Porch Group Inc (PRCH) 2023 Q1 法說會逐字稿

Good afternoon, everyone, and thank you for participating in Porch Group's First Quarter 2023 Conference Call. Today, we issued our first quarter earnings release and related Form 8-K to the SEC. The press release can be found on our Investor Relations website at ir.porchgroup.com today. Joining me here today are Matt Ehrlichman, Porch Group's CEO, Chairman and Founder; Shawn Tabak, Porch Group's CFO; Matthew Neagle, Porch Group's COO; and Nicole Pelley, SVP of Product and Technology.

大家下午好，感謝您參加 Porch Group 2023 年第一季度電話會議。今天，我們向美國證券交易委員會發布了第一季度收益報告和相關的 8-K 表格。今天可在我們的投資者關係網站 ir.porchgroup.com 上找到新聞稿。今天和我一起來的有 Porch Group 的首席執行官、董事長兼創始人馬特·埃利希曼 (Matt Ehrlichman)； Porch Group 首席財務官 Shawn Tabak； Porch Group 首席運營官 Matthew Neagle；和 Nicole Pelley，產品和技術高級副總裁。

Before we go further, I would like to take a moment to read the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995, which provides important portions regarding forward-looking statements. Today's discussion, including responses to your questions, reflects management's views as of today, May 10, 2023. We do not undertake any obligation to update or revise this information. Additionally, we will make forward-looking statements about our expected future financial or business performance or conditions, business strategy and plans, including the pending application for the Reciprocal Exchange.

在我們進一步討論之前，我想花點時間閱讀一下公司根據 1995 年《私人證券訴訟改革法》發布的安全港聲明，其中提供了有關前瞻性聲明的重要部分。今天的討論，包括對您問題的回答，反映了管理層截至 2023 年 5 月 10 日的觀點。我們不承擔任何更新或修改此信息的義務。此外，我們將就我們預期的未來財務或業務績效或條件、業務戰略和計劃做出前瞻性陳述，包括待定的互惠交換申請。

Based on current expectations and assumptions, these statements are subject to risks and uncertainties, which could cause our actual results to differ materially from these forward-looking statements. We encourage you to consider the risk factors described in our SEC filings as well as the risk factor information in these slides for additional information. We will reference both GAAP and non-GAAP financial measures on today's call. Please refer to today's press release and reconciliations of non-GAAP measures to the most comparable GAAP measures discussed during this earnings call.

基於當前的預期和假設，這些陳述存在風險和不確定性，這可能導致我們的實際結果與這些前瞻性陳述存在重大差異。我們鼓勵您考慮我們向 SEC 提交的文件中描述的風險因素以及這些幻燈片中的風險因素信息，以獲取更多信息。我們將在今天的電話會議上參考 GAAP 和非 GAAP 財務指標。請參閱今天的新聞稿和非 GAAP 措施與本次財報電話會議期間討論的最具可比性的 GAAP 措施的對賬。

As a reminder, this webcast will be available for replay along with the presentation shortly after this call on the company's website at ir.porchgroup.com.

提醒一下，此電話會議結束後不久，可在公司網站 ir.porchgroup.com 上重播此網絡廣播和演示文稿。

And with that, I'll turn the call over to Matt Ehrlichman, CEO, Chairman and Founder of Porch Group. Over to you, Matt.

有了這個，我將把電話轉給 Porch Group 的首席執行官、董事長兼創始人 Matt Ehrlichman。交給你了，馬特。

Thanks, Lois. Good afternoon, everybody. It hasn't been long since we last spoke in March. And in that time, the business has progressed nicely, which we look forward to discussing with you today. Overall, the Q1 2023 operating environment is not dissimilar to what we experienced in Q4 2022. The home service and insurance industry has faced home sales and weather headwinds. And as expected, we were impacted by them as well. As the insurance industry and whether trends evolve, it creates not only a growing homeowners insurance market, but a substantial opportunity, and we are well positioned to become a leader given our unique demand and data advantages.

謝謝，洛伊絲。大家下午好。自從我們上次在 3 月份通話後不久。在那段時間裡，業務進展順利，我們期待今天與您討論。總體而言，2023 年第一季度的經營環境與我們在 2022 年第四季度經歷的情況沒有什麼不同。家庭服務和保險行業面臨房屋銷售和天氣逆風。不出所料，我們也受到了他們的影響。隨著保險業以及趨勢的發展，它不僅創造了不斷增長的家庭保險市場，而且創造了巨大的機會，鑑於我們獨特的需求和數據優勢，我們有能力成為領導者。

I'm pleased to have Nicole join us today to talk through advancement from this last quarter in some of these areas. So moving to Slide 6 to review the high-low financials. In the first quarter, revenue grew 37% to $87 million, with solid revenue growth in our warranty and homeowners insurance businesses. Q1 2023 adjusted EBITDA loss was $22 million. The underlying business is performing well. However, as expected and built into our 2023 plan, the reinsurance market has hardened. While our April 2023 renewals were successful, given our strong relative past performance, excluding the impact of reinsurance market, Q1 profitability would have increased by approximately $15 million in our Insurance segment.

我很高興妮可今天加入我們，討論上一季度在其中一些領域的進步。因此，轉到幻燈片 6 來查看高低財務狀況。第一季度，收入增長 37% 至 8700 萬美元，我們的保修和房屋保險業務收入穩步增長。 2023 年第一季度調整後的 EBITDA 虧損為 2200 萬美元。基礎業務表現良好。然而，正如預期並納入我們的 2023 年計劃，再保險市場已經走強。雖然我們 2023 年 4 月的續約取得成功，但鑑於我們過去相對強勁的表現，排除再保險市場的影響，我們保險部門的第一季度盈利能力將增加約 1500 萬美元。

As a reminder, we rely on reinsurance to both mitigate weather risk and to offset a portion of the capital requirements associated with operating a homeowners insurance carrier. So while our insurance business saw a strong and profitable growth performance, in fact, a 97% gross combined ratio in 2022 by our carrier entity. The reinsurance cost weighs on our net results until our premium price increases have flowed through all policyholders. We believe the impact of reinsurance is transitory and the market dynamics will improve over time as it has in the past. And if not, Porch and really all other carriers will continue to raise prices and ensure these increased costs are fully loaded into what is offered to consumers.

提醒一下，我們依靠再保險來減輕天氣風險並抵消與經營房主保險公司相關的部分資本要求。因此，儘管我們的保險業務實現了強勁且有利可圖的增長，但實際上，我們的承運人實體在 2022 年的總綜合成本率為 97%。再保險成本對我們的淨結果構成壓力，直到我們的保費價格上漲已經流過所有保單持有人。我們認為再保險的影響是暫時的，市場動態將像過去一樣隨著時間的推移而改善。如果沒有，Porch 和所有其他運營商將繼續提高價格，並確保將這些增加的成本完全加載到提供給消費者的產品中。

Margins in the industry were challenged in 2022 because of weather and expected to be compressed in 2023 because of the reinsurance markets until price catches up. But to highlight capabilities and performance, we think it is helpful to note not only that our insurance business was profitable on a gross basis, but also show how our insurance business compared to the rest of the homeowners insurance carriers in 2022.

由於天氣原因，該行業的利潤率在 2022 年受到挑戰，並且由於再保險市場的影響，預計 2023 年將被壓縮，直到價格趕上。但為了突出能力和表現，我們認為不僅要注意我們的保險業務在毛額基礎上是盈利的，而且還要展示我們的保險業務與 2022 年其他房屋保險公司相比如何。

I mentioned last quarter that HOA was the fastest-growing homeowners carrier through the third quarter of 2022 as measured by gross written premium. AM Best has now released their full year 2022 report ranking 50 different homeowners insurance peers based on direct written premium growth. I'm happy to share that we ended the year ranked third. Importantly, though, in addition to growing rapidly, we demonstrated a leading gross combined ratio. And so as you can see on the bottom chart on this slide, the AM Best market share report shows a gross combined ratio of HOA and 50 peer carriers in 2022. And here, HOA was also the third best performer. Although there are 2 insurers with better loss ratios, those companies had much slower growth, and this demonstrates our ability to use our unique capabilities to grow premium while also maintaining strong underlying performance. Again, as we mentioned, our strategy is to manage our premium growth carefully in 2023 to drive our business to profitability.

我在上個季度提到過，按總承保保費衡量，HOA 是到 2022 年第三季度增長最快的房主承運人。 AM Best 現在發布了 2022 年全年報告，根據直接承保保費增長對 50 家不同的房主保險同行進行排名。我很高興與大家分享，我們在年底排名第三。但重要的是，除了快速增長外，我們還展示了領先的綜合毛利率。正如您在這張幻燈片的底部圖表中看到的那樣，AM Best 市場份額報告顯示了 HOA 和 50 家同行運營商在 2022 年的總合併比率。在這裡，HOA 也是表現第三好的公司。儘管有 2 家保險公司的賠付率更高，但這些公司的增長速度要慢得多，這表明我們有能力利用我們獨特的能力來增加保費，同時保持強勁的基本業績。同樣，正如我們提到的，我們的戰略是在 2023 年謹慎管理我們的保費增長，以推動我們的業務盈利。

As I mentioned, we've made a number of successes in the quarter. First, the insurance strategic initiatives announced in the fourth quarter of 2022 are on track. So in March, we filed the application to form the Reciprocal Exchange with the Texas Department of Insurance, which I'll touch on more shortly and which we believe is key to producing the weather volatility within our earnings. To facilitate this transition to a more efficient reinsurance system for the reciprocal exchange, we moved our reinsurance seeding rate to approximately 50% in January, successfully placed our excess of loss reinsurance treaties in April. Continuing to further leverage our captive reinsurer to build any reinsurance needs where it makes sense and are in the process of nonrenewing approximately 37,000 of our higher risk policies. I'm happy to share that we successfully launched Porch Warranty in February. This is our own whole home warranty product that covers systems and appliances within the home. Nicole will comment on this later in the presentation.

