EX-99.1 2 tm2132917d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

Porch Group Reports Third Quarter 2021 Financial Results

 

- Reports $62.8 Million of Revenue and Increases Full Year 2021 Revenue Guidance to $195 Million, A 170% Year-Over-Year Increase -

 

- Reports Positive Quarterly Adjusted EBITDA of $873 Thousand and GAAP Net Loss of $5.1 Million -

 

- Reports $416 Million Cash Balance After Execution of Convertible Senior Notes Offering -

 

SEATTLE, November 15, 2021 – Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a leading vertical software company reinventing the home services industry, today reported financial results for the third quarter ended September 30, 2021.

 

“Our operational and strategic execution resulted in excellent third quarter financial results, highlighted by almost 200% year-over-year revenue growth and positive quarterly adjusted EBITDA for the first time in Porch’s history as a public company,” said Matt Ehrlichman, Founder, Chairman and CEO. “Bolstered by our balance sheet and cash position, we continue to demonstrate our ability to drive simultaneous strong growth and margins, while strengthening our strategically advantaged position in the marketplace, both organically and through acquisitions. Our strong Q3 and ongoing performance gives us confidence to increase our full year 2021 revenue guidance to $195 million which would be 170% growth year-over-year. I’m proud of our team’s hard work that has positioned us favorably for the remainder of the year and into 2022 to deliver for our shareholders and other key stakeholders. We’re continuing to take Porch to the next level as a truly great and enduring company.”

 

Third Quarter 2021 Financial Results

 

Total revenue for the third quarter of 2021 was $62.8 million, an increase of 192% from $21.5 million in the third quarter of 2020. The increase in total revenue was driven by strong performance across the business including increased software sales to more companies and growth in sales of key services such as insurance as well as closed acquisitions.

 

Revenue less cost of revenue for the third quarter 2021 was 69% and contribution margin was 45%. GAAP net loss for the third quarter of 2021 totaled $5.1 million. Adjusted EBITDA for the third quarter of 2021 totaled $873 thousand (or 1% of total revenue).

 

For the first time, the company is reporting financials with two reportable operating segments: Vertical Software and Insurance.

 

Segment Results for the Third Quarter 2021

 

·Vertical Software revenue was $42.3 million, revenue less cost of revenue was 66%, contribution margin was 42% and adjusted EBITDA margin was 18%
·Insurance revenue was $20.5 million, revenue less cost of revenue was 77%, contribution margin was 54% and adjusted EBITDA margin was 27%
·Insurance gross written premium was $108 million with 292,000 policyholders

 

In the third quarter, we announced and closed an offering of $425 million aggregate principal amount of convertible senior notes due 2026. As of September 30, 2021, cash, cash equivalents, and restricted cash totaled $416 million. This amount is measured prior to the October acquisition of Floify, a provider of software for mortgage companies.

 

 

 

 

 

Third Quarter 2021 Key Performance Indicators (KPIs)

 

Software and services to companies:

 

·Average number of companies increased to 20,472, up 90% year-over-year.
·Average revenue per company per month increased to $1,022, up 54% year-over-year.

 

Monetized services for consumers:

 

·Number of monetized services was 329,359 in Q3 2021, up 66% year-over-year.
·Average revenue per monetized service was $144, up 48% year-over-year.

 

Recent Strategic Acquisitions

 

On September 9, 2021, Porch announced two strategic acquisitions – CSE Insurance (CSE) and American Home Protect (AHP) – to help the Company further provide high value services to homebuyers across the United States. CSE is expected to close mid-2022 (following regulatory approval) and will advance Porch’s insurance presence into California. AHP closed in September. Porch is now competing through AHP in the direct-to-consumer home warranty market. Porch will provide both of the acquired companies with unique advantages and revenue synergy opportunities, including low-cost access to homebuyers who require these services, and proprietary property data that may improve pricing and underwriting.

 

CSE Business Overview

 

·Personal lines insurer focused on property and auto
·71-year history and management team with significant home and auto experience in California
·CSE operates in six states, including its primary focus of California, as well as Arizona, Nevada and Utah. It is licensed in an additional six states

 

AHP Business Overview

 

·Texas-based provider of whole home warranty policies across the United States
·Utilizes a direct-to-consumer model to acquire customers for their multi-year warranty plans

 

On October 27, Porch announced the acquisition of Floify, a leading SaaS provider for mortgage companies and loan officers. The acquisition deepens Porch’s strategy of providing software to companies involved in key moments of the homebuying process and expands its early access to high-intent homebuyers who need key services including insurance, warranty and moving services.

