Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 08, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-39142 | ||
Entity Registrant Name | PORCH GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-2587663 | ||
Entity Address, Address Line One | 411 1st Avenue S. | ||
Entity Address, Address Line Two | Suite 501 | ||
Entity Address, City or Town | Seattle | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98104 | ||
City Area Code | 855 | ||
Local Phone Number | 767-2400 | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Trading Symbol | PRCH | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 109 | ||
Entity Common Stock, Shares Outstanding | 97,596,490 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference The information required by Part III (Items 10, 11, 12, 13 and 14) of this Annual Report on Form 10-K is incorporated by reference from the registrant’s definitive proxy statement for its 2024 annual meeting to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Entity Central Index Key | 0001784535 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 248 |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | Bellevue, Washington |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 258,418 | $ 215,060 |
Accounts receivable, net | 24,288 | 26,438 |
Short-term investments | 35,588 | 36,523 |
Reinsurance balance due | 83,582 | 299,060 |
Prepaid expenses and other current assets | 13,214 | 11,293 |
Deferred policy acquisition costs | 27,174 | 8,716 |
Restricted cash and cash equivalents | 38,814 | 13,545 |
Total current assets | 481,078 | 610,635 |
Property, equipment, and software, net | 16,861 | 12,240 |
Goodwill | 191,907 | 244,697 |
Long-term investments | 103,588 | 55,118 |
Intangible assets, net | 87,216 | 108,255 |
Long-term insurance commissions receivable | 13,429 | 12,265 |
Other assets | 5,314 | 5,847 |
Total assets | 899,393 | 1,049,057 |
Current liabilities | ||
Accounts payable | 8,761 | 6,268 |
Accrued expenses and other current liabilities | 59,396 | 39,742 |
Deferred revenue | 248,683 | 270,690 |
Refundable customer deposits | 17,980 | 20,142 |
Current debt | 244 | 16,455 |
Losses and loss adjustment expense reserves | 95,503 | 100,632 |
Other insurance liabilities, current | 31,585 | 61,710 |
Total current liabilities | 462,152 | 515,639 |
Long-term debt | 435,495 | 425,310 |
Other liabilities | 37,429 | 28,755 |
Total liabilities | 935,076 | 969,704 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity (deficit) | ||
Common stock, $0.0001 par value per share: | 10 | 10 |
Additional paid-in capital | 690,223 | 670,537 |
Accumulated other comprehensive loss | (3,860) | (6,171) |
Accumulated deficit | (722,056) | (585,023) |
Total stockholders’ equity (deficit) | (35,683) | 79,353 |
Total liabilities and stockholders’ equity (deficit) | $ 899,393 | $ 1,049,057 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 97,100,000 | 98,500,000 |
Common stock, shares outstanding (in shares) | 97,061,000 | 98,456,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 430,302 | $ 275,948 | $ 192,433 |
Operating expenses: | |||
Cost of revenue | 220,243 | 107,577 | 58,725 |
Selling and marketing | 144,307 | 113,848 | 84,273 |
Product and technology | 58,502 | 59,565 | 47,005 |
General and administrative | 103,192 | 109,814 | 84,740 |
Provision for doubtful accounts | 37,180 | 805 | 1,055 |
Impairment loss on intangible assets and goodwill | 57,232 | 61,386 | 0 |
Total operating expenses | 620,656 | 452,995 | 275,798 |
Operating loss | (190,354) | (177,047) | (83,365) |
Other income (expense): | |||
Interest expense | (31,828) | (8,723) | (5,757) |
Change in fair value of earnout liability | 44 | 13,822 | (18,519) |
Change in fair value of private warrant liability | (444) | 14,486 | (15,389) |
Change in fair value of derivatives | (4,261) | 0 | 0 |
Gain on extinguishment of debt | 81,354 | 0 | 5,110 |
Investment income and realized gains, net of investment expenses | 8,285 | 1,174 | 701 |
Other income, net | 3,893 | 571 | 340 |
Total other income (expense) | 57,043 | 21,330 | (33,514) |
Loss before income taxes | (133,311) | (155,717) | (116,879) |
Income tax benefit (provision) | (622) | (842) | 10,273 |
Net loss | (133,933) | (156,559) | (106,606) |
Other comprehensive income (loss): | |||
Change in net unrealized loss, net of tax | 2,311 | (5,912) | (259) |
Comprehensive loss | $ (131,622) | $ (162,471) | $ (106,865) |
Net loss per share - basic (in dollars per share) | $ (1.39) | $ (1.61) | $ (1.14) |
Net loss per share - diluted (in dollars per share) | $ (1.39) | $ (1.61) | $ (1.14) |
Weighted-average shares used in computing net loss attributable per share to common stockholders: | |||
Shares used in computing basic net loss per share (in shares) | 96,057,000 | 97,351,000 | 93,885,000 |
Shares used in computing diluted net loss per share (in shares) | 96,057,000 | 97,351,000 | 93,885,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (133,933) | $ (156,559) | $ (106,606) |
Other comprehensive income (loss): | |||
Change in net unrealized loss, net of tax | 2,311 | (5,912) | (259) |
Comprehensive loss | $ (131,622) | $ (162,471) | $ (106,865) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2020 | 81,669,000 | ||||
Beginning balance at Dec. 31, 2020 | $ 107,325 | $ 8 | $ 424,823 | $ (317,506) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (106,606) | (106,606) | |||
Other comprehensive loss, net of tax | (259) | (259) | |||
Stock-based compensation | 15,631 | 15,631 | |||
Stock-based compensation - earnout | 22,961 | 22,961 | |||
Issuance of common stock for acquisitions (in shares) | 2,043,000 | ||||
Issuance of common stock for acquisitions | 35,707 | $ 1 | 35,706 | ||
Contingent consideration for acquisitions | 6,685 | 6,685 | |||
Reclassification of earnout liability upon vesting | 54,891 | 54,891 | |||
Reclassification of private warrant liability upon exercise | 31,730 | 31,730 | |||
Vesting of restricted stock (in shares) | 2,549,000 | ||||
Exercise of stock warrants (in shares) | 11,521,000 | ||||
Exercise of stock warrants | 126,769 | $ 1 | 126,768 | ||
Exercise of stock options (in shares) | 1,701,000 | ||||
Exercise of stock options | 4,326 | 4,326 | |||
Income tax withholdings (in shares) | (1,521,000) | ||||
Income tax withholdings | (28,940) | (28,940) | |||
Capped call transactions | (52,913) | (52,913) | |||
Transaction costs | (262) | (262) | |||
Ending balance (in shares) at Dec. 31, 2021 | 97,962,000 | ||||
Ending balance at Dec. 31, 2021 | 217,045 | $ 10 | 641,406 | (424,112) | (259) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (156,559) | (156,559) | |||
Other comprehensive loss, net of tax | (5,912) | (5,912) | |||
Stock-based compensation | 27,041 | 27,041 | |||
Issuance of common stock for acquisitions (in shares) | 629,000 | ||||
Issuance of common stock for acquisitions | 3,552 | 3,552 | |||
Contingent consideration for acquisitions | 530 | 530 | |||
Vesting of restricted stock (in shares) | 2,145,000 | ||||
Exercise of stock options (in shares) | 474,000 | ||||
Exercise of stock options | 1,116 | 1,116 | |||
Income tax withholdings (in shares) | (613,000) | ||||
Income tax withholdings | (3,108) | (3,108) | |||
Repurchases of common stock (in shares) | (2,389,000) | ||||
Repurchases of common stock | (4,352) | (4,352) | |||
Ending balance (in shares) at Dec. 31, 2022 | 98,206,000 | ||||
Ending balance at Dec. 31, 2022 | 79,353 | $ 10 | 670,537 | (585,023) | (6,171) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (133,933) | (133,933) | |||
Other comprehensive loss, net of tax | 2,311 | 2,311 | |||
Stock-based compensation | $ 20,709 | 20,709 | |||
Vesting of restricted stock (in shares) | 3,122,000 | ||||
