Porch Group Inc (PRCH) 2024 Q3 法說會逐字稿

Good afternoon, everyone, and thank you for participating in Porch Group's third quarter 2024 conference call. Today, we issued our earnings release and filed our related Form 8-K with the SEC. The press release can be found on our Investor Relations website at ir.porchgroup.com.

大家下午好，感謝您參加 Porch Group 2024 年第三季電話會議。今天，我們發布了收益報告並向 SEC 提交了相關的 8-K 表格。新聞稿可在我們的投資者關係網站 ir.porchgroup.com 上找到。

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, EVP and GM of the Porch platform.

今天和我一起來的還有 Porch Group 執行長、董事長兼創辦人 Matt Ehrlichman； Shawn Tabak，Porch Group 財務長； Matthew Neagle，Porch Group 營運長；以及 Porch 平台的執行副總裁兼總經理 Nicole Pelley。

Before we go further, I would like to take a moment to review the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995, which provides important cautions regarding forward-looking statements. Today's discussion, including responses to your questions, reflects management's views as of today, November 7, 2024. We do not undertake any obligation to update or revise this information.

在我們進一步討論之前，我想花點時間回顧一下該公司 1995 年《私人證券訴訟改革法案》含義內的安全港聲明，該聲明提供了有關前瞻性聲明的重要警告。今天的討論（包括對您的問題的答案）反映了截至今天（2024 年 11 月 7 日）管理層的觀點。我們不承擔更新或修改此資訊的任何義務。

Additionally, we will make forward-looking statements about our expected future financial or business performance or conditions, business strategy and plans, including the expected benefits and timing of the launch of the reciprocal exchange 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.

此外，我們還將就我們預期的未來財務或業務業績或狀況、業務策略和計劃做出前瞻性陳述，包括基於當前預期和假設的預期收益和啟動互惠交易所的時間。這些陳述存在風險和不確定性，可能導致我們的實際結果與這些前瞻性陳述有重大差異。

We disclaim any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. We encourage you to consider the risk factors and other risks and uncertainties described in our SEC filings as well as the risk factor information in these slides for additional information, including factors that could cause our results to differ materially from current expectations.

我們不承擔公開更新任何前瞻性聲明的義務，無論是為了回應新資訊、未來事件或其他情況，除非適用法律要求。我們鼓勵您考慮我們向SEC 文件中描述的風險因素和其他風險和不確定性，以及這些幻燈片中的風險因素信息，以獲取更多信息，包括可能導致我們的結果與當前預期存在重大差異的因素。

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, which are available on our website. The financial information provided today is preliminary, unaudited and subject to revision upon completion of the closing and audit processes. 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.

我們將在今天的電話會議上參考公認會計原則和非公認會計原則財務指標。請參閱今天的新聞稿以及本次財報電話會議中討論的非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節表，這些內容可以在我們的網站上找到。今天提供的財務資訊是初步的、未經審計的，並可能在結算和審計流程完成後進行修訂。請注意，本次網路廣播以及本次電話會議後不久的簡報將在公司網站 ir.porchgroup.com 上重播。

Thank you. I'll now turn the call over to you, Matt.

謝謝。我現在把電話轉給你，馬特。

Thanks, Lois, and good afternoon, everybody. Thanks for joining us. We are excited, certainly about today's update, so let's get started. In October, we announced that the Texas Department of Insurance approved our application to form and license Porch Insurance Reciprocal Exchange or PIRE with the core structural and economic terms aligned with what was proposed in our application.

謝謝，路易斯，大家下午好。感謝您加入我們。我們對今天的更新感到非常興奮，所以讓我們開始吧。10 月，我們宣布德州保險部批准了我們的申請，以組建和許可 Porch Insurance Reciprocal Exchange 或 PIRE，其核心結構和經濟條款與我們申請中提出的內容一致。

In the coming weeks, we expect to complete customary administrative procedures and form and fund the reciprocal, file appropriate rates for PIRE and complete the acquisition of HOA at the start of January 2025 when Porch Insurance will officially be available to policyholders. We then expect our insurance business to be conducted under this new model with Porch Group acting as the operator of the reciprocal, mitigating direct exposure to insurance claims and weather events for Porch Group shareholders.

在接下來的幾週內，我們預計將完成慣常的行政程序，形成並資助互惠，為PIRE 提交適當的費率，並在2025 年1 月開始完成對HOA 的收購，屆時Porch Insurance 將正式向保單持有人提供。然後，我們預計我們的保險業務將在這種新模式下開展，並由 Porch Group 作為互惠的營運商，從而減輕 Porch Group 股東面臨的保險索賠和天氣事件的直接風險。

This announcement is a long time coming, a key milestone for Porch and the result of tremendous work by our team. I extend my thanks to our partners at the TDI as well. We believe a reciprocal is the optimal structure, expected to result in higher margins and more predictable financial results for Porch and believe it will allow us to scale our insurance operations more profitably over time.

這項宣布是很久以前的事了，是 Porch 的一個重要里程碑，也是我們團隊付出巨大努力的成果。我也向 TDI 的合作夥伴表示感謝。我們相信互惠是最佳結構，預計將為Porch 帶來更高的利潤和更可預測的財務業績，並相信隨著時間的推移，這將使我們能夠擴大保險業務的規模，從而獲得更大的利潤。

While we've constrained premium growth to approximately flat until we receive this approval, just this past week, we announced Porch Insurance in Texas reactivated many channel partners and launched our premium growth plan with an eye toward a strong 2025. Shawn and Nicole will share next steps for PIRE and the value creation opportunities ahead shortly.

雖然在獲得批准之前我們已將保費增長限制在大致持平的水平，但就在上週，我們宣布德克薩斯州的Porch Insurance 重新激活了許多渠道合作夥伴，並啟動了我們的保費增長計劃，著眼於2025 年的強勁成長。Shawn 和 Nicole 將分享 PIRE 的後續步驟以及未來的價值創造機會。

All right. Here, I'll hit on some Q3 accomplishments. First, we are profitable. We delivered record quarterly results with adjusted EBITDA at positive $17 million and achieved positive operating cash flow of $12 million, both exceeding expectations. Net income in Q3 was positive at $14 million. This is all despite Hurricane Beryl, a severe weather event occurring in early Q3, which we had mentioned last quarter.

好的。在這裡，我將介紹一些第三季的成就。首先，我們是獲利的。我們交付了創紀錄的季度業績，調整後 EBITDA 為正 1,700 萬美元，營運現金流為正 1,200 萬美元，均超出預期。第三季淨利為 1,400 萬美元。儘管我們在上個季度提到第三季初發生的惡劣天氣事件貝裡爾颶風，但這一切還是發生了。

Importantly, we expect to be adjusted EBITDA profitable ongoing marking today as a significant milestone for the business. Our insurance profitability actions are compounding and making a substantial impact. Pricing, deductibles, the use of home factors, our unique property data all contributing. We implemented further insurance premium per policy increases and total premium per policy increased 25% year-over-year.

重要的是，我們預計今天調整後的 EBITDA 獲利將成為該業務的一個重要里程碑。我們的保險獲利行動正在復合並產生重大影響。定價、免賠額、房屋因素的使用、我們獨特的房產數據都做出了貢獻。我們進一步提高了每份保單的保費，每份保單的總保費年增了 25%。

Our gross loss ratio in Q3 was 57%. And without catastrophic weather, our attritional loss ratio was 21%, again, outperforming expectations. The insurance carrier is healthy and expected to approach $100 million of surplus at the end of the year, which would be by far its highest in its history and is expected to post strong positive net income for the full year of 2024.