 

Full Year 2021 Financial Outlook

 

Porch provides guidance based on current market conditions and expectations.

 

Previous 2021E Guidance   Current 2021E Guidance

Gross Written Premium

$300M

 Increase

Gross Written Premium

$305M

Revenue

$187.5M

 Increase

Revenue

$195M

(170% YOY Growth)

Revenue Less Cost of Revenue %

~72%

 Adj. for mix shift

Revenue Less Cost of Revenue %

~70%

Contribution Margin %

~40%

 No Change

Contribution Margin %

~40%

Adj. EBITDA %

-14 to -16%

 No Change

Adj. EBITDA %

-14 to -16%

 

 

 

 

 

Porch is not providing reconciliations of expected 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 as certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of Porch’s control.

 

Conference Call

 

Porch management will host a conference call today (November 15, 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 One tap mobile:

U.S.: +14086380968,,85153860010# or +16699006833,,85153860010#

 

Or join by phone:

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

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

 

Webinar ID: 851 5386 0010

 

International numbers available here.

 

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 Investors 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 20,000 home services companies such as home inspectors, mortgage companies and loan officers, title companies, 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, warranty, moving, security, TV/internet, home repair and improvement, and more. To learn more about Porch, visit porchgroup.com or porch.com.

 

 

 

 

 

Forward-Looking Statements

 

Certain statements in this release 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’s 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 at the time they are made, 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 recently completed acquisitions as well as 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 Porch’s most recent annual report on Form 10-K/A and subsequent reports filed with the Securities and Exchange Commission (the “SEC”), such as Porch’s quarterly report on Form 10-Q for the quarter ended June 30, 2021, and September 30, 2021, which are available on the SEC’s website at www.sec.gov.

 

Nothing in this release 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 of this release. Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this release. Porch does not undertake any duty to update these forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law.

 

Non-GAAP Financial Measures

 

This press release includes one or more non-GAAP financial measures, such as Adjusted EBITDA (loss), Adjusted EBITDA (loss) as a percentage of revenue, contribution margin, and average revenue per monetized service.

 

 

 

 

 

 

Porch defines Adjusted EBITDA (loss) as net income (loss) adjusted for interest expense, net, income taxes, other expenses, net, 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 (loss) as a percentage of revenue is defined as Adjusted EBITDA (loss) divided by GAAP total revenue. Contribution margin is defined as revenue less all variable expenses, including cost of revenue, variable marketing and sales. Average revenue per monetized services in quarter is the average revenue generated per monetized service performed in a quarterly period. When calculating average revenue per monetized service in quarter, average revenue is defined as total quarterly monetized service revenues generated from monetized services.

  

Porch’s management and Board of Directors use these non-GAAP financial measures as supplemental measures of Porch’s operating and financial performance for historical and forward-looking periods, for internal budgeting and forecasting purposes, to evaluate financial and strategic planning matters, and for certain measures, to establish performance goals for incentive programs. Porch believes that the use of these non-GAAP financial measures provides investors with useful information to evaluate projected operating results and trends and in comparing Porch’s financial measures with competitors, other similar companies and companies across different industries, many of which present similar non-GAAP financial measures to investors. However, Porch's definitions and methodology in calculating these non-GAAP measures may not be comparable to those used by other companies. In addition, Porch may modify the presentation of these non-GAAP financial measures in the future, and any such modification may be material.

 

You should not consider these non-GAAP financial measures in isolation, as a substitute to or superior to financial performance measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude specified income and expenses, some of which may be significant or material, that are required by GAAP to be recorded in Porch’s consolidated financial statements. Porch may also incur future income or expenses similar to those excluded from these non-GAAP financial measures, and Porch’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures reflect the exercise of management judgment about which income and expense are included or excluded in determining these non-GAAP financial measures.

 

You should review the tables accompanying this press release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure. Porch is not providing reconciliations of non-GAAP financial measures for future periods to the most directly comparable measures prepared in accordance with GAAP. 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 Porch’s control.

