Good afternoon, everyone. And thank you for participating in Porch Group’s First Quarter 2022 Conference Call. We issued our first quarter earnings press release today and furnished our related 8-K to the SEC. The press release can be found on our Investor Relations website at ir.porchgroup.com Joining us today are Matt Ehrlichman, Porch Group’s, CEO, Chairman and Founder; Marty Heimbigner, Porch Group’s CFO; Matthew Neagle, Porch Group’s COO; and Adam Kornick, President of our InsurTech Division. Before we go further, I would like to read the company’s Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Today’s discussion, including in response to your questions, reflects management’s view, as of today, May 10, 2022, only. We do not undertake any obligations to update or revise this information. Additionally, we will make forward looking statements about our future financial or business performance or conditions, business strategy and plans and anticipated impacts from pending or completed acquisitions based on current expectations and assumptions. These statements are subject to risks and uncertainties, which could cause our actual results to differ materially from those forward-looking statements. And we encourage you to consider the risk factors described in our SEC filings for additional information. On today's call, we will reference both GAAP and non-GAAP financial measures. For reconciliation of non-GAAP measures to most comparable GAAP measures discussed during the earnings call, please refer to today’s earnings press release. To submit a question during today’s presentation, please log into the webinar and submit it through the chat function. Management will do its best to take all questions within the allotted time. As a reminder, this webcast will be available for replay shortly after the conclusion of this presentation on the Investor Relations section of company’s website at porchgroup.com. The slide presentation will also follow along with the presenter’s commentary and can be found on the company’s website. Today in addition to covering first quarter 2022 results, 2022 guidance and KPIs, the team will provide a deep dive into our Insurance business. And with that, let me turn the call over to Matt Ehrlichman, CEO, Chairman and Founder of Porch Group. Matt?

All right. Thanks, Walter. Appreciate it. Good afternoon, everybody. This marks Porch Group's sixth quarter so far in the public markets. Once again, we're announcing strong quarterly financial results, meeting company revenue and profit expectations. These results should give confidence and certainly have this affirming our previously disclosed guidance and highlight the strong performance across the business and the continued success of our unique strategy in insurance and home services. Before we get started, I'm going to take a few minutes to share my thoughts. We'll then provide financial results and KPIs for the first quarter and later dig a little deeper into some of the initiatives that will strengthen our competitive position. In particular, Adam Kornick, the President of our InsurTech Group is joined today to provide an update on our Insurance segment, which includes and continues to perform well and is expected to contribute 40% of 2022 revenues. I'll pick up by noting that we are not blind to what's been happening in the market over the last five months, nor are the challenges others are seeing related to the housing and reinsurance markets. Clearly, we've gotten lumped into broad-based stuff. The good news to report. The business is performing and the strategy is working. We continue to perform against near-term expectations, while simultaneously making strategic progress against this massive opportunity that's in front of us. Case in point, year-over-year, in Q1, 2022, revenue was up 134% and adjusted EBITDA margins were improved by a full 25 percentage points with us today affirming our full year 2022 revenue and EBITDA guidance. At the same time, we're excited to announce that we have filed and received official approval from three states to start using specific Porch’s proprietary data and pricing of insurance with more to come. As we noted,…

