Porch : Investor Presentation

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Disclaimers

Forward-Looking Statements

Certain statements in this presentation may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Although the Company believes that its plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company cannot assure you that it will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, assumptions, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends, or similar expressions.

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management at the time they are made, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) expansion plans and opportunities, and managing growth, to build a consumer brand; (2) the incidence, frequency, and severity of weather events, extensive wildfires, and other catastrophes; (3) economic conditions, especially those affecting the housing, insurance, and financial markets; (4) expectations regarding revenue, cost of revenue, operating expenses, and the ability to achieve and maintain future profitability; (5) existing and developing federal and state laws and regulations, including with respect to insurance, warranty, privacy, information security, data protection, and taxation, and management's interpretation of and compliance with such laws and regulations; (6) the Company's reinsurance program, which includes the use of a captive reinsurer, the success of which is dependent on a number of factors outside management's control, along with reliance on reinsurance to protect against loss; (7) the uncertainty and significance of the known and unknown effects on the Company's insurance carrier subsidiary, Homeowners of America Insurance Company ("HOA"), and the Company due to the termination of a reinsurance contract following the allegations of fraud against Vesttoo Ltd. ("Vesttoo"), including, but not limited to, the implications from Demotech, Inc.'s withdrawal of HOA's financial stability rating and the length of time before the rating is restored; the outcome of Vesttoo's Chapter 11 bankruptcy proceedings; the Company's ability to successfully pursue claims arising out of the alleged fraud, the costs associated with pursuing the claims, and the timeframe associated with any recoveries; HOA's ability to obtain and maintain adequate reinsurance coverage against excess losses; HOA's ability to stay out of regulatory supervision; and HOA's ability to maintain a healthy surplus; (8) uncertainties related to regulatory approval of insurance rates, policy forms, insurance products, license applications, acquisitions of businesses, or strategic initiatives, including the reciprocal restructuring, and other matters within the purview of insurance regulators; (9) reliance on strategic, proprietary relationships to provide the Company with access to personal data and product information, and the ability to use such data and information to increase transaction volume and attract and retain customers; (10) the ability to develop new, or enhance existing, products, services, and features and bring them to market in a timely manner; (11) changes in capital requirements, and the ability to access capital when needed to provide statutory surplus; (12) the increased costs and initiatives required to address new legal and regulatory requirements arising from developments related to cybersecurity, privacy, and data governance and the increased costs and initiatives to protect against data breaches, cyber-attacks, virus or malware attacks, or other infiltrations or incidents affecting system integrity, availability, and performance; (13) retaining and attracting skilled and experienced employees; (14) costs related to being a public company; and (15) other risks and uncertainties discussed in Part I, Item 1A, "Risk Factors," in the Company's Annual Report on Form 10-K ("Annual Report") for the year ended December 31, 2022, and in Part II, Item 1A, "Risk Factors," in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023, as well as those discussed in subsequent reports filed with the Securities and Exchange Commission ("SEC"), all of which are available on the SEC's website at www.sec.gov.

Nothing in this presentation should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this release. Porch does not undertake any duty to update these forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law.

Non-GAAP Financial Measures

This release includes non-GAAP financial measures, such as Adjusted EBITDA (loss) and Adjusted EBITDA (loss) as a percent of revenue.

Porch Group defines Adjusted EBITDA (loss) as net income (loss) adjusted for interest expense; income taxes; depreciation and amortization; gain or loss on extinguishment of debt; other expense (income), net; impairments of intangible assets and goodwill; provision for doubtful accounts related to reinsurance, or related recoveries; impairments of property, equipment, and software; stock-based compensation expense; mark-to-market gains or losses recognized on changes in the value of contingent consideration arrangements, earnouts, warrants, and derivatives; restructuring costs; acquisition and other transaction costs; and non-cash bonus expense. Adjusted EBITDA (loss) as a percent of revenue is defined as Adjusted EBITDA (loss) divided by total revenue.

