UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________________

FORM 10-Q

___________________________________________________________

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from ___________ to

Commission File Number: 001-39142

___________________________________________________________

Porch Group, Inc.

(Exact name of registrant as specified in its charter)

___________________________________________________________

Delaware	83-2587663
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

411 1st Avenue S., Suite 501, Seattle, WA 98104

(Address of Principal Executive Offices) (Zip Code)

(855) 767-2400

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

___________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading symbol	Name of Exchange on which registered
Common Stock, par value $0.0001 per share	PRCH	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller reporting company	o	Emerging growth company	o

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of outstanding shares of the registrant’s common stock as of November 3, 2023, was 98,874,616.

Table of Contents

	Page
PART I —FINANCIAL INFORMATION	3
Item 1. Financial Statements	3
Condensed Consolidated Balance Sheets (Unaudited)	3
Condensed Consolidated Statements of Operations (Unaudited)	4
Condensed Consolidated Statements of Comprehensive Loss (Unaudited)	5
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited)	6
Condensed Consolidated Statements of Cash Flows (Unaudited)	8
Notes to Condensed Consolidated Financial Statements (Unaudited)	9
Note 1. Description of Business and Summary of Significant Accounting Policies	9
Note 2. Revenue	13
Note 3. Investments	14
Note 4. Fair Value	17
Note 5. Property, Equipment, and Software	20
Note 6. Intangible Assets and Goodwill	20
Note 7. Debt	22
Note 8. Stockholders' Equity and Warrants	23
Note 9. Stock-Based Compensation	24
Note 10. Reinsurance	25
Note 11. Unpaid Losses and Loss Adjustment Reserve	27
Note 12. Commitments and Contingencies	27
Note 13. Business Combinations	28
Note 14. Segment Information	28
Note 15. Net Loss Per Share	29
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3. Quantitative and Qualitative Disclosures About Market Risk	48
Item 4. Controls and Procedures	49
PART II — OTHER INFORMATION	50
Item 1. Legal Proceedings	50
Item 1A. Risk Factors	50
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	52
Item 3. Defaults Upon Senior Securities	52
Item 4. Mine Safety Disclosures	52
Item 5. Other Information	52
Item 6. Exhibits	53
SIGNATURES	54

2

PART I —FINANCIAL INFORMATION

Item 1. Financial Statements

PORCH GROUP, INC.

Condensed Consolidated Balance Sheets (Unaudited)

(all numbers in thousands, except share amounts)

	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	343,008	$	215,060
Accounts receivable, net	26,890		26,438
Short-term investments	28,679		36,523
Reinsurance balance due	98,491		299,060
Prepaid expenses and other current assets	45,981		20,009
Restricted cash	18,706		13,545
Total current assets	561,755		610,635
Property, equipment, and software, net	15,660		12,240
Goodwill	191,907		244,697
Long-term investments	86,689		55,118
Intangible assets, net	91,952		108,255
Long-term insurance commissions receivable	13,673		12,265
Other assets	5,748		5,847
Total assets	$	967,384	$	1,049,057
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable	$	9,054	$	6,268
Accrued expenses and other current liabilities	42,257		39,742
Deferred revenue	265,483		270,690
Refundable customer deposits	19,424		20,142
Current debt	1,647		16,455
Losses and loss adjustment expense reserves	129,775		100,632
Other insurance liabilities, current	54,183		61,710
Total current liabilities	521,823		515,639
Long-term debt	431,186		425,310
Operating lease liabilities, non-current	1,897		2,536
Earnout liability, at fair value	44		44
Private warrant liability, at fair value	87		707
Derivative liability, at fair value	26,310		—
Other liabilities	23,217		25,468
Total liabilities	1,004,564		969,704
Commitments and contingencies (Note 12)
Stockholders’ equity (deficit)
Common stock, $0.0001 par value:	10		10
Authorized shares – 400,000,000 and 400,000,000, respectively
Issued and outstanding shares – 98,482,323 and 98,455,838, respectively
Additional paid-in capital	690,024		670,537
Accumulated other comprehensive loss	(7,643)		(6,171)
Accumulated deficit	(719,571)		(585,023)
Total stockholders’ equity (deficit)	(37,180)		79,353
Total liabilities and stockholders’ equity (deficit)	$	967,384	$	1,049,057

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

PORCH GROUP, INC.

Condensed Consolidated Statements of Operations (Unaudited)

(all numbers in thousands, except share amounts)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenue	$	129,556	$	77,353	$	315,690	$	211,835
Operating expenses:
Cost of revenue	52,961		32,940		185,566		87,407
Selling and marketing	40,135		30,580		107,357		85,817
Product and technology	14,446		14,437		43,891		44,446
General and administrative	28,659		25,083		77,267		79,979
Provision for (recovery of) doubtful accounts	(6,844)		174		42,111		381
Impairment loss on intangible assets and goodwill	—		57,057		57,232		57,057
Total operating expenses	129,357		160,271		513,424		355,087
Operating income (loss)	199		(82,918)		(197,734)		(143,252)
Other income (expense):
Interest expense	(10,267)		(2,152)		(21,230)		(6,504)
Change in fair value of earnout liability	—		43		—		13,809
Change in fair value of private warrant liability	260		124		620		14,391
Change in fair value of derivatives	510		—		(2,440)		—
Gain on extinguishment of debt	—		—		81,354		—
Investment income and realized gains, net of investment expenses	2,485		335		4,492		775
Other income (expense), net	1,185		70		3,525		(37)
Total other income (expense)	(5,827)		(1,580)		66,321		22,434
Loss before income taxes	(5,628)		(84,498)		(131,413)		(120,818)
Income tax benefit (provision)	(116)		22		(34)		(268)
Net loss	$	(5,744)	$	(84,476)	$	(131,447)	$	(121,086)
Net loss per share - basic and diluted (Note 15)	$	(0.06)	$	(0.86)	$	(1.37)	$	(1.25)
Shares used in computing basic and diluted net loss per share	96,366,613		97,792,485		95,770,676		97,009,351

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

PORCH GROUP, INC.