正如我提到的，我們在本季度取得了一些成功。首先，2022年第四季度宣布的保險戰略舉措正在步入正軌。因此，在 3 月，我們提交了與德克薩斯保險部建立互惠交易所的申請，我將在稍後詳細介紹，我們認為這是在我們的收入中產生天氣波動的關鍵。為了促進向互惠交換的更高效再保險系統的過渡，我們在 1 月份將再保險種子率提高到大約 50%，並在 4 月份成功簽訂了超額損失再保險條約。繼續進一步利用我們的專屬再保險公司，在合理的情況下建立任何再保險需求，並且正在處理我們約 37,000 份高風險保單的非續保。我很高興與大家分享，我們在 2 月份成功推出了 Porch Warranty。這是我們自己的全屋保修產品，涵蓋家中的系統和電器。妮可稍後將在演示文稿中對此發表評論。

I will note the home sales industry declined 26% in Q1 year-over-year and continues to impact our software and moving services businesses. Despite this ongoing lower demand environment, our software businesses continue to iterate, launching new modules and capabilities to take more share. And Nicole will touch on our progress also in today's presentation. Finally, after the quarter-end, we secured a $333 million of new Senior Secured Convertible Notes that tied to a $200 million paydown of our existing unsecured note, which is due in September 2026. It's a great transaction for us as it increases Porch Group's capital by more than $100 million, replacing the capital which will transfer with the reciprocal on approval. And it also provides a 2-year maturity extension for much of our debt while maintaining the same $25 per share conversion price at the cost of a 6.75% coupon rate on the new money.

我會注意到房屋銷售行業在第一季度同比下降了 26%，並繼續影響我們的軟件和移動服務業務。儘管這種需求持續下降的環境，我們的軟件業務仍在繼續迭代，推出新的模塊和功能以佔據更多份額。 Nicole 也會在今天的演講中談到我們的進展。最後，在季度末之後，我們獲得了價值 3.33 億美元的新高級有擔保可轉換票據，這與我們現有無擔保票據的 2 億美元還款掛鉤，該票據將於 2026 年 9 月到期。這對我們來說是一筆很棒的交易，因為它增加了 Porch Group 的收益增資1億多美元，置換經批准互惠轉讓的資本。它還為我們的大部分債務提供了 2 年的到期延期，同時以新資金 6.75% 的票面利率為代價，維持相同的每股 25 美元的轉換價格。

Finally, I want to spend a moment to provide a reminder about our strategy to form a reciprocal exchange. We've been thinking through this since we first parted HOA 2 years ago with the objective to move the insurance business to higher margins and without the volatility from direct exposure to weather. Provided we received approval from the Texas Department of Insurance, the HOA carrier business, including all its assets such as cash and investments, as well as its liabilities will move to the new entity and be owned by its policyholder members. In exchange, Porch will receive a coupon-bearing note, the terms which will be provided following approval.

最後，我想花點時間提醒一下我們形成互惠交流的策略。自從 2 年前我們第一次與 HOA 分手以來，我們一直在考慮這個問題，目的是將保險業務推向更高的利潤率，並且避免直接暴露於天氣的波動。如果我們獲得得克薩斯州保險部的批准，HOA 承運人業務，包括其現金和投資等所有資產，以及其負債將轉移到新實體，並由其保單持有人成員擁有。作為交換，Porch 將收到附有優惠券的票據，這些條款將在獲得批准後提供。

We will continue to operate the insurance business such as selling the policies and managing claims processing in return for fees from the reciprocal. This means once the Reciprocal Exchange is in place, we lose the potential upside profitability in good weather conditions. However, we do not have the same claims downside when there are frequent and severe weather events. And as a result, our revenue and profitability are steady and predictable. We are in active discussions now with the Texas Department of Insurance and still anticipate approval later in the second half of this year.

我們將繼續經營保險業務，例如出售保單和管理理賠處理，以換取互惠的費用。這意味著一旦互惠交換到位，我們將失去在良好天氣條件下的潛在上行盈利能力。然而，當發生頻繁和惡劣的天氣事件時，我們沒有相同的索賠不利因素。因此，我們的收入和盈利能力穩定且可預測。我們現在正在與德克薩斯州保險部進行積極討論，並預計在今年下半年晚些時候獲得批准。

I'll now hand the call over to Shawn to cover our financial performance and guidance. Over you, Shawn.

我現在將電話轉給肖恩，介紹我們的財務業績和指導。在你之上，肖恩。

Thanks, Matt. Hello, everyone, and good afternoon.

謝謝，馬特。大家好，下午好。

Revenue was solid at $87.4 million in the first quarter of 2023, which is an increase of 37% over the prior year driven by growth in the Insurance segment and partially offset by the software segment, which continues to be impacted by the soft housing market. As a reminder, quarter 1 and 2 typically have the highest claims cost for HOA with quarter 2 historically being the period with the most weather events. In the first quarter of 2023, the gross loss ratio for HOA was 79% compared to 81% in the prior year. Revenue less cost of revenue was $36.1 million, which is a 41 -- which is 41% of revenue. As Matt mentioned, the reinsurance markets have hardened as expected, which resulted in a reduction in revenue less cost of revenue by approximately $15 million in the first quarter of 2023 compared to the prior year. Our price increases, which we disclosed previously are well underway and being rolled out, which will have a larger impact in the second half of this year given the timing of renewals for the underlying policies.

2023 年第一季度的收入穩定在 8740 萬美元，比上年增長 37%，這主要受保險業務增長的推動，部分被繼續受到房地產市場疲軟影響的軟件業務所抵消。提醒一下，第 1 季度和第 2 季度通常具有最高的 HOA 索賠成本，而第 2 季度歷來是天氣事件最多的時期。 2023 年第一季度，HOA 的毛損率為 79%，而去年同期為 81%。收入減去收入成本為 3610 萬美元，即 41——佔收入的 41%。正如馬特所提到的，再保險市場如預期的那樣堅挺，這導致 2023 年第一季度的收入減去收入成本比上一年減少了約 1500 萬美元。我們之前披露的價格上漲正在順利進行並正在推出，考慮到基礎保單的續籤時間，這將在今年下半年產生更大的影響。

Adjusted EBITDA loss of $21.9 million was in line with our expectations, a decrease from the prior year, driven by reinsurance as noted, and to a lesser extent, the soft housing market impact on the software segment. Excluding the reinsurance market dynamic compared to the first quarter in the prior year, adjusted EBITDA loss would have been approximately $7 million. And finally, gross written premium was $115 million, an increase of 12% over the prior year.

調整後的 EBITDA 損失為 2,190 萬美元，符合我們的預期，比上一年有所減少，這是由所指出的再保險驅動的，並且在較小程度上是疲軟的住房市場對軟件部門的影響。與去年第一季度相比，排除再保險市場動態，調整後的 EBITDA 虧損約為 700 萬美元。最後，總承保保費為 1.15 億美元，比上年增長 12%。

Moving on to revenue by segment. In the first quarter of 2023, revenue from our Insurance segment was $58.7 million, growth of 101% over the prior year driven by strong growth in our warranty business based on demand and renewals as well as HOA due to increases in premium for policy and lower reinsurance seeding. Approximately half of the revenue growth in the insurance segment was due to seeding less and the balance from the operational wins. Insurance segment revenue increased from 46% of total Porch Group's revenue in the first quarter of 2022 to 67% of total revenue in the first quarter of 2023. Vertical software revenue was $28.6 million, a decrease of 17% over the prior year due to the housing market declining 26% industry-wide year-over-year. The biggest impact of the housing market decline was on our moving services group, which continues to have these macro headwinds directly impacts its revenue.

繼續按部門劃分收入。 2023 年第一季度，我們保險部門的收入為 5870 萬美元，比上年增長 101%，這是由於我們基於需求和續約的保修業務強勁增長，以及由於保費增加和較低的 HOA再保險播種。保險部門大約一半的收入增長是由於播種減少和運營勝利的平衡。保險部門收入從 2022 年第一季度佔 Porch Group 總收入的 46% 增加到 2023 年第一季度佔總收入的 67%。垂直軟件收入為 2860 萬美元，比上年下降 17%，原因是房地產市場全行業同比下降 26%。房地產市場下滑的最大影響是對我們的搬家服務集團，這些宏觀逆風繼續直接影響其收入。

Our B2B software revenue was relatively flat year-over-year with market share growth, key initiatives and pricing offsetting the housing market impacts. At a segment level, our Insurance segment adjusted EBITDA loss was $7.2 million. As Matt mentioned, the underlying contribution margin in our -- in HOA insurance carrier increased by 500 basis points compared to the prior year when excluding the impacts of reinsurance. The vertical software adjusted EBITDA loss was $400,000. Corporate expenses were $14.3 million in the first quarter of 2023, reducing to 16% of the total revenue from 21% in the prior year, driven by strong expense control.

我們的 B2B 軟件收入同比相對持平，市場份額增長、關鍵舉措和定價抵消了房地產市場的影響。在部門層面，我們的保險部門調整後的 EBITDA 虧損為 720 萬美元。正如馬特提到的那樣，在排除再保險的影響時，我們的 HOA 保險公司的基本邊際收益比上一年增加了 500 個基點。垂直軟件調整後的 EBITDA 損失為 400,000 美元。在強有力的費用控制的推動下，2023 年第一季度公司費用為 1430 萬美元，佔總收入的比例從上年的 21% 降至 16%。

Now on to our outlook. Today, we are reiterating the full year 2023 guidance provided 8 weeks ago. Revenue ranging from $330 million to $350 million, where we continue to expect an 18% decline in home sales for the full year 2023, with a greater impact from the difficult housing market in the first half of the year versus the second half of the year when the comps become easier. Revenue less cost of revenue ranging from $170 million to $180 million, where we have assumed a 62% gross loss ratio for the year.

現在談談我們的展望。今天，我們重申 8 週前提供的 2023 年全年指引。收入從 3.3 億美元到 3.5 億美元不等，我們繼續預計 2023 年全年房屋銷售將下降 18%，與下半年相比，上半年困難的房地產市場的影響更大當比賽變得更容易時。收入減去收入成本從 1.7 億美元到 1.8 億美元不等，我們假設當年的毛損率為 62%。

This assumes cat weather events will be in line with our historical averages. Any unusual catastrophic weather events in excess of our historical norms are not included in our guidance assumption. Adjusted EBITDA loss ranging from $30 million to $40 million, where we expect, on a cumulative basis, adjusted EBITDA to be profitable in the second half of the year and beyond. And finally, gross written premiums of $500 million.

這假設貓天氣事件將與我們的歷史平均水平一致。我們的指導假設不包括任何超出我們歷史規範的異常災難性天氣事件。調整後的 EBITDA 虧損從 3000 萬美元到 4000 萬美元不等，我們預計，在累計的基礎上，調整後的 EBITDA 將在今年下半年及以後實現盈利。最後，總承保保費為 5 億美元。

Shifting to the balance sheet. We ended the first quarter with $272 million of cash and investments. This includes $165 million of cash and investments in our insurance carrier of HOA that we expect will transfer to the reciprocal when approved and launched. Excluding HOA, Porch held $107 million of cash and investments at the end of the first quarter. In addition, we held $15 million of restricted cash in relation to our warranty and captive businesses.