 

 

 

 

Adjusted EBITDA (loss) For Three Months Ended September 30, 2021

 

    CORPORATE    INSURANCE    VERTICAL
SOFTWARE 		   Consolidated  
Adjusted EBITDA (loss)  $(12,312)  $5,473    $7,713    $ 873  
Adjusted EBITDA as a % of total revenue    N/A      27 %    18 %    1 %
Acquisition and related (income) expense)   1,958      -     -     1,958 
Loss on re-measurement of warrants   (2,692)   -    -    (2,692)
Loss on re-measurement of earnout liability   (7,413)   -    -    (7,413)
Revaluation of contingent consideration   195    -    -    195 
Non-cash bonus expense   695    -    -    695 
Non-cash stock-based compensation   5,172    156    555    5,884 
Non-cash long-lived asset impairment charge   76    -    -    76 
Other, net   (40)   (187)   (89)   (315)
Investment Income and Realized Gains   -    -    -    - 
Gain (loss) on extinguishment of debt   3,133    -    -    3,133 
Depreciation and amortization   727    1,262    2,442    4,430 
Income tax expense   354    (1,838)   (353)   (1,836)
Interest expense   1,148    31    679    1,857 
  Net Loss  $(15,627)  $6,049   $4,479   $(5,099)

 

Adjusted EBITDA (loss) For Nine Months Ended September 30, 2021

 

    CORPORATE    INSURANCE    VERTICAL
SOFTWARE 		   Consolidated  
Adjusted EBITDA (loss)  $(40,754)  $3,068   $19,040   $ (18,646)
Adjusted EBITDA as a % of total revenue    N/A     8 %    19 %    -13 %
Acquisition and related (income) expense   4,648      -     -     4,648 
Loss on re-measurement of warrants   17,521         -    17,521 
Loss on re-measurement of earnout liability   15,388    -    -    15,388 
Revaluation of contingent consideration   (380)   -    -    (380)
Non-cash bonus expense   1,378    -    -    1,378 
Non-cash stock-based compensation   26,579    476    2,195    29,249 
Non-cash long-lived asset impairment charge   202    -    14    216 
Other, net   (43)   (0)   (181)   (225)
Investment Income and Realized Gains   -    -    (0)   (0)
Gain (loss) on extinguishment of debt   (5,099)   -    (11)   (5,110)
Depreciation and amortization   2,318    2,431    6,038    10,788 
Income tax expense   (7,003)   (2,566)   (348)   (9,917)
Interest expense   3,391    64    842    4,296 
  Net Loss  $(99,653)  $2,664   $10,492   $(86,497)

  

Monetized Services Revenue

  

   Three and Nine Months Ended September 30, 2021 
   2021   2021 
Monetized Services Revenue  $47,398   $103,311 
Other Operating Revenue  $15,371    37,541 
Total Revenue  $62,769    140,852 

 

 

 

 

 

 

Revenue Less Cost of Revenue and Contribution Margin Reconciliation for Three Months Ended September 30, 2021

 

   CORPORATE   INSURANCE   VERTICAL
SOFTWARE		   Consolidated 
Revenue  $-   $20,482   $42.287   $62,769 
Cost of Revenue  $-   $4,678   $14,480   $19,158 
Revenue Less Cost of Revenue  $-   $15,804   $27,808   $43,611 
    N/A    77%   66%   69%
                     
Revenue  $-   $20,482   $42,287   $62,769 
Cost of Revenue  $-   $4,768   $14,480   $19,158 
Sales & Marketing (Variable)  $800   $4,834   $10,039   $15,673 
Contribution Margin  $(800)  $10,969   $17,769   $27,939 
    N/A    54%   42%   45%
                     
                     
Sales & Marketing (Fixed)  $940   $1,663   $3,266   $5,869 
Product & Technology  $5,882   $429   $5,006   $11,317 
General & Administrative  $13,514   $4,875   $4,782   $23,170 
Total Operating Expenses  $21,135   $16,479   $37,572   $75,186 
Operating Loss  $(21,135)  $4,003   $4,716   $(12,417)
                     

 

Revenue Less Cost of Revenue and Contribution Margin Reconciliation for Nine Months Ended September 30, 2021

 

   CORPORATE   INSURANCE   VERTICAL
SOFTWARE		   Consolidated 
Revenue  $-   $39,223   $101,629   $140,852 
Cost of Revenue  $-   $15,408   $29,179   $44,587 
Revenue Less Cost of Revenue  $-   $23,815   $72,450   $96,265 
    N/A    61%   71%   68%
                     
Revenue  $-   $39,223   $101,629   $140,852 
Cost of Revenue  $-   $15,408   $29,179   $44,587 
Sales & Marketing (Variable)  $4,602   $8,794   $28,047   $41,443 
Contribution Margin  $(4,602)  $15,021   $44,404   $54,882 
    N/A    38%   44%   39%
                     
                     
Sales & Marketing (Fixed)  $3,625   $6,490   $9,079   $19,193 
Product & Technology  $20,778   $433   $12,946   $34,158 
General & Administrative  $46,497   $8,366   $11,601   $66,463 
Total Operating Expenses  $75,502   $39,491   $90,851   $205,844 
Operating Loss  $(75,502)  $(268)  $10,778   $(64,992)

 

 

 

 

 

 

Investor Relations Contacts:
Walter Ruddy, Head of Investor Relations & Treasury
Porch Group
(206) 715-2369
WalterRuddy@porch.com

 

Cody Slach/Matt Glover/Alex Thompson

Gateway Group, Inc.

