Porch Group, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.
For the three months ended September 30, 2024, Porch Group generated revenue of $111.2 million, a decrease of 14% from $129.6 million in the same period in 2023. However, for the nine months ended September 30, 2024, revenue increased by 7% to $337.5 million, up from $315.7 million in 2023. The decline in quarterly revenue was primarily attributed to a reduction in the Insurance segment's revenue, which fell to $79.9 million from $95.2 million, reflecting fewer policies in force and higher reinsurance ceding. Conversely, the Insurance segment's revenue for the nine months rose to $246.1 million from $218.3 million, driven by a 25% increase in Annualized Premium per Policy.
Operating expenses for the third quarter decreased by 12% to $113.7 million, down from $129.4 million in 2023. This reduction contributed to an operating loss of $(2.5) million for the quarter, a significant decline from an operating income of $0.2 million in the prior year. For the nine-month period, the operating loss improved to $(89.7) million from $(197.7) million in 2023.
Net income for the third quarter was reported at $14.4 million, a substantial increase from a net loss of $(5.7) million in the same quarter of 2023. For the nine months, however, the company recorded a net loss of $(63.3) million, an improvement from $(131.4) million in the previous year. The net income per share for the third quarter was $0.14, compared to a loss of $(0.06) per share in 2023.
Strategically, Porch Group has made significant moves, including the sale of its insurance agency, Elite Insurance Group, for $12.2 million, which resulted in a loss of $5.3 million. The company also repurchased portions of its 2026 convertible senior notes, recognizing gains on extinguishment of debt totaling $22.5 million in the third quarter.
As of September 30, 2024, Porch Group's cash and cash equivalents stood at $206.7 million, down from $258.4 million at the end of 2023. The company reported an accumulated deficit of $785.4 million, an increase from $722.1 million at the end of the previous fiscal year.
Overall, Porch Group's financial results reflect a complex landscape of revenue growth in certain segments, improved net income, and ongoing strategic adjustments amid challenges in the insurance market.
About Porch Group, Inc.
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