Porch Group (PRCH) Reports Q1
Porch Group (PRCH) reported Q1 results that were good enough to give the stock a 6% bump yesterday and keep it relatively strong today. The improved performance comes after a short report was published last month, and now has PRCH trading near its 50-day line.
In terms of the report, revenue grew 77% to $26.7 million (adjusting for divestitures revenue was up 112%), driven by both higher software fees paid by businesses and transaction fees. Acquisitions also helped. The average number of companies grew to almost 14,000 from 11,157, revenue per company grew 32% to $637, monetized services was up 20% to 182,779 and average revenue per monetized service was flat at $92.
Management also gave 2021 guidance, saying it sees revenue up 147% to $175 - $178 million. The revenue mix should be roughly 25% from software fees, 65% from move-related business-to-business-to-consumer fees and 10% from post-move services. Contribution margin is seen growing from 31% in 2020 to 40% in 2021.
I’ll have a few more details in tomorrow’s Weekly Update. But for now, the punchline is that the modest uptrend in PRCH remains intact and the report, and subsequent action from the stock, is encouraging. Maintaining at buy. BUY