轉向資產負債表。我們在第一季度結束時擁有 2.72 億美元的現金和投資。這包括 1.65 億美元的現金和對我們的 HOA 保險公司的投資，我們預計在批准和啟動後將轉移到互惠。不包括 HOA，Porch 在第一季度末持有 1.07 億美元的現金和投資。此外，我們還持有 1500 萬美元與保修和自保業務相關的受限現金。

And as Matt mentioned earlier, we are increasing the amount of excess of loss reinsurance provided by Porch's captive to HOA where it makes sense and can provide strong returns. To support this, we expect to hold approximately $43 million of cash to collateralize this placement, and it will therefore show as restricted cash in future quarters and remain as such for the next 12 months.

正如 Matt 之前提到的，我們正在增加 Porch 的俘虜向 HOA 提供的超額損失再保險的數量，這是有意義的，並且可以提供強勁的回報。為了支持這一點，我們預計將持有約 4300 萬美元的現金來抵押此次配售，因此它將在未來幾個季度顯示為受限現金，並在未來 12 個月內保持這種狀態。

And finally, in the first quarter of 2023, we've repurchased 1.4 million shares for $3.1 million under the existing share repurchase program. We will continue to evaluate whether they're repurchased or otherwise transact in shares or notes, and we'll do so if and when we think it is in the best interest of shareholders.

最後，在 2023 年第一季度，我們根據現有的股票回購計劃以 310 萬美元的價格回購了 140 萬股股票。我們將繼續評估他們是否被回購或以其他方式進行股票或票據交易，如果我們認為這符合股東的最佳利益，我們將這樣做。

And finally, brief update related to the issuance of our new $330 million Senior Secured Convertible Notes, which we closed in April after the end of the quarter. We are pleased with the deal, which reduces our medium-term September 2026 debt maturity from $425 million to $225 million and bolsters the balance sheet by adding $102 million of cash. These new secured notes have a coupon of 6.75% and maintained the same conversion price of $25, which was important for us to minimize future dilution for shareholders. This increased coupon payment is partially offset by approximately 5% interest we are currently earning on interest-bearing cash deposits. The $330 million of the new secured notes are due October 2028.

最後，簡要更新與我們新的 3.3 億美元高級有擔保可轉換票據的發行有關，我們在本季度結束後於 4 月關閉了該票據。我們對這筆交易感到滿意，它將我們 2026 年 9 月到期的中期債務從 4.25 億美元減少到 2.25 億美元，並通過增加 1.02 億美元現金來增強資產負債表。這些新的有擔保票據的票息為 6.75%，並保持 25 美元的相同轉換價格，這對我們盡量減少股東未來的稀釋很重要。增加的息票支付部分被我們目前從計息現金存款中獲得的大約 5% 的利息所抵消。 3.3 億美元的新擔保票據將於 2028 年 10 月到期。

Thank you all for your time today. And I'll now hand it over to Matthew to cover our KPIs.

謝謝大家今天的時間。我現在將其交給 Matthew 來討論我們的 KPI。

Thanks, Shawn. Right, turning to Slide 18. We've introduced a slightly different look to our KPI slide here. For reference, the original slides are in the appendix, which shows the KPI trend over time. The average number companies was 30,600 in the first quarter, similar to Q4 2022 and a 20% increase in the same quarter prior year.

謝謝，肖恩。好的，轉到幻燈片 18。我們在這裡介紹了 KPI 幻燈片的外觀略有不同。作為參考，原始幻燈片在附錄中，它顯示了隨時間變化的 KPI 趨勢。第一季度的平均公司數量為 30,600 家，與 2022 年第四季度相似，比去年同期增長 20%。

Average revenue per company per month increased to $951, an increase of 15% from the same quarter prior year. This was driven by higher insurance premiums generating more revenue per insurance customer, the change in our reinsurance seeding and rapid growth in our warranty business. We had 214,000 monetized services in the quarter, a small increase from last quarter. Finally, average revenue per monetized service increased to $328, an increase of 88% versus the same quarter last year. We continue to focus on selling the highest value services to consumers, such as insurance and warranty.

每家公司每月的平均收入增加到 951 美元，比去年同期增長 15%。這是由於更高的保費為每位保險客戶帶來更多收入、我們再保險種子的變化以及我們保修業務的快速增長。本季度我們有 214,000 項貨幣化服務，比上一季度略有增加。最後，每項貨幣化服務的平均收入增加到 328 美元，比去年同期增長 88%。我們繼續專注於向消費者銷售最高價值的服務，例如保險和保修。

Let's now look at our insurance business KPIs. Gross rate premium was $115 million, an increase of 12% year-over-year. This was produced from 376,000 policies in force in the first quarter. Annualized revenue per policy was $612 increasing 82% from $330 in Q1 2022. This was driven by increased premium per policy, lower reinsurance seeding levels and rapid growth in our warranty business.

現在讓我們看看我們的保險業務 KPI。毛利率保費為 1.15 億美元，同比增長 12%。這是根據第一季度生效的 376,000 份保單得出的。每份保單的年化收入為 612 美元，較 2022 年第一季度的 330 美元增長 82%。這是由於每份保單的保費增加、再保險播種水平降低以及我們保修業務的快速增長。

As Shawn mentioned in March, we are introducing retention on a premium basis to help demonstrate the impact of pricing increases and align our disclosure with the peer group. Premium retention is on a 12-month basis and was 107% for Q1 2023, an increase from 100% in Q1 2022, driven by increased premium per policy. As a reminder, we have started to nonrenew 37,000 high-risk policies, which will impact short-term retention rates.

正如 Shawn 在 3 月份提到的那樣，我們正在以保費為基礎引入保留率，以幫助證明價格上漲的影響，並使我們的披露與同行群體保持一致。保費保留率以 12 個月為基礎，2023 年第一季度為 107%，高於 2022 年第一季度的 100%，這是受每份保單保費增加的推動。提醒一下，我們已經開始不續簽 37,000 份高風險保單，這將影響短期保留率。

Overall, the insurance business had a gross loss ratio of 79% in Q1, of which 39% related to cat events. This is a little worse than our historic average with usual hell storms and tornadoes in March above historic trends. As Matt mentioned earlier, HOA's gross loss ratio is significantly outperforming peers. Today, Shawn has reiterated our guidance, which includes a 62% gross loss ratio assumption for the full year as weather improves in the second half of the year and the impact of increased premium per policy changes rolling through.

總體來看，保險業務一季度的毛損率為79%，其中巨災事件佔39%。這比我們的歷史平均水平稍差，三月份通常的地獄風暴和龍捲風高於歷史趨勢。正如馬特之前提到的，HOA 的毛損率明顯優於同行。今天，Shawn 重申了我們的指導方針，其中包括假設全年總損失率為 62%，因為下半年天氣好轉，以及每次保單變化帶來的保費增加的影響。

Finally, on Slide 20, I want to quickly recap our 2023 strategic priorities. First, we will plan to continue to develop new software for the companies who use our vertical software and upsell more software through bundled solutions, which Nicole talked to [shortly]. We are extending our online experiences and increasing revenue per homebuyer. Between our app, Recall Check Monitoring and other services, we are finding ways to better engage consumers to then help them with more services. We are improving premium per policy in our insurance and warranty offerings. We've now launched the 420 brand and expect to launch the Porch insurance brand later this year, creating differentiated offerings for consumers. And we are focused on getting the reciprocal structure approved moving the insurance business to a lower risk, higher margin business.

最後，在幻燈片 20 上，我想快速回顧一下我們 2023 年的戰略重點。首先，我們將計劃繼續為使用我們垂直軟件的公司開發新軟件，並通過捆綁解決方案追加銷售更多軟件，妮可[很快]談到了這一點。我們正在擴展我們的在線體驗並增加每個購房者的收入。在我們的應用程序、召回檢查監控和其他服務之間，我們正在尋找更好地吸引消費者的方法，然後幫助他們獲得更多服務。我們正在提高我們的保險和保修服務中每份保單的保費。我們現在已經推出了 420 品牌，並預計在今年晚些時候推出 Porch 保險品牌，為消費者創造差異化的產品。我們專注於獲得批准的互惠結構，將保險業務轉移到風險較低、利潤率較高的業務。

Thank you all. I'll now hand things over to Nicole to highlight a few key product updates.

謝謝你們。我現在將事情交給 Nicole 來強調一些關鍵的產品更新。

Thanks, Matthew, and hello, everyone. I lead our product and technology teams and responsible for our consumer experiences and data platform and work across our businesses to help them leverage the Porch platform and accelerate their product velocity and growth rate. I'll highlight today some key successes from the first quarter.

謝謝，馬修，大家好。我領導我們的產品和技術團隊，負責我們的消費者體驗和數據平台，並在我們的業務部門工作，幫助他們利用 Porch 平台並加快他們的產品速度和增長率。今天，我將重點介紹第一季度取得的一些重要成就。

First, I'd like to touch on our insurance pricing models. We take our insights into properties and homebuyers, where we have insights into approximately 90% of U.S. homebuyers. In addition, we have 15 years of claims history from HOA across various insurance categories such as water, fire and theft. All of this data feeds our risk model that is generated using machine learning and advanced pricing techniques. Successful insurance businesses rely on how accurate their models are at predicting risk.

首先，我想談談我們的保險定價模型。我們深入了解房地產和購房者，我們對大約 90% 的美國購房者有深入的了解。此外，我們擁有 15 年的 HOA 索賠歷史，涉及各種保險類別，例如水、火和盜竊。所有這些數據都提供給我們使用機器學習和高級定價技術生成的風險模型。成功的保險業務依賴於他們的模型預測風險的準確性。

And while there will always be losses, improving prediction accuracy allows for effective pricing, which is key. While for competitive reasons, we will not provide details on what data creates the biggest impacts. We have been able to improve our risk accuracy in key insurance risk categories by approximately 15% to 20%. This is a common way to measure accuracy in segmenting risk through pricing and our team's experience anything in the high single digits is going to be a meaningful improvement.

雖然總會有損失，但提高預測準確性可以實現有效定價，這是關鍵。雖然出於競爭原因，我們不會提供有關哪些數據產生最大影響的詳細信息。我們已經能夠將主要保險風險類別的風險準確性提高約 15% 至 20%。這是衡量通過定價劃分風險的準確性的常用方法，我們團隊的經驗是，高個位數的任何事情都將是有意義的改進。

So we're all really excited to see double-digit improvement in model accuracy, and we're just getting started. What this means is that we can charge a lower price for low-risk policies, increasing our conversion of low-risk policies and more accurately priced high-risk policies higher, leading to either appropriate pricing and margins or lower conversion on the subset. All of this is expected to lead to long-term profitable growth.