Thanks, Matt and good afternoon, everyone. As Matt mentioned, our business is performing very well and was able to report another strong quarter, putting us in an excellent position for the remainder of 2022 and is keeping us on track to achieve great results for our shareholders, including breakeven adjusted EBITDA for the second half of 2023. In parallel, we have accelerated key hires across the accounting and IT organizations to address internal controls and compliance with our obligations under the Sarbanes-Oxley law. Looking at Slide 9, the year-over-year comparison of our first quarter results is impressive. For the first quarter of 2022, Porch Group's total revenue grew 134% to $62.6 million, an increase of $35.9 million from the prior year same quarter and ahead of expectations. In addition to the strong revenue performance, revenue less cost of revenue was 66%, in line with our expectations. And adjusted EBITDA margin was a negative 11%, a 25 percentage point improvement from the prior year. Adjusted EBITDA loss was approximately $7 million in Q1, a nice year-over-year improvement. Gross written premium was a healthy $102 million in Q1, which is our seasonally low quarter. We provided annual guidance about eight weeks ago when we were already had good visibility into Q1. We are certainly pleased with the performance of our business so far this year and are affirming our full year 2022 guidance with revenue guidance of $320 million, up 66% year-over-year and revenue less cost of revenue, what we use as a measure of gross profitability of $210 million, up 57% year-over-year. 2022 EBITDA guidance also remains unchanged, approximately a 400 basis points year-over-year margin improvement, which produces close to negative 9% adjusted EBITDA margin and improved full year adjusted EBITDA dollar performance. We continue to invest in strategic growth initiatives, as well as acquisition integrations to address our internal control environment. Because much of our cost structure is fixed and the underlying margins of our business are strong, we are able to manage the growth of these expenses and to be confident in achieving our medium-term goal of breakeven for the second half of 2023 and our long-term target of 25% adjusted EBITDA margins. Additionally, we are pleased with what we expect to be our $600 million gross written premium insurance business, and we'll share more about progress here later in the presentation. Given the strong Q1, we are excited about the ongoing performance and momentum at Porch. With that, I'll turn it over to our Chief Operating Officer, Matthew Neagle to discuss our operating segments and KPIs.

Thanks, Marty, and hello, everyone. I agree. We certainly feel good about how the business continues to perform and how it has performed over time, as you see here on slide 11. You can see a strong 66% year-over-year revenue growth that we set in 2022. The most significant potential areas of positive upside to this year are initiatives such as the initial integrations with Floify and the rollout of our app to consumers to on factors. Other factors that may impact our results include unusual weather, especially in Texas, which can be muted given our reinsurance strategy and also the timing of the CSE acquisition, which is assumed and remains on track for mid-2022. We -- we feel comfortable with the current expectations of softness within the housing market that have been built into guidance and our reinsurance relationships landed largely as expected for the 22 years. I'll first jump in and share 2022 guidance for our operating segments and then report on our KPI performance from Q1 2022. Turning to slide 12. The most valuable, strategic and recurring elements of our revenues are growing the fastest. We generate revenue from two segments. Overall, our vertical software segment is expected to produce approximately $190 million in revenue in 2022. We generate this revenue from our software through both B2B SaaS fees and transactions. The other high retention and recurring portion of our business is insurance segment revenue, which is also growing rapidly and is expected to contribute 40% of overall revenue in 2022. As one thinks about our current valuation, a few things I believe are worth a reminder. You can see here on slide 13 that approximately half of our vertical software segment revenue or approximately 30% of overall company revenue comes from B2B subscription fees. The monthly…

Thanks, Matthew. On the right-hand side, our Insurance business continues to grow rapidly and demonstrate strong margins. In Q1 2022, gross written premiums were higher $102 million, we do reminder that Q1 is a seasonally low quarter this year and before adding RWS and CSE. Segment revenue was $27.9 million. Given our capital-light approach to insurance for predictability, revenue, margins and retention rates are very similar to typical B2B SaaS fees, as you can see with the underlying margins. We derived much of our insurance segment revenue from insurance carrier commissions, reinsurance ceding commissions and fees. Plus, as you see, we had strong underlying margins around 12% adjusted EBITDA margin. We are different than others in our insurance business is already nicely profitable despite rapid geographic expansion and product investments. HOA and warranty business were profitable pre-acquisition, and our insurance agency has privileged and lower-cost access to demand, which is typically one of the larger cost for a business like this. Fundamentally, we have a low CAC, strong underwriting that will continue to improve with our proprietary data and given the strong underwriting history, lower volatility in capital requirements, all of which helps to create a high-margin opportunity. Here on Slide 19 with regard to our insurance-specific KPIs at the end of Q1 we approximately 338,000 policies, and we're generating an average of $330 of revenue per policy per year. On a rolling 12-month basis as of March 31, 2022, we had an 89% customer retention rate in our insurance business. You can see we now offer our own insurance products in 17 states. We'll now dig into a few other topics related to insurance. First, an update on CSE, the California Insurance acquisition we signed in the fall of 2021. We continue to work through the regulatory process and…