Exercise of stock options (in shares) | 20,000 | 20,000 | |||
Exercise of stock options | $ 26 | 26 | |||
Income tax withholdings (in shares) | (841,000) | ||||
Income tax withholdings | (1,240) | (1,240) | |||
Repurchases of common stock (in shares) | (1,396,000) | ||||
Repurchases of common stock | (3,100) | (3,100) | |||
Cancellations of common stock (in shares) | (2,050,000) | ||||
Proceeds from sale of common stock | 191 | 191 | |||
Ending balance (in shares) at Dec. 31, 2023 | 97,061,000 | ||||
Ending balance at Dec. 31, 2023 | $ (35,683) | $ 10 | $ 690,223 | $ (722,056) | $ (3,860) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (133,933) | $ (156,559) | $ (106,606) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 24,415 | 27,930 | 16,386 |
Provision for doubtful accounts | 37,180 | 805 | 1,055 |
Impairment loss on intangible assets and goodwill | 57,232 | 61,386 | 0 |
Gain on extinguishment of debt | (81,354) | 0 | (5,110) |
Change in fair value of private warrant liability | 444 | (14,486) | 15,389 |
Change in fair value of contingent consideration | (5,664) | 6,944 | (2,244) |
Change in fair value of earnout liability and derivatives | 4,217 | (13,822) | 18,519 |
Stock-based compensation | 20,709 | 27,041 | 38,592 |
Non-cash interest expense | 20,756 | 2,270 | 2,387 |
Other | 1,057 | 3,590 | 2,892 |
Change in operating assets and liabilities, net of acquisitions and divestitures | |||
Accounts receivable | 1,030 | (4,886) | (2,905) |
Reinsurance balance due | 179,436 | (70,644) | (15,343) |
Deferred policy acquisition costs | (18,458) | (4,716) | (4,247) |
Accounts payable | 2,491 | (697) | (11,779) |
Accrued expenses and other current liabilities | (1,386) | (6,519) | (15,981) |
Losses and loss adjustment expense reserves | (5,129) | 38,683 | (22,417) |
Other insurance liabilities, current | (30,125) | 21,686 | 14,396 |
Deferred revenue | (21,583) | 66,254 | 53,556 |
Refundable customer deposits | (13,925) | 6,537 | (3,545) |
Other assets and liabilities, net | (3,481) | (8,533) | (7,772) |
Net cash provided by (used in) operating activities | 33,929 | (17,736) | (34,777) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (851) | (2,350) | (972) |
Capitalized internal use software development costs | (9,245) | (8,100) | (3,719) |
Purchases of short-term and long-term investments | (91,015) | (52,506) | (24,006) |
Maturities, sales of short-term and long-term investments | 46,832 | 21,906 | 21,694 |
Acquisitions, net of cash acquired | (1,974) | (38,628) | (256,430) |
Net cash used in investing activities | (56,253) | (79,678) | (263,433) |
Cash flows from financing activities: | |||
Proceeds from line of credit | 0 | 5,000 | 0 |
Proceeds from advance funding | 319 | 18,643 | 0 |
Repayments of advance funding | (4,133) | (22,746) | 0 |
Proceeds from issuance of debt | 116,667 | 10,000 | 413,537 |
Repayments of principal | (10,150) | (5,150) | (46,965) |
Cash paid for debt issuance costs | (4,694) | 0 | 0 |
Capped call transactions | 0 | 0 | (52,913) |
Proceeds from exercises of warrants | 0 | 0 | 126,741 |
Income tax withholdings paid upon vesting of restricted stock units | (1,240) | (3,108) | (28,877) |
Repurchase of stock | (5,608) | (1,813) | 0 |
Other | (210) | 401 | 4,026 |
Net cash provided by financing activities | 90,951 | 1,227 | 415,549 |
Net change in cash, cash equivalents, and restricted cash | 68,627 | (96,187) | 117,339 |
Cash, cash equivalents, and restricted cash, beginning of period | 228,605 | 324,792 | 207,453 |
Cash, cash equivalents, and restricted cash end of period | 297,232 | 228,605 | 324,792 |
Supplemental disclosures | |||
Non-cash consideration for acquisitions | 0 | 12,252 | 52,761 |
Non-cash reduction in advanced funding arrangement obligations | 11,763 | 0 | 0 |
Share repurchases included in accrued expenses and other current liabilities | 0 | 2,539 | 0 |
Reduction of earnout liability due to vesting event | 0 | 0 | 54,891 |
Cash paid for interest | 12,212 | 3,512 | 2,662 |
Income tax refunds received (paid) | $ 2,287 | $ (674) | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1. Description of Business and Summary of Significant Accounting Policies Description of Business Porch Group, Inc., together with its consolidated subsidiaries, (“Porch Group,” “Porch,” the “Company,” “we,” “our,” “us”) is a leading vertical software and insurance platform and is positioned to be the best partner to help homebuyers move, maintain, and fully protect their homes. We offer differentiated products and services, with homeowners insurance at the center of this relationship. We differentiate and look to win in the massive and growing homeowners insurance opportunity by 1) providing the best services for homebuyers, 2) led by advantaged underwriting in insurance, 3) to protect the whole home. As a leader in the home services software-as-a-service (“SaaS”) space, we’ve built deep relationships with approximately 30 thousand companies that are key to the home-buying transaction, such as home inspectors, mortgage companies, and title companies. These relationships provide us with early insights to United States (“U.S.”) homebuyers. In partnership with these companies, we have the ability to help simplify the move for consumers with services such as insurance, warranty, moving and more. We have two reportable segments that are also our operating segments: Vertical Software and Insurance. See Note 17, Segment Information, for additional information on our reportable segments. Through our vertical software products we have unique insights into the majority of U.S. properties. This data helps feed our insurance underwriting models, better understand risk, and create competitive differentiation in underwriting. We provide full protection for the home by including a variety of home warranty products alongside homeowners insurance. We are able to fill the gaps of protection for consumers, minimize surprises, and deepen our relationships and value proposition. Basis of Presentation The consolidated financial statements and accompanying notes include the accounts of Porch Group, Inc., and its wholly owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions are eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current year’s presentation. Except for per share data or as otherwise indicated, all U.S. dollar amounts presented in the tables in these Notes to Consolidated Financial Statements are in thousands unless otherwise stated, except per share data. Comprehensive Loss Comprehensive loss consists of adjustments related to unrealized gains and losses on available-for-sale securities. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from those estimates and assumptions. Concentrations Financial instruments which potentially subject us to credit risk consist principally of cash, money market accounts on deposit with financial institutions, money market funds, certificates of deposit, fixed-maturity securities, and receivable balances in the course of collection. Our insurance carrier subsidiary has exposure and remains liable in the event of insolvency of its reinsurers. Management and its reinsurance intermediary regularly assess the credit quality and ratings of its reinsurer counterparties. For the year ended December 31, 2023, four reinsurers represented more than 10% individually, and 57% in the aggregate, of our total reinsurance balance due. For the year ended December 31, 2022, two reinsurers represented more than 10% individually, and 45% in the aggregate, of our total reinsurance balance due. Substantially all of our revenues in the Insurance segment are derived from customers in Texas (which represent approximately 64%, 52% and 61% of Insurance segment revenues in the years ended December 31, 2023, 2022 and 2021, respectively), South Carolina (which represent approximately 11%, 10% and 9% of Insurance segment revenues in the years ended December 31, 2023, 2022 and 2021, respectively), North Carolina, Georgia, Virginia, and Arizona, which could be adversely affected by economic conditions, an increase in competition, local weather events, or environmental impacts and changes. No individual customer represented more than 10% of our total revenue for the years ended 2023, 2022 or 2021. As of December 31, 2023 and 2022, no individual customer accounted for 10% or more of our total accounts receivable. As of December 31, 2023, we held approximately $263.6 million of cash with five U.S. commercial banks. As of December 31, 2022, we held approximately $148.0 million of cash with three U.S. commercial bank. Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. We maintain cash balances that exceed the insured limits by the Federal Deposit Insurance Corporation. Restricted cash and cash equivalents as of December 31, 2023, includes $28.3 million held by our captive reinsurance business as collateral for the benefit of Homeowners of America Insurance Company (“HOA”), $1.3 million held in certificates of deposit and money market mutual funds pledged to the Department of Insurance in certain states as a condition of our Certificate of Authority for the purpose of meeting obligations to policyholders and creditors, $7.3 million in funds held for the payment of possible warranty claims as required under regulatory guidelines in 19 states, and $1.9 million related to acquisition indemnifications. Restricted cash and cash equivalents as of December 31, 2022, includes $5.1 million held by our captive reinsurance business as collateral for the benefit of HOA, $1.0 million held in money market mutual funds pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors, $5.0 million in funds held for the payment of possible warranty claims as required under regulatory guidelines in 19 states, and $2.4 million related to acquisition indemnifications. The reconciliation of cash, cash equivalents, and restricted cash to amounts presented in the December 31, 2023 2022 Cash and cash equivalents $ 258,418 $ 215,060 Restricted cash and cash equivalents 38,814 13,545 Cash, cash equivalents, and restricted cash $ 297,232 $ 228,605 Investments Our investments are primarily comprised of short-term certificates of deposit, U.S. Treasury, corporate and municipal bonds, and mortgage-backed securities and are classified as available-for-sale and reported at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Investments are classified as current or non-current based upon the remaining maturity of the investment. Amortization of premium and accretion of discount are computed using the effective interest method. The accretion or amortization of discounts and premiums on mortgage-backed securities takes into consideration actual and future estimated principal prepayments. We utilize estimated prepayment speed information obtained from published sources. The effects of the yield of a security from changes in principal prepayments are recognized prospectively. The degree to which a security is susceptible to yield adjustments is influenced by the difference between its carrying value and par, the relative sensitivity of the underlying mortgages backing the assets to prepayment in a changing interest rate environment, and the repayment priority for structured securities. We evaluate whether declines in the fair value of investments have resulted from an expected credit loss. See Note 3, Investments, for additional information about management’s evaluation. Realized gains and losses on sales of investments are determined using the specific-identification method. Accounts Receivable and Long-term Insurance Commissions Receivable Accounts receivable consist principally of amounts due from enterprise customers, other corporate partnerships, and individual policyholders. We estimate allowances for uncollectible receivables based on the creditworthiness of our customers, historical trend analysis, and macro-economic conditions. Consequently, an adverse change in those factors could affect our estimate of allowance for doubtful accounts. The allowance for uncollectible receivables at December 31, 2023, and 2022, was $0.6 million and $0.5 million, respectively. Long-term insurance commissions receivable balance consists of the estimated commissions from policy renewals expected to be collected. We record the amount of renewal insurance commissions expected to be collected in the next twelve months as current accounts receivable. Deferred Policy Acquisition Costs We capitalize deferred policy acquisitions costs (“DAC”) which consist primarily of commissions, premium taxes and policy underwriting and production expenses that are directly related to the successful acquisition by our insurance company subsidiary of new or renewal insurance contracts. DAC are amortized on a straight-line basis over the terms of the policies to which they relate, which is generally one year. DAC is also reduced by ceding commissions paid by reinsurance companies which represent recoveries of acquisition costs. DAC is periodically reviewed for recoverability and adjusted if necessary. Future investment income is considered in determining the recoverability of DAC. Amortized deferred acquisition costs included in sales and marketing expense, amounted to $49.2 million, $14.5 million, and $2.5 million for the years ended December 31, 2023, 2022, and 2021, respectively. Property, Equipment, and Software Property, equipment, and software are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets, as follows: Estimated Useful Lives Software and computer equipment 3 years Furniture, office equipment and other 3 – 5 years Internally developed software 2 years Leasehold improvements Shorter of useful life or remaining lease term When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the We capitalize costs incurred in the development of internal use software. The capitalized costs are amortized over the estimated useful life of the software. If capitalized projects are determined to no longer be in use, they are impaired and the cost and accumulated depreciation are removed from the accounts. The resulting loss on impairment, if any, is included in the Goodwill We test goodwill for impairment for each reporting unit on an annual basis, or more frequently when events or changes in circumstances indicate the fair value of a reporting unit may be below its carrying value. We have the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If we can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, we would not need to perform a quantitative impairment test. If we cannot support such a conclusion or we do not elect to perform the qualitative assessment, we perform a quantitative assessment. If a quantitative goodwill impairment assessment is performed, we utilize a combination of market and income valuation approaches. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that fair value of the reporting unit is less than its carrying value. We have selected October 1 as the date to perform its annual impairment test. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of operating and macroeconomic changes on each reporting unit. The fair value of each reporting unit was estimated using a combination of income and market valuation approaches using publicly traded company multiples in similar businesses. Such fair value measurements are based predominately on Level 3 inputs. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internally developed forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. Intangible Assets Intangible assets consist of acquired customer relationships, acquired technology, trademarks and trade names, renewal rights, insurance licenses, non-compete agreements, value of businesses acquired, and related assets that are amortized over their estimated useful lives. Certain intangible assets are considered to have indefinite lives. We test indefinite-lived intangible assets for impairment annually on October 1 and whenever events or circumstances arise that indicate an impairment may exist. See the Impairment of Long-Lived Assets section below. Impairment of Long-Lived Assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. Events that trigger a test for recoverability include a significant decrease in the market price for a long-lived asset, significant negative industry or economic trends, an accumulation of costs significantly in excess of the amount originally expected for the acquisition, a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset, or a sustained decrease in share price. When a triggering event occurs, a test for recoverability is performed, comparing projected undiscounted future cash flows to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured relying primarily on an income approach. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value. Management identifies the asset group that includes the potentially impaired long-lived asset, at the lowest level at which there are separate, identifiable cash flows. We estimate the fair value of an asset group using the income approach. Such fair value measurements are based predominately on Level 3 inputs. Inherent in our development of cash flow projections are assumptions and estimates derived from a review of our operating results, business plan forecasts, expected growth rates, and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of these factors used in assessing fair value are outside the control of management and these assumptions and estimates may change in future periods. Losses and Loss Adjustment Expenses Reserves The liability for losses and loss adjustment expenses (“LAE”) is an estimate of the amounts required to cover known incurred losses and LAE and is developed through the review and assessment of loss reports, along with the analysis of known claims. These reserves include management’s estimate of the amounts for losses incurred but not reported (“IBNR”). IBNR is reviewed regularly using a variety of actuarial techniques. We update the reserve estimates as historical loss experience develops, additional claims are reported and/or settled and new information becomes available. Any changes in estimates are reflected in operating results in the period in which the estimates are changed. Although management believes that the balance of these reserves is adequate, such liabilities are necessarily dependent on estimates, the ultimate expense may be more or less than the amounts presented. The approach and methods for developing these estimates and for recording the resulting liability are continually reviewed. Any adjustments to this reserve are recognized in the Consolidated Statements of Operations and Comprehensive Loss. Losses and LAE, less related reinsurance is charged to expense as incurred. Reinsurance In the normal course of business, we monitor return and risk and seeks to reduce the overall exposure to losses that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk with other insurance enterprises or reinsurers. Our insurance company subsidiary has entered proportional and non-proportional reinsurance treaties, under which the insurance company subsidiary has ceded some, but not all, of the liabilities to third-party reinsurers including, but not limited to, catastrophe exposure. The amount and type of reinsurance employed is based on management’s analysis of capital as well as its estimates of probable maximum loss and evaluation of the conditions within the reinsurance market. We remain liable to our policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize our exposure to significant losses from reinsurer insolvencies, HOA evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers. Additionally, the insurance contracts are subject to contingent commission adjustments and loss participation features, which aligns our interests with those of our reinsurers. Ceded premium written is recorded in accordance with the applicable terms of the reinsurance contracts and ceded premium earned is charged against revenue over the period of the reinsurance contracts. Ceded losses incurred reduce net loss and LAE incurred over the applicable periods of the reinsurance contracts with third-party reinsurers. Other Insurance Liabilities, Current The following table details the components of other insurance liabilities, current, in the December 31, 2023 2022 Ceded reinsurance premiums payable $ 10,500 $ 29,204 Commissions payable, reinsurers and agents 4,650 21,045 Advance premiums 5,975 8,668 Funds held under reinsurance treaty 9,820 1,851 General and accrued expenses payable 640 942 Other insurance liabilities, current $ 31,585 $ 61,710 Fair Value of Financial Instruments Fair value principles require disclosures regarding the manner in which fair value is determined for assets and liabilities and establishes a three-tiered fair value hierarchy into which these assets and liabilities must be grouped, based upon significant levels of inputs as follows: Level 1 Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date; Level 2 Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. Management’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. Revenue Recognition We generate revenue from a variety of sources: • Insurance revenue in the form of insurance and warranty premiums, policy fees, commissions from reinsurers and other insurance-related fees generated through our owned insurance carrier, as well as commissions from third-party insurance carriers where we act as an independent agent; • Software and service subscription revenue generated from fees paid by companies for access to our software and provision of services; • Move-related revenue through fees received for connecting homeowners to service providers during the time of a move including movers, TV/Internet, warranty, and security monitoring providers and for providing select services directly to the homeowner; and • Post-move related revenue in the form of fees earned from introducing homeowners to home service professionals including handyman, plumbers, electricians, roofers, etc. We identify performance obligations in our non-insurance contracts with customers, which primarily include delivery of homeowner leads and commissions from third-party insurance carriers, performance of home project and moving services, and providing access to our software platforms and services. The transaction price is determined based on the amount to which we expect to be entitled in exchange for providing the promised services to the customer. The transaction price in the contract is allocated to each distinct performance obligation on a relative standalone selling price basis. Revenue is recognized when or as performance obligations are satisfied. Contract payment terms vary from due upon receipt to net 30 days. Collectability is assessed based on a number of factors including collection history and creditworthiness of the customer. If collectability of substantially all consideration to which we are entitled under the contract is determined to be not probable, revenue is not recorded until collectability becomes probable at a later date. Revenue is recorded based on the transaction price excluding amounts collected on behalf of