(949) 574-3860

PRCH@gatewayir.com

 

Porch Press contact:
Jordan Schmidt
Gateway Group, Inc.
(949) 386-6332
PRCH@gatewayir.com

 

PORCH GROUP, INC.

Condensed Consolidated Statements of Operations

 

(all numbers in thousands, except share amounts, unaudited)

 

   Three Months Ended September
30,		   Nine Months Ended September
30,		 
   2021   2020   2021   2020 
Revenue  $62,769   $21,507   $140,852   $53,703 
Operating expenses(1):                    
Cost of revenue   19,158    5,361    44,587    13,252 
Selling and marketing   22,874    8,803    60,636    30,443 
Product and technology   11,317    5,701    34,158    18,124 
General and administrative   22,034    5,490    66,463    15,539 
Gain on divestiture of businesses   —    —    —    (1,442)
Total operating expenses   75,383    25,355    205,844    75,916 
Operating loss   (12,614)   (3,848)   (64,992)   (22,213)
Other income (expense):                    
Interest expense   (1,857)   (3,952)   (4,296)   (10,329)
Change in fair value of earnout liability   7,413    —    (15,388)   — 
Change in fair value of private warrant liability   2,692    —    (17,521)   — 
Gain (loss) on extinguishment of debt   (3,133)   (2,532)   5,110    1,077 
Investment income and realized gains, net of investment expenses   248    —    448    — 
Other income (expense), net   316    1,418    225    (2,050)
Total other expense   5,679    (5,066)   (31,422)   (11,302)
Loss before income taxes   (6,935)   (8,914)   (96,414)   (33,515)
Income tax benefit (expense)   1,836    (9)   9,917    (33)
Net loss  $(5,099)  $(8,923)  $(86,497)  $(33,548)
                     
Loss per share - basic  $(0.05)  $(0.25)  $(0.93)  $(0.95)
Loss per share - diluted (Note 13)  $(0.08)  $(0.25)  $(0.93)  $(0.95)
                     
Shares used in computing basic loss per share   96,839,292    35,809,973    92,544,137    35,294,839 
Shares used in computing diluted loss per share   97,545,942    35,809,973    92,544,137    35,294,839 

 

1.Amounts include stock-based compensation expense, as follows:

 

   Three Months Ended September 
30,		   Nine Months Ended September 
30,		 
   2021   2020   2021   2020 
Cost of revenue  $—   $1   $1   $1 
Selling and marketing   1,382    88    4,888    186 
Product and technology   1,367    115    5,522    619 
General and administrative   3,135    303    18,950    735 
   $5,884   $507   $29,361   $1,541 

 

 

 

 

PORCH GROUP, INC.

Condensed Consolidated Balance Sheets

(all numbers in thousands, except share amounts)

 

   September 30,
2021		   December 31,
2020		 
Assets   (unaudited)      
Current assets          
Cash and cash equivalents  $410,217   $196,046 
Accounts receivable, net   33,641    4,268 
Short-term investments   10,142    — 
Reinsurance balance due   246,170    — 
Prepaid expenses and other current assets   8,636    4,080 
Restricted cash   4,614    11,407 
Total current assets   713,420    215,801 
Property, equipment, and software, net   7,656    4,593 
Goodwill   170,427    28,289 
Long-term investments   58,646    — 
Intangible assets, net   91,650    15,961 
Restricted cash, non-current   1,000    — 
Long-term insurance commissions receivable   7,159    3,365 
Other assets   368    378 
Total assets  $1,050,326   $268,387 
           