Condensed Consolidated Statements of Comprehensive Loss (Unaudited)

(all numbers in thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net loss	$	(5,744)	$	(84,476)	$	(131,447)	$	(121,086)
Other comprehensive loss:
Change in net unrealized loss, net of tax	(1,567)		(2,012)		(1,472)		(6,312)
Comprehensive loss	$	(7,311)	$	(86,488)	$	(132,919)	$	(127,398)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

PORCH GROUP, INC.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited)

(all numbers in thousands, except share amounts)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity (Deficit)
	Shares	Amount
Balances as of June 30, 2023	98,168,956	$	10	$	683,151	$	(713,827)	$	(6,076)	$	(36,742)
Net loss	—	—		—		(5,744)		—		(5,744)
Other comprehensive loss, net of tax	—	—		—		—		(1,567)		(1,567)
Stock-based compensation	—	—		6,979		—		—		6,979
Vesting of restricted stock units	372,514	—		—		—		—		—
Exercise of stock options	7,045	—		2		—		—		2
Income tax withholdings	(66,192)	—		(108)		—		—		(108)
Balances as of September 30, 2023	98,482,323	$	10	$	690,024	$	(719,571)	$	(7,643)	$	(37,180)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity (Deficit)
	Shares	Amount
Balances as of June 30, 2022	99,440,528	$	10	$	659,814	$	(460,722)	$	(4,559)	$	194,543
Net loss	—	—		—		(84,476)		—		(84,476)
Other comprehensive loss, net of tax	—	—		—		—		(2,012)		(2,012)
Stock-based compensation	—	—		5,089		—		—		5,089
Vesting of restricted stock awards	1,062,323	—		—		—		—		—
Exercise of stock options	197,758	—		416		—		—		416
Income tax withholdings	(290,284)	—		(957)		—		—		(957)
Balances as of September 30, 2022	100,410,325	$	10	$	664,362	$	(545,198)	$	(6,571)	$	112,603

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

PORCH GROUP, INC.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited) – Continued

(all numbers in thousands, except share amounts)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity (Deficit)
	Shares	Amount
Balances as of December 31, 2022	98,206,323	$	10	$	670,537	$	(585,023)	$	(6,171)	$	79,353
Net loss	—	—		—		(131,447)		—		(131,447)
Other comprehensive loss, net of tax	—	—		—		—		(1,472)		(1,472)
Stock-based compensation	—	—		20,277		—		—		20,277
Vesting of restricted stock awards	2,295,474	—		—		—		—		—
Exercise of stock options	11,564	—		10		—		—		10
Income tax withholdings	(634,880)	—		(991)		—		—		(991)
Repurchases of common stock	(1,396,158)	—		—		(3,101)		—		(3,101)
Proceeds from sale of common stock	—	—		191		—		—		191
Balances as of September 30, 2023	98,482,323	$	10	$	690,024	$	(719,571)	$	(7,643)	$	(37,180)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity (Deficit)
	Shares	Amount
Balances as of December 31, 2021	97,961,597	$	10	$	641,406	$	(424,112)	$	(259)	$	217,045
Net loss	—	—		—		(121,086)		—		(121,086)
Other comprehensive loss, net of tax	—	—		—		—		(6,312)		(6,312)
Stock-based compensation	—	—		20,645		—		—		20,645
Issuance of common stock for acquisitions	628,660	—		3,552		—		—		3,552
Contingent consideration for acquisitions	—	—		530		—		—		530
Vesting of restricted stock awards	1,871,584	—		—		—		—		—
Exercise of stock options	472,215	—		1,108		—		—		1,108
Income tax withholdings	(523,731)	—		(2,879)		—		—		(2,879)
Balances as of September 30, 2022	100,410,325	$	10	$	664,362	$	(545,198)	$	(6,571)	$	112,603

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

PORCH GROUP, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(all numbers in thousands)