third parties, such as sales taxes collected and remitted to governmental authorities. Insurance and Warranty Revenue Insurance Revenue Starting in April 2021, through the newly acquired HOA, we are authorized to write various forms of homeowners insurance. Insurance-related revenues primarily relate to premiums, policy fees, ceding commissions and reinsurance profit share. Premiums are recognized as revenue over the policy term. The portion of premiums related to the unexpired term of policies in force as of the end of the reporting period and to be earned over the remaining term of these policies, is deferred and reported as deferred revenue. Policy fees on policies where premium is traditionally paid in full upon inception of the policy are recognized when written. Excess ceding commissions represent the commissions from reinsurers in excess of the portion which represents the reimbursement of acquisition costs associated with insurance risk ceded to reinsurers and is earned on a pro-rata basis over the life of the reinsurance policy. Reinsurance profit share is additional ceding commissions payable to us based on attaining specified loss ratios within individual treaty years. Reinsurance profit share income is recognized when earned, which includes adjustments to earned reinsurance profit share based on changes in incurred losses. We sell homeowner and auto insurance policies for third-party insurance carriers. The transaction price for these arrangements is the estimated lifetime value (“LTV”) of the commissions to be paid by the third-party carrier for the policies sold. The LTV represents fixed first-year commission upon sale of the policy as well as the estimated variable future renewal commissions expected. We constrain the transaction price based on its best estimate of the amount which will not result in a significant reversal of revenue in a future period. After a policy is sold for an insurance carrier, we have no additional or ongoing contractual obligation to the policyholder or insurance carrier. We estimate LTV each period by evaluating various factors, including commission rates for specific carriers and estimated average plan duration based on insurance carrier and market data related to policy renewals for similar insurance policies. Management reviews and monitors changes in the data used to estimate LTV as well as the cash received for each policy type compared to original estimates. If we identify changes that we believe are indicative of an increase or decrease to prior period LTVs, we will update estimates of variable consideration. There were no changes to the estimated variable consideration for the periods presented. Warranty Revenue We provide warranty products to homeowners which are sold through various channels including home inspection companies, real estate agents and direct to customers. These products provide customers with product protection that enhances or extends coverage offered by the manufacturer’s warranty and provides additional customer-friendly benefits that go beyond the scope of a manufacturer’s warranty. Typically, our home warranty policies cover a ninety three year period. Revenue for these policies is recognized ratably over the actual warranty coverage period for each individual policy. We also offer products that customers may purchase to extend the manufacturer’s covered warranties for a term of up to twenty-five years. Revenue for these policies is recognized over the term of the agreement in proportion to our relief from risk we expect to incur in satisfying the contract obligations. Software and Service Subscription Revenue Software and service subscription revenue is primarily generated from the vertical software services provided to home inspectors, roofing companies, title insurance companies, mortgage companies, and other home services companies. We do not provide the customer with the right to take possession of any part of the software supporting the cloud-based application services. Our typical subscription contracts are monthly or annual contracts in which pricing is based on a specified volume of activity. We also provide certain data analytics, transaction monitoring and marketing services under subscription and service contracts. Fees earned for providing access to the software and services are non-refundable, and there is no right of return. Revenue is recognized based on the amount to which we are entitled for providing access to the software and services during the contract term. Move-Related Revenue Move-related revenue is generated when we connect service providers directly to homeowners and includes fees earned from providing primarily moving services directly to the homeowner. We generally invoice for move-related services on a fixed-fee or time-and-materials basis as contractually agreed-upon with the end customer. Revenue is generally recognized as services are performed, which is typically on the same day or over a few days. Fees earned for providing move-related services are non-refundable, and there is generally no right of return. In certain of our move-related product offerings, we act as the principal in the revenue transactions as we are primarily responsible to the end customer for providing the service, we have a level of discretion in establishing pricing, and we control the service prior to providing it to the end customer. This control is evidenced by the ability to identify, select, and direct the service provider that provides the ultimate service to end customers, and we recognize these revenues on a gross basis. In other instances, third-party merchant partners are responsible for delivering the service to the end customer. Revenue for these arrangements is recognized on a net basis. Post-Move Revenue Post-move revenue is generated by connecting third-party service providers (“Service Providers”) with homeowners that meet pre-defined criteria and who may be looking for relevant services. Revenue generated from Service Providers is recognized at a point in time upon the connection of a homeowner to the Service Provider, at which point our performance obligation has been satisfied. The transaction price is generally either a fixed price per qualifying lead or activated service (fixed consideration), or a percentage of the revenue the Service Provider ultimately generates through the homeowner connection (variable consideration). When the transaction price is variable, the transaction price is constrained and limited to an amount we believe is not probable of significant reversal. Amounts received in advance of delivery of leads to the Service Provider is recorded as deferred revenue. Certain Service Providers have the right to return leads in limited instances. An estimate of returns is included as a reduction of revenue based on historical experience or specific identification depending on the contractual terms of the arrangement. Estimated returns are not material in any period presented. Post-move revenue also includes fees earned from providing a variety of services directly to the homeowner, mainly handyman services. We generally invoice for service projects on a fixed fee or time and materials basis as contractually agreed-upon with the end customer (i.e., the transaction price). Revenue is recognized as services are performed based on an output measure of progress, which is generally over a short duration. Fees earned for providing service projects are non-refundable, and there is generally no right of return. We act as the principal in these service transactions as we are primarily responsible to the end customer for providing the service, we have a level of discretion in establishing pricing, and we control the