Porch acquires $ 35 million; shuffles the board; revenue increased by 200%; the loss is growing; PPP loan forgiven

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Matt Ehrlichman, founder and CEO of Porch. (Photo by Porch Group)

Seattle-based home technology company. Porch Group increased it second quarter revenue by 200% to $ 51.3 million, which exceeded analysts’ expectations.

Its quarterly net loss increased to $ 16.3 million from a loss of $ 6.3 million a year earlier.

New acquisition: Porch announced the acquisition of the title software company Rynoh, Virginia Beach, Virginia, whose technology is used by the title agents. Porch buys Rynoh for $ 35 million. At the close of the deal, he paid $ 31.5 million in cash. The remaining $ 3.5 million is due in April 2023.

This is last in a line of deals designed to expand Porch’s presence in different regions and consumer services sectors. Other offers this year include acquisition of Irving, a Texas-based insurance company Homeowners of America for $ 100 million in cash and stock, expanding Porch’s presence in the insurance technology market.

Board changes: Also Monday on the porch appointed two new board members:

  • Rachel Lam, co-founder and managing partner of Imagination Capital and former managing director of Time Warner Investments Group.
  • Maurice Talloch, former CEO of the Aviva plc group, a London-based multinational insurance company.
The new Porch board members are Rachel Lam and Maurice Tulloch. (Photo by LinkedIn)

Following these appointments, Porch said directors Thomas Hennessy and Margaret Whelan are leaving the board of directors. Both served on the board of directors of PropTech Acquisition Corporation, the specialized acquisition company (SPAC) that Porch merged with last year and became publicly traded.

Business Prospects: Porch raised its full-year revenue forecast from $ 178 million to $ 184 million, representing 155% annual revenue growth.

“We are at the very beginning of creating this unique company with a unique strategy,” Porch CEO Matt Ehrlichman said in an interview on Monday. “Business is going well.”

Porch provides enterprise software to home service companies in areas such as home inspection, relocation, real estate and insurance. Companies can pay recurring fees to use the software, or can use the software for free if they agree to give Porch access to homebuyer information.

Porch says it is using this information as a strategic advantage by offering concierge services to its customers at a time when they make important purchasing decisions. Porch connects home buyers with carriers, insurance companies, TV / Internet companies and others and charges transaction fees on sales that it facilitates.

In its profit and loss statement released Monday, Porch said the average number of companies using its software increased to 17,120 in the second quarter, up 63% from last year. Rynoh contributed 1,099 companies to this amount. Porch said average revenue per company per month increased to $ 999.70, up 80% from last year.

Porch Group shares rose about 3% to 18.70 a share after Monday’s close of trading on the Nasdaq.

PPP loan: IN its a quarterly submission on monday Along with the Securities and Exchange Commission, Porch announced that it received a full pardon for a $ 8.1 million loan for the Payroll Protection Program from the US Small Business Administration in June. Porch received the loan in April 2020.

In December, Porch became a publicly traded company, raising $ 322 million through the merger of PropTech and the private equity investment of Wellington Management Company.

Some Seattle-based companies such as Rover, Bardy Diagnostics, ExtraHop and Amperity, decided to pay off their PPP loans after going public, purchasing or receiving new investments.

In its income statement on Monday, Porch transferred $ 152.4 million in cash, cash equivalents and limited cash as of June 30. That figure was $ 207.5 million as of December 30.



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