Porch Group says its expenses, losses rose, announces two deals

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Porch Group Inc. shares were halted in the extended session Thursday after the software company released preliminary quarterly earnings and announced two major deals. The shares ended the regular trading session up nearly 5%. Porch said it expects 2020 revenue to be slightly over $72 million. Expenses grew, however, due to the company’s decision to invest “more aggressively” in sales teams and marketing, research and development, and costs relating to becoming a public company. Porch became public through a merger with a blank-check company late last year. Porch said it expects a 2020 net loss between $53 million and $55 million, and an adjusted EBITDA loss between $18 million and $19 million, compared with a previous target of a $10 million loss. Porch raised its 2021 revenue outlook from $120 million to $170 million. Porch said it has agreed to buy home insurer Homeowners of America and and marketing and data platform V12. Porch is acquiring HOA and V12 for a combined $122 million, it said.
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