service prior to providing it to the end customer. This control is evidenced by the ability to identify, select, and direct the service provider that provides the ultimate service to end customers. Cost of Revenue Cost of revenue primarily consists of insurance losses and loss adjustment expenses, claims personnel costs, warranty claims, third-party providers for executing moving labor and handyman services when we are managing the job, data costs related to marketing campaigns, certain call center costs, credit card processing, and merchant fees. Product and Technology Development Product and technology development costs primarily include payroll, employee benefits, stock-based compensation expense, and other headcount-related costs associated with product development, net of costs capitalized as internally developed software. Also included are cloud computing, hosting and other technology costs, software subscriptions, professional services, and amortization of internally developed software. Advertising Advertising costs are expensed as incurred. During the years ended December 31, 2023, 2022, and 2021, we incurred $13.9 million, $13.5 million, and $3.6 million in advertising costs, respectively. Advertising costs are included in selling and marketing expenses in our Income Taxes We account for income taxes in accordance with Accounting Standards Codification (“ASC”) Topic 740, Income Taxes . Under the asset and liability method specified by ASC 740, deferred tax assets and liabilities are recognized for the future consequences of differences between the carrying amounts of existing assets and liabilities and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets are established when it is more likely than not that some or all of the deferred tax assets will not be realized. In addition, ASC 740 provides comprehensive guidance on the recognition and measurement of tax positions in previously filed tax returns or positions expected to be taken in future tax returns. The benefit from an uncertain tax position must meet a more-likely-than-not recognition threshold and is measured at the largest amount of benefit greater than 50% determined by cumulative probability of being realized upon ultimate settlement with the taxing authority. Our policy is to recognize interest and penalties expense, if any, related to uncertain tax positions as a component of income tax expense. Stock |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2. Revenue Disaggregation of Revenue Total revenue consisted of the following: Year Ended December 31, 2023 2022 2021 Vertical Software segment Software and service subscriptions $ 67,697 $ 72,777 $ 57,004 Move-related transactions 40,350 62,317 60,996 Post-move transactions 17,069 19,821 19,150 Total Vertical Software segment revenue 125,116 154,915 137,150 Insurance segment Insurance and warranty premiums, commissions and policy fees (1) 305,186 121,033 55,283 Total Insurance segment revenue 305,186 121,033 55,283 Total revenue $ 430,302 $ 275,948 $ 192,433 _________________________________________________________ (1) Revenue recognized during the years ended December 31, 2023, 2022 and 2021, includes revenue in the Insurance segment of $271.1 million, $83.9 million and $26.6 million, respectively, which is accounted for in accordance with ASC Topic 944, Financial Services-Insurance, separately from revenue from contracts with customers. Disclosures Related to Contracts with Customers Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. To the extent a contract exists, as defined by ASC Topic 606, Revenue from Contracts with Customers , these liabilities are classified as deferred revenue. To the extent that a contract does not exist, as defined by ASC 606, these liabilities are classified as refundable customer deposits. Refundable customer deposits related to contracts with customers were not material at December 31, 2023 and 2022. Insurance Commissions Receivable A summary of the activity impacting insurance commissions receivable is presented below: Balance at January 1, 2021 $ 3,529 Estimated lifetime value of commissions on insurance policies sold by carriers 8,089 Cash receipts (2,234) Balance at December 31, 2021 9,384 Estimated lifetime value of commissions on insurance policies sold by carriers 9,925 Cash receipts (3,788) Balance at December 31, 2022 15,521 Estimated lifetime value of commissions on insurance policies sold by carriers 6,583 Cash receipts (4,711) Balance at December 31, 2023 $ 17,393 As of December 31, 2023 and 2022, $4.0 million and $3.3 million, respectively, of insurance commissions receivable were expected to be collected within the immediately following 12 months and therefore were included in accounts receivable, net, on the 2022, respectively, of insurance commissions receivable are expected to be collected after the immediately following 12 months and were included in long-term insurance commissions receivable on the Deferred Revenue A summary of the activity impacting deferred revenue in the Vertical Software segment is presented below: Vertical Software Segment Deferred Revenue Balance at January 1, 2021 $ 5,208 Additional amounts deferred 5,539 Impact of acquisitions 1,170 Revenue recognized (8,103) Balance at December 31, 2021 3,814 Additional amounts deferred 19,421 Impact of acquisitions 137 Revenue recognized (19,498) Balance at December 31, 2022 3,874 Revenue recognized (16,301) Additional amounts deferred 16,142 Balance at December 31, 2023 $ 3,715 Deferred revenue on our Remaining Performance Obligations The amount of the transaction price allocated to performance obligations to be satisfied at a later date, which is not recorded in the We have applied the practical expedients not to present unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which we recognize revenue at the amount which we have the right to invoice for services performed. Warranty Revenue and Related Balance Sheet Disclosures Payments received in advance of warranty services provided are included in refundable customer deposits or deferred revenue based upon the cancellation and refund provisions within the respective agreement. At December 31, 2023, we had $17.9 million, $3.9 million and $2.9 million of refundable customer deposits, deferred revenue and non-current deferred revenue, respectively. At December 31, 2022, we had $20.0 million, $4.4 million and $1.9 million of refundable customer deposits, deferred revenue and non-current deferred revenue, respectively. We incurred $5.5 million and $3.7 million in expenses related to warranty claims for the years ended December 31, 2023 and 2022, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investments | Note 3. Investments The following table summarizes investment income and realized gains and losses on investments during the periods presented. Year Ended December 31, 2023 2022 2021 Investment income, net of investment expenses $ 8,428 $ 1,544 $ 768 Realized gains on investments 113 22 62 Realized losses on investments (256) (392) (129) Investment income and realized gains, net of investment expenses $ 8,285 $ 1,174 $ 701 The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities: December 31, 2023 Amortized Cost Gross Unrealized Fair Value Gains Losses U.S. Treasuries $ 43,931 $ 95 $ (330) $ 43,696 Obligations of states, municipalities and political subdivisions 18,281 100 (961) 17,420 Corporate bonds 51,678 430 (2,067) 50,041 Residential and commercial mortgage-backed securities 25,452 153 (1,004) 24,601 Other loan-backed and structured securities 3,694 13 (289) 3,418 Total investment securities $ 143,036 $ 791 $ (4,651) $ 139,176 December 31, 2022 Amortized Cost Gross Unrealized Fair Value Gains Losses U.S. Treasuries $ 35,637 $ 5 $ (320) $ 35,322 Obligations of states, municipalities and political subdivisions 11,549 2 (1,326) 10,225 Corporate bonds 31,032 32 (2,837) 28,227 Residential and commercial mortgage-backed securities 12,790 11 (1,268) 11,533 Other loan-backed and structured securities 6,804 6 (476) 6,334 Total investment securities $ 97,812 $ 56 $ (6,227) $ 91,641 The amortized cost and fair value of securities at December 31, 2023, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2023 Remaining Time to Maturity Amortized Cost Fair Value Due in one year or less $ 34,620 $ 34,542 Due after one year through five years 45,411 44,607 Due after five years through ten years 25,397 23,951 Due after ten years 8,462 8,057 Residential and commercial mortgage-backed securities 25,452 24,601 Other loan-backed and structured securities 3,694 3,418 Total $ 143,036 $ 139,176 Investments as of December 31, 2023, include $36.4 million of investments held by our captive reinsurance businesses as collateral for the benefit of HOA. Of this amount, $1.7 million is classified as short-term investments, and $34.7 million is classified as long-term investments. The following table presents investments pledged to the Department of Insurance in certain states as a condition of the Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. December 31, 2023 2022 Certificates of deposit $ 1,266 $ 1,463 U.S. Treasury notes 706 1,216 1,972 2,679 Pledged certificates of deposit of $1.3 million and pledged U.S. Treasury notes of $0.7 million are included in long-term investments on the accompanying Expected Credit Losses We regularly review our individual investment securities for factors that may indicate that a decline in fair value of an investment has resulted from an expected credit loss, including: • the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings; • the extent to which the market value of the security is below its cost or amortized cost; • general market conditions and industry or sector specific factors; • nonpayment by the issuer of its contractually obligated interest and principal payments; and • our intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs. Securities with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Greater Total As of December 31, 2023 Gross Fair Gross Fair Gross Fair U.S. Treasuries $ (280) $ 12,345 $ (50) $ 515 $ (330) $ 12,860 Obligations of states, municipalities and political subdivisions (813) 8,445 (148) 1,639 (961) 10,084 Corporate bonds (1,698) 21,104 (369) 4,677 (2,067) 25,781 Residential and commercial mortgage-backed securities (621) 8,673 (383) 3,072 (1,004) 11,745 Other loan-backed and structured securities (281) 2,790 (8) 52 (289) 2,842 Total securities $ (3,693) $ 53,357 $ (958) $ 9,955 $ (4,651) $ 63,312 Less Than Twelve Months Twelve Months or Greater Total As of December 31, 2022 Gross Fair Gross Fair Gross Fair U.S. Treasuries $ (127) $ 10,748 $ (193) $ 9,824 $ (320) $ 20,572 Obligations of states, municipalities and political subdivisions (929) 6,258 (397) 3,504 (1,326) 9,762 Corporate bonds (1,623) 16,531 (1,214) 10,328 (2,837) 26,859 Residential and commercial mortgage-backed securities (687) 6,565 (581) 4,952 (1,268) 11,517 Other loan-backed and structured securities (359) 4,633 (117) 1,094 (476) 5,727 Total securities $ (3,725) $ 44,735 $ (2,502) $ 29,702 $ (6,227) $ 74,437 At December 31, 2023 and 2022, there were 410 and 483 individual securities, respectively, in an unrealized loss position. Of these securities, 80 had been in an unrealized loss position for 12 months or longer as of December 31, 2023. At December 31, 2022, 218 individual securities were in an unrealized loss position for 12 months or longer. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 4. Fair Value The following table details the fair value measurements of assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurement as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market mutual funds $ 165,744 $ — $ — $ 165,744 Debt securities: U.S. Treasuries 43,696 — — 43,696 Obligations of states, municipalities and political subdivisions — 17,420 — 17,420 Corporate bonds — 50,041 — 50,041 Residential and commercial mortgage-backed securities — 24,601 — 24,601 Other loan-backed and structured securities — 3,418 — 3,418 $ 209,440 $ 95,480 $ — $ 304,920 Liabilities Contingent consideration - business combinations (1) $ — $ — $ 18,455 $ 18,455 Private warrant liability — — 1,151 1,151 Embedded derivatives — — 28,131 28,131 $ — $ — $ 47,737 $ 47,737 Fair Value Measurement as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Money market mutual funds $ 6,619 $ — $ — $ 6,619 Debt securities: U.S. Treasuries 35,322 — — 35,322 Obligations of states, municipalities and political subdivisions — 10,225 — 10,225 Corporate bonds — 28,227 — 28,227 Residential and commercial mortgage-backed securities — 11,533 — 11,533 Other loan-backed and structured securities — 6,334 — 6,334 $ 41,941 $ 56,319 $ — $ 98,260 Liabilities Contingent consideration - business combinations (2) $ — $ — $ 24,546 $ 24,546 Contingent consideration - earnout — — 44 44 Private warrant liability — — 707 707 $ — $ — $ 25,297 $ 25,297 ______________________________________ (1) The (2) The Financial Assets Money market mutual funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. As the funds are generally maintained at a net asset value which does not fluctuate, cost approximates fair value. These are included with U.S. Treasuries as Level 1 measurements in the table above. The fair values for available-for-sale fixed-maturity securities are based upon prices provided by an independent pricing service and included as Level 2 measurements in the table above. We have reviewed these prices for reasonableness and have not adjusted any prices received from the independent provider. Level 2 securities represent assets whose fair value is determined using observable market information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics. There were no transfers between Level 1 and Level 2. Contingent Consideration – Business Combinations We estimated the fair value of the business combination contingent consideration related to the Floify LLC (“Floify”) acquisition in October 2021 and triggered by stock price milestones using the Monte Carlo simulation method. The fair value is based on the simulated market price of our common stock through the maturity date of December 31, 2024. As of December 31, 2023, the key inputs used to determine the fair value of $14.0 million included the stock price of $3.08 per share, strike price of approximately $36 per share, discount rate of 27.9% and volatility of 90%. As of December 31, 2022, the key inputs used in the determination of the fair value of $15.5 million included the stock price of $1.88 per share, strike price of approximately $36 per share, discount rate of 10.3% and volatility of 95%. We estimated the fair value of the business combination contingent consideration based on specific metrics related to the acquisition of Residential Warranty Services (“RWS”) in April 2022, using the discounted cash flow method. The fair value is based on a percentage of revenue over the maturity date of the contingent consideration. As of December 31, 2023, the key inputs used to determine the fair value of $4.4 million were management’s cash flow estimates and the discount rate of 17%. As of December 31, 2022, the key inputs used to determine the fair value of $9.0 million were management’s cash flow estimates and the discount rate of 17%. Contingent Consideration - Earnout On July 30, 2020, Porch.com, Inc. (“Legacy Porch”) entered into a definitive agreement (as amended, the “Merger Agreement”) with