因此，我們都非常高興看到模型準確性有兩位數的提高，而我們才剛剛開始。這意味著我們可以為低風險保單收取較低的價格，增加我們對低風險保單的轉化率，並更準確地為高風險保單定價，從而導致適當的定價和利潤率或子集的較低轉化率。所有這些都有望帶來長期的盈利增長。

The unique insights we have about properties includes information such as who are the borrowers, appliance age and model and potential issues about specific homes. This information feeds the insurance pricing model I just mentioned. We have approval in 9 states to use information on the water heater location. This has now been expanded to include other insights such as the type of roof, age and quality, the type of flooring and the type of piping and characteristics. We are pleased to have approval to use this data in 3 states; Arizona, Virginia and Texas. We have also submitted filings in Illinois and Nevada to use all of our insights.

我們對房產的獨特見解包括借款人是誰、電器使用年限和型號以及特定房屋的潛在問題等信息。這些信息為我剛才提到的保險定價模型提供了依據。我們在 9 個州獲准使用有關熱水器位置的信息。現在已經擴展到包括其他見解，例如屋頂類型、年齡和質量、地板類型和管道類型和特徵。我們很高興獲准在 3 個州使用這些數據；亞利桑那州、弗吉尼亞州和德克薩斯州。我們還在伊利諾伊州和內華達州提交了文件，以使用我們的所有見解。

A key focus for the business is to continually develop new products for the companies using our vertical software. We want to launch a new module for each of the type of companies we work with, at least once per year, both to create more value for these companies and to increase revenue per company. I would like to call out 3 new developments across various Porch brands. First, within our Floify business unit, we're now able to offer an all-in-one solution for brokers that combines the great features of our mortgage point of sale with a mortgage loan origination system by integrated partners. In addition, we have launched 2 new products for mortgage companies, Closing Accelerator, which will help customers close loans faster and Customer Capture, which helps mortgage companies get more customers. With this powerful combination, we're able to provide a best-in-market solution.

該業務的一個重點是不斷為使用我們的垂直軟件的公司開發新產品。我們希望為與我們合作的每種類型的公司推出一個新模塊，至少每年一次，以便為這些公司創造更多價值並增加每家公司的收入。我想介紹各種 Porch 品牌的 3 項新發展。首先，在我們的 Floify 業務部門內，我們現在能夠為經紀人提供一體化解決方案，將我們的抵押銷售點的強大功能與集成合作夥伴的抵押貸款發起系統相結合。此外，我們還為抵押貸款公司推出了 2 款新產品，Closing Accelerator 可幫助客戶更快地完成貸款，Customer Capture 可幫助抵押貸款公司獲得更多客戶。通過這種強大的組合，我們能夠提供市場上最佳的解決方案。

Secondly, we have released a new Report Writer for inspectors. This new release provides a fully redesigned modern user interface, an enhanced functionality that can serve as an all-in-one solution for small home inspection companies. Our new Report Writer allows inspectors to create reports faster with voice commands, media editing, and support for multiple inspectors on site. The new platform will also enable tighter integration with some of our other modules, such as payment processing and the Porch mobile app.

其次，我們為檢查員發布了一個新的 Report Writer。這個新版本提供了一個完全重新設計的現代用戶界面，一個增強的功能，可以作為小型家庭檢查公司的一體化解決方案。我們新的 Report Writer 允許檢查員通過語音命令、媒體編輯和對現場多個檢查員的支持更快地創建報告。新平台還將與我們的一些其他模塊更緊密地集成，例如支付處理和 Porch 移動應用程序。

Lastly, we have rolled out price increases within our title business, alongside launching new products for these customers. This includes Rynoh Escheat. The [escheatment] is a complex process the title businesses need to follow to comply with state regulations on unclaimed funds. The module is an easy-to-use cloud-based software that seamlessly integrates with bank accounts. Ensuring the title agents are notified of unclaimed funds and helps to facilitate the reporting process in accordance with each states' escheatment shipment reporting regulations.

最後，我們在我們的產權業務中推出了價格上漲，同時為這些客戶推出了新產品。這包括 Rynoh Escheat。 [沒收] 是產權企業需要遵循的複雜過程，以遵守國家關於無人認領資金的規定。該模塊是一款易於使用的基於雲的軟件，可與銀行賬戶無縫集成。確保產權代理人收到無人認領資金的通知，並有助於根據每個州的歸還裝運報告規定促進報告流程。

I'll now shift to our work for consumers. Our app has now been rolled out to nearly all eligible ISN inspection companies. This is key to engaging additional consumers who access their inspection report via the app, the home data that is generated from that report, and our recall check monitoring functions for their appliances. We then use this opportunity to cross-sell other services Porch provides. We also look at how we can continue to make the moving journey simpler for both moving companies and consumers.

我現在將轉向我們為消費者所做的工作。我們的應用程序現已推廣到幾乎所有符合條件的 ISN 檢查公司。這是吸引更多消費者參與的關鍵，他們可以通過應用程序訪問他們的檢查報告、從該報告生成的家庭數據，以及我們對其電器的召回檢查監控功能。然後，我們利用這個機會交叉銷售 Porch 提供的其他服務。我們還研究瞭如何繼續讓搬家公司和消費者的搬家之旅變得更簡單。

In our moving business, we have launched a fixed price product called Plus. This allows consumers to lock in a fixed price for their move rather than an hourly rate. This gives them confidence that costs will not build up through an already expensive period and allow us to increase our margins per customer by including more services to third-party movers offer, such as wrapping and packing or moving permits.

在我們的搬家業務中，我們推出了一款名為 Plus 的固定價格產品。這使消費者可以為他們的搬家鎖定固定價格，而不是按小時收費。這使他們相信成本不會在本已昂貴的時期內增加，並使我們能夠通過向第三方搬運工提供更多服務（例如包裝和包裝或搬運許可）來增加每位客戶的利潤。

ISN FlexFund is our inspection pay at close module, first launched last year. This product gives consumers the flexibility to roll the cost of their home inspection into their mortgage payment. Giving consumers more time to pay often increases the number of services they sign up for, such as rate on testing, asbestos check and [seroscope] thereby giving them more confidence in the home they're purchasing and upselling services for our inspection businesses. We are pleased with how this product has gained momentum and look forward to strong growth in 2023 and 2024.

ISN FlexFund 是我們去年首次推出的關閉模塊檢查支付。該產品使消費者可以靈活地將房屋檢查費用計入抵押貸款付款中。給消費者更多的付款時間通常會增加他們註冊的服務數量，例如測試費率、石棉檢查和 [血清鏡]，從而使他們對購買的房屋更有信心，並為我們的檢查業務推銷服務。我們對這款產品的發展勢頭感到滿意，並期待在 2023 年和 2024 年實現強勁增長。

As Matt mentioned earlier, we launched Porch Warranty in February. We're excited by this as it's a high-value service for consumers and will help this high-margin business of ours continue to grow rapidly. This branded warranty product is being launched across multiple channels such as utilities and real estate. In addition to the traditional channels, Porch Group has access to inspectors and others, which allows us to sell warranties at a lower customer acquisition cost. We also enhanced the coverage and value consumers receive by including a variety of our handyman maintenance services to drive differentiation.

正如 Matt 之前提到的，我們在 2 月份推出了 Porch Warranty。我們對此感到興奮，因為它是一項面向消費者的高價值服務，並將幫助我們的這項高利潤業務繼續快速增長。該品牌保修產品正在通過公用事業和房地產等多個渠道推出。除了傳統渠道外，Porch Group 還可以接觸檢查員和其他人員，這使我們能夠以較低的客戶獲取成本出售保修單。我們還通過包括我們的各種雜工維護服務來推動差異化，從而提高了消費者的覆蓋範圍和價值。

Thanks, everyone. I'll now hand it back to Matt.

感謝大家。我現在將它交還給馬特。

Thanks, Nicole. Thanks, guys. I'll wrap up by saying first that we really are excited about the journey ahead. The team and I remain confident in our offerings and in our strategy. Like many, we're facing market headwinds, but the team is staying focused and is executing well. We do not think the stock market accurately reflects what we are building, but that over time, it will.

謝謝，妮可。多謝你們。最後，我首先要說的是，我們對未來的旅程真的很興奮。我和我的團隊對我們的產品和戰略充滿信心。像許多人一樣，我們面臨市場逆風，但團隊保持專注並且執行良好。我們認為股市不能準確反映我們正在建設的東西，但隨著時間的推移，它會。

I am particularly looking forward to the second half of this year, during which we expect to both post positive adjusted EBITDA and launched the reciprocal structure for our insurance businesses. These are both important moments for us and something we've been working on and looking forward to for some time. Thank you in advance to the Porch team for the great work.

我特別期待今年下半年，在此期間我們預計調整後的 EBITDA 將實現正數，並為我們的保險業務推出互惠結構。這些對我們來說都是重要的時刻，也是我們一直在努力和期待一段時間的事情。提前感謝 Porch 團隊所做的出色工作。

So with that, let's wrap the prepared remarks. And Lois, if you go ahead, please open the call for Q&A.

因此，讓我們結束準備好的評論。 Lois，如果你繼續，請打開問答電話。

Great. Thanks, Matt. (Operator Instructions) The question 1 comes from Daniel at Benchmark.

偉大的。謝謝，馬特。 （操作員說明）問題 1 來自 Benchmark 的 Daniel。

Matt, and I know we've spent a lot of time talking about insurance, but maybe if we can just double-click on sort of software for a second and just kind of talk through some of the trends there, whether you're seeing or anticipating a little bit of a different mix than you originally forecast. And obviously, the housing market has been messy and some of the per seat stuff has been challenged. But given some of Nicole's commentary and then also some of the up through -- upsell that Matt talked about in his remarks. Just kind of help us think through maybe some of the dynamics there and maybe even a little bit on a longer tailed outlook once we get into more normalized environment.

馬特，我知道我們花了很多時間討論保險，但也許如果我們可以雙擊某種軟件並討論其中的一些趨勢，無論您是否看到或預期與您最初預測的組合略有不同。顯然，房地產市場一團糟，一些人均收入受到挑戰。但考慮到妮可的一些評論，以及馬特在他的評論中談到的一些向上銷售。一旦我們進入更加規範化的環境，就可以幫助我們思考可能存在的一些動態，甚至可以考慮一下更長尾的前景。

Matt, why don't you take the first part of the question, and maybe I'll give my thoughts on the longer term looks ahead.