我們第三季的毛虧損率為 57%。在沒有災難性天氣的情況下，我們的自然損耗率為 21%，再次超出預期。該保險公司健康狀況良好，預計年底盈餘將接近 1 億美元，這將是其歷史上最高的水平，並預計 2024 年全年將實現強勁的正淨利潤。

Next, we have fully implemented AI models into our data platform and Home Factors data products. We launched three new Home Factors in the quarter and are seeing incredible results in better predicting losses and risk of a home. Multiple third-party carriers are currently testing our Home Factors data products against their historical claims and the results are resounding. We can help unlock meaningful underwriting and pricing advantages given our unique insights into approximately 90% of homes in the US.

接下來，我們將人工智慧模型全面應用到我們的資料平台和Home Factors資料產品中。我們在本季推出了三個新的房屋因素，並在更好地預測房屋損失和風險方面看到了令人難以置信的結果。目前，多家第三方業者正在根據他們的歷史聲明測試我們的 Home Factors 數據產品，結果令人印象深刻。鑑於我們對美國約 90% 的房屋的獨特見解，我們可以幫助釋放有意義的核保和定價優勢。

In the Vertical Software segment, we continue to roll out new products and features as we increase pricing. I'm very pleased with how high our customer retention rates remain. And finally, during the third quarter, we used $20 million of cash to repurchase $43 million of our September 2026 unsecured debt, bringing us to a total of $51 million par value repurchased this year.

在垂直軟體領域，我們在提高定價的同時繼續推出新產品和功能。我對我們的客戶保留率保持在較高水平感到非常滿意。最後，在第三季度，我們使用 2,000 萬美元現金回購了 2026 年 9 月的 4,300 萬美元無擔保債務，使我們今年回購的面值總額達到 5,100 萬美元。

Now over to you, Shawn, to cover the financials.

肖恩，現在由你來報道財務狀況。

Thanks, Matt, and good afternoon, everyone. Let's turn to our third quarter financial results.

謝謝馬特，大家下午好。讓我們看看第三季的財務表現。

First, a quick reminder that Q3 is a difficult comparison against the prior year. Last year in Q3, we discovered that one of our legacy reinsurance partners, Vesttoo, had committed a global fraud and therefore, we terminated that reinsurance contract and looked for replacement reinsurance. During that period of time, we had a period of lower reinsurance ceding, which resulted in additional revenue of $30 million in the third quarter of 2023, additional revenue less cost of revenue of $10 million and adjusted EBITDA of $2 million.

首先，快速提醒一下，第三季與去年相比是一個困難的比較。去年第三季度，我們發現我們的傳統再保險合作夥伴之一 Vesttoo 犯下了全球詐欺行為，因此，我們終止了該再保險合約並尋找替代再保險。在此期間，我們經歷了一段再保險分保較低的時期，這導致2023 年第三季的額外收入為3000 萬美元，額外收入減去收入成本為1000 萬美元，調整後的EBITDA 為200 萬美元。

With that as a backdrop, third quarter 2024 revenue was $111.2 million, in line with our expectations. This was a 14% decrease from the prior year, driven by the Vesttoo matter. And it was offset by a 25% increase in premium per policy in our insurance segment. Revenue less cost of revenue was $64.1 million, a margin of 58% and ahead of our expectations. Adjusted EBITDA was $16.9 million, an $8.1 million improvement from the prior year and ahead of our expectations, driven by the insurance segment and strong cost control.

在此背景下，2024 年第三季營收為 1.112 億美元，符合我們的預期。受 Vesttoo 事件的影響，這一數字比前一年下降了 14%。我們的保險部門每份保單保費增加了 25%，抵消了這種影響。收入減去收入成本為 6,410 萬美元，利潤率為 58%，超出了我們的預期。在保險部門和強有力的成本控制的推動下，調整後的 EBITDA 為 1,690 萬美元，比前一年增加 810 萬美元，超出了我們的預期。

Gross written premium decreased 10% from the prior year, driven by the divestiture of our legacy insurance agency, EIG, in the first quarter of this year. We have managed HOA gross written premiums to be roughly flat year-over-year. With the recent approval of the reciprocal, we will now begin to execute our premium growth plan.

由於今年第一季剝離我們的傳統保險機構 EIG，毛承保保費較上年下降 10%。我們的 HOA 毛保費與去年同期基本持平。隨著最近互惠協議的批准，我們現在將開始執行我們的保費增長計劃。

Taking a closer look at revenue. The insurance segment was 72% of total revenue in the third quarter, relatively consistent with the prior year. Revenue from our Insurance segment was $79.9 million, a 16% decrease from the prior year, driven by the Vesttoo matter. Vertical Software segment revenue was $31.3 million, a decrease of 9% from the prior year.

仔細看看收入。第三季保險業務佔總營收的72%，與去年同期大致持平。受 Vesttoo 事件的影響，我們保險部門的收入為 7,990 萬美元，比上年下降 16%。垂直軟體部門營收為 3,130 萬美元，較上年下降 9%。

Within this segment, software and services subscriptions revenue increased 7% from the prior year, a 300 basis points acceleration over the growth rate in the second quarter of 2024 and driven by price increases in Rynoh and Inspection software. This was offset by a revenue decline in the moving business, which exited the unprofitable corporate relocations offering, redirecting focus to higher-margin services.

在該細分市場中，受 Rynoh 和檢查軟體價格上漲的推動，軟體和服務訂閱收入較上年增長 7%，比 2024 年第二季度的增長率高出 300 個基點。這被搬家業務收入下降所抵消，搬家業務退出了無利可圖的企業搬遷服務，將重點轉向利潤率更高的服務。

Now let's dig into the Insurance segment, cost of revenue. Cost of revenue related to attritional claims was $16 million, better than our expectations by $13 million. Cost of revenue related to catastrophic weather claims was $26 million. In the quarter, there were two hurricanes that drove approximately $37 million in cost of revenue net of reinsurance. Hurricane Beryl was a one in 10-year event that occurred in early July and Hurricane Helene was a smaller event for us that developed later in the quarter and impacted the Carolinas. This was partially offset by $13 million of favorable prior period development.

現在讓我們深入研究一下保險領域的收入成本。與自然損耗索賠相關的收入成本為 1,600 萬美元，比我們的預期高出 1,300 萬美元。與災難性天氣索賠相關的收入成本為 2600 萬美元。本季發生的兩起颶風導致扣除再保險後的收入成本減少約 3,700 萬美元。颶風貝裡爾是 7 月初發生的十年一遇的事件，而颶風海倫對我們來說是較小的事件，在本季度晚些時候發展並影響了卡羅來納州。這被前期 1300 萬美元的有利發展部分抵消。

With our underwriting changes, previous weather events were smaller than we had previously estimated. Recently, Hurricane Milton occurred in early October. And as a reminder, we do not have exposure in Florida and therefore, no exposure to this event.

隨著我們承保的變化，之前的天氣事件比我們之前估計的要小。最近，十月初發生了颶風米爾頓。提醒一下，我們在佛羅裡達州沒有接觸過，因此沒有接觸過這起事件。

Moving to adjusted EBITDA. Overall, adjusted EBITDA was $16.9 million in the third quarter of 2024, a positive improvement from the prior year. The Insurance segment adjusted EBITDA was $24.8 million, a $5.7 million increase from the prior year, driven by the insurance profitability actions that Matt mentioned. The vertical software adjusted EBITDA was $5.1 million, a $1.9 million improvement from the prior year, driven by price increases in our software and services subscription businesses and strong cost control.