	Nine Months Ended September 30,
	2023		2022
Cash flows from operating activities:
Net loss	$	(131,447)	$	(121,086)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	18,501		21,574
Provision for (recovery of) doubtful accounts	42,111		381
Impairment loss on intangible assets and goodwill	57,232		57,057
Gain on extinguishment of debt	(81,354)		—
Change in fair value of private warrant liability	(620)		(14,391)
Change in fair value of contingent consideration	(3,597)		5,251
Change in fair value of earnout liability and derivatives	2,440		(13,809)
Stock-based compensation	20,277		20,645
Interest expense (non-cash)	20,214		2,287
Other	1,002		3,809
Change in operating assets and liabilities, net of acquisitions and divestitures
Accounts receivable	(1,344)		(6,971)
Reinsurance balance due	159,368		(71,180)
Prepaid expenses and other current assets	(25,972)		(5,295)
Accounts payable	2,778		(248)
Accrued expenses and other current liabilities	(9,323)		(8,001)
Losses and loss adjustment expense reserves	29,143		38,349
Other insurance liabilities, current	(7,527)		15,921
Deferred revenue	(4,696)		71,600
Refundable customer deposits	(12,248)		2,510
Long-term insurance commissions receivable	(1,408)		(4,409)
Other assets and liabilities, net	1,368		(4,346)
Net cash provided by (used in) operating activities	74,898		(10,352)
Cash flows from investing activities:
Purchases of property and equipment	(776)		(1,986)
Capitalized internal use software development costs	(6,923)		(5,803)
Purchases of short-term and long-term investments	(59,851)		(19,446)
Maturities, sales of short-term and long-term investments	35,321		17,794
Acquisitions, net of cash acquired	(1,974)		(37,003)
Net cash used in investing activities	(34,203)		(46,444)
Cash flows from financing activities:
Proceeds from line of credit	—		5,000
Proceeds from advance funding	319		15,115
Repayments of advance funding	(2,962)		(17,571)
Proceeds from issuance of debt	116,667		10,000
Repayments of principal	(10,150)		(150)
Cash paid for debt issuance costs	(4,650)		—
Repurchase of stock	(5,608)		—
Other	(1,202)		(3,396)
Net cash provided by financing activities	92,414		8,998
Net change in cash, cash equivalents, and restricted cash	$	133,109	$	(47,798)
Cash, cash equivalents, and restricted cash, beginning of period	$	228,605	$	324,792
Cash, cash equivalents, and restricted cash end of period	$	361,714	$	276,994
Supplemental schedule of non-cash financing activities
Non-cash reduction in advanced funding arrangement obligations	$	11,530	$	—
Supplemental disclosures
Cash paid for interest	$	2,155	$	3,181
Income tax refunds received	$	2,380	$	—
Non-cash consideration for acquisitions	$	—	$	14,952

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

8

PORCH GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(all numbers in thousands, except share amounts and unless otherwise stated)

Note 1. Description of Business and Summary of Significant Accounting Policies

Description of Business

Porch Group, Inc. (“Porch Group,” “Porch,” the “Company,” “we,” “our,” “us”) is a vertical software platform for the home, providing software and services to approximately 31 thousand companies and small businesses. We are a values-driven company whose mission is to simplify the home with insurance at the center. Our Vertical Software segment primarily consists of a vertical software platform for the home that provides software and services to home services companies, consumers, and service providers. Our Insurance segment, with approximately 334 thousand insurance and warranty policies in force, offers various property-related insurance policies through our risk-bearing carrier, our independent agency selling home and auto insurance for over 29 major and regional insurance companies, and our risk-bearing home warranty companies. Our Insurance segment also includes warranty service offerings and a captive reinsurance provider.

Unaudited Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements include the accounts of Porch Group, Inc., and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these unaudited condensed consolidated financial statements and notes should be read in conjunction with the Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 16, 2023. The information as of December 31, 2022, included in the unaudited condensed consolidated balance sheets was derived from our audited consolidated financial statements.

The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q (this “Quarterly Report”) were prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments (all of which are of a normal recurring nature) considered necessary to present fairly our financial position, results of operations, comprehensive loss, stockholders’ equity (deficit), and cash flows for the periods and dates presented. The results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or any other interim period or future year. Certain prior period amounts have been reclassified to conform to the current year's presentation.

Comprehensive Loss

Comprehensive loss consists of adjustments related to unrealized gains and losses on available-for-sale securities.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the amounts reported and disclosed in the unaudited condensed consolidated financial statements and accompanying notes. On an ongoing basis, these estimates, which include, but are not limited to, impairment losses on intangible assets and goodwill, estimated variable consideration for services performed, estimated lifetime value of insurance agency commission revenue, current estimate for credit losses, depreciable lives for property and equipment, the valuation of and useful lives for acquired intangible assets, the valuation allowance on deferred tax assets, assumptions used in stock-based compensation expense, unpaid losses for insurance claims and loss adjustment expenses, contingent consideration, earnout liabilities and private warrant liabilities, are evaluated by management. Actual results could differ materially from those estimates, judgments, and assumptions.

Concentrations

Financial instruments which potentially subject us to credit risk consist principally of cash, money market accounts on deposit with financial institutions, money market funds, certificates of deposit and fixed-maturity securities, as well as receivable balances in the course of collection.

Our insurance carrier subsidiary has exposure and remains liable in the event of insolvency of its reinsurers. Management and its reinsurance intermediary regularly assess the credit quality and ratings of its reinsurer counterparties. Five reinsurers represented 63% of our total reinsurance balance due as of September 30, 2023.

9

Substantially all of our insurance-related revenues in the Insurance segment are derived from customers in Texas (which represent approximately 64% of Insurance segment revenues in the nine months ended September 30, 2023), South Carolina (which represent approximately 11% of Insurance segment revenues in the nine months ended September 30, 2023), North Carolina, Georgia, Virginia, and Arizona, which could be adversely affected by economic conditions, an increase in competition, local weather events, or environmental impacts and changes.

No individual customer represented more than 10% of total revenue for the three and nine months ended September 30, 2023 or 2022. As of September 30, 2023, and December 31, 2022, no individual customer accounted for 10% or more of total accounts receivable.

As of September 30, 2023, we held approximately $309.0 million of cash with four U.S. commercial banks.