馬特，你為什麼不回答問題的第一部分，也許我會給出我對未來長期展望的看法。

Yes. I mean the first point that I'd say is we have good market position in all of our categories and our product velocity is increasing, right? So we're bringing the market or teeing up things to bring the market that I think will just make our offer more compelling. And right now, we are in a soft market, which creates some headwinds to bring on new customers and so forth. But it's also an opportunity for us to reposition. So when the market kicks back up, we'll have a greater offering. And so the teams are focused and we're excited about what we have planned in those categories. It's just a little soft, but we're not rooted about on a long term.

是的。我的意思是我要說的第一點是我們在所有類別中都擁有良好的市場地位並且我們的產品速度正在增加，對嗎？因此，我們正在引入市場或準備一些東西來引入市場，我認為這只會使我們的報價更具吸引力。而現在，我們處於一個疲軟的市場中，這會產生一些不利因素來吸引新客戶等等。但這也是我們重新定位的機會。因此，當市場回暖時，我們將提供更多產品。所以團隊很專注，我們對我們在這些類別中的計劃感到興奮。它只是有點軟，但我們並沒有長期紮根。

I'd just add -- I use the moment to give kudos to that team. I mean, our software businesses remaining flat in these quarters, ballpark flat and times when the market is down like it is. It just is a testament to, I think, the new products that they're bringing to market, but it is -- even the market is going to come back. There are going to be more housing transactions over time. We'll all see how long that takes. (inaudible) really does start to ramp back up. But clearly, that's going to happen. And because we are both increasing market share and generating more revenue either for a company or per transaction, in particular, per transaction. As transactions increase, obviously, we're well set up to get that real wind at our backs. And last thing is we are innovating and building some really new and unique things for these companies to become more important to these companies. And so I'm excited about how that positions us here looking forward.

我只想補充一點——我利用這個機會向那個團隊表示敬意。我的意思是，我們的軟件業務在這些季度保持平穩，大致持平，而且在市場低迷的時候也是如此。我認為，這只是證明了他們正在推向市場的新產品，但它是——甚至市場也會回來。隨著時間的推移，將會有更多的房屋交易。我們都會看到這需要多長時間。 （聽不清）確實開始回升。但很明顯，這將會發生。而且因為我們既增加了市場份額，又為公司或每筆交易創造了更多收入，特別是每筆交易。顯然，隨著交易的增加，我們已經準備好迎接真正的風。最後一件事是我們正在為這些公司創新和構建一些真正新穎和獨特的東西，使它們對這些公司變得更加重要。因此，我對這如何讓我們在這裡展望未來感到興奮。

That's helpful. And then maybe just some more color on warranty expansion. You guys called it out. I know it's not huge component. I mean, I remember when you initially started, Matt, we were looking at quarterly policies and revenue per policy. And some of the KPIs there, and I'm sure it's too early, but now that you have kind of Porch branded with Porch branded insurance to come. I know you were super excited when we made the original entry into the market. So just kind of help us think about sort of the contribution, maybe some of the puts and takes? And how much you're investing, I guess, at this point to kind of scale that business over the balance of the year and into next year?

這很有幫助。然後可能只是在保修擴展上增加了一些顏色。你們叫出來了。我知道這不是很大的組成部分。我的意思是，我記得你剛開始的時候，馬特，我們正在研究季度保單和每份保單的收入。還有一些 KPI，我敢肯定現在還為時過早，但現在你有了一種帶有 Porch 品牌保險的 Porch 品牌。我知道當我們最初進入市場時你非常興奮。所以只是幫助我們考慮某種貢獻，也許是一些投入和投入？我猜，在這一點上，你投資了多少，以便在今年餘下時間和明年擴大業務規模？

Yes, I can take that. We're excited about the warranty business. You mentioned today is growing rapidly. We mentioned today, it's high margin. And we mentioned today, we have a new Porch branded warranty product. One -- a couple of things that are interesting about our opportunity in the warranty space, the first is we're going to be able to bring multiple products to market. So we already are in a market with 90-day warranties from inspectors, annual warranties, 3-year warranties. And we think there are other products we can bring to market. But we also have access to multiple channels. And so we're engaged with real estate, inspectors. We think we have an opportunity in utilities, and we have direct-to-consumer channels that are working for us. In terms of investment, we're actively growing, seeking to grow the warranty business and investing in the warranty business, and we see it as a key part of our strategy going forward.

是的，我可以接受。我們對保修業務感到興奮。你今天提到的增長很快。我們今天提到，這是高利潤率。我們今天提到，我們有一款新的 Porch 品牌保修產品。一 - 關於我們在保修領域的機會的幾件有趣的事情，首先是我們將能夠將多種產品推向市場。所以我們已經進入了一個市場，檢查員提供 90 天保修、年度保修、3 年保修。我們認為還有其他產品可以推向市場。但我們也可以訪問多個渠道。因此，我們正在與房地產、檢查員打交道。我們認為我們在公用事業領域有機會，而且我們擁有適合我們的直接面向消費者的渠道。在投資方面，我們正在積極發展，尋求發展保修業務並投資於保修業務，我們將其視為我們未來戰略的關鍵部分。

Yes. I'll say, Dan, when we had first talked about warranty business however long ago that was, the thesis that we had out there is certainly working with -- we're getting lots of opportunities ahead. We've not started to use in any kind of material way our unique data into the pricing for warranties. And so clearly, there are opportunities there over time. Right now, just through our channels, our demand access, we have big advantages there. And so the team is taking advantage of it.

是的。我會說，丹，當我們第一次談論保修業務時，不管是在很久以前，我們在那裡的論點肯定是可行的——我們未來有很多機會。我們還沒有開始以任何形式將我們獨特的數據用於保修定價。很明顯，隨著時間的推移會有機會。現在，僅通過我們的渠道，我們的需求訪問，我們在那裡就有很大的優勢。所以團隊正在利用它。

Yes, I was going to follow up on the data angle, but you've just covered that. So I appreciate it. Before I jump off, I'm sure...

是的，我打算從數據角度跟進，但你剛剛談到了這一點。所以我很感激。在我跳下之前，我確定...

I was just going to ask you about literally the convert Matt, I mean I just wanted to clarify, I think there was a carve-out for you guys to be able to buy the old convert. So just your thoughts on repurchasing the legacy convert versus the stock at this point.

我只是想問你關於皈依者馬特的問題，我的意思是我只是想澄清一下，我認為你們有一個例外可以購買舊的皈依者。因此，此時您只是想回購傳統轉換工具而不是股票。

Shawn, do you want to take the convert question?

肖恩，你想回答轉換問題嗎？

Yes. Yes. So I think the deal overall was very positive for the company. Obviously, we were able to reduce our medium-term maturities, while at the same time adding just over $100 million of cash to the balance sheet, which I think gives us some good flexibility, especially with the macro headwinds, et cetera. I don't talk part in the reinsurance markets. And I think there's a number of options that we have here over the coming months and years. And we will obviously do what's in the best interest of our shareholders to create value for our shareholders there. So that's where we're at today.

是的。是的。所以我認為這筆交易總體上對公司來說是非常積極的。顯然，我們能夠減少中期期限，同時在資產負債表中增加超過 1 億美元的現金，我認為這給了我們一些很好的靈活性，尤其是在宏觀逆風等情況下。我不談論再保險市場的一部分。我認為在接下來的幾個月和幾年裡，我們有很多選擇。我們顯然會做符合股東最大利益的事情，為那裡的股東創造價值。這就是我們今天所處的位置。

And I guess I apologize for the quite rude professional interruption.

我想我為非常粗魯的專業打擾道歉。

Next up, we have Jason from Oppenheimer.

接下來，我們有來自奧本海默的傑森。

So I'll ask 2 questions. So just what's driving your confidence in the full ratio loss getting to 62% versus 73% in this quarter? And then within the context of that, review the milestones and expected timing to go live with the reciprocal exchange. I'll call that one question. And two, just a quick one. Any tailwinds from housing improvement in your guidance?

所以我會問2個問題。那麼，是什麼讓您對本季度的全比率損失達到 62% 而不是 73% 充滿信心？然後在此背景下，審查里程碑和預期的時間，以便與互惠交換一起上線。我會稱之為一個問題。還有兩個，只是一個快速的。在您的指導中，住房改善有什麼好處嗎？

I'll take the reciprocal, Shawn, why don't you take the gross loss ratio question if you want to take on housing, that's great and the assumptions there. We are making progress, as I would expect, Jason, with the Texas Department of Insurance as it relates to the reciprocal. I would say, on track with the timing that we would expect kind of in the process, no changes in terms of our expected timing for the finish line. We still expect second half of this year, but nothing surprising coming out of that process thus far.

肖恩，我會採取倒數，如果你想承擔住房問題，你為什麼不考慮總損失率問題，那很好，那裡的假設。正如我所期望的那樣，傑森，我們正在與德州保險部取得進展，因為它與互惠有關。我會說，按照我們在流程中預期的時間安排，我們對終點線的預期時間沒有變化。我們仍然期待今年下半年，但到目前為止這一過程的結果並不令人驚訝。

With respect to the gross loss ratio, we mentioned on the call today, Q1 was relatively in line with what we expected. The 62% assumption that we noted, that's for the full year Q1 the way the seasonality works in our HOA insurance carrier business. Q1 and Q2 typically have the worst letter. And so the guidance that we reiterated today was, again, we're expecting that 62% gross loss ratio for the year. The other thing I'll note is we also mentioned the 37,000 higher-risk policies that will continue to roll off as the year progresses along with pricing increases as we go here through the year. So those will have more of an impact as we get through the year. So that's the first question on gross loss ratio.

關於毛損率，我們今天在電話會議上提到，Q1 比較符合我們的預期。我們注意到的 62% 假設是全年第一季度季節性在我們的 HOA 保險公司業務中的運作方式。 Q1 和 Q2 通常具有最差的字母。因此，我們今天重申的指引再次是，我們預計今年的毛損率為 62%。我要注意的另一件事是，我們還提到了 37,000 項高風險保單，這些保單將隨著時間的推移隨著價格的上漲而繼續取消，因為我們全年都會來到這裡。因此，隨著我們度過這一年，這些將產生更大的影響。所以這是關於毛損率的第一個問題。

The second one, I think, was on industry-wide home sales. And a couple of things I'll point out there. We do also see some seasonality in our housing market and in our businesses throughout the year. As you expect Q2 and Q3 around the summer months, it starts to pick up a little bit more. And then from a comp perspective, there is a relevant thing to point out, which was Q1 of last year was a relatively, I'll call it, normal-ish quarter. And so we do expect the year-over-year decline to tighten as we go in the year. Basically, we expect the comp to get easier as we progress throughout the rest of the year. But again, we're -- we reiterated our 18% assumption for the full year. And Q1, as we said, was relatively alone.