轉向調整後的 EBITDA。整體而言，2024 年第三季調整後 EBITDA 為 1,690 萬美元，較上年有正面改善。在馬特提到的保險獲利行動的推動下，保險部門調整後的 EBITDA 為 2,480 萬美元，比前一年增加 570 萬美元。垂直軟體調整後的 EBITDA 為 510 萬美元，比上年增加 190 萬美元，這得益於我們的軟體和服務訂閱業務價格上漲以及強有力的成本控制。

The Vertical Software adjusted EBITDA margin increased to 16% in the quarter. Corporate expenses were $13 million or 12% of total revenue, broadly flat from the prior year. Operating cash flow was positive at $12 million in the third quarter of 2024. As of September 30, 2024, we had $405 million in cash, cash equivalents and investments, excluding the $317 million at HOA, Porch held $88 million. This was $29 million lower than the prior quarter, predominantly due to the repurchase of $43 million in par value of the 2026 unsecured notes for $20 million of cash. The repurchases were done at an average of 47% of par value.

Vertical Software 本季調整後的 EBITDA 利潤率增至 16%。公司支出為 1,300 萬美元，佔總收入的 12%，與前一年基本持平。2024 年第三季營運現金流為 1,200 萬美元。截至 2024 年 9 月 30 日，我們擁有 4.05 億美元的現金、現金等價物和投資，不包括 HOA 的 3.17 億美元，Porch 持有 8,800 萬美元。這比上一季減少了 2,900 萬美元，主要原因是用 2,000 萬美元現金回購了面額 4,300 萬美元的 2026 年無擔保票據。回購平均為面額的 47%。

Taking a step back, I wanted to provide some context on capital allocation. First, we have maintained an appropriate minimum level of operating cash to run the business, second, we allocate capital toward investment opportunities that we expect to generate the highest risk-adjusted return and in excess of our internal hurdle rate, which is well above our weighted average cost of capital.

退一步來說，我想提供一些有關資本配置的背景資訊。首先，我們保持適當的最低營運現金水準來經營業務，其次，我們將資本分配給我們期望產生最高風險調整回報的投資機會，並且超過我們的內部最低預期回報率，該回報率遠高於我們的內部預期報酬率。

Given the performance in our Insurance business in Q3, we had excess cash available and were presented with an opportunity to deploy it against the unsecured notes at appropriate rates despite the low coupon. In Q4, we expect to have two primary uses of cash, $10 million for an interest payment on the secured notes and $10 million for the seed funding of the reciprocal exchange entity, which we will cover in more detail shortly. As we shift to the reciprocal model and launch PIRE, we will continue to focus on the health of the insurance carrier and its surplus and on satisfying related regulatory capital and other requirements.

鑑於我們第三季保險業務的表現，我們擁有多餘的可用現金，並且有機會以適當的利率將其用於無擔保票據，儘管票面利率較低。在第四季度，我們預計現金有兩個主要用途，1000 萬美元用於支付擔保票據的利息，1000 萬美元用於互惠交換實體的種子資金，我們將很快對此進行更詳細的介紹。隨著我們轉向互惠模式並推出 PIRE，我們將繼續關注保險公司的健康狀況及其盈餘，並滿足相關的監管資本和其他要求。

After the $10 million injection to start PIRE, we do not anticipate the insurance entities will need additional cash nor equity from Porch Group. Case in point, we expect HOA will end this year at record high surplus at approximately $100 million compared to $50 million at the end of the prior year. HOA surplus on September 30, was approximately $70 million.

在註資 1000 萬美元啟動 PIRE 後，我們預計保險實體將不需要 Porch Group 提供額外的現金或股權。舉例來說，我們預計 HOA 今年結束時的盈餘將創歷史新高，約 1 億美元，而去年底為 5,000 萬美元。9 月 30 日的 HOA 盈餘約為 7,000 萬美元。

Shifting now to guidance. We are updating our full year guidance today, reflecting our strong Q3 performance. We expect 2024 revenue of $440 million to $455 million with 2% to 6% growth. One thing I'll note is the prior year revenue was higher due to the Vesttoo fallout in Q3 2023 and the divestiture of EIG in January of this year. Revenue less cost of revenue guidance is updated with a $10 million improvement, now $200 million to $210 million.

現在轉向指導。我們今天更新了全年指引，反映了我們強勁的第三季業績。我們預計 2024 年營收將達到 4.4 億至 4.55 億美元，成長 2% 至 6%。我要注意的一件事是，由於 2023 年第三季 Vesttoo 的影響以及今年 1 月 EIG 的剝離，上一年的收入較高。收入減去收入成本指南更新為 1000 萬美元，現在為 2 億美元至 2.1 億美元。

Overall, we expect adjusted EBITDA loss of $7.5 million to a profit of $2.5 million, a $12.5 million improvement compared to previous guidance. The midpoint of this range results in $32 million of adjusted EBITDA in the fourth quarter, which is a $20 million improvement over the fourth quarter of 2023. For the full year, the midpoint would be a $40 million improvement over full year 2023, highlighting the profitability improvements of the business. We expect gross written premiums of $460 million to $470 million. We'll now focus on our reciprocal exchange deep dive for this quarter.

總體而言，我們預計調整後 EBITDA 虧損為 750 萬美元，利潤為 250 萬美元，比先前的指導減少 1,250 萬美元。該範圍的中點導致第四季度調整後 EBITDA 為 3,200 萬美元，比 2023 年第四季增加了 2,000 萬美元。就全年而言，中點將比 2023 年全年增加 4,000 萬美元，凸顯了該業務盈利能力的提高。我們預計總保費為 4.6 億至 4.7 億美元。我們現在將重點放在本季的互惠交流深入研究。

I'm pleased to have Nicole here to discuss this section with me.

我很高興 Nicole 能在這裡與我討論這一部分。

Hi, everyone. I'm excited to be here again, updating you on our progress and next steps. We've been working on this for a while, and we appreciate your support. First, Shawn will review the new structure of our Insurance business once the reciprocal is launched. And then I will talk you through the next steps as well as the value proposition for our insurance customers.

大家好。我很高興再次來到這裡，向您介紹我們的最新進展和後續步驟。我們已經為此努力了一段時間，感謝您的支持。首先，一旦互惠推出，肖恩將審查我們保險業務的新結構。然後我將向您介紹接下來的步驟以及對我們保險客戶的價值主張。

Now that we have TDI approval, we will form a new entity called Porch Insurance Reciprocal Exchange or PIRE. We will provide an initial $10 million of funding in exchange for a surplus note. On or around January 1, 2025, we expect to complete the sale of HOA, our existing insurance carrier, to PIRE and receive an additional surplus note in exchange. The amount of this surplus note will be equal to the difference between HOA's statutory surplus on the date of the sale minus our existing $49 million surplus note, which will continue forward.

現在我們已獲得 TDI 批准，我們將組成一個名為 Porch Insurance Reciprocal Exchange 或 PIRE 的新實體。我們將提供 1000 萬美元的初始資金以換取盈餘票據。我們預計在 2025 年 1 月 1 日左右完成將我們現有的保險公司 HOA 出售給 PIRE 的交易，並獲得額外的盈餘票據作為交換。這筆盈餘票據的金額將等於 HOA 在出售之日的法定盈餘減去我們現有的 4900 萬美元盈餘票據之間的差額，該盈餘票據將繼續下去。

Given HOA's performance, its surplus has been growing. And at this time, we expect HOA surplus at the end of the year to be approximately $100 million. This means that in total, our expectation is for Porch Group to hold approximately $110 million of surplus notes.