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. We maintain cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation.

Restricted cash equivalents as of September 30, 2023, includes $7.7 million held by our captive reinsurance business as collateral for the benefit of Homeowners of America Insurance Company (“HOA”), $0.6 million held in certificates of deposits and money market mutual funds pledged to the Department of Insurance in certain states as a condition of our Certificate of Authority for the purpose of meeting obligations to policyholders and creditors, $8.0 million in funds held for the payment of possible warranty claims as required under regulatory guidelines in 17 states, and $2.4 million related to acquisition indemnifications. Restricted cash equivalents as of December 31, 2022, includes $5.1 million held by our captive reinsurance business as collateral for the benefit of HOA, $1.0 million held in money market mutual funds pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors, $5.0 million in funds held for the payment of possible warranty claims as required under regulatory guidelines in 19 states, and $2.4 million related to acquisition indemnifications.

The reconciliation of cash, cash equivalents, and restricted cash to amounts presented in the unaudited condensed consolidated statements of cash flows are as follows:

	September 30, 2023		December 31, 2022
Cash and cash equivalents	$	343,008	$	215,060
Restricted cash	18,706		13,545
Cash, cash equivalents, and restricted cash	$	361,714	$	228,605

Accounts Receivable and Long-term Insurance Commissions Receivable

Accounts receivable consist principally of amounts due from enterprise customers, other corporate partnerships, and individual policyholders. We estimate allowances for uncollectible receivables based on the creditworthiness of our customers, historical trend analysis, and macro-economic conditions. Consequently, an adverse change in those factors could affect our estimate of allowance for doubtful accounts. The allowance for uncollectible receivables at September 30, 2023, and December 31, 2022, was $0.8 million and $0.5 million, respectively.

Long-term insurance commissions receivable balance consists of the estimated commissions from policy renewals expected to be collected. We record the amount of renewal insurance commissions expected to be collected in the next twelve months as current accounts receivable.

Goodwill

We test goodwill for impairment for each reporting unit on an annual basis or more frequently when events or changes in circumstances indicate the fair value of a reporting unit is below its carrying value. We have the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If we can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test would not be necessary. If we cannot support such a conclusion or we do not elect to perform the qualitative assessment, then we perform a quantitative assessment. If a quantitative goodwill impairment assessment is performed, we utilize a combination of market and income valuation approaches. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the reporting unit is less than its carrying value. We have selected October 1 as the date to perform annual impairment testing.

10

Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of operating and macroeconomic changes on each reporting unit. The fair value of each reporting unit was estimated using a combination of income and market valuation approaches using publicly traded company multiples in similar businesses. Such fair value measurements are based predominately on Level 3 inputs. This analysis requires significant judgments including an estimate of future cash flows which is dependent on internally developed forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. The weighted average cost of capital used in our most recent impairment test was risk-adjusted to reflect the specific risk profile of the reporting units and ranged from 13% to 25%. See Note 6, Intangible Assets and Goodwill, for a discussion of the impairment analysis.

Impairment of Long-Lived Assets

We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. Events that trigger a test for recoverability include a significant decrease in the market price for a long-lived asset, significant negative industry or economic trends, an accumulation of costs significantly in excess of the amount originally expected for the acquisition, a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset, or a sustained decrease in share price. When a triggering event occurs, a test for recoverability is performed, comparing projected undiscounted future cash flows to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured relying primarily on an income approach. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value. Management identifies the asset group that includes the potentially impaired long-lived asset, at the lowest level at which there are separate, identifiable cash flows.

Throughout 2023, we identified various qualitative factors that collectively indicated triggering events including a sustained decrease in stock price, increased costs due to inflationary pressures, and a deterioration of the macroeconomic environment in the housing and real estate industry. We used an income approach to determine that the estimated fair value of a certain asset group was less than its carrying value, which resulted in impairment charges of $2.0 million in the first quarter, primarily related to acquired technology, trademarks and trade names, and customer relationships for certain businesses within the Vertical Software segment. Impairment charges are included in impairment loss on intangible assets and goodwill in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2023.

We estimate the fair value of an asset group using the income approach. Such fair value measurements are based predominately on Level 3 inputs. Inherent in our development of cash flow projections are assumptions and estimates derived from a review of our operating results, business plan forecasts, expected growth rates, and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of these factors used in assessing fair value are outside the control of management and these assumptions and estimates may change in future periods.

Deferred Policy Acquisition Costs

We capitalize deferred policy acquisitions costs (“DAC”) which consist primarily of commissions, premium taxes and policy underwriting and production expenses that are directly related to the successful acquisition by our insurance subsidiary of new or renewal insurance contracts. DAC are amortized on a straight-line basis over the terms of the policies to which they relate, which is generally one year. DAC is also reduced by ceding commissions paid by reinsurance companies which represent recoveries of acquisition costs. DAC is periodically reviewed for recoverability and adjusted if necessary. Future investment income is considered in determining the recoverability of DAC. As of September 30, 2023, and December 31, 2022, DAC of $32.5 million and $8.7 million is included in prepaid expenses and other current assets. Amortized deferred acquisition costs included in selling and marketing expense, amounted to $15.7 million and $5.3 million, for the three months ended September 30, 2023 and 2022, respectively, and $34.3 million and $12.5 million, for the nine months ended September 30, 2023 and 2022, respectively.