Thank you, Adam. I'm proud about the work that's happening there. It's a great, great progress. I'll wrap up with a brief note of encouragement for our long-term shareholders, focus on the fundamentals and be patient. The current short-term equity market, in our view, is illogical. We have a business here that we expect to continue to grow revenues and margin nicely, but even more so has the opportunity to become a great, truly great generational company and a winner in multiple massive industries. With our unit economic advantages that we have today, we believe we'll win in providing software to key strategic home service verticals. With our expected demand and data advantages, we believe we'll be able to build one of the largest and most profitable homeowners insurance companies over time. So looking ahead, we have sufficient cash to execute on our strategy. We have more than four years prior to the maturity of our convertible note. We're prioritizing and making excellent progress on integrating past acquisitions and ensuring that the appropriate controls are in place, and we continue to make strides toward adding strong governance where we just announced the shareholder-friendly approach of board declassification. We'll continue to do what we've done since we've gone public, execute, make substantial strategic progress that deepens our competitive moats and deliver solid and consistent results. We had a great Q1, I'm fired up for the remainder of 2022. And with that, management team will take your questions. So Walter, if you can go ahead and open up the line for Q&A, I'd appreciate it.

Thanks, Matt. We have approximately 30 minutes for questions. We'll start by taking questions from purchased sell-side analysts. First question comes from Jason Helfstein from Oppenheimer. John Campbell from Stephens.

Can you guys, hear me okay?

Hey, John. How are you doing?

Doing well, doing well. Thanks for taking my questions. So Matt, you guys have expanded HOA into a handful of states since the acquisition. I know it takes a little bit of time to kind of get up and running in each state. You got to win the business and then the recurring revenue has to obviously build up over time. But we've looked at some of the HOA state filings, pre-porch days and some of the states, they launched in -- there was pretty impressive growth, I feel like in the early stages. So I'm curious if you're seeing that with those guys under your ownership? And also kind of with regards to guidance, if you're assuming any kind of new state impact for the full year?

I'll kick it off and then Adam one layer on top. The -- we have made great progress, obviously, with geographic expansion, it's been one of the many things that Adam and his team that have focused and, I think, executed really well on. So kudos certainly to that team, going from 6 states, which is where that company has been for quite a while, to all of a sudden being now 17 states a little more than a year later, was a good accomplishment. John, one of the things that we do is when we first launched in a state, the team has obviously all the models in place to say, "Hey, this is what we think is ideal pricing for this particular consumer in this particular home, but we actually artificially start in a more conservative place. So we increase the price to make sure that we just aren't making any mistakes. And as they start to get the data feedback loop in, we'll then be able to start bringing pricing down in that process, it varies by state and the amount of data that we're seeing. But give or take six months before you would really start to see much of a meaningful impact. And then to your point, as you start to sell more consumers from that space, a significant portion of our revenue, you're recognizing over the course of that than 12 months because it's spread out after you sell that policy. So -- is there significance in terms of what we're assuming for this year, I would say we're not being overly aggressive, certainly in terms of how much we're betting on new states. But I would say we're in line with what we have seen in past performance. And anything else I missed that you want to lay on top it.

Yeah. I think I would just sum that up by saying that we do all those things as Matt described, and we're comfortable with how that's panning out in sort of the guidance that we've given and how we're running the business. So we feel great about that process what's leading to the profitable growth that we have.

