 79% - 57% - 24% - 10% to - 16% 25% (1) Contribution Margin is defined as revenue less all variable expenses, including cost of revenue, marketing and sales. Reconci lia tion to non - GAAP measures are available in the Appendix of the presentation. (2) PF are pro forma results which exclude the financial results of certain Porch businesses divested during 2019 and the first h alf of 2020, after giving effect to all such divestitures as if they had occurred on January 1, 2018. (1) (2) (2)

Copyright 2021 Porch Group, Inc. All rights reserved Summary: Porch expected to grow 140% YoY in 2021 x Q4 2020: better than expected on top and bottom line (FY 2020: $73M, - 24% Adj EBITDA) x 2021 Revenue: expected increase from $73M (2020) to $175M (2021E), ~140% YoY growth x 2021 R evenue : ~90% either B2B SaaS or B2B2C Recurring/Reoccurring Transactions x Q1 2021: Showing accelerated growth (~85% YoY vs 2020 PF) x Adjusted EBITDA Loss: targeted to improve from - 2 4 % (2020) to - 10 to - 16% (2021) 18

Copyright 2021 Porch Group, Inc. All rights reserved Net Income to Adj EBITDA non - GAAP Reconciliation 22 Q4 2020 Q4 2019 Net loss $ (18,060) $ (20,480) $ (51,609) $ (103,319) Interest expense 5,311 6,851 14,734 7,134 Income tax (benefit) expense (1,691) 82 (1,691) 96 Depreciation and amortization 1,623 1,992 6,644 7,377 Other expense, net (4,670) 483 (2,791) 7,966 Non-cash long-lived asset impairment charge 71 1,028 611 1,534 Non-cash stock-based compensation 9,864 359 11,103 34,855 Revaluation of contingent consideration 200 (300) 1,700 (300) Acquisition and related (income) expense 805 697 1,862 7,821 Gain on divestiture of a business — — (1,442) SPAC transaction bonus 3,350 — 3,350 — Adjusted EBITDA (loss) $ (3,197) $ (9,288) $ (17,529) $ (36,836) Adjusted EBITDA (loss) from Divested business — (1,176) — (4,807) Pro forma Adjusted EBITDA (loss) $ (3,197) (8,112) $ (17,529) (32,029) FY 2020 FY 2019 (1) Pro forma results exclude the financial results of certain Porch businesses divested during 2019 and the first half of 2020, aft er giving effect to all such divestitures as if they had occurred on January 1, 2018. (1)

Copyright 2021 Porch Group, Inc. All rights reserved Revenue $ 73,216 $ 77,595 Cost of Revenue 17,562 21,500 Revenue- Cost of Revenue 55,654 56,095 Variable Selling & Marketing and Advertising 32,661 43,942 Contribution Margin $ 22,993 $ 12,153 Contribution Margin % of revenue 31% 16% Pro forma Contribution Margin 19% FY 2020 FY 2019 Revenue to Contribution Margin non - GAAP Reconciliation 23 (1) Contribution Margin is defined as revenue less all variable expenses, including cost of revenue, marketing and sales. (2) Pro forma results exclude the financial results of certain Porch businesses divested during 2019 and the first half of 2020, aft er giving effect to all such divestitures as if they had occurred on January 1, 2018. (1) (2)

Copyright 2021 Porch Group, Inc. All rights reserved $73M ~$500M ~$1.5B - $200 $400 $600 $800 $1000 $1200 $1400 $1600 2020E Revenue Core Business Growth Potential Core Business Revenue Potential in 5 - 7 Years Mover Marketing Insurance Expansion New Home Service Verticals Upside Potential ~$200M ~$400M ~$400M Porch Has The Potential to Grow Revenues ~20x 25 New Vertical Expansion: ~$400M potential revenue opportunity • Enter new home service industries via M&A and organically. 30 - 35% CAGR Insurance Expansion: ~$400M potential revenue opportunity • Expand from an insurance agency to a Managing General Agent (MGA) / carrier. Mover Marketing: ~$200M potential revenue opportunity • Data monetization by shifting mover marketing spend by brands from change of address to 6 weeks prior with Porch. 3 2 1 1 2 3 (1) (1) Represents Porch management approximate estimates of potential future revenue growth opportunities and does not constitute Po rch management financial projections or guidance and should not be regarded or relied on as such.

Copyright 2021 Porch Group, Inc. All rights reserved 26 Contractor Services: ~$ 141 B (3) (referral, managed services gross profit) Contractor Services Moving Services Mover Marketing Moving Services: ~ $4B (1) (moving, security, TV/internet) Porch has a U.S. Total Addressable Market of ~$320B The Home is one of the largest market opportunities Other Opportunities Mover Marketing: ~ $8 B ( 4) (1) Moving Services: TAM of $4B is comprised of Security, Moving, and TV / Internet installs. Security TAM of $1.3B estimated ba sed on $220 net commission per security install multiplied by 6M home sales per year. Moving TAM of $1.9B based on $314 net commission per move multiplied by 6M moves per year. TV / Internet Installs TAM of $684M based on $114 net commission per install multiplied by 6M installs per year. (2) Insurance: $167B TAM based on U.S. home insurance annual revenues of $104B plus U.S. auto insurance annual revenues of $313B mu ltiplied by a 20% broker commission (source: IBIS 2019 full year data). Umbrella and flood are incremental. (3) Contractor Services: TAM of $141B is composed of Managed Services and Referral Services . Managed services TAM of $104B based on home services spend of $460B (source: GM Insights 2018 full year data) with 50% of projects managed at a 45% gross margin. Referral services TAM of $35B based on home services spend of $470B with 50% referral projects at a 15% referral fee. (4) Mover Marketing: 6M homebuyers annually with $9K average spend during first 3 - 6 months (Epsilon 2012 New Mover Report). Of this $54B in spend, management estimates that 15% will be spent on marketing to these consumers based on what it has observed in t he industries it serves. Other Opportunities in “Home” (more SaaS verticals, h ome care subscription) Insurance P&C Insurance: ~ $167B (2) (home, auto, umbrella, flood)

Copyright 2021 Porch Group, Inc. All rights reserved 27 Previous 2021 Revenue Guidance Provided in mid - January 2021 Previous Guidance: 66% YoY Growth $72M+ $120M $170M $48M $44M ($14M) $20M ‘20E Revenue YoY Growth Prev ‘21 Guide +HOA Estimated Revenue - HOA Q1 Rev & EIG commissions +V12 Estimated Revenue 2021 Revenue Guidance 2021 Revenue Guidance: 134% YoY Growth