To Our Stockholders:
I
founded Porch a decade ago, with a mission to simplify
homeownership. Over the years we have focused on building
sustainable advantages that would allow us to win in key areas of
focus: the most valuable services for the home, now with homeowners
insurance at the center. Moving and maintaining one’s home is hard
and we believe we are uniquely positioning ourselves to become the
partner for the home.
Who
We Are and What We’re About
Porch
has a
fantastic team
and I’m proud to be on this journey with such a high-quality group
of people. From team members who have been with me since day one to
the more recent leadership additions in certain business units and
functions, there is a consistent quality. I look forward to
introducing more of the team to our stockholders over
time.
One
recent addition, Shawn Tabak, joined Porch in November 2022 as CFO.
Shawn brings a strong finance background and has hit the ground
running. I’m confident Shawn will take our finance and accounting
capabilities to the next level. We have also strengthened our
Board with the addition of Sean Kell in March 2022 and Amanda
Reierson and Camilla Velasquez in October 2022. These additions
complemented our Board’s existing skills and experiences. Our Board
is more connected and operating better than it ever has
before.
We
pride ourselves on our culture and I couldn’t be more pleased that
we were certified as a Great Place to Work in 2022. We have
built a strong company culture with our values at our center: No
Jerks/No Egos, Be Ambitious, Solve Each Problem, Care Deeply, and
Together We Win.
And
please be clear: we intend to win. You may look at the stock price
decline in 2022 and question if we’re on track to do so. But inside
the company, there is consistent and great work happening. Porch’s
decentralized operating model allows us to move quickly, empowering
our team to think entrepreneurially and foster a growth mindset. We
engage our people with continued career and learning and
development opportunities, which helps us build a strong bench of
leaders for tomorrow’s business challenges. We continue to take
share across our markets, create more value for customers and get
compensated for doing so, and put ourselves on the path to continue
to grow revenues and profitability.
To
the entire Porch team: thank you, well done, and onward.
Key Highlights from 2022
The
Porch team was focused throughout 2022, as we moved forward in our
strategy and towards near-term profitability. We extended our
market position and software products in key verticals, grew our
insurance business with improved underwriting and an increase in
policies, successfully integrated past acquisitions, and matured
our financial systems. The Porch team achieved this while
navigating the impacts of inflation, challenging capital markets,
unusual weather volatility, and a housing market which slowed
substantially.
Porch
now sells software to more than 30,000 home service companies and
we have visibility into approximately 80% of all homebuyers. In
2022, we launched our Porch app which extends the experience we
provide for consumers. The app is now distributed to the consumers
of around 50% ISN inspection companies to help these inspectors win
more business and deliver a delightful experience for homeowners,
helping them with key services needed for their home. One
service we offer is home warranty where we now offer a full suite
of protection products for customers. Our warranty business was
started in April 2022 via an acquisition and has delivered
exceptional growth in 2022 following a successful
integration.
Porch
achieved all of this while delivering 43% revenue growth,
increasing to $276 million in 2022. Over the two years since we
have been a public company, we have grown Revenue at a CAGR of 95%.
We’ve also been able to operate efficiently, reduce costs and
deliver a great customer experience.