鑑於 HOA 的業績，其盈餘一直在成長。目前，我們預計年底的 HOA 盈餘約為 1 億美元。這意味著，我們預計 Porch Group 將持有約 1.1 億美元的盈餘票據。

All expected to bear a coupon of 9.75% plus SOFR. After the acquisition of HOA, PIRE will hold all policies premiums and pay certain expenses, including claims, agent commissions and reinsurance expenses. As with all reciprocal exchanges, the entity will be owned by its policyholders who will make surplus contributions in addition to their premiums, which is expected to result in faster surplus growth over the long term. At Porch Group, within our new Insurance Services segment, we will operate two business units first, Porch Risk Management Services, or PRMS, which will be the operator and attorney-in-fact of PIRE and HOA.

所有預計的票息均為 9.75% 加 SOFR。收購HOA後，PIRE將持有所有保單保費並支付一定費用，包括索賠、代理佣金和再保險費用。與所有互惠交換一樣，該實體將由保單持有人擁有，保單持有人除了保費外還將提供盈餘供款，預計這將導致長期盈餘增長更快。在 Porch Group 的新保險服務部門中，我們將首先經營兩個業務部門：Porch 風險管理服務 (PRMS)，該部門將成為 PIRE 和 HOA 的營運商和實際代理人。

PRMS will operate with mostly fixed costs and will receive high-margin commissions and fees that build up to a take rate of approximately 20% of gross written premium. The second business unit will be Porch Insurance Capital Solutions, Porch Insurance Capital Services, or PICS, which will hold the surplus note.

PRMS 將以大部分固定成本運營，並將收取高利潤佣金和費用，其收取率約為總承保保費的 20%。第二個業務部門將是 Porch Insurance Capital Solutions、Porch Insurance Capital Services 或 PICS，將持有盈餘票據。

Stepping back and looking at the new Insurance Services segment holistically, we expect revenue to decrease under this new model with higher adjusted EBITDA dollars and margins. Incremental margins are expected to be particularly strong given most of PRMS expenses are fixed. Cash flow dynamics are attractive as well as fees are paid to PRMS upfront. And we expect for our Insurance Services segment to move away from weather-related volatility, making it more predictable. We are excited to walk through the go-forward financial model in detail at an upcoming Investor Day in December.

退後一步，從整體上審視新的保險服務部門，我們預計在這種新模式下，隨著調整後 EBITDA 美元和利潤率的提高，收入將減少。鑑於大部分 PRMS 費用是固定的，預計增量利潤將特別強勁。現金流動態很有吸引力，費用預付給 PRMS。我們預計我們的保險服務部門將擺脫與天氣相關的波動，使其更加可預測。我們很高興能在即將到來的 12 月投資者日詳細介紹前進財務模型。

And Nicole will now take us through the launch plan.

妮可現在將帶我們了解啟動計劃。

Thanks, Shawn. First, as mentioned, we received prior approval from both the TDI and the Porch Board. This was a key milestone for us that provides us certainty and clarity on the path forward. We now move to prepare for the launch, including system programming and operational readiness and finalizing the Porch Insurance value proposition and independent agent onboarding and training.

謝謝，肖恩。首先，如前所述，我們事先獲得了 TDI 和 Porch Board 的批准。這對我們來說是一個重要的里程碑，它為我們前進的道路提供了確定性和清晰度。我們現在開始為啟動做準備，包括系統編程和營運準備，以及最終確定 Porch Insurance 的價值主張以及獨立代理人的入職和培訓。

Next up will be the launch targeted for the start of January 2025. At that point, the HOA sale will be completed and the existing carrier, including its entire book of policies, not just Texas policies, will transfer to be a subsidiary of PIRE. At that same time, we will launch Porch Insurance, a new homeowners insurance product with an enhanced value proposition. Here, consumers pay a surplus contribution in addition to their premium, helping to build surplus more quickly. We will offer both Porch Insurance and HOA products to new and renewing Texas policyholders.

接下來預計將於 2025 年 1 月開始發布。屆時，HOA 出售將完成，現有承運人（包括其整個保單，而不僅僅是德克薩斯州保單）將轉為 PIRE 的子公司。同時，我們將推出 Porch Insurance，這是一種具有增強價值主張的新房屋保險產品。在這裡，消費者除了保費之外還要支付盈餘貢獻，這有助於更快建立盈餘。我們將為德州的新保單持有人和續保保單持有人提供 Porch Insurance 和 HOA 產品。

We will initially launch the Porch Insurance product in Texas, our largest state. In 2025 and ongoing, we will look to roll out the Porch Insurance product to other states where HOA writes policies. But again, to make it clear, PIRE rolling out into more states doesn't impact Porch Group's financial results. As of the time HOA is sold to PIRE in January 2025, all premium will be at the reciprocal and Porch Group's Insurance Services segment revenue will be generated through our approximately 20% commission and fee take rate on total gross written premium.

我們首先將在我們最大的州德克薩斯州推出 Porch Insurance 產品。2025 年及以後，我們將尋求將 Porch Insurance 產品推廣到 HOA 承保保單的其他州。但再次強調，PIRE 推廣到更多州不會影響 Porch Group 的財務表現。截至 2025 年 1 月 HOA 出售給 PIRE 時，所有保費均將以倒數計算，Porch Group 的保險服務部門收入將透過我們佔總承保保費約 20% 的佣金和費用率產生。

State expansion is just about offering another product in the market to consumers and to enable the surplus contribution the reciprocal offers to aid in growing surplus faster. I mentioned the extra value we'll offer to consumers through the Porch Insurance product. So let's take a moment to talk through this.

國家擴張只是在市場上向消費者提供另一種產品，並實現互惠提供的剩餘貢獻，以幫助更快地增加剩餘。我提到了我們將透過門廊保險產品為消費者提供的額外價值。讓我們花點時間討論一下這個問題。

Porch Insurance customers are more than policyholders, their owners and members of the reciprocal. First, we offer more protection. Our insurance protects the home structure from every day in catastrophic risks. While our warranty product preserves inside of the house such as the appliances, New Porch Insurance members get a 90-day warranty, some new coverages such as service lines for gas, water and sewer lines, refrigerated property protection and other features to protect the home such as appliance recall check monitoring.

Porch Insurance 的客戶不僅僅是保單持有人、其所有者和互惠成員。首先，我們提供更多保護。我們的保險可以保護房屋結構免受日常災難性風險的影響。雖然我們的保固產品可以保護房屋內部的電器（例如電器），但New Porch Insurance 會員可以獲得90 天保修，以及一些新的承保範圍，例如煤氣、水和下水道管道服務、冷藏財產保護和其他保護房屋的功能例如家電召回檢查監控。

Second, Porch Insurance is designed for homebuyers and homeowners who maintain their home. Homebuyers save approximately 16% on homeowners insurance and can use our app or moving concierge to schedule movers, coordinate TV Internet setup and manage their home and moving tasks. Third, we reward our members. We want to make it easy to care for their homes and to be rewarded as a community as they do so.

其次，門廊保險是為購屋者和維護房屋的房主設計的。購屋者可節省約 16% 的房屋保險費用，並且可以使用我們的應用程式或搬家禮賓服務來安排搬家人員、協調電視網路設定以及管理他們的家居和搬家任務。第三，我們獎勵我們的會員。我們希望讓他們能夠輕鬆地照顧他們的家園，並在他們這樣做時獲得社區的獎勵。

Homeowners can use our Porch app to manage their home and their to-do list, find pros for projects and as part of our community, keep their homes safer. We will offer discounts on well-maintained homes as we price risk more accurately by utilizing the insights from Home Factors. Speaking of our property data product Home Factors, we're pleased with the continued progress of our data product -- our data platform and the use of AI and machine learning techniques that help us to extract and structure more Home Factors with increased accuracy.