Makes sense. And then, Matt, just as a follow-up, I mean as much as I want you to take the gloves off and kind of fire back at the shorts in your stock, I think you've taken the right kind of professional approach. And obviously, the continued strides in the business, I think kind of speaks for itself. You're a better man than me. But if I can maybe pull you into the arena for just a minute here, what you just announced with the approval of state data, I think that's a pretty good evidence kind of backing your long-term vision. That's clearly an angle that shorts have seeing that the data is either worthless or you cannot use it. So I just maybe want to get your -- take a big step back and get your take on the extent and the type of data you're collecting on a daily basis just to your software? And then how you kind of envision that transforming the model over time, just as a kind of a recap.

Yeah, I appreciate the question, John. It's -- as I tell the team, the best thing for us to do is just and Marty said as well, ignore the noise to execute heck out of the business. I mean I feel very confident in what is ahead for the company. And I think you can -- people know the business well, you can see it showing up in the results. I agree with you. I think that we've talked about our insurance, the two most important things of building a very large insurance company, one who can get access to consumers and demand at lower cost. And obviously, we have a huge portion of the US homebuyers that are going through our systems that lowers our CAC. And then secondly, is data, who can be able to price mopectively. We haven't provided an update on our market share in the home inspection industry, but we will do that at some point here this year, because we're excited about our progress. But last update, 28% of all of the home inspections that happen in the country are flowing through our software system. It just means that we know a huge amount about properties and not and uniquely valuable information about properties because the person is in the home for three or four hours documenting everything about the home. And so anyone I hear these questions occasionally about is this data valuable? If any one of those people were to just go sit down with an insurance actuary or a data scientist that does this for a living, I think they would -- it's almost disbelief when we tell those people that people don't think that information will be valuable, because how can it not be valuable. You have 40 pages of information about a home that includes the take or pay for the home. I think that's incredibly valuable information that we can be able to use to be able to price more effectively. So we're excited about it. It will show up in the results over time, and we'll just continue to do our thing and execute. Adam, I think, I know you're excited about that initiative. Anything you'd want to add there as well?

Yeah. I think you said it well. I would say I'd like to talk less and show results more, and this is a great place to do it. So I bet my goal.

Thanks guys.

Thanks John.

Thanks John. Next question from Jason Helfstein from Oppenheimer.

Yeah, hi. So first, one of the things that we're hearing with InsurTech is inflationary pressure. So maybe talk about why you think you're well-insulated from it, or how you plan to manage it? And then second, I don't know if you already covered this because I'm multitasking, but gross margins were actually down year-over-year. How much of it was the acquisitions mix versus any other factors? Thanks.

Adam, do you want to take the inflationary question? And then, Marty, you can take gross margin, if you like.

Sure.

So Jason, I think the place to focus is HOA, given that the inflation in home values in the US is really what's driving a lot of this. So two things to think about, HOA uses the census constant quality price index to adjust the coverage A or home value of an insured home. So as of today, that index -- so publicly no index that we use and every renewal is increasing the home value by low double digits, and there's a corresponding increase in premium. So we have that – in fact we're aware of the inflationary metric and we designed the HOA insurance products to take that into account. And then in addition, HOA filed average price changes of low double-digit percentages separately from the inflation measures in 2021. So when we put those two things together, we completely agree that inflation in the US particularly in homes is real, but we're addressing them both with the product design and with housing changing pricing.

Marty?

Yes. Jason, you're correct on the revenue -- less cost of revenue margin was 66% in the first quarter of 2022 versus 78% in the prior year. That primarily reflects the fact that in April of 2021, we acquired Homeowners of America. And then later in the year, in September, we acquired American Home Protect, our warranty business. So what you're seeing there is that both the claims related expenses for the insurance business and the warranty business show up in cost of revenue in the first quarter of 2022. When you compare to 2021, we did not have a risk-bearing entity. We just had our insurance agency business. So the prior year was more of a pure Vertical Software Company with our Agency Business. And so that explains the lower cost of revenue less cost of revenue margin.

And just to reiterate, Jason, what we're seeing in Q1 is exactly what we had guided to for the year and what we had expected. So certainly nothing that was different than what we've communicated previously.