Liabilities and Stockholders’ Equity          
Current liabilities          
Accounts payable  $5,525   $9,203 
Accrued expenses and other current liabilities   57,274    9,905 
Deferred revenue   190,137    5,208 
Refundable customer deposit   1,509    2,664 
Current portion of long-term debt   107    4,746 
Losses and loss adjustment expense reserves   87,737    — 
Other insurance liabilities, current   34,819    — 
Total current liabilities   377,108    31,726 
Long-term debt   417,976    43,237 
Refundable customer deposit, non-current   —    529 
Earnout liability, at fair value   39,811    50,238 
Private warrant liability, at fair value   17,706    31,534 
Other liabilities (includes $2,849 and $3,549 at fair value, respectively)   5,449    3,798 
Total liabilities   858,050    161,062 
Commitments and contingencies (Note 11)          
Stockholders’ equity          
Common stock, $0.0001 par value:   10    8 
Authorized shares – 400,000,000 and 400,000,000, respectively          
Issued and outstanding shares – 97,332,998 and 81,669,151, respectively          
Additional paid-in capital   596,156    424,823 
Accumulated other comprehensive income   113    — 
Accumulated deficit   (404,003)   (317,506)
Total stockholders’ equity   192,276    107,325 
Total liabilities and stockholders’ equity  $1,050,326   $268,387 

 

 

 

 

 

PORCH GROUP, INC.

Condensed Consolidated Statements of Cash Flows

(all numbers in thousands, unaudited)

 

   Nine Months Ended September 30, 
   2021   2020 
Cash flows from operating activities:          
Net loss  $(86,497)  $(33,548)
Adjustments to reconcile net loss to net cash used in operating activities          
Depreciation and amortization   10,787    5,021 
Loss on sale and impairment of long-lived assets   202    807 
Gain on extinguishment of debt   (5,110)   (1,077)
Loss on remeasurement of debt   —    924 
Gain on divestiture of businesses   —    (1,442)
Loss on remeasurement of warrants   17,521    1,214 
Loss (gain) on remeasurement of contingent consideration   (380)   1,500 
Loss on remeasurement of earnout liability   15,388    — 
Stock-based compensation   29,361    1,541 
Amortization of premium/accretion of discount, net   941    — 
Net realized losses on investments   45    — 
Interest expense (non-cash)   67    4,899 
Other   (1,379)   106 
Change in operating assets and liabilities, net of acquisitions and divestitures          
Accounts receivable   (5,424)   (1,056)
Reinsurance balance due   (33,097)   — 
Prepaid expenses and other current assets   90    208 
Long-term insurance commissions receivable   (3,794)   (1,947)
Accounts payable   (23,284)   3,723 
Accrued expenses and other current liabilities   3,031    1,575 
Losses and loss adjustment expense reserves   1,892    — 
Other insurance liabilities, current   5,085    — 
Deferred revenue   42,948    3,109 
Refundable customer deposits   (2,441)   (2,641)
Deferred income tax benefit   (8,153)   — 
Other   484    69 
Net cash used in operating activities   (41,717)   (17,015)
Cash flows from investing activities:          
Purchases of property and equipment   (588)   (121)
Capitalized internal use software development costs   (2,629)   (2,113)
Purchases of short-term and long-term investments   (19,126)   — 
Maturities, sales of short-term and long-term investments   16,367    — 
Acquisitions, net of cash acquired   (178,681)   (1,618)
Net cash used in investing activities   (184,657)   (3,852)
Cash flows from financing activities:          
Proceeds from debt issuance, net of fees   413,537    61,190 
Repayments of principal and related fees   (42,965)   (42,858)
Proceeds from issuance of redeemable convertible preferred stock, net of fees   —    4,714 
Capped call transactions   (42,330)   — 
Proceeds from exercises of warrants   126,772    — 
Proceeds from exercises of stock options   3,516    76 
Income tax withholdings paid upon vesting of restricted stock units   (23,778)   — 
Deferred offering costs   —    (1,255)
Repurchase of stock   —    (42)
Net cash provided by financing activities   434,752    21,825 
Net change in cash, cash equivalents, and restricted cash  $208,378   $958 
Cash, cash equivalents, and restricted cash, beginning of period  $207,453   $7,179 
Cash, cash equivalents, and restricted cash end of period  $415,831   $8,137 

 

 

 

 

 

PORCH GROUP, INC.

Condensed Consolidated Statements of Cash Flows - Continued

(all numbers in thousands, unaudited)

 

   Nine Months Ended September 30, 
   2021   2020 
Supplemental disclosures          
Cash paid for interest  $2,675   $4,344 
Reduction of earnout liability due to a vesting event  $25,815   $— 
Non-cash consideration for acquisitions  $42,229   $1,829 
Payable for capped call transactions  $10,583   $— 
Debt discount for warrants issued (non-cash)  $—   $1,215 
Cancelation of a convertible promissory note on divestiture of a business  $—   $2,724 
Conversion of debt to redeemable convertible preferred stock (non-cash)  $—   $1,436 
Capital contribution from a shareholder  $—   $300