房主可以使用我們的 Porch 應用程式來管理他們的家和待辦事項列表，尋找專案的專業人士，並作為我們社區的一部分，讓他們的家更安全。我們將為維護良好的房屋提供折扣，因為我們利用 Home Factors 的見解更準確地定價風險。說到我們的房地產數據產品“房屋因素”，我們對數據產品的持續進步感到高興——我們的數據平台以及人工智能和機器學習技術的使用，幫助我們以更高的準確性提取和構建更多的「房屋因素」。

We released three new insights this quarter, each of which relate to the electric system in the home. First, the condition of the electrical wiring and whether it needs to be repaired or replaced. Second, the capacity of the electrical panel; and third, the condition of the electric panel and whether that needs to be repaired or replaced. Each of these are unique to Porch and not readily available data.

我們本季發布了三個新見解，每個見解都與家庭電力系統有關。首先，電線的狀況以及是否需要修理或更換。二、電器板的容量；第三，電氣面板的狀況以及是否需要修理或更換。其中每一個都是 Porch 獨有的，而且不容易取得數據。

Taking a deeper look at panel repair replace status as an example. A panel in need of repair in a home presents various risks such as overloading circuits causing electrical fires, power outages from an unreliable power supply, damaging sensitive electronics or the inability to support upgrades for new appliances, such as installing electric car chargers or modern HVAC systems.

以深入了解面板維修更換狀態為例。家中需要維修的面板會帶來各種風險，例如電路過載導致電氣火災、電源不可靠導致斷電、損壞敏感電子設備或無法支援新設備的升級，例如安裝電動車充電器或現代暖通空調系統。

Comparing this insight against historical claims data indicates a 41% higher claims frequency at a comparable severity level. Therefore, it's valuable in evaluating risk in underwriting and pricing policies appropriately. This indicates we should offer an 18% discount to homes with panels that do not require repair and a 13% surcharge to those that do. These are just a few of the new examples. We are submitting multiple new filings by the end of 2024 that include Home Factors data such as the presence of skylights and additional roof factors. As a reminder, last quarter, we announced we are in the market selling Home Factors to third parties with strong early results.

將此見解與歷史索賠數據進行比較表明，在可比較的嚴重程度下，索賠頻率高出 41%。因此，適當評估承保和定價保單的風險具有重要意義。這表明我們應該為擁有不需要維修面板的房屋提供 18% 的折扣，並為需要維修面板的房屋提供 13% 的附加費。這些只是一些新範例。我們將在 2024 年底之前提交多份新文件，其中包括家庭因素數據，例如天窗的存在和其他屋頂因素。提醒一下，上個季度，我們宣布我們正在市場上向第三方出售 Home Factors，並取得了強勁的早期業績。

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

感謝大家今天抽出時間。現在我將把它交給 Matthew 來負責我們的 KPI。

Thanks, Nicole. Hello, everyone. As Shawn mentioned, once we enter into 2025, we will make small adjustments to our reporting segments in light of the reciprocal formation and at that time, update our KPIs for our go-forward operating model. We'll share more at the upcoming Investor Day. Until then, I'll quickly cover the current KPIs we have been using.

謝謝，妮可。大家好。正如Shawn所提到的，一旦進入2025年，我們將根據相互的形成對我們的報告分部進行小幅調整，屆時，我們將更新我們的KPI以適應未來的營運模式。我們將在即將到來的投資者日分享更多資訊。在那之前，我將快速介紹我們目前使用的 KPI。

First, the average number of companies was 28,000 in Q3. Average revenue per company per month decreased 8% to $1,318 from the prior year, driven by the Vesttoo impact Shawn mentioned. We had 245,000 monetized services in the quarter, a 9% increase over the prior year. The average revenue per monetized service was $377, 26% lower than prior year, similarly driven by Vesttoo matter.

首先，第三季平均企業數為2.8萬家。由於 Shawn 提到的 Vesttoo 影響，每家公司每月的平均收入比前一年下降 8% 至 1,318 美元。本季我們有 245,000 項貨幣化服務，比上年增長 9%。每項貨幣化服務的平均收入為 377 美元，比上年下降 26%，同樣受到 Vesttoo 問題的推動。

Looking now at our insurance segment KPIs. As a reminder, 2023 included the EIG Insurance Agency that was divested in January of 2024, and thus year-over-year comparisons are not apples-to-apples. In the third quarter 2024, gross written premium was $139 million from 219,000 policies in force. As we've discussed, we have constrained premium growth focus on profitability and are nearing the time when we begin to grow premium once again. Annualized revenue per policy was $1,460, an increase of 28% from the prior year driven by premium per policy increases.

現在來看看我們的保險部門 KPI。需要提醒的是，2023 年包括 2024 年 1 月剝離的 EIG 保險機構，因此同比比較並不是同類比較。2024 年第三季度，219,000 份有效保單的總保費為 1.39 億美元。正如我們所討論的，我們限制了對盈利能力的保費增長，並且即將開始再次增加保費。每份保單的年化收入為 1,460 美元，由於每份保單保費增加，較上年增長 28%。

Focusing on HOA. The annualized premium per policy increased 25% to $2,208. Premium retention was 100%. The non-renewals are now complete, and we expect to see the benefit of continued price increases as we look ahead. Our gross loss ratio was 57% in the third quarter, a strong result given the two hurricane events.

專注於 HOA。每份保單的年化保費增加了 25%，達到 2,208 美元。保費保留率為 100%。不再續約現已完成，展望未來，我們預計將看到價格持續上漲的好處。第三季我們的毛損失率為 57%，考慮到兩次颶風事件，這是一個強勁的結果。

Slide 23 presents the gross loss ratio and splits out attritional losses. Our non-cat loss performance was exceptional, delivering a gross attritional loss ratio of 21%, an 11% improvement from the prior year. I'll touch more on this shortly. As Shawn said, seasonal catastrophic weather performed well outside the two hurricane events. The catastrophe gross loss ratio was 36% in the third quarter, which was primarily driven by Beryl. Our gross combined ratio in Q3 was 89%.

投影片 23 展示了總損失率並分解了自然損耗。我們的非巨災損失表現非常出色，總自然流失率達到 21%，比前一年提高了 11%。我很快就會詳細討論這一點。正如肖恩所說，季節性災難性天氣在兩次颶風事件之外表現良好。第三季巨災總損失率為36%，這主要是由Beryl推動的。第三季我們的總綜合成本率為 89%。

I'd like to now provide some insight and data into how our attritional losses have significantly outperformed in the last two quarters. First, product. Our risk selection benefits from Home Factors. With our unique data helping us better assess and price risk and apply discounts and surcharges where appropriate. We are also revising deductibles and policy terms, therefore, reducing our risk exposure.

我現在想提供一些見解和數據，說明我們的自然損耗在過去兩個季度中表現如何顯著優於其他公司。第一，產品。我們的風險選擇受益於主場因素。借助我們獨特的數據，我們可以更好地評估風險並為其定價，並在適當的情況下應用折扣和附加費。我們也正在修改免賠額和保單條款，從而減少我們的風險敞口。

Second, portfolio. We've completed our risk selection review during which we non-renewed higher risk policies that our data and modeling showed were unlikely to be profitable. We have exited Georgia and pulled back from coast on Texas and South Carolina. Third, price. We continue to increase pricing across states where appropriate. We are not alone here in our price increase actions.