Fair Value of Financial Instruments

Fair value principles require disclosures regarding the manner in which fair value is determined for assets and liabilities and establishes a three-tiered fair value hierarchy into which these assets and liabilities must be grouped, based upon significant levels of inputs as follows:

Level 1Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date;

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Level 2Observable inputs, other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This may include active markets for similar assets and liabilities, quoted prices in markets that are not highly active, or other inputs that are observable or can be corroborated by observable market data; and

Level 3Unobservable inputs that are arrived at by means other than current observable market activity.

The level of the least observable significant input used in assessing the fair value determines the placement of the entire fair value measurement in the hierarchy. Management’s assessment of the significance of a particular input to the fair value measurement requires the use of judgment specific to the asset or liability.

Other Insurance Liabilities, Current

The following table details the components of other insurance liabilities, current, on the unaudited condensed consolidated balance sheets:

	September 30, 2023		December 31, 2022
Ceded reinsurance premiums payable	$	26,369	$	29,204
Commissions payable, reinsurers and agents	7,344		21,045
Advance premiums	13,083		8,668
Funds held under reinsurance treaty	5,718		1,851
General and accrued expenses payable	1,669		942
Other insurance liabilities, current	$	54,183	$	61,710

Income Taxes

Benefit (provision) for income taxes for the three months ended September 30, 2023, and 2022, were $(0.1) million and less than $0.1 million, respectively, and the effective tax rates for these periods were (2.1)% and less than 0.1%, respectively. The difference between our effective tax rates for the 2023 periods and the U.S. statutory rate of 21% was primarily due to a full valuation related to our net deferred tax assets and impact of acquisitions on our valuation allowance. Benefit (provision) for income taxes for the nine months ended September 30, 2023 and 2022, were less than $(0.1) million and $(0.3) million, respectively, and the effective tax rates for these periods were less than (0.1)% and (0.2)%, respectively. The difference between our effective tax rates for the 2022 periods and the U.S. statutory rate of 21% was primarily due to a full valuation allowance related to our net deferred tax assets.

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Note 2. Revenue

Disaggregation of Revenue

Total revenues consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Vertical Software segment
Software and service subscriptions	$	17,307	$	18,086	$	51,640	$	55,164
Move-related transactions	12,488		21,569		32,503		51,155
Post-move transactions	4,533		5,364		13,247		15,644
Total Vertical Software segment revenue	34,328		45,019		97,390		121,963
Insurance segment
Insurance and warranty premiums, commissions and policy fees	95,228		32,334		218,300		89,872
Total Insurance segment revenue	95,228		32,334		218,300		89,872
Total revenue(1)	$	129,556	$	77,353	$	315,690	$	211,835

______________________________________

(1)Revenue recognized during the three months ended September 30, 2023 and 2022, includes revenue of $88.2 million and $19.1 million, respectively, which is accounted for separately from the revenue from contracts with customers. Revenue accounted separately from the revenue from contracts with customers for the nine months ended September 30, 2023 and 2022, was $193.2 million and $56.4 million, respectively.

Disclosures Related to Contracts with Customers

Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. To the extent a contract exists, as defined by ASC 606, these liabilities are classified as deferred revenue. To the extent that a contract does not exist, as defined by ASC 606, these liabilities are classified as refundable customer deposits. Refundable customer deposits related to contracts with customers were not material at September 30, 2023, and December 31, 2022.

Contract Assets - Insurance Commissions Receivable

A summary of the activity impacting the contract assets during the nine months ended September 30, 2023, is presented below:

	Contract Assets
Balance at December 31, 2022	$	15,521
Estimated lifetime value of commissions on insurance policies sold by carriers	5,531
Cash receipts	(3,636)
Balance at September 30, 2023	$	17,416

As of September 30, 2023, and December 31, 2022, $3.7 million and $3.3 million, respectively, of contract assets were expected to be collected within the immediately following 12 months and therefore were included in current accounts receivable on the unaudited condensed consolidated balance sheets. The remaining $13.7 million and $12.3 million as of September 30, 2023, and December 31, 2022, respectively, of contract assets are expected to be collected after the immediately following 12 months and were included in long-term insurance commissions receivable on the unaudited condensed consolidated balance sheets.

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Deferred Revenue

A summary of the activity impacting deferred revenue balances during the nine months ended September 30, 2023, is presented below:

	Vertical Software Deferred Revenue
Balance at December 31, 2022	$	3,874
Revenue recognized	(12,635)
Additional amounts deferred	12,378
Balance at September 30, 2023	$	3,617

Deferred revenue on the unaudited condensed consolidated balance sheet as of September 30, 2023, and December 31, 2022, includes $261.9 million and $266.8 million, respectively, of deferred revenue related to the Insurance segment. The portion of insurance premiums related to the unexpired term of policies in force as of the end of the reporting period and to be earned over the remaining term of these policies is deferred and reported as deferred revenue.

Remaining Performance Obligations

The amount of the transaction price allocated to performance obligations to be satisfied at a later date, which is not recorded in the unaudited condensed consolidated balance sheets, is immaterial as of September 30, 2023, and December 31, 2022.

We have applied the practical expedients provided for in the accounting standards, and does not present revenue related to unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which we recognize revenue at the amount which it has the right to invoice for services performed. Additionally, we exclude amounts related to performance obligations that are billed and recognized as they are delivered.

