Porch snaps up four startups for over $122M

But company’s losses projected to widen to $53M+

National /
Jan.January 15, 2021 12:45 PM
Porch CEO Matt Ehrlichman (iStock)

Porch CEO Matt Ehrlichman (iStock)

Porch isn’t wasting time on the acquisition front: Just three weeks after going public, the home-services startup scooped up four companies for $122 million.

The Seattle-based company said it inked a deal to buy Homeowners of America, a Texas insurance company, for $100 million in cash and stock, Geekwire reported. It will also buy V12, a marketing platform, for $22 million in cash, plus two smaller startups — PalmTech and iRoofing — for an undisclosed sum.

Porch went public last year after merging with Proptech Acquisition Corp., a blank-check firm formed by Abu Dhabi Investment Authority veterans Tom Hennessy and Joe Beck. The deal helped Porch raise $322 million, and its valuation soared to more than $1 billion on its first day of trading.

The influx of cash came just in time: Company accountants said recurring losses raised “substantial doubt” about Porch’s ability to continue, according to its IPO filing.

Porch’s preliminary results for 2020, which it disclosed on Thursday, project a net loss of between $53 million to $55 million — $20 million more than previously estimated, according to Geekwire. Executives attributed the higher losses to sales and marketing and R&D spending.

Porch is projecting $170 million in 2021 revenue, up from an earlier projection of $120 million. It is expecting $72 million in revenue for 2020.

[Geekwire] — E.B. Solomont






    Related Articles

    arrow_forward_ios
    RE/MAX CEO Adam Contos (Facebook)
    RE/MAX revenue ticks up in Q4 but profit sinks
    RE/MAX revenue ticks up in Q4 but profit sinks
    Zillow COO Jeremy Wacksman (Zillow, iStock)
    Zillow using Zestimate to streamline cash offers for some homes
    Zillow using Zestimate to streamline cash offers for some homes
    Home sales were the busiest January on record, but still the fifth month of decline in a row. (iStock)
    Pending home sales fall for fifth consecutive month
    Pending home sales fall for fifth consecutive month
    Douglas Elliman chairman Howard Lorber (Getty)
    Douglas Elliman reports $14M profit, 50% revenue jump in quarter
    Douglas Elliman reports $14M profit, 50% revenue jump in quarter
    Glenn Kelman (Randy Stewart via Flickr)
    Redfin revenue grows as it races to hire more agents
    Redfin revenue grows as it races to hire more agents
    (Getty)
    Nearly half of home sellers overpaid their broker fees in 2020
    Nearly half of home sellers overpaid their broker fees in 2020
    January is the second consecutive month of increase in new home sales. (Getty)
    Sales of new homes up 4.3% in January
    Sales of new homes up 4.3% in January
    (iStock/Illustration by Alexis Manrodt for The Real Deal)
    US home prices are more than 5% too high: Fitch
    US home prices are more than 5% too high: Fitch
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...