第二，投資組合。我們已經完成了風險選擇審查，在此期間我們不再更新我們的數據和模型顯示不太可能盈利的較高風險保單。我們已經離開喬治亞州，並從德克薩斯州和南卡羅來納州的海岸撤回。第三，價格。我們繼續在適當的情況下提高各州的定價。我們並不是唯一採取漲價行動的公司。

With historic losses, inflation and increased reinsurance costs and expenses, premiums have had to increase significantly across the homeowners insurance industry. Let's focus on Texas, our largest state, to highlight how premium per policy increases have improved our attritional loss ratios. In response to market shifts, we've implemented rate hikes, deductible changes and water coverage surcharges.

由於歷史性損失、通貨膨脹以及再保險成本和費用的增加，整個房屋保險業的保費不得不大幅增加。讓我們專注於我們最大的州德州，以強調每份保單保費的增加如何改善了我們的自然損耗率。為了因應市場變化，我們實施了升息、免賠額調整和水費附加費。

Since 2021, our premium per policy in Texas has grown at a 42% CAGR, now reaching $2,508. The chart shows how these actions particularly around water and fire perils, have improved loss ratios over the past 4 years. While inflation and rising reinsurance costs drove ratios higher in '21 to '22, they've since improved in '23 to '24, reflecting the success of our strategic measures.

自 2021 年以來，我們在德州的每份保單保費複合年增長率為 42%，目前達到 2,508 美元。這張圖表顯示了過去 4 年中這些行動（特別是圍繞水災和火災危險的行動）如何改善了損失率。雖然通貨膨脹和再保險成本上升推高了 21 年至 22 年的比率，但此後比率在 23 年至 24 年有所改善，反映出我們策略措施的成功。

Thanks, everyone. I will hand it to Matt to wrap this up.

謝謝大家。我會將其交給馬特來完成。

Thanks, Matthew. Thank you, team. We couldn't be more excited about what's ahead. To recap, one, the Porch Insurance Reciprocal Exchange is approved and the acquisition of HOA by PIRE is expected to be completed at the start of January; second, we lowered the amount of outstanding unsecured debt; three, our insurance business is demonstrating industry-leading attritional loss ratios.

謝謝，馬修。謝謝你，團隊。我們對未來感到無比興奮。回顧一下，一是Porch Insurance Reciprocal Exchange獲批，PIRE對HOA的收購預計一月初完成；其次，我們降低了未償無擔保債務的金額；第三是我們的保險業務展現了業界領先的自然損耗率。

We continue to roll out new Home Factors and are getting a strong positive response in the market; and five, for the full year, we are still focused on our target of achieving full year profitability in 2024, delivering positive adjusted EBITDA each quarter ongoing and delivering predictable cash flow results for Porch Group shareholders in 2025 and beyond.

我們不斷推出新的家居要素，並在市場上獲得強烈的正面回應；五、對於全年而言，我們仍然專注於在2024 年實現全年盈利的目標，每個季度持續實現正調整後的EBITDA，並在2025 年及以後為Porch Group 股東提供可預測的現金流結果。

We look forward to our Investor Day next month, where we'll share more detail about the economic model for Porch Group post reciprocal, the financial health of the insurance carrier, financial targets with long-term growth and margins, and details into a variety of our business units. We'll share updated segments and reporting KPIs that will begin Q1 2025. With what we expect in terms of 2025 and 2026 results, it's going to be a fun run here coming up.

我們期待下個月的投資者日，屆時我們將分享有關 Porch Group 互惠後經濟模型、保險公司的財務健康狀況、長期增長和利潤率的財務目標以及各種詳細信息的更多詳細信息我們的業務部門。我們將從 2025 年第一季開始分享更新的細分市場和報告 KPI。根據我們對 2025 年和 2026 年結果的預期，接下來的比賽將會很有趣。

With that, we will wrap the prepared remarks and pass the call to the operator. Christina, please go ahead and open up the call for Q&A.

這樣，我們將包裝準備好的備註並將通話傳遞給接線員。克里斯蒂娜，請繼續撥打問答電話。

(Operator Instructions)

（操作員說明）

John Campbell, Stephens.

約翰坎貝爾、史蒂芬斯.

Great work on the profitability. I know you guys had to contend with some pretty well weather in the quarter. That's great. On the reciprocal exchange and new value proposition for consumers, you guys did touch on kind of overlaying the moving concierge service. So my main question is, how does it differ from what you've done in the past? And maybe if you could also talk to how you've been able to -- how well have you been able to tie the moving services to the past insurance policies and why you feel like this could drive better synergies across the two segments?

盈利能力方面的出色工作。我知道你們必須應付本季的一些好天氣。那太棒了。關於互惠交換和為消費者提供的新價值主張，你們確實談到了行動禮賓服務的疊加。所以我的主要問題是，它與你過去所做的有什麼不同？也許您也可以談談您是如何做到的——您如何將搬家服務與過去的保險政策聯繫起來，以及為什麼您認為這可以在兩個細分市場之間帶來更好的協同效應？

Sure. I can take that. Nicole, feel free to layer in. We have built up a lot of capability around helping people to move over the past x years that we've been focused on that business. We're also very interested in targeting homebuyers, so people who are going through a home purchase and moving and being able to provide additional services to them.

當然。我可以接受。妮可，隨意分層。在過去的幾年裡，我們一直專注於這項業務，在幫助人們搬家方面建立了許多能力。我們也對瞄準購屋者非常感興趣，因此那些正在經歷購屋和搬家的人能夠為他們提供額外的服務。

Things like a 90-day warranty, a moving concierge as a way to help differentiate us as the best current for homebuyers. And we operate the concierge all over the country in all states. We operate it in Texas. Thus far, HOA hasn't leaned into the Porch capability. And that's been intentional because we want to make it part of the Porch, the PIRE -- the Porch value prop for insurance. And so we're --

諸如 90 天保固、搬家禮賓服務等，可以幫助我們成為購屋者的最佳選擇。我們在全國各州經營禮賓服務。我們在德克薩斯州經營它。到目前為止，HOA 還沒有傾向於 Porch 功能。這是有意為之的，因為我們想讓它成為 Porch 的一部分，即 PIRE——保險的 Porch 價值支柱。所以我們是--

And sir, does that complete your question?

先生，這是否完成了您的問題？

Yeah, I'm sorry, my line cut out there. I had one more. And I apologize, guys. I hopped on the call a little bit late here, so apologies if I missed this explanation. But could you maybe talk to the decision to exit the corporate relocation business and kind of help size up the impact within Vertical Software?

是的，抱歉，我的台詞被切斷了。我還有一個。我向大家道歉。我在這裡接電話有點晚了，所以如果我錯過了這個解釋，我深表歉意。但您能否談談退出公司搬遷業務的決定，並協助衡量垂直軟體內部的影響？

Yeah. I can speak to that, too. There were a couple of trends working against us. There's more remote work that's happening. There's less corporate relocation happening. And we provided a certain type of service to meet that segment that just as the scale went down, it really didn't make sense for us to focus on it. So you will see the impact in the move-related revenue in the quarter.

是的。我也可以談談這一點。有一些趨勢對我們不利。越來越多的遠距工作正在發生。企業搬遷的情況較少。我們提供了某種類型的服務來滿足這個細分市場，隨著規模的縮小，我們專注於它確實沒有意義。因此，您將看到本季與搬遷相關的收入的影響。

The one thing that I will say is there's still opportunity for us in moving. We are a leader in labor-only services, and we still do that for certain partners in the corporate relocation space as well as other leading brands. But it was a key driver for why the move-related revenues down this quarter.