Warranty Revenue and Related Balance Sheet Disclosures

Payments received in advance of warranty services provided are included in refundable customer deposits or deferred revenue based upon the cancellation and refund provisions within the respective agreement. At September 30, 2023, we had $19.3 million, $4.1 million and $2.9 million of refundable customer deposits, deferred revenue, and non-current deferred revenue, respectively. At December 31, 2022, we had $20.0 million, $4.4 million and $1.9 million of refundable customer deposits, deferred revenue and non-current deferred revenue, respectively.

For the three months ended September 30, 2023 and 2022, we incurred $1.6 million and $2.0 million, respectively, in expenses related to warranty claims. For the nine months ended September 30, 2023 and 2022, we incurred $4.1 million and $2.0 million, respectively, in expenses related to warranty claims.

Note 3. Investments

The following table summarizes investment income and realized gains and losses on investments during the periods presented.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Investment income, net of investment expenses	$	2,515	$	384	$	4,618	$	962
Realized gains on investments	61		10		72		16
Realized losses on investments	(91)		(59)		(198)		(203)
Investment income and realized gains (losses), net of investment expenses	$	2,485	$	335	$	4,492	$	775

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The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities.

	As of September 30, 2023
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	32,651	$	15	$	(600)	$	32,066
Obligations of states, municipalities and political subdivisions	14,939		—		(1,405)		13,534
Corporate bonds	47,258		2		(3,634)		43,626
Residential and commercial mortgage-backed securities	24,173		3		(1,648)		22,528
Other loan-backed and structured securities	3,990		—		(376)		3,614
Total investment securities	$	123,011	$	20	$	(7,663)	$	115,368

	As of December 31, 2022
	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
U.S. Treasuries	$	35,637	$	5	$	(320)	$	35,322
Obligations of states, municipalities and political subdivisions	11,549		2		(1,326)		10,225
Corporate bonds	31,032		32		(2,837)		28,227
Residential and commercial mortgage-backed securities	12,790		11		(1,268)		11,533
Other loan-backed and structured securities	6,804		6		(476)		6,334
Total investment securities	$	97,812	$	56	$	(6,227)	$	91,641

The amortized cost and fair value of securities at September 30, 2023, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	As of September 30, 2023
Remaining Time to Maturity	Amortized Cost		Fair Value
Due in one year or less	$	27,913	$	27,785
Due after one year through five years	31,760		29,980
Due after five years through ten years	26,597		23,797
Due after ten years	8,575		7,664
Residential and commercial mortgage-backed securities	24,175		22,528
Other loan-backed and structured securities	3,991		3,614
Total	$	123,011	$	115,368

Investments as of September 30, 2023, include $22.5 million of investments held by our captive reinsurance businesses as collateral for the benefit of HOA. Of this amount, $1.9 million is classified as short-term investments, and $20.5 million is classified as long-term investments.

Other-Than-Temporary Impairment

We regularly review our individual investment securities for other-than-temporary impairment. We consider various factors in determining whether each individual security is other-than-temporarily impaired, including:

-the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

-the extent to which the market value of the security has been below its cost or amortized cost;

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-general market conditions and industry or sector-specific factors;

-nonpayment by the issuer of its contractually obligated interest and principal payments; and

-our intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

	Less Than Twelve Months				Twelve Months or Greater				Total
As of September 30, 2023	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(533)	$	31,214	$	(67)	$	520	$	(600)	$	31,734
Obligations of states, municipalities and political subdivisions	(1,174)		11,564		(231)		1,559		(1,405)		13,123
Corporate bonds	(3,070)		37,402		(564)		5,218		(3,634)		42,620
Residential and commercial mortgage-backed securities	(1,110)		19,031		(538)		2,967		(1,648)		21,998
Other loan-backed and structured securities	(366)		3,564		(10)		51		(376)		3,615
Total securities	$	(6,253)	$	102,775	$	(1,410)	$	10,315	$	(7,663)	$	113,090

	Less Than Twelve Months				Twelve Months or Greater				Total
As of December 31, 2022	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
U.S. Treasuries	$	(127)	$	10,748	$	(193)	$	9,824	$	(320)	$	20,572
Obligations of states, municipalities and political subdivisions	(929)		6,258		(397)		3,504		(1,326)		9,762
Corporate bonds	(1,623)		16,531		(1,214)		10,328		(2,837)		26,859
Residential and commercial mortgage-backed securities	(687)		6,565		(581)		4,952		(1,268)		11,517
Other loan-backed and structured securities	(359)		4,633		(117)		1,094		(476)		5,727
Total securities	$	(3,725)	$	44,735	$	(2,502)	$	29,702	$	(6,227)	$	74,437

At September 30, 2023, and December 31, 2022, there were 596 and 483 securities, respectively, in an unrealized loss position. Of these securities, 86 had been in an unrealized loss position for 12 months or longer as of September 30, 2023.

We believe there were no fundamental issues such as credit losses or other factors with respect to any of our available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. We expect that the securities will not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because we have the ability and intent to hold our available-for-sale investments until a market price recovery or maturity, we do not consider any of our investments to be other-than-temporarily impaired at September 30, 2023.

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Note 4. Fair Value

The following tables summarize the fair value measurements of assets and liabilities that are measured at fair value on a recurring basis.