我認為，第二個是關於整個行業的房屋銷售。我會指出幾件事。我們確實在全年的房地產市場和我們的業務中也看到了一些季節性。正如您預期的那樣，在夏季的幾個月左右，第二季度和第三季度開始有所回升。然後從 comp 的角度來看，有一個相關的事情要指出，去年第一季度是一個相對正常的季度。因此，我們確實預計今年的同比下降會收緊。基本上，我們希望隨著我們在今年餘下時間的進步，比賽會變得更容易。但同樣，我們 - 我們重申了全年 18% 的假設。正如我們所說，Q1 相對獨立。

Next, we go to John from Stephens.

接下來，我們從斯蒂芬斯去找約翰。

Yes, earnings season is going to be a bit of a drag to having hot mics on Zoom can spice things up a little bit. But my question here is on the guidance. Obviously, big revenue beat for you guys this quarter. You reiterated the full year guide. I'm just trying to square up those moving pieces. At a high level, I'm thinking that's conservatism. But if I take the insurance revenue from 1Q, it's a pretty stable revenue base. You've got some attrition coming as you're shutting off some policies, but you still have the growth dynamic and you have the pricing that comes on more impactful. So I wouldn't think that comes down much, right? So if I annualize that, take that out of total revenue, it's implying the rest of the business, so maybe vertical software, down maybe 25%, 26% year-over-year, $115 million. I saw in the guidance where you guys said that you expect that to be relatively flattish year-over-year. So am I missing something here? Is insurance taking a larger step down from the 1Q level? What am I missing here?

是的，財報季會有點拖累，因為在 Zoom 上使用熱門麥克風會讓事情變得更有趣。但我的問題是關於指南。顯然，本季度你們的收入超過了你們。您重申了全年指南。我只是想整理那些移動的部分。在高層次上，我認為這是保守主義。但如果我從 1Q 獲得保險收入，這是一個相當穩定的收入基礎。當你關閉一些政策時，你會有一些流失，但你仍然有增長動力，而且你的定價更有影響力。所以我認為這不會下降太多，對吧？因此，如果我將其年化，從總收入中扣除，這意味著其餘業務，垂直軟件可能同比下降 25%、26%，1.15 億美元。我在指南中看到你們說你們預計同比會相對平穩。那我在這裡錯過了什麼嗎？保險是否從 1Q 水平下調了一個更大的台階？我在這裡錯過了什麼？

Yes. Yes. It's a handful of thoughts. I'll take this. So one, we feel good about how we're set up for the year, and we still feel like we're early in the year. We only provided the annual guidance 8 weeks ago. And so we're early in the year. We want to see how this holding goes out. There are a number of moving pieces to your point. So there are the 37,000 policies that we roll off over the course of the year.

是的。是的。這是一些想法。我要這個。所以第一，我們對今年的安排感覺很好，我們仍然覺得我們在今年年初。我們僅在 8 週前提供了年度指導。所以我們今年年初。我們想看看這家公司的情況如何。您的觀點有許多動人之處。因此，我們在一年中推出了 37,000 份保單。

Obviously, we have price increases going through to consumers. And so we're going to be naturally conservative with what we expect to see in terms of the attrition from those consumers as they see a higher price, but we have to let that play its way through as that gets rolled out to consumers.

顯然，我們將價格上漲傳遞給了消費者。因此，我們自然會保守地對待我們期望看到的那些消費者的流失，因為他們看到更高的價格，但我們必須讓它在向消費者推出時發揮作用。

I would also just say the housing market. Last year, full -- a year ago -- 18 months ago, we were surprised by what the housing market did when we first provided 2022 guidance. And while we feel like we've got a good handle on it, and we're conservative with our estimates in terms of what we expect this year, naturally, we're just -- I think there is uncertainty with the housing market right now. And so we're going to naturally build that in and again, just give ourselves a little more time to let this all play out. We don't guide before really, obviously, and so just reiterating the full year right now, but I will say that we are hopeful and confident about how we're set up for this year yet early.

我也只想說房地產市場。去年，也就是一年前——18 個月前，當我們首次提供 2022 年指引時，我們對房地產市場的表現感到驚訝。雖然我們覺得我們已經很好地處理了它，並且我們對今年的預期持保守估計，但自然地，我們只是 - 我認為房地產市場存在不確定性現在。因此，我們將自然而然地一次又一次地構建它，只是給自己多一點時間讓這一切發揮出來。很明顯，我們之前並沒有真正提供指導，所以現在只是重申全年，但我要說的是，我們對今年的設置充滿希望和信心。

Okay. That's a helpful rundown. Next question on the reciprocal exchange. Matt, I think initially last quarter you said by the end of 3Q. I don't know if I'm splitting hairs here, but it sounds like you said later this year. So I don't know if it's -- the time line is still on, if you're still on path there. And then secondly, just directionally, are we expecting a modest revenue haircut? I know it's probably too early for you guys to tell, but just generally speaking, as you've seen from past examples of a carrier or MGA converting over to reciprocal exchange. Typically, what that kind of leakage looks like?

好的。這是一個有用的破敗。下一個關於互惠交換的問題。馬特，我認為最初上個季度你說的是第三季度末。我不知道我是否在這里分裂頭髮，但聽起來你今年晚些時候說過。所以我不知道它是否——時間線還在，如果你還在路上。其次，就方向而言，我們是否期望適度的收入削減？我知道你們現在說可能還為時過早，但一般來說，正如您從過去的運營商或 MGA 轉換為互惠交換的例子中看到的那樣。通常，這種洩漏是什麼樣的？

Yes. So yes, I would say no change in what our expectation is in terms of timing. But as we communicated last quarter, it's something that we are not fully in control of. Obviously, we're working with the Texas Department of Insurance. And so in the second half of the year, we would expect it to be approved, third -- end of third quarter, it's not an unreasonable assumption, but clearly, we're not putting a hard pin on that. We have to provide a little bit of flexibility for the team to kind of work through that process with the TDI.

是的。所以是的，我會說我們對時間的期望沒有變化。但正如我們上個季度所傳達的那樣，這是我們無法完全控制的事情。顯然，我們正在與德克薩斯保險部合作。因此，在今年下半年，我們預計它會在第三季度末獲得批准，這不是一個不合理的假設，但顯然，我們並沒有對此做出硬性規定。我們必須為團隊提供一點靈活性，以便通過 TDI 完成該過程。

In terms of the reciprocal revenue will be a bit lower. We're not obviously guiding right now for 2024. But like we indicated last quarter when we announced the reciprocal it will impact revenue some. It obviously also impacts our gross margins in a positive way, meaningfully in just the overall margin levels of the business to improve. When that is approved, John, our plan would be to do a presentation to kind of really fully walk through that, and the reason we won't do that ahead of time is that some of the degree of those changes depends on where everything lands with the Texas Department of Insurance through that process. So once approved, we would kind of walk folks through that and let everybody know how that's settling out.

在互惠收入方面會低一點。我們現在並沒有明確指導 2024 年。但就像我們在上個季度宣布倒數時所指出的那樣，這將對收入產生一些影響。它顯然也以積極的方式影響我們的毛利率，有意義地只是提高業務的整體利潤水平。約翰，當它獲得批准時，我們的計劃是做一個演示，以真正全面地介紹它，我們不會提前這樣做的原因是，這些變化的某些程度取決於一切落地的地方通過該過程與德克薩斯州保險部合作。因此，一旦獲得批准，我們就會向人們介紹一下，讓每個人都知道這是如何解決的。

Next, we'd go to Josh from Cantor.

接下來，我們會從 Cantor 去找 Josh。

I'd love to dive deeper first into your ability to maintain those -- that flattish revenue on vertical software despite the ongoing housing headwinds. So given the rollout of all these products and the expansion of existing products, how are you thinking about the current cross-sell opportunity that still exists, potentially untapped in the vertical?

我想首先深入了解您維持這些的能力——儘管住房市場逆風不斷，但垂直軟件的收入持平。因此，鑑於所有這些產品的推出和現有產品的擴展，您如何看待當前仍然存在的交叉銷售機會，可能在垂直領域尚未開發？

I'll take that. So there are a couple of dynamics. So one is, as I mentioned earlier, we're seeing an increase in product velocity, which creates opportunities for cross-sell. We gave one example today of Rynoh Escheat, which gives us an opportunity to bring a new module out to title companies. The other dynamic is partly due to market conditions with inflation, partly due to roll out some new products we have pricing opportunities. And we've been able to do that in a variety of places. We see a couple more opportunities, and so that will help that business from a revenue perspective. And then we're still investing in sales and marketing because we think it's the right long-term opportunity for the company. And so we're still out there getting people excited about what we're doing in those different verticals.

我會接受的。所以有一些動態。因此，正如我之前提到的，一個是我們看到產品速度的提高，這為交叉銷售創造了機會。我們今天舉了一個 Rynoh Escheat 的例子，這讓我們有機會向產權公司推出一個新模塊。另一個動態部分是由於通貨膨脹的市場條件，部分是由於推出一些我們有定價機會的新產品。我們已經能夠在很多地方做到這一點。我們看到了更多的機會，因此從收入的角度來看，這將有助於該業務。然後我們仍在投資於銷售和營銷，因為我們認為這對公司來說是正確的長期機會。所以我們仍然在那裡讓人們對我們在這些不同的垂直領域所做的事情感到興奮。

That's helpful. And then I'd like to turn attention over to profitability. So as you mentioned, as we progress throughout the year, you continue to roll off these higher risk insurance policies start to see the benefit of pricing. Can you walk us through how you expect the seasonality on your profitability to play out throughout the year?

這很有幫助。然後我想把注意力轉移到盈利能力上。因此，正如您所提到的，隨著我們全年的進步，您將繼續推出這些高風險保險政策，開始看到定價的好處。您能否向我們介紹一下您預計全年盈利能力的季節性如何？

Shawn, do you want to take it?

肖恩，你要拿走它嗎？

Yes. So today, we -- I mentioned earlier that the seasonality we see in the first half of the year on EBITDA is largely driven by the claims that we see at HOA, which is largely driven by weather in the first half of the year. And that's also where we see, frankly, the most variability as well because, obviously, weather is weather. So as I said today, Q1 was relatively in line with our expectations. And so we're largely comparable and on track with our previous guidance that we talked about, which is $30 million to $40 million EBITDA loss for the year.