And then, just a quick follow-up, when you just file the 10-Q, will there be pro formas in there the acquisitions or probably not?

We have segment disclosures in the MD&A portion of the financial statements that provides further breakout on our segment.

Great, thank you.

Thanks, Jason.

Thanks, Jason. The next question comes from Ryan Tomasello from KBW.

Hi everyone. Thanks for taking my questions and congrats on the strong start to the year. Nice to see the reaffirm 2022 guidance, you might have such a fluid backdrop in housing. You elaborated on the different video singles across the business.= But can you say if your outlook for the year has changed at all in specific areas of the business maybe with stronger trends in certain segments offsetting larger headwinds than others, if that's the case at all.

Yeah. I can speak a little bit to that. The -- as we said in our prepared remarks, we are seeing some impact as a result of the slowing housing market, but we had anticipated that, and we had built it into our guidance. Most -- in fact, the majority, 70% of our revenue are recurring revenue from either our software or insurance. If you get deeper into, say, some of our inspection and real estate businesses, some of our pricing models there are actually well insulated because they're on a per seat basis, as an example. So we'll feel it a little bit there, but overall, not enough to fundamentally change our guidance and not enough to have like this is doing better than that. A lot of this we anticipated and built into our guidance for this year.

Got it, and congrats on the slow filing the insurance products launching data, realize it's still early days there, but are there any initial stats or steal commentary avid on how that rollout is going, tax rates? And I guess what the extent of the data actually is today across the 45 platform?

So…

Go ahead, Marty you can take a...

Yeah. So we have launched it for an initial set of customers. And as we always do, we're rolling it out in a controlled manner. We want to ensure the experience for consumers and for loan officers is great. While we don't share conversion rates publicly, we are excited about the product. Some of the things that we're hearing from loan officers, they really love the UI. They think it's a great use case, especially when borrowers need homeowners insurance as -- and then there are certain segments such as our builder division, where you're working with builders who just really just like doing that the manual insurance stuff. And so they have found it really valuable. But it's seamlessly integrated into that experience and so we're super excited about it.

Great. And thanks for taking the questions.

Thanks Ryan.

Thanks Ryan. Next question comes from Ygal Arounian from Wedbush.

Hey guys. Good afternoon. First, just on the reinsurance challenges and the relationships. It sounds like they're kind of coming in as expected on the renewals. But at the same time, you're hanging on to a little bit more of the underwritten premium. Just can you help us think about how that might trend were close to halfway through the year? And is that something you expect to kind of revert back to normal levels, given the environment, does it make sense to hang on to more? Just how to think about how that evolves in the second half and maybe as we get into next year.

Adam, you want to jump in and take that one?

Yes, absolutely. So, the main thing I start with is those contracts almost always for a year. So we would not expect to see variations to the end of the year of the contract. It can be from more than one year in some cases. But I'm not for of any time on everything less than a year. So, we wouldn't see any variation there that we would expect. And then our reinsurance program includes a couple of assets co-sharing as well as excess of loss. So, we use those together. So, we might be seeing a little bit less of a co-share, but we're buying more access and loss, we think that protects us. And I don't have any view on what the right design yet will be for 2020. I think that's something that we'll tackle but we're really comfortable in the capability we have and the ability to manage that through strong partnerships and by taking advantage of those different lines.

Okay. Thanks. And then on the vertical software, certainly appreciating overall, there's just less exposure to housing is your overall revenue. But just looking at the monetized services, the growth -- it was down sequentially in 4Q, the growth slowed year-over-year from 4Q. Can you just help us think through the moving pieces on the monetized services. Is that the exposure you're talking about on the housing market? Is it seasonality? And then at the same time, the revenue per monetized service was up such I think looks like kind of by far the highest ever. So, what's going on there in that number? Thanks.

