Home services software firm Porch's Q3 revenue beats estimates, driven by insurance segment

Reuters11-06
Home services software firm Porch's Q3 revenue beats estimates, driven by insurance segment

Overview

  • Porch Group Q3 revenue of $115.1 mln beats analyst expectations

  • Adjusted EBITDA for Q3 beats consensus, reaching $20.6 mln

  • Company raises gross profit and adjusted EBITDA guidance, driven by insurance services

Outlook

  • Porch Group raises full-year revenue guidance to $410 mln-$420 mln, from prior outlook of $405 mln to $425 mln

  • Company expects full-year Adjusted EBITDA of $70 mln

  • Porch prioritizes Reciprocal surplus generation to scale premiums in 2026

Result Drivers

  • INSURANCE SERVICES - Strong quoting activity and agency appointments drove results in Insurance Services

  • SOFTWARE & DATA INNOVATION - Continued introduction of new Home Factors in Software & Data segment

  • CONSUMER SERVICES PARTNERSHIPS - Partnership efforts progressed well, with lower warranty claims

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$115.10 mln

$111.16 mln (7 Analysts)

Q3 Net Income

-$10.90 mln

Q3 Adjusted EBITDA

Beat

$20.60 mln

$16.68 mln (8 Analysts)

Q3 Cash & Investments

$132.10 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Porch Group Inc is $20.50, about 28.7% above its November 4 closing price of $14.61

  • The stock recently traded at 95 times the next 12-month earnings vs. a P/E of 139 three months ago

Press Release: ID:nBw4rC9GQa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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