是的。所以今天，我們 - 我之前提到過，我們在今年上半年看到的 EBITDA 的季節性主要是由我們在 HOA 看到的索賠驅動的，這主要是由上半年的天氣驅動的。坦率地說，這也是我們看到的變化最大的地方，因為很明顯，天氣就是天氣。所以正如我今天所說，第一季度相對符合我們的預期。因此，我們在很大程度上與我們之前談到的指導具有可比性，並且正在走上正軌，即今年的 EBITDA 損失為 3000 萬至 4000 萬美元。

And then that assumes obviously that key assumption that as expected weather and claims are in line with our 62% gross loss ratio for the year. And then as we look to the second half of the year, we would expect -- continue to expect to be profitable on an adjusted EBITDA basis. You noted some of the things that were -- that we had talked about previously. The underwriting changes that we've made, including the policies that were not renewing, they increase the pricing that we've done as well as the third one I mention that some of the G&A savings that we expect to see as the year rolls on.

然後顯然假設關鍵假設如預期的天氣和索賠符合我們今年 62% 的總損失率。然後，當我們展望今年下半年時，我們預計——繼續預計在調整後的 EBITDA 基礎上實現盈利。你注意到了我們之前討論過的一些事情。我們所做的承保變更，包括不續籤的保單，它們提高了我們所做的定價以及我提到的第三個，我們預計隨著這一年的推移，我們會看到一些 G&A 節省.

Next, we go to Ryan from KBW.

接下來，我們從 KBW 到 Ryan。

Just going back to the reciprocal exchange. From a P&L and margin standpoint, can you talk about how the GAAP, P&L or balance sheet may or may not change day 1 post the transaction? And in terms of the capital structure, how are you thinking about the time line for bringing in third-party capital there to either supplement or replace Porch's initial capitalization of the company? Do you feel like that is kind of necessary to ultimately effectuate the capital-light lower underwriting risk that you're drawing to here with the same structure?

只是回到互惠交換。從損益和保證金的角度來看，您能否談談 GAAP、損益或資產負債表在交易後第 1 天可能會或可能不會發生變化？在資本結構方面，您如何考慮引入第三方資本以補充或替代 Porch 對公司的初始資本化的時間表？您是否覺得這對於最終實現您在此處使用相同結構所吸引的輕資本較低承保風險是否有必要？

Shawn, I'll take the third-party capital comment and why don't you take the first part of that in terms of how we'll be able to display the P&L going forward post approval. Let me take the second part first. It is a choice, Ryan, on what we do with third-party capital. So in the insurance business, certain calculations that you have to meet. And those calculations factor and right of things, how much capital do you have, the level of reinsurance that you use, growth. And so we expect and we believe we have the ability to continue to grow premiums rapidly as we've demonstrated in the past.

肖恩，我會接受第三方資本評論，你為什麼不接受第一部分，關於我們如何能夠在批准後顯示未來的損益表。讓我先講第二部分。瑞安，這是一個關於我們如何處理第三方資本的選擇。所以在保險業務中，你必須滿足某些計算。這些計算因素和事物的權利，你有多少資本，你使用的再保險水平，增長。因此，我們期望並相信我們有能力繼續快速增長保費，正如我們過去所展示的那樣。

As part of the capital choice will be dependent though on how fast we choose to grow premiums and also what the state is of the reinsurance market. Again, we think what we're in now is a unique moment in time. Does it last for 1 year, 2 years, 3 years, like we'll see how long pricing is, I would say, very -- and availability is very abnormal because that's -- the expected returns for reinsurers right now is very high, and you'd expect more capital to come in the system, thereby normalizing that system.

作為資本選擇的一部分，將取決於我們選擇增加保費的速度以及再保險市場的狀況。同樣，我們認為我們現在所處的時間是一個獨特的時刻。它會持續 1 年、2 年、3 年嗎，就像我們會看到定價有多長一樣，我會說，非常 - 而且可用性非常不正常，因為那是 - 現在再保險公司的預期回報非常高，你會期望更多的資金進入這個系統，從而使這個系統正常化。

So a part of that decision will depend on what happens with that portion of the market. We do think it is not unlikely that we would go out and be able to pursue third-party surplus note investments whether that be late this year or sometime in 2024. That certainly could help just to make sure the capital base is there for the reciprocal entity to grow as fast as we like to. So Shawn, over to you for the first part of that question.

因此，該決定的一部分將取決於該部分市場的情況。我們確實認為，無論是今年晚些時候還是 2024 年的某個時候，我們都不太可能走出去並能夠進行第三方盈餘票據投資。這肯定有助於確保互惠的資本基礎存在實體以我們喜歡的速度增長。所以肖恩，請你回答這個問題的第一部分。

Yes. So as we've talked about, we think the reciprocal is an attractive structure for our business. I think it gives us an ability to generate cash flow for our Porch shareholders, and we talked about higher margin mitigating direct exposure to weather. The -- initially, when we launched the reciprocal, we do expect to consolidate from a GAAP perspective, the reciprocal as currently structured today into our results. But as we get closer, obviously, we'll be able to share more information on what that reporting would look like because I think it is important that we understand the cash generation capabilities of the business and what the reciprocal provides in that regard. Two, Porch shareholders, which may end up looking different than our GAAP consolidated results.

是的。因此，正如我們所說，我們認為互惠對我們的業務來說是一種有吸引力的結構。我認為這讓我們有能力為我們的 Porch 股東產生現金流，並且我們討論了更高的利潤率以減輕對天氣的直接影響。 - 最初，當我們推出互惠時，我們確實希望從 GAAP 的角度來看，將目前結構化的互惠整合到我們的結果中。但隨著我們越來越接近，顯然，我們將能夠分享更多關於該報告的信息，因為我認為了解企業的現金產生能力以及在這方面的互惠提供的內容很重要。第二，Porch 的股東，最終可能與我們的 GAAP 合併結果看起來不同。

Yes. Let me just layer one more thing on that Ryan, just to make sure that it's clear. At the time of the approval, the reciprocals created, we will be selling HOA, IC, our insurance carrier into that entity like Shawn said in the presentation, all of the capital, the balance sheet, liabilities from an entity to move over. Just to be clear that they are 2 separate balance sheets. So Porch Group shareholders' cash is separate from the cash and the reciprocal right?

是的。讓我在那個 Ryan 身上多加一層，以確保它是清楚的。在批准時，創建互惠，我們將把 HOA、IC、我們的保險公司出售給那個實體，就像肖恩在演示文稿中說的那樣，所有的資本、資產負債表、實體的負債都將轉移。需要明確的是，它們是兩張獨立的資產負債表。那麼博馳集團股東的現金與現金和互惠權利是分開的嗎？

And so we will want to show, like Shawn's saying, here is what Porch Group is producing, both from a balance sheet perspective and a P&L perspective. And then because the surplus -- excuse me, because reciprocal owes us money via that surplus note, we will sell the entity for. That creates a link between those entities, which has just been report from a GAAP perspective in a consolidated way. Over time, we would expect that to be paid off, and we'll be able to separate those entities. But we'll make sure even right out of the game is clear what is Porch Group, what we are doing as a company.

因此，正如肖恩所說，我們想要展示的是，從資產負債表和損益表的角度來看，這就是 Porch Group 正在生產的產品。然後因為盈餘 - 對不起，因為互惠通過盈餘票據欠我們錢，我們將出售該實體。這在這些實體之間建立了聯繫，剛剛從公認會計原則的角度以綜合方式報告了這些實體。隨著時間的推移，我們希望得到回報，我們將能夠分離這些實體。但我們會確保即使在遊戲之外也清楚什麼是 Porch Group，我們作為一家公司在做什麼。

Yes. That's helpful. And obviously, this is just a newer transaction for some of us. So just kind of walking through a bit more of the mechanics here. How are you thinking about the time line for transitioning legacy HOA policyholders to the new Porch brand post the reciprocal transaction. Is that time line? And any churn there impact how capital intensive, where the loss exposure that parent company could have at all post the transaction occurring?

是的。這很有幫助。顯然，這對我們中的一些人來說只是一項較新的交易。所以在這裡稍微了解一下機制。您如何考慮在互惠交易後將舊的 HOA 保單持有人過渡到新的 Porch 品牌的時間線。那是時間線嗎？那裡的任何流失都會影響資本密集程度，母公司在交易發生後可能面臨的損失風險在哪裡？

So right out of the gate, right upon approval, the Porch Insurance Reciprocal Exchange would be available to sell Porch insurance in the state of Texas. And then we would start to make it available and roll out for approval in other states as well. So right out of the gate at a consumer's -- policyholders renewal, we would be able to present them the opportunity to be able to move to that Porch insurance product. And there's a variety of unique value props that we're including in that product to make that attractive for consumers.

因此，一經批准，Porch Insurance Reciprocal Exchange 就可以在德克薩斯州出售 Porch 保險。然後我們將開始提供它並在其他州推出以供批准。因此，在消費者 - 保單持有人更新的大門外，我們將能夠向他們展示能夠轉移到 Porch 保險產品的機會。我們在該產品中包含各種獨特的價值支柱，以使其對消費者俱有吸引力。

If the consumer didn't want to move, they certainly don't need to, again, at the close of the transaction, all premium, whether it's a consumer that moved to Porch insurance or remains in HOA. Either way, all of that premium resides in that full reciprocal entity, and we get paid our clean fee and commission model from all of that premium, right?

如果消費者不想搬家，他們當然不需要再一次在交易結束時支付所有保費，無論是轉向 Porch 保險還是留在 HOA 中的消費者。無論哪種方式，所有這些溢價都存在於那個完全互惠的實體中，我們從所有這些溢價中獲得我們的清潔費用和佣金模型，對吧？

So from a Porch Group perspective, the migration from HOA to Porch insurance actually doesn't matter that much. We'll help facilitate that because there's good reasons too, but it doesn't really impact how the commissions and fees show up to the Porch Group's P&L.

因此，從 Porch Group 的角度來看，從 HOA 遷移到 Porch 保險實際上並沒有那麼重要。我們將幫助促進這一點，因為也有充分的理由，但這並不真正影響佣金和費用如何顯示在 Porch Group 的損益表中。

Next we have Jason from Craig Hallum.

接下來我們有來自 Craig Hallum 的 Jason。

This is Kyle on here for Jason. First one from me. I was just wondering if -- you mentioned some weather events, Q1, things like that. Could you give us a snapshot of maybe what fundamentals would look like if the reciprocal is already in place?