我要說的一件事是我們仍然有機會搬家。我們是純勞務服務領域的領導者，我們仍然為企業搬遷領域的某些合作夥伴以及其他領導品牌提供這種服務。但這是本季搬遷相關營收下降的關鍵驅動因素。

Jason Helfstein, Oppenheimer.

賈森·赫夫斯坦，奧本海默。

Just want to ask, when you're done with the reciprocal or the transaction is done. How do you think about that impacting overall corporate revenue or corporate expenses? And then secondly, what reciprocal is done and you think about bringing in outside capital to fund it, what's the process with which then you're able to extract your capital back out of the reciprocal?

只是想問一下，什麼時候完成倒數或交易完成。您如何看待這對公司整體收入或公司支出的影響？其次，做了什麼互惠，你考慮引入外部資本來資助它，然後你能夠從互惠中提取你的資本的過程是什麼？

Yeah, I could cover the expense profile. I think if I just take a step back for a second, the reciprocal, one of the reasons we are excited about the shift to that model is that our expenses for our insurance segment, the entities I talked about today, PRMS, will be relatively fixed, mostly employee-type expenses. And we'll provide a lot more detail on that as well as other expenses around the business at the Investor Day. But for now, as I think we have announced today, the take rate at 20% gross written premium combined with that, expense profile and a relatively fixed expense profile that scales quite nicely. We're excited about the opportunity ahead and what that presents for us. And I think your second question was on surplus now. Was that?

是的，我可以支付費用。我認為，如果我退後一步，倒數，我們對轉向該模式感到興奮的原因之一是，我們的保險部門（我今天談到的實體 PRMS）的費用將相對固定的，主要是員工類型的費用。我們將在投資者日提供有關該業務以及其他業務費用的更多詳細資訊。但就目前而言，正如我認為我們今天已經宣布的那樣，總保費的 20% 的接受率加上費用概況和相對固定的費用概況，可以很好地擴展。我們對未來的機會以及它為我們帶來的東西感到興奮。我認為你的第二個問題現在已經多餘了。是嗎？

Yeah, that's right. I can take that. So we've mentioned before, Jason, that once the reciprocal is launched, it could make sense at some point to go out and raise third-party capital, third-party surplus note investors for the insurance entities. We'll see when the right time is to do that. Yes, when we go and look to pursue that, we have two choices.

是的，沒錯。我可以接受。傑森，我們之前提到過，一旦啟動互惠，在某個時候為保險實體籌集第三方資本、第三方盈餘票據投資者可能是有意義的。我們會看看什麼時候是這樣做的好時機。是的，當我們尋求實現這一目標時，我們有兩個選擇。

One is to keep additional capital inside the insurance entities to be able to build surplus and grow premium that much faster or to be able to pay down some of Porch Group's existing and expanded now surplus note. Obviously, in the interim, that surplus note is paying a coupon, that 9.75% plus SOFR coupon. But we will, like Shawn had mentioned, you have, give or take, we expect approximately $110 million of surplus notes here once the transaction goes through.

一是在保險實體內部保留額外資本，以便能夠更快地建立盈餘並增加保費，或者能夠償還 Porch Group 現有的和現已擴大的盈餘票據的部分資金。顯然，在此期間，剩餘票據正在支付息票，即 9.75% 加 SOFR 息票。但正如肖恩所提到的，我們預計一旦交易完成，您將獲得約 1.1 億美元的剩餘票據。

And does that complete your question?

這是否完成了您的問題？

(Operator Instructions)

（操作員說明）

Jason Kreyer, Craig-Hallum.

賈森·克雷爾，克雷格·哈勒姆。

So now that you've got kind of a deadline set for triggering the reciprocal as we get into next year, I think the focus probably starts on growing policies in force. Just curious what that looks like from a go-to-market perspective as far as finding new policies, whether that be geographically and then how you tap into some of that like Home Factors type of data to find those homeowners that have the most attractive risk profiles.

因此，既然我們已經為明年觸發互惠設定了最後期限，我認為重點可能會開始於不斷增長的現行政策。只是好奇從進入市場的角度來看，尋找新政策會是什麼樣子，無論是在地理位置上，還是如何利用諸如房屋因素類型的數據來找到那些具有最具吸引力風險的房主配置文件。

Sure. I can take that. We are excited now that reciprocal has been approved to move into growing premium. Our focus is on growing premium next year. I would highlight a couple of things.

當然。我可以接受。現在我們很高興互惠已被批准進入不斷增長的保費領域。我們的重點是明年保費的成長。我想強調幾件事。

The first is we still have a lot of opportunity in Texas, and we have opportunity in the 21 other states that we operate in. And so we'll take advantage of that open space. The second is our primary go-to-market is through agents, and there's a lot of room for us to add more appointed agents. And so we are now starting to make investments into the growth teams that will help us to recruit more agents, activate and support those agents.

首先，我們在德克薩斯州仍然有很多機會，在我們開展業務的其他 21 個州也有機會。所以我們將利用這個開放空間。第二是我們主要透過代理商進入市場，我們還有很大的空間來增加更多的指定代理商。因此，我們現在開始對成長團隊進行投資，這將幫助我們招募更多代理商、啟動和支援這些代理商。

We've also started to make changes to our commission -- the commission that we provide to agents to really incent two things. One is growth and then the other is profitability. And so those changes make us very competitive in the market. And if we're successful at driving growth profitably, there's opportunities for those agents to even potentially get above the market. And so we're excited to work with our agent team and our agents to be able to go do that.

我們也開始改變我們的佣金——我們向代理商提供的佣金，以真正激勵兩件事。一是成長，二是獲利能力。因此，這些變化使我們在市場上非常有競爭力。如果我們成功地推動獲利成長，那麼這些代理商甚至有機會超越市場。因此，我們很高興與我們的代理商團隊和代理商合作，能夠做到這一點。

And then most certainly, Home Factors is a key part of how we want to grow profitably. It helps us to identify homeowners that are lower risk or to be able to price the risk more appropriately. It's also particularly helpful in one of our key target segments of homebuyers because the data that we have is fresh when somebody has recently done an inspection. And so I think we're excited about starting to grow premium next year.

毫無疑問，家庭因素是我們獲利成長的關鍵部分。它有助於我們識別風險較低的房主或能夠更適當地對風險進行定價。它對於我們的關鍵目標購房者之一也特別有幫助，因為當有人最近進行檢查時，我們擁有的數據是新鮮的。因此，我認為我們對明年開始增加溢價感到興奮。

And then I just want to ask about that, the commission fee of 20%, how sticky is that? Like does that move around over time? Does that move around kind of annual or over several years? Or should we expect that 20% to be a pretty stable figure as we look forward?

然後我想問一下，20%的佣金，黏性如何？就像隨著時間的推移它會改變嗎？這種變化是每年還是幾年內變化？或者我們應該預期 20% 是一個相當穩定的數字？

Okay. Go ahead, Shawn, do you want to?

好的。來吧，肖恩，你願意嗎？

Yeah. I was just going to say, I think it's a great rate for us to start out at -- and there are opportunities potentially in the future for that to go up. And that could be part of the growth plan for Porch Group as we move forward. We'll cover these sorts of things, obviously, in more detail at the Analyst Day. But I think, as I said before, I think the 20% is a good take rate for us and will drive a good amount of profitability.