	Fair Value Measurement as of September 30, 2023
	Level 1		Level 2		Level 3		Total Fair Value
Assets
Money market mutual funds	$	194,989	$	—	$	—	$	194,989
Debt securities:
U.S. Treasuries	32,066		—		—		32,066
Obligations of states and municipalities	—		13,534		—		13,534
Corporate bonds	—		43,626		—		43,626
Residential and commercial mortgage-backed securities	—		22,528		—		22,528
Other loan-backed and structured securities	—		3,614		—		3,614
	$	227,055	$	83,302	$	—	$	310,357
Liabilities
Contingent consideration - business combinations (1)	$	—	$	—	$	20,529	$	20,529
Contingent consideration - earnout	—		—		44		44
Private warrant liability	—		—		87		87
Embedded derivatives	—		—		26,310		26,310
	$	—	$	—	$	46,970	$	46,970

	Fair Value Measurement as of December 31, 2022
	Level 1		Level 2		Level 3		Total Fair Value
Assets
Money market mutual funds	$	6,619	$	—	$	—	$	6,619
Debt securities:
U.S. Treasuries	35,322		—		—		35,322
Obligations of states and municipalities	—		10,225		—		10,225
Corporate bonds	—		28,227		—		28,227
Residential and commercial mortgage-backed securities	—		11,533		—		11,533
Other loan-backed and structured securities	—		6,334		—		6,334
	$	41,941	$	56,319	$	—	$	98,260
Liabilities
Contingent consideration - business combinations (2)	$	—	$	—	$	24,546	$	24,546
Contingent consideration - earnout	—		—		44		44
Private warrant liability	—		—		707		707
	$	—	$	—	$	25,297	$	25,297

______________________________________

(1)The Condensed Consolidated Balance Sheets include $0.7 million in accrued expenses and other current liabilities and $19.9 million in other liabilities as of September 30, 2023, for contingent consideration related to business combinations.

(2)The Condensed Consolidated Balance Sheets include $1.4 million in accrued expenses and other current liabilities and $23.2 million in other liabilities as of December 31, 2022, for contingent consideration related to business combinations.

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Financial Assets

Money market mutual funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. As the funds are generally maintained at a net asset value which does not fluctuate, cost approximates fair value. These are included as a Level 1 measurement in the table above. The fair values for available-for-sale fixed-maturity securities are based upon prices provided by an independent pricing service. We have reviewed these prices for reasonableness and have not adjusted any prices received from the independent provider. Level 2 securities represent assets whose fair value is determined using observable market information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics. There were no transfers between Level 1 and Level 2.

Contingent Consideration – Business Combinations

We estimated the fair value of the business combination contingent consideration related to the Floify LLC (“Floify”) acquisition in October 2021 and triggered by stock price milestones using the Monte Carlo simulation method. The fair value is based on the simulated market price of our common stock over the maturity date of the contingent consideration. As of September 30, 2023, the key inputs used to determine the fair value of $16.6 million included the stock price of $0.80, strike price of $36.00, discount rate of 15.6% and volatility of 95%. As of December 31, 2022, the key inputs used in the determination of the fair value of $15.5 million included the stock price of $1.88, strike price of $36.00, discount rate of 10.3% and volatility of 95%.

We estimated the fair value of the business combination contingent consideration based on specific metrics related to the acquisition of Residential Warranty Services (“RWS”) in April 2022, using the discounted cash flow method. The fair value is based on a percentage of revenue over the maturity date of the contingent consideration. As of September 30, 2023, the key inputs used to determine the fair value of $4.3 million were management’s cash flow estimates and the discount rate of 17%. As of December 31, 2022, the key inputs used to determine the fair value of $9.0 million were management’s cash flow estimates and the discount rate of 17%.

Contingent Consideration – Earnout

We estimated the fair value of the earnout contingent consideration using the Monte Carlo simulation method. The fair value of less than $0.1 million is based on the simulated market price of our common stock until the maturity date of the contingent consideration and increased by certain employee forfeitures. As of September 30, 2023, the key inputs used to determine the fair value included exercise price of $22.00, volatility of 100%, forfeiture rate of 15%, and stock price of $0.80 As of December 31, 2022, the key inputs used in the determination of the fair value included exercise price of $22.00, volatility of 100%, forfeiture rate of 15% and stock price of $1.88.

Private Warrants

We estimated the fair value of the private warrants using the Black-Scholes-Merton option pricing model. As of September 30, 2023, the key inputs used to determine the fair value included exercise price of $11.50, expected volatility of 95%, remaining contractual term of 2.23 years, and stock price of $0.80. As of December 31, 2022, the key inputs used to determine the fair value included exercise price of $11.50, expected volatility of 90%, remaining contractual term of 2.98 years, and stock price of $1.88.

Embedded Derivatives

In connection with the issuance of senior secured convertible notes in April 2023 (see Note 7) and in accordance with Accounting Standards Codification 815-15, Derivatives and Hedging – Embedded Derivatives, certain features of the senior secured convertible notes were bifurcated and accounted for separately from the notes. The following features are recorded as derivatives.

•Repurchase option. If more than $30 million aggregate principal amount of the 2026 Notes remains outstanding on June 14, 2026, the 2028 Note holders have the right to require us to repurchase for cash on June 15, 2026, all or any portion of their 2028 Notes, in principal amounts of one thousand  dollars or an integral number thereof, at a repurchase price equal to 106.5% of the principal amount of the 2028 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.

•Fundamental change option. If we undergo a fundamental change, as defined in the indenture governing the 2028 Notes and subject to certain conditions, holders of the 2028 Notes have the right to require us to repurchase for cash all or any portion of their 2028 Notes, in principal amounts of one thousand dollars or an integral multiple thereof, at a repurchase price equal to 105.25% of the principal amount of the 2028 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. A

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fundamental change includes events such as a change in control, recapitalization, liquidation, dissolution, or delisting.