我是傑森的凱爾。我的第一個。我只是想知道是否 - 你提到了一些天氣事件，Q1，諸如此類的事情。如果互惠已經到位，您能否給我們一個快照，看看基本面會是什麼樣子？

We will, but we aren't right now. And the reason is that the reciprocal -- the terms of the reciprocal agreement, you are appending the discussions and approval of the Texas Department of Insurance. So it's similar to the answer I provided before, where as soon as the reciprocal is approved and we have clarity and certainty in terms of all the final terms, we will sit down and be able to provide all of that detail. And then yes, I would expect us to be able to provide both a backward-looking view as well as a forward-looking view, but we're not able to do that quite yet.

我們會的，但我們現在不是。原因是互惠——互惠協議的條款，你附上了德克薩斯保險部的討論和批准。所以它類似於我之前提供的答案，一旦互惠獲得批准並且我們對所有最終條款都有明確和確定性，我們將坐下來提供所有這些細節。然後，是的，我希望我們能夠提供回顧和前瞻的觀點，但我們還不能做到這一點。

I'd say just generally, though, like I mentioned before, to John, revenue generally will be a little bit lower, post reciprocal and then the margins, both gross margin and EBITDA margins will be a bit higher.

我想說的是，就像我之前提到的那樣，對約翰來說，收入通常會稍微低一點，倒數後利潤率，毛利率和 EBITDA 利潤率都會高一點。

Perfect. That's helpful. And then last one, can you just kind of drill down on some of the growth of insurance? And how much of it came from new policy adds, new geographies, price increases, just maybe what you saw in the quarter?

完美的。這很有幫助。最後一個，你能不能深入了解保險的一些增長？其中有多少來自新政策增加、新地區、價格上漲，也許正是您在本季度看到的？

Yes, quickly, the biggest driver would be price increases. That obviously has a big impact as those roll through. We've mentioned in the past that in Texas and South Carolina, there are material price increases that we have taken. Now unfortunately, for us, we took those really, I would say, ahead of the industry. You know our team had the foresight to kind of see what would likely happen with the reinsurance changes. And so we're ahead of the industry. And now we see lots of other carriers scrambling to also increase prices and try to catch up to the changes in the reinsurance market, but that would be the biggest of the impacts.

是的，很快，最大的驅動力將是價格上漲。這顯然會產生很大的影響。我們過去曾提到，在德克薩斯州和南卡羅來納州，我們已經採取了實質性的價格上漲措施。現在不幸的是，對我們來說，我們真的，我想說，領先於行業。你知道我們的團隊有先見之明，可以預見再保險變化可能會發生什麼。因此，我們領先於行業。現在我們看到許多其他承運人也爭先恐後地提高價格並試圖趕上再保險市場的變化，但這將是最大的影響。

Yes. So if I just take a step back, the entire insurance segment grew about 100%. So it was just under $59 million with 100% growth. And a couple of things we called out exactly, as Matt mentioned, the pricing, the warranty business doing really well. And then we also said about half of the growth overall, half of that 100% growth was from the changes to the reinsurance program and the seating percentages there. And then the other half is these operational wins and the momentum that the business is seeing on that front.

是的。所以如果我退一步說，整個保險部門增長了大約 100%。所以它略低於 5900 萬美元，增長了 100%。正如馬特提到的，我們準確地指出了一些事情，定價，保修業務做得非常好。然後我們還說了大約一半的總體增長，即 100% 增長的一半來自再保險計劃的變化和那裡的座位百分比。然後另一半是這些運營勝利和企業在這方面看到的勢頭。

Next, we have Daniel from JPM.

接下來，我們有來自摩根大通的丹尼爾。

I'm on for Cory Carpenter. So on the rate hikes, can you maybe talk about if you're still applying for more rate hikes in states like Texas and North Carolina until the reciprocals launched? And then for the second one, I believe it was launched last quarter, but can you maybe talk about the progress made with the Porch Group media launch and some of the demand you're seeing there?

我支持 Cory Carpenter。那麼關於加息，你能否談談在互惠計劃啟動之前，你是否仍在申請德克薩斯州和北卡羅來納州等州的更多加息？然後是第二個，我相信它是上個季度推出的，但你能否談談 Porch Group 媒體發布取得的進展以及你在那裡看到的一些需求？

I'll take the first, Matthew, why don't you take the second. Yes, we are continuing to, just like other carriers take more rate. Obviously, you work through the states for those rate approvals. We'll share more as certain things become approved and start getting rolled out. But that just generally is something I think you'll see across the homeowners insurance market this year and perhaps ongoing is that more rate will flow through in that system. We view the homeowners insurance market as a growing TAM, given how rates are going to increase, which, again, it might -- you might face a little headwind in the short term, but longer term, that does create meaningful opportunity in terms of how that's going to grow. Matthew?

我要第一個，馬修，你為什麼不拿第二個呢？是的，我們將繼續這樣做，就像其他運營商收取更高的費率一樣。顯然，您要通過各州來獲得這些費率批准。隨著某些事情獲得批准並開始推出，我們將分享更多內容。但我認為你今年會在整個房主保險市場看到這種情況，而且可能會持續增加該系統的利率。我們將房主保險市場視為一個不斷增長的 TAM，考慮到利率將如何上漲，這再次可能 - 你可能在短期內面臨一些逆風，但從長遠來看，這確實創造了有意義的機會這將如何增長。馬修？

Sure. Yes. Last -- I think it was last quarter, we highlighted Porch Group Media, which is our solution to brands who want to reach the properties and movers where we have unique data and unique insights. We are -- it's one -- it's a business we are excited about. And I would say the team were -- it's early, but we're optimistic. So the team is actively in discussion with a number of brands. I would say there is excitement about the differentiation of what we can do and then it's metered by just market slowing down a little bit and people being a little more cautious about how much they want to invest in the marketing. But certainly, I can say we have active in interested discussions with a large number of brands because of the unique things that only we can do.

當然。是的。最後 - 我認為是上個季度，我們強調了 Porch Group Media，這是我們為想要接觸我們擁有獨特數據和獨特見解的物業和搬家公司的品牌提供的解決方案。我們是 - 這是一個 - 這是我們感到興奮的業務。我想說團隊是——現在還早，但我們很樂觀。因此，團隊正在積極與多個品牌商討。我想說的是，我們對我們能做的事情的差異化感到興奮，然後市場放緩一點點，人們對他們想在營銷上投資多少更加謹慎。但可以肯定的是，我可以說我們積極與大量品牌進行有興趣的討論，因為只有我們才能做一些獨特的事情。

Great. Thank you, everyone. We have some pre-submitted questions, which I'll read out. First up, what is the 20% improvement in the insurance pricing model performance translate into conversion? And what is the impact on the gross loss ratio and P&L?

偉大的。謝謝大家。我們有一些預先提交的問題，我會讀出來。首先，將保險定價模型性能提高 20% 轉化為轉化率是多少？對毛損率和損益有何影響？

Nicole, do you want to take that one?

妮可，你要拿那個嗎？

Yes. Sure, I'll take that one. There's many factors that impact pricing and conversion. But overall, as we improve our models, we are able to better understand accuracy in our risk modeling and then that feeds into our pricing. So what that means is we can better convert lower risk policies with lower prices and then more appropriately priced higher risk policies higher, and that leads to more profitable growth. We have choices as we think about gross loss ratio versus growth, right, as we price, we can price however we want. And so -- but overall, we'd expect improvements in model accuracy allow us to continue to drive profitable growth for the Insurance segment.

是的。當然，我會拿那個。影響定價和轉換的因素有很多。但總的來說，隨著我們改進模型，我們能夠更好地理解風險建模的準確性，然後將其納入我們的定價中。因此，這意味著我們可以更好地以較低的價格轉換較低風險的政策，然後更適當地將較高風險的政策定價得更高，從而帶來更有利可圖的增長。當我們考慮總損失率與增長時，我們有選擇，對，當我們定價時，我們可以隨心所欲地定價。因此——但總的來說，我們預計模型準確性的提高將使我們能夠繼續推動保險部門的盈利增長。

And the second question is, why do you think the shares are priced like they are today?

第二個問題是，為什麼你認為這些股票的價格像今天這樣？

Quarterly question. So I would give you a similar answer in terms of what I've given in the past, which is, first of all, we don't think the valuation reflects that we've built. I mentioned that in our remarks -- prepared remarks. We don't think it reflects our view of the intrinsic value of the business. Like I've told my team, I do believe there will continue to be volatility and pressure on our stock, just given all of the markets that we play in, kind of the macro uncertainty of the markets we play in. Until we are profitable and really prove value to the market, we can start to build sustained momentum. So that will happen in time.

季度問題。所以我會根據我過去給出的答案給你一個類似的答案，首先，我們不認為估值反映了我們已經建立的。我在我們的發言中提到過——準備好的發言。我們不認為它反映了我們對企業內在價值的看法。就像我告訴我的團隊一樣，我確實相信我們的股票將繼續存在波動和壓力，只是考慮到我們參與的所有市場，我們參與的市場的宏觀不確定性。直到我們盈利並真正向市場證明價值，我們就可以開始建立持續的勢頭。所以這會及時發生。

But given just again, the fear and the uncertainty in housing and reinsurance, et cetera, what we're doing is just keeping our heads down, taking advantage of this time to expand our long-term competitive moats. And I think we're doing a nice job of that. We aren't so far away at this point of having some really important milestones for the business. And I'll use this opportunity just to say that I do express appreciation for the support from our consistent shareholders, those long-term oriented shareholders who know what we are building here over time and what's ahead, now and really see the value creation opportunity that's ahead. And I certainly understand, I know it can be a bit rocky here just seeing where the start on stock prices has done over this last year for us. But certainly, better times are ahead, and I'm excited that that's not too far away.

但再次考慮到住房和再保險等方面的恐懼和不確定性，我們所做的只是保持低調，利用這段時間擴大我們的長期競爭優勢。我認為我們在這方面做得很好。在這一點上，我們距離業務的一些非常重要的里程碑並不遙遠。我會利用這個機會只是想說，我確實對我們始終如一的股東的支持表示感謝，那些以長期為導向的股東知道我們在這裡隨著時間的推移正在建設什麼以及未來會發生什麼，現在真正看到了價值創造機會就在前面。而且我當然明白，我知道這裡可能有點不穩定，只是看看去年股價的開端對我們來說是什麼。但可以肯定的是，美好的時光就在前方，我很高興那離我們不遠了。

Great. Thank you, everyone. That concludes our time today. We look forward to speaking to you all soon. You may now disconnect. Thank you.

偉大的。謝謝大家。我們今天的時間到此結束。我們期待很快與大家交談。您現在可以斷開連接。謝謝。

Thanks, everybody, take care.

謝謝大家保重