Latest PropTech Acquisition News
Aug 19, 2021
Porch makes $35M acquisition; reshuffles board; revenue up 200%; loss grows; PPP loan forgiven August 16, 2021 at 3:13 pm Share 2 Matt Ehrlichman, Porch founder and CEO. (Porch Group Photo) Seattle-based home services technology company Porch Group boosted its second quarter revenue by 200% to $51.3 million, exceeding analysts’ expectations. Its quarterly net loss widened to $16.3 million, vs. a loss of $6.3 million a year ago. New acquisition: Porch announced the acquisition of title software company Rynoh , of Virginia Beach, Va., whose technology is used by title agents. Porch is buying Rynoh for a total of $35 million. It paid $31.5 million in cash at closing. The remaining $3.5 million is due in April 2023. Rachel Lam , co-founder and managing partner of Imagination Capital and a former Time Warner Investments Group managing director. Maurice Tulloch , former Group CEO at Aviva plc, the London-based multinational insurance company. New Porch board members Rachel Lam and Maurice Tulloch. (LinkedIn Photos) With those appointments, Porch said directors Thomas Hennessy and Margaret Whelan are leaving the board. Both had been on the board of PropTech Acquisition Corporation, the special purpose acquisition company (SPAC) with which Porch merged to become publicly traded last year. Business outlook: Porch increased its revenue outlook for the full year from $178 million to $184 million, which would represent 155% year-over-year revenue growth. “We’re at the very beginning of building this unique company with a unique strategy,” said Porch CEO Matt Ehrlichman in an interview Monday. “The business is executing well.” Porch provides enterprise software to home services companies in areas such as home inspections, moving, real estate, and insurance. Companies can pay recurring fees to use the software, or they can use the software for free if they agree to provide Porch with access to information about home buyers. Porch says it uses that information as a strategic advantage, offering to serve as a concierge to those homebuyers at a time when they are making major purchase decisions. Porch connects homebuyers to movers, insurance providers, TV/internet companies and others, and collects transaction fees on sales it facilitates. In its earnings release Monday, Porch said the average number of companies using its software increased to 17,120 in the second quarter, up 63% year-over-year. Rynoh contributed 1,099 companies to that total. Average revenue per company per month increased to $999.70, up 80% year-over-year, Porch said. Porch Group shares are up about 3% to 18.70 per share in after-hours trading Monday on the Nasdaq. PPP loan: In its quarterly filing Monday with the Securities and Exchange Commission, Porch said it received full forgiveness of its $8.1 million Paycheck Protection Program loan from the U.S. Small Business Administration in June. Porch received the loan in April 2020. Porch became a publicly traded company in December, raising $322 million through the PropTech merger and a private investment from Wellington Management Company. Some Seattle-area companies, such as Rover, Bardy Diagnostics, ExtraHop and Amperity, have chosen to pay off their PPP loans after going public, being acquired, or securing new investment. In its earnings report Monday, Porch listed $152.4 million in cash, cash equivalents and restricted cash as of June 30. That figure had been $207.5 million as of Dec. 30. Todd Bishop is GeekWire's co-founder, a longtime business and technology journalist who covers topics including Amazon, Microsoft, startups, AI, the cloud and health tech, and hosts GeekWire's weekly podcast . Follow him @toddbishop . Email email@example.com .