Sure. I can speak to this. I'll start first with revenue per monetized service. It is, has been, and continues to be a core strategy for us to focus on high-value services, most notably insurance and warranty. We've communicated we see upside in revenue per monetized service because of that strategy of really focusing on those higher-value services. So, a lot of that is just the success and the expected impact of where we have been focused on higher value services. In terms of number of monetized services, there is certainly seasonality at work between Q4 and Q1. I don't want to say we're seeing anything unexpected. And I would certainly expect us to see material growth in Q3. But that's -- I don't know if you would add anything more to that now.

No, I just would say it's generally seasonality. You can see in previous years, typically you'll see a little bit of a tick back from Q4 to Q1. That's just how the cycle works. Q – Ygal Arounian: Great. Thank you so much.

Thank you, Ygal. Next question comes from Justin Ages with Berenberg. Q – Justin Ages: Hi. How’s everyone doing

Good.Thanks. Thanks for the question. Q – Justin Ages: Yes. I was just hoping to first dig in a bit on the $600 million of gross written premiums. Good that that was maintained in this market. But what's it going to take for that to go up in terms of obviously more states, but going deeper? Is it a headcount thing? You need to hire more people to get that up? Just hoping to get a little more there.

I mean, there's a lot of levers that are ahead of us to go. That's one of the reasons that we're just excited about what with this next set of years looks like, but I'll go through a handful of them. It starts for us to being able to add more companies. So interestingly, again, our core go-to-market is selling software to more companies -- those companies then provide us access to more and more consumers. Now when we bring new companies into our software, the vast majority of those companies were also getting access to their consumer and introduce to their consumer. But there's other tactics that we're deploying like we talked about with embedding insurance inflow pie, going on our consumer app, and we can be able to get access to even far more consumers to then help them with key services like insurance, which is what we focus on. So there's multiple steps in that funnel where we'll continue to be able to grow the volume of customers that we sell insurance, too. And then, yes, you're exactly, right. There's other things, that we can do such as expanding into more geographies for our own insurance products. There's obviously the opportunity to bundle warranty and to be able to cross-sell both insurance and warranty together to fully protect a home. There might be other insurance products that make sense for us to be able to bundle for those customers. So a number of different levers that we'll pull as we go forward. Last comment would be that of that -- of our base of consumers that are insurance customers of ours, they renew at a very, very high rate. So 89% renewal rate that we just noted. So you get to roll that forward as you move into the next year. Q – Justin Ages: All right. That's helpful. Thank you and then switching gears a bit, and I know it's early that you just kind of -- we're testing it last quarter and mentioned it briefly this quarter. How does the early returns been on the new port after being good connectivity? Just any update there would be helpful.

Sure. The -- what we can share is we're focused on rolling out the app to a larger set of customers. We're currently in closed beta. The feedback has been very positive, lots of helpful thoughts on how we can improve the experience, remain very excited about the opportunity with our app. We have a big opportunity to incorporate a lot of the data that we have to provide some unique consumer experiences. And the update, we can provide from a timing perspective, is we're looking to move out of our closed beta in the middle of this year. So still early, but we're excited.

And Justin, what we typically do is we go through, as we did today, certain deep dive each quarter. At some point, I would imagine we'll do a deep dive into the app as our product leader join and be able to provide some deeper insights I look forward to that at some point. Q – Justin Ages: I appreciate the answer to the question, guys. Thank you.

Thanks, Justin

Thanks, Justin. The next question comes from Dan Kurnos from Benchmark...

Hi, everybody. Matt, can we just double click on the data proof points in the quarter. I think most of us thought that, that was going to be probably a back half. And while it is three states, it's still what I would consider, meaningfully, ahead of schedule. I'm sure, it's not had your schedule, but ahead of kind of what I think people were anticipating. You talked about kind of how that flows through. But, is there any way to get maybe an updated framework for how you're thinking about the future opportunities there, whether it's this year, whether it's 2Q, whether it's 4Q, the bulk of it. And obviously, as you said, changes typically take some time to flush through the system. But do we actually start to see some of those proof points this year, because I know that, your prior guidance did not have any or I believe anyway that your prior guidance did not have any of the real data upside embedded into it? That's my first question.