是的。我只是想說，我認為這對我們來說是一個很好的起點，而且未來有可能會上升。隨著我們的前進，這可能成為 Porch Group 成長計劃的一部分。顯然，我們將在分析師日更詳細地討論這些事情。但我認為，正如我之前所說，20% 對我們來說是一個不錯的採用率，並將帶來可觀的獲利能力。

Ryan Tomasello, KBW.

瑞安·托馬塞洛，KBW。

Maybe just zooming in on another part of the business, Floify, just was hoping you can provide an update on how that business is performing in terms of the sales environment and whether or not attrition, I know, has been a headwind for a lot of players like Floify if you feel like that's bottomed out. And then also related to Floify, the embedded insurance marketplace opportunity is something that was a big part of that story. Just was wondering if there's any update there on how that fits into the whole insurance strategy overall.

也許只是放大了業務的另一部分，Floify，只是希望您能提供有關該業務在銷售環境方面的表現的最新信息，以及我知道，人員流失是否一直是很多人的不利因素如果你覺得情況已經觸底，可以選擇像Floify 這樣的玩家。與 Floify 相關的是，嵌入式保險市場機會是這個故事的重要組成部分。只是想知道是否有任何關於如何適應整個保險策略的更新。

Yeah. I can speak to Floify. Across all of our vertical software businesses, we are focused on continuing to innovate, continuing to take price for the value that we can create and it has certainly been a headwind market. Floify, in addition to the transaction volume falling down, you also see a lot of loan officers exiting the market. And a lot of the way we monetize their business is through those loan officers.

是的。我可以和佛洛菲通話。在我們所有的垂直軟體業務中，我們專注於持續創新，並繼續為我們能夠創造的價值定價，這無疑是一個逆風市場​​。Floify，除了交易量下降之外，你還看到許多信貸員退出市場。我們透過他們的業務貨幣化的許多方式都是透過這些信貸員。

We are excited about some of the things we are working on. There -- we see opportunities for us to provide services and monetize going forward on a more transactional basis, which will give us an opportunity as transaction volumes return to participate in that growth in addition to the growth of loan officers, which we would expect to come back but probably more slowly in transactions. There's also been some interesting sort of movements in the market with competitive players that have opened up some avenues for us to grow share and focus on certain parts of the market.

我們對我們正在做的一些事情感到興奮。在那裡，我們看到了在更多交易的基礎上提供服務和貨幣化的機會，這將給我們一個機會，隨著交易量的回歸，除了信貸員的增長之外，我們還有機會參與這種增長，我們預計這將增加回來但交易可能會更慢。市場上的競爭者也發生了一些有趣的變化，這些變化為我們增加份額並專注於市場的某些部分開闢了一些途徑。

And so we've seen -- if you look at our Vertical Software segment, we've seen margin expansion. So the team has done an excellent job in these headwinds of staying focused on driving new innovation while really keeping a close eye on profitability, which just positions us really well as the growth comes back over the next one, two, three years in the real estate market.

所以我們已經看到——如果你看看我們的垂直軟體部門，我們就看到了利潤率的擴張。因此，團隊在這些逆風中做得非常出色，專注於推動新的創新，同時密切關注盈利能力，這使我們在未來一年、兩年、三年內真正恢復增長時處於有利地位。

In terms of the embedded insurance question -- let me finish out the question for you. And I will say, overall, just to echo what Matthew said, team has done a really good job. I would say each of our Software business leaders and teams have done a really nice job in this market. But give Floify real credit, things like metrics you're asking about there, Ryan, attrition have really stabilized and actually done quite well.

關於嵌入式保險的問題，我來跟大家解答一下。我想說的是，總的來說，只是為了呼應馬修所說的，團隊做得非常好。我想說，我們的每個軟體業務領導者和團隊在這個市場上都做得非常好。但是，請給 Floify 真正的信任，瑞安，你所詢問的指標之類的事情確實已經穩定下來，而且實際上做得很好。

In terms of the embedded insurance opportunity, we focused, I would say, more of our energy and some of our other software products, like some of the things in the inspection industry, just given the market turmoil in the mortgage industry, we've prioritized on building features for those businesses that they really need to be able to stabilize and run their businesses. So it hasn't been a high priority for us here recently.

就嵌入式保險機會而言，我想說，我們集中了更多的精力和其他一些軟體產品，例如檢查行業的一些產品，鑑於抵押貸款行業的市場動盪，我們已經優先考慮為那些真正需要穩定和經營業務的企業建置功能。所以最近這對我們來說並不是一個高度優先的事項。

And there are currently no further questions on this end. Lois, do you have any preceded questions?

目前還沒有關於這方面的進一步問題。路易斯，您還有什麼問題想問嗎？

Yeah, I've got one here. I think this is for you, Nicole. Can you talk about the Home Factors opportunity? And would it be material for Porch in the future?

是的，我這裡有一個。我想這是給你的，妮可。您能談談 Home Factors 的機會嗎？它會成為 Porch 未來的材料嗎？

Yeah. So I would say, first and foremost, I'm just hugely excited about the opportunity here with Home Factors. There is a tremendous amount of money that is spent on data industry-wide. We'll spend more time on that as we go through Investor Day, but the opportunity here is very large.

是的。所以我想說，首先也是最重要的是，我對 Home Factors 的機會感到非常興奮。全行業在數據上花費了大量資金。在投資者日期間，我們將花更多時間在這方面，但這裡的機會非常大。

I truly believe that this can be one of the largest pillars of our business given the uniqueness of the data and the results that we've seen within our own insurance company. But not only that, we're just getting started, but the feedback we've heard from third parties that are testing is just really positive.

我堅信，鑑於我們在自己的保險公司中看到的數據和結果的獨特性，這可能是我們業務的最大支柱之一。不僅如此，我們才剛開始，而且我們從正在測試的第三方那裡聽到的回饋非常積極。

And then the last thing I'd sort of highlight is we continue to find new use cases for how we can use the data. So clearly, there's an opportunity within underwriting to be more effective, same with pricing, but there's also opportunities to accelerate underwriting, just to move with more speed to close more business, reducing on-site inspections and optimizing reinsurance.

我要強調的最後一件事是我們繼續尋找如何使用資料的新用例。顯然，承保方面有機會提高承保效率，與定價一樣，但也有機會加速承保，以更快的速度完成更多業務，減少現場檢查並優化再保險。

And so as I think about it, the opportunity is really big. The results are really strong. And then there are many ways the data adds value. So while we're early here, I believe, over the next set of years, there's a really large opportunity here for us to be a major pillar of value for the company.

所以我想，這個機會真的很大。結果真的很強。數據增值的方式有很多。因此，雖然我們還處於起步階段，但我相信，在接下來的幾年裡，我們有很大的機會成為公司的主要價值支柱。

Thank you. And with that, I'd like to turn the floor back over to Matt for closing remarks.

謝謝。說到這裡，我想把發言權轉回給馬特做總結發言。

Perfect. Thank you, everybody. Hey, I really do appreciate the time and just the continued support. We're at a -- like I said, a really fun moment in our company's history, where we can see what's ahead, and we're excited. We look forward to speaking to you more shortly here at the Investor Day in early December, providing more details about that future. Details for the event will follow and be available on our Investor Relations website here soon.

完美的。謝謝大家。嘿，我真的很感謝您的時間和持續的支持。正如我所說，我們正處於公司歷史上一個非常有趣的時刻，我們可以看到未來，我們感到很興奮。我們期待在 12 月初的投資者日與您進行更多交流，提供有關未來的更多詳細資訊。活動的詳細資訊將隨後發布，並將很快在我們的投資者關係網站上公佈。

And with that, enjoy the rest of your day. Take care, everybody.

就這樣，享受剩下的一天吧。大家保重。