Porch Group management uses these non-GAAP financial measures as supplemental measures of the Company's operating and financial performance, for internal budgeting and forecasting purposes, to evaluate financial and strategic planning matters, and to establish certain performance goals for incentive programs. Porch Group believes that the use of these non-GAAP financial measures provides investors with useful information to evaluate the Company's operating and financial performance and trends and in comparing Porch Group's financial results with competitors, other similar companies and companies across different industries, many of which present similar non-GAAP financial measures to investors. However, Porch Group's definitions and methodology in calculating these non-GAAP measures may not be comparable to those used by other companies. In addition, the Company may modify the presentation of these non-GAAP financial measures in the future, and any such modification may be material.

You should not consider these non-GAAP financial measures in isolation, as a substitute to or superior to financial performance measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude specified income and expenses, some of which may be significant or material, that are required by GAAP to be recorded in Porch Group's consolidated financial statements. The Company may also incur future income or expenses similar to those excluded from these non-GAAP financial measures, and the Company's presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures reflect the exercise of management judgment about which income and expense are included or excluded in determining these non-GAAP financial measures.

You should review the tables accompanying this release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure. The Company is not providing reconciliations of non-GAAP financial measures for future periods to the most directly comparable measures prepared in accordance with GAAP. The Company is unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of its control.

Copyright 2023 Porch Group, Inc. All rights reserved

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Investor Presentation

About Porch Group

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Copyright 2023 Porch Group, Inc. All rights reserved

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Porch Delivers Services Across the Lifetime of the Home

Insurance

Recurring Revenue

Warranty

Recurring Revenue

Moving

Per job revenue

Security

Per install revenue

TV/Internet

Per install revenue

Contractors

Per lead/appt revenue

Porch is a nationwide insurance agency selling home, auto, renters, flood and umbrella insurance. Additionally, Porch operates as an MGA and carrier for home insurance.

Porch provides home warranty products in 49 states + DC offering our own Porch Warranty brand which enhances coverage and value by including our handyman services.

Porch is the leader in providing moving labor services (loading or unloading a moving truck) and spans to coordinate full-servicelong-distance moves.

Porch helps ensure homes are protected with getting the right home security and home automation company scheduled to complete the installation.

Porch helps consumers understand all of their options for Internet, TV and phone service for their new home, and helps the customer purchase and activate service.

Porch helps customers get inspection repairs done on their new home and complete ongoing maintenance and improvement tasks.

Copyright 2023 Porch Group, Inc. All rights reserved

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Porch Has Early Access to ~90% of US Homebuyers
				Everyone else
	Porch knows homebuyers	Major move-related purchase	Customer info becomes
	are moving ~6 weeks before the	decisions​ begin to be made	public (available to everyone else)
	move due to unique early access​			via USPS

Mortgage	Title file	Downloads Porch app	Purchases home	Books	Sets up utilities and	Ongoing home
application	opened	and engages with	insurance	movers	cable and security	projects
begins	Receives	Porch Concierge		Purchases home
	inspection			warranty

Copyright 2023 Porch Group, Inc. All rights reserved

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Porch App Helps Consumers Make the Move Simpler

Copyright 2023 Porch Group, Inc. All rights reserved

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Investor Presentation

Vertical Software Segment

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Copyright 2023 Porch Group, Inc. All rights reserved

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B2B Services: SaaS & Transaction Based Revenue

Technology company that

protects the real estate transaction by providing settlement agents with software

	Software company helping mortgage
Software company providing a	companies and loan officers create a
leading software solution for	better mortgage and refinancing
inspectors with easy-to-use tools	experience for their consumers
	For further brands and services visit porchgroup.com/companies

Copyright 2023 Porch Group, Inc. All rights reserved

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B2C Services: Transaction Based Revenue

	Makes the moving experience
An online marketplace to find	convenient and hassle-free
with a concierge service
and vet professional movers
For further brands and services visit porchgroup.com/companies

Copyright 2023 Porch Group, Inc. All rights reserved

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