•Asset sale repurchase option. If we sell assets and receive net cash proceeds of $2.5 million in excess of the Asset Sale Threshold (as defined below) (such excess net cash proceeds, the “Excess Proceeds”), we must offer to all holders of 2028 Notes to repurchase their 2028 Notes for an aggregate amount of cash equal to 50% of such Excess Proceeds at a repurchase price per 2028 Note equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the relevant purchase date, if any. “Asset Sale Threshold” means $20.0 million in the aggregate, provided that on and after the date on which the cumulative net cash proceeds received by the Company and its restricted subsidiaries from the sale of assets after April 20, 2023 exceeds $20.0 million in the aggregate, the “Asset Sale Threshold” means $0.

The inputs for determining fair value of the embedded derivatives are classified as Level 3 inputs. Level 3 fair value is based on unobservable inputs based on the best information available. These inputs include the probabilities of a repurchase, a fundamental change, and qualifying asset sales, ranging from 1% to 35%.

Level 3 Rollforward

Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value, and such changes could result in a significant increase or decrease in the fair value.

The changes for Level 3 items measured at fair value on a recurring basis using significant unobservable inputs are as follows:

	Contingent Consideration - Earnout		Contingent Consideration - Business Combinations		Embedded Derivatives		Private Warrant Liability
Fair value as of December 31, 2022	$	44	$	24,546	$	—	$	707
Additions	—		—		23,870		—
Settlements	—		(420)		—		—
Change in fair value, loss (gain) included in net loss(1)	—		(3,597)		2,440		(620)
Fair value as of September 30, 2023	$	44	$	20,529	$	26,310	$	87

	Contingent Consideration - Earnout		Contingent Consideration - Business Combinations		Private Warrant Liability
Fair value as of December 31, 2021	$	13,866	$	9,617	$	15,193
Additions	—		8,900		—
Settlements	—		(540)		—
Change in fair value, loss (gain) included in net loss(1)	(13,809)		5,251		(14,391)
Fair value as of September 30, 2022	$	57	$	23,228	$	802

______________________________________

(1)Changes in fair value of contingent consideration related to business combinations are included in general and administrative expenses in the unaudited condensed consolidated statements of operations. Changes in fair value of the earnout contingent consideration and private warrant liability are disclosed separately in the unaudited condensed consolidated statements of operations. Changes in the fair value of the embedded derivatives are included in change in fair value of derivatives in the unaudited condensed consolidated statements of operations.

Fair Value Disclosure

As of September 30, 2023, and December 31, 2022, the fair value of the 2026 Notes (see Note 7) is $73.4 million and $238.6 million, respectively. The decrease of $165.2 million is primarily due to the decline in the stock price at September 30, 2023, as compared to December 31, 2022. As of September 30, 2023, the fair value of the 2028 Notes (see Note 7) was $195.0 million. The fair values of the line of credit, advance funding arrangement and other notes approximate

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the unpaid principal balance. All debt, other than the convertible notes which are Level 2, is considered a Level 3 measurement.

Note 5. Property, Equipment, and Software

Property, equipment, and software, net, consists of the following:

	September 30, 2023		December 31, 2022
Software and computer equipment	$	8,288	$	8,326
Furniture, office equipment, and other	1,549		2,118
Internally developed software	22,204		17,128
Leasehold improvements	1,176		1,178
	33,217		28,750
Less: Accumulated depreciation and amortization	(17,557)		(16,510)
Property, equipment, and software, net	$	15,660	$	12,240

Depreciation and amortization expense related to property, equipment, and software was $1.4 million and $1.0 million for the three months ended September 30, 2023 and 2022, respectively, and $3.8 million and $3.0 million for the nine months ended September 30, 2023 and 2022, respectively.

Note 6. Intangible Assets and Goodwill

Intangible Assets

Intangible assets are stated at cost or acquisition-date fair value less accumulated amortization and impairment. The following tables summarize intangible asset balances.

As of September 30,2023	Weighted Average Useful Life (in years)	Intangible Assets, gross		Accumulated Amortization And Impairment		Intangible Assets, Net
Customer relationships	9.0	$	69,504	$	(21,823)	$	47,681
Acquired technology	5.0	36,041		(20,815)		15,226
Trademarks and tradenames	10.0	23,443		(6,175)		17,268
Non-compete agreements	3.0	616		(443)		173
Value of business acquired	1.0	400		(400)		—
Renewal rights	6.0	9,734		(3,090)		6,644
Insurance licenses	Indefinite	4,960		—		4,960
Total intangible assets		$	144,698	$	(52,746)	$	91,952

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As of December 31,2022	Weighted Average Useful Life (in years)	Intangible Assets, gross		Accumulated Amortization And Impairment		Intangible Assets, Net
Customer relationships	9.0	$	69,730	$	(15,079)	$	54,651
Acquired technology	5.0	37,932		(16,468)		21,464
Trademarks and tradenames	10.0	25,071		(5,724)		19,347
Non-compete agreements	3.0	619		(407)		212
Value of business acquired	1.0	400		(400)		—
Renewal rights	6.0	9,734		(2,113)		7,621
Insurance licenses	Indefinite	4,960		—		4,960
Total intangible assets		$