Yeah. I think Thanks, Dan. I appreciate the question. So yes, I was excited to be able to start the updates. I think generally, the expectation was for late this year and even just having file, not got an approval from states. So obviously, they're always going to have a few current up ones sleeve. The – there's a couple of different things I would think about. So one is having additional states that we have gotten approval back from three states. There's other states who we'd be able to take this first block of data this first set of pricing work and roll it out to more stage and get approval. So that would be – we will provide updates on that as we go. And then the second block is using more data. And so Adam, in his section highlighted some of the additional data that we would be able to work on and bringing that through into additional filings as we would go to bring more data and get sequential approval from states. No specific timing that we're communicating yet beyond that. But obviously, the teams are already hard at work and just being able to get that organized structure and then flowing through to our actuarial data science teams. Last comment, I'll make and Adam, if you want to add anything, is we will provide updates as we go. I mean, we want to make it really clear that, this data is going to be able to create value because we're very, very confident and convicted that it will. And so there's a number of things that we can share as we go. And so I would expect some point in this year to provide another deep dissection to be able to give an update on what we're seeing. Adam, anything else you want to add?

At this time, I'm excited, and I'm really proud of the team could get it done on this time.

Yeah.

Awesome. And then, Matt, interesting kind of tweaks to your M&A outlook. I know you and I joke about timing of all of that stuff. I guess, there's been a lot of commentary around incremental investments and growth. And as we look at the marketplace, Matt, it might also be helpful. Clearly, you have a lot of cash on the balance sheet. So you have flexibility. How are you thinking about kind of the puts and takes? Obviously, I know you reaffirmed your guidance. I know where you want to kind of end up the year been consistent sort of upside to EBITDA. But it seem token at the later this year, let's say, getting messier, there could be opportunities we've heard from other companies that marketing maybe gets easier as other guys kind of pull out. So just again, I'm trying to keep at a higher level without – outside of it, the primers of the guidance you've given, but just maybe help us understand your thought process as you go deeper into this year and you start benefiting from a lot of the things like data that you've layered into place in 2021?

Yes. A couple of quick thoughts will be: one, yes, we have $305 million in cash leaving the first quarter here. And so there's -- we're well capitalized to able to go and run our plan. Certainly, we could choose to use that for M&A. But again, it just usually takes in our view, 6 to 12 months for valuation kind of multiples to kind of fully move into private companies. I'll say, certainly, we have zero -- I mean, we have zero interest in using equity, even quite a while ago, to go and do acquisitions. And so now, it just makes no sense, right? And so, we think the prudent thing to do is just have a really clean, solid year, just go execute and do our thing. Maybe there's some small to do, but I wouldn't expect anything substantial from an M&A perspective. And then, see where the world is, you'll hear, as we look at the end of the year, and that could present some interesting opportunities.

All right. Got it. Thanks. I appreciate it. Nice start to the year, Matt.

Thanks, Dan.

Thanks, Dan. The next question comes from Mark Schappel from Loop

Guys, can you hear me okay?

Yes, Mark.

I appreciate you taking my question. Matt, a question for you on the relatively new pay-at-close module. I was just wondering if you could just give us an update on some of the progress you're making, signing up some large home inspection companies in the model?

Yes. I can just take that briefly. We're continuing to make progress there. We continue to make updates to the consumer payment experience. It's obviously a really unique consumer experience to be able to take your inspection fee, which is non-trivial and bring it into the close and wrap it into your mortgage. We're happy with the progress right now, and the team is working hard talking to inspectors to get them signed up for it. But nothing formal to report out.

In terms of signing up large ones, I will just say, yes. They have signed up some of the largest inspectors, which you think is going to be -- that's just a very telling set of wins. So more to come, I'm sure, as we go throughout the year.

Okay, great. Thank you.

Thanks, Mark.

Thanks, Mark. Next question comes from Ben Sherlund from Cantor.

Hey, guys. Thanks for taking my questions. Maybe one on the consumer marketing funnel and then I have a follow-up, just on revenue drivers. In your initial presentation as a public company, disclosed a few metrics to help estimate how many customers you had marketing rights through ISN. But a lot has changed since then. Any data points you can provide on how this funnel has changed since 2020?

Great question. We aren't providing anything new today on it, but it would be something we can note for a deep dive as a fall. The only thing, I think, Ben, that is useful to note there is, with some of the technology work that we've done, you can leapfrog really where we have been. We talked about the consumer app as an example. If you provide that to all of the consumers that are going to your inspectors, well, that's a way that you can get access to a far larger number of people quickly. Or same thing, as we embed insurance in the flow, well, that's now just in front of all of those consumers, right? So there are some things that we're able to do, leveraging technology, just to create a better experience and an easier home purchasing experience for these consumers that we certainly are excited about. But behind the scenes, same blocking and tackling, virtually all new companies that come on board were getting access to those consumers during that implementation phase. So it's similar to what we've talked about in the past.

Okay, great. That's helpful. And then maybe one on the revenue drivers. Looking through the filings with the acquisitions you made in 2021 you break out V12, HOA, Rynoh, AHP and Floify. There's also a line in there for a little over $32 million for other acquisitions that contributed about $18.5 million to reported 2021 revenue. Can you help us understand what these acquisitions were?

Yeah. There is some things that we've done that are very small, typically that some, for competitive reasons, we wouldn't highlight publicly. So, it's little things we've done in that bucket.

Is there any color you can provide on like what segment they would fall into?

I mean, for the most part, the thing that would be most of the acquisitions that we just generally done in our company is in the Vertical Software segment. The things that we've done in the Insurance segment, obviously, Homeowners of America, American Home Protect for the warranty space and more recently RWS, are things that we've talked about on the Insurance segment side.

Okay. Thanks guys.

Thanks, Ben.

Thanks, Ben. The next question comes from Mike Grondahl from Northland.

Hey, thanks guys. Two quick questions. One, just as it relates to the home inspection offering that you have. Are you seeing any change in activity? Any change in the per transaction fee or kind of customer leads that you're getting for free? And in the industry, are they waiving home inspections? Are you seeing anything around that?

Sure. I can speak a little bit to that. I mean some of the changes that we're seeing is we're building out additional modules. We're seeing a pretty complete solution set come together, which has just given us more opportunities to engage with inspectors. It's a good time for us to engage right before they get busy into peak season. In certain areas, the market is still hot. Certainly, some of the leading indicators are that there's some slowdown. And so we don't yet see a fundamental change, say, in the behavior of inspectors, but we have highlighted in the past in competitive markets, sometimes it works against us because people will waive inspections. And so as the market softens, you'll see less of that. What that means is it's just some of the ups and downs are muted a little bit for us.

Got it. And then any quick update on mover marketing.

Yes. I'm excited. We're excited about mover marketing. We have some big logos, which we haven't disclosed publicly have signed up for that program. Our V12 team, if you check out their site, they are fully organized around their mover marketing offering, and we are unique in the space. We have the best data for people who want to do that type of marketing. And we're just building out the offerings and the team, but it's an exciting, unique opportunity that we have in addition to some of the other stuff that we talked about.

Yes. I would encourage, Mike, you to go to v12data.com and take a look, like it's a unique offering that we have for brands and advertisers in the market, given our knowledge to who these people are that are buying homes far earlier than anybody else. And there's some great data actually on that site in terms of impacts that we've seen from other advertisers and customers. So, that's what I'd point you to.

Great. Thank you.

Thanks Mike. With that, I'll turn it back to Matt to wrap up with his final remarks.

I appreciate the questions. Again, it's the Porch team, who's looking great quarter, great to start to the year. We're just going to stay on track, do what we do. With that, again, thanks, everybody, for joining. We appreciate it. Have a great rest of the day. Take care.