PropTech Acquisition Corporation (“PTAC”), a special purpose acquisition company, whereby the parties agreed to merge, resulting in the parent of Porch.com, Inc. becoming a publicly listed company under the name Porch Group, Inc. This merger (the “Merger”) closed on December 23, 2020. Upon the Merger, 6 million restricted common shares, subject to vesting and cancellation provisions, were issued to holders of pre-Merger Porch common stock (the “earnout shares”). The earnout shares were issued in three equal tranches with separate market vesting conditions prior to the third anniversary of the Merger. One-third of the earnout shares met the market vesting condition when our common stock had a closing price of greater than or equal to $18.00 per share over 20 trading days within a thirty-consecutive trading day period in the first quarter of 2021. An additional third vested when our common stock had a closing price of greater than or equal to $20.00 per share over the same measurement criteria in the fourth quarter of 2021. The final third never vested as our common stock did not reach a closing price of greater than or equal to $22.00 per share over the same measurement criteria. The earnout contingent consideration period ended December 23, 2023, and the remaining liability of less than $0.1 million was subsequently written off. In prior years, we estimated the fair value using the Monte Carlo simulation method and was based on the simulated market price of our common stock until the maturity date of the contingent consideration and increased by certain employee forfeitures. As of December 31, 2022, the key inputs used in the determination of the fair value included exercise price of $22.00 per share, volatility of 100%, forfeiture rate of 15% and stock price of $1.88 per share. Private Warrants We estimated the fair value of the private warrants using the Black-Scholes-Merton option pricing model. As of December 31, 2023, the key inputs used to determine the fair value included exercise price of $11.50 per share, expected volatility of 95%, remaining contractual term of 1.98 years, and stock price of $3.08 per share. As of December 31, 2022, the key inputs used to determine the fair value included exercise price of $11.50 per share, expected volatility of 90%, remaining contractual term of 2.98 years, and stock price of $1.88 per share. Embedded Derivatives In connection with the issuance of senior secured convertible notes in April 2023 (see Note 7, Debt, for more information) and in accordance with ASC 815-15, Derivatives and Hedging – Embedded Derivatives, certain features of the senior secured convertible notes were bifurcated and accounted for separately from the notes. The following features are recorded as derivatives. • Repurchase option. If more than $30 million aggregate principal amount of the 2026 Notes remains outstanding on June 14, 2026, the 2028 Note holders have the right to require us to repurchase for cash on June 15, 2026, all or any portion of their 2028 Notes, in principal amounts of one thousand dollars or an integral number thereof, at a repurchase price equal to 106.5% of the principal amount of the 2028 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. • Fundamental change option. If we undergo a fundamental change, as defined in the indenture governing the 2028 Notes and subject to certain conditions, holders of the 2028 Notes have the right to require us to repurchase for cash all or any portion of their 2028 Notes, in principal amounts of one thousand dollars or an integral multiple thereof, at a repurchase price equal to 105.25% of the principal amount of the 2028 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. A fundamental change includes events such as a change in control, recapitalization, liquidation, dissolution, or delisting. • Asset sale repurchase option. If we sell assets and receive net cash proceeds of $2.5 million in excess of the Asset Sale Threshold (as defined below) (such excess net cash proceeds, the “Excess Proceeds”), we must offer to all holders of 2028 Notes to repurchase their 2028 Notes for an aggregate amount of cash equal to 50% of such Excess Proceeds at a repurchase price per 2028 Note equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the relevant purchase date, if any. “Asset Sale Threshold” means $20.0 million in the aggregate, provided that on and after the date on which the cumulative net cash proceeds received by the Company and its restricted subsidiaries from the sale of assets after April 20, 2023 exceeds $20.0 million in the aggregate, the “Asset Sale Threshold” means $0. The inputs for determining fair value of the embedded derivatives are classified as Level 3 inputs. Level 3 fair value is based on unobservable inputs based on the best information available. These inputs include the probabilities of a repurchase, a fundamental change, and qualifying asset sales, ranging from 1% to 50%. Level 3 Rollforward Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value, and such changes could result in a significant increase or decrease in the fair value. The changes for Level 3 items measured at fair value on a recurring basis using significant unobservable inputs are as follows: Contingent Consideration - Earnout Contingent Consideration - Business Combinations Embedded Derivatives Private Warrant Liability Fair value as of December 31, 2022 $ 44 $ 24,546 $ — $ 707 Additions — — 23,870 — Settlements — (427) — — Change in fair value, loss (gain) included in net loss (1) (44) (5,664) 4,261 444 Fair value as of December 31, 2023 $ — $ 18,455 $ 28,131 $ 1,151 Contingent Consideration - Earnout Contingent Consideration - Business Combinations Private Warrant Liability Fair value as of December 31, 2021 $ 13,866 $ 9,617 $ 15,193 Additions — 8,700 — Settlements — (715) — Change in fair value, loss (gain) included in net loss (1) (13,822) 6,944 (14,486) Fair value as of December 31, 2022 $ 44 $ 24,546 $ 707 _________________________________________________________ (1) Changes in fair value of contingent consideration related to business combinations are included in general and administrative expenses in the Fair Value Disclosure As of December 31, 2023 and 2022, the fair value of the 2026 Notes (see Note 7, Debt, for more information) was $73.1 million and $238.6 million, respectively. The decrease of $165.5 million is primarily due to volatility of the stock price since December 31, 2022. As of December 31, 2023, the fair value of the 2028 Notes (see Note 7, Debt, for more information) was $196.7 million. The fair values of the line of credit, advance funding arrangement and other notes approximate the unpaid principal balance. All debt, other than the convertible notes which are Level 2, is considered a Level 3 measurement. |
Property, Equipment, and Softwa
Property, Equipment, and Software | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment, and Software | Note 5. Property, Equipment, and Software Property, equipment, and software, net, consists of the following: December 31, 2023 2022 Software and computer equipment $ 8,340 $ 8,326 Furniture, office equipment, and other 1,573 2,118 Internally developed software 24,526 17,128 Leasehold improvements 1,176 1,178 Total 35,615 28,750 Less: Accumulated depreciation and amortization (18,754) (16,510) Property, equipment, and software, net $ 16,861 $ 12,240 Depreciation and amortization expense related to property, equipment, and software was $5.0 million, $4.2 million, and $4.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. Losses due to impairment of long-lived assets, other than intangible assets, totaled $0.3 million, $0.6 million and $0.6 million during 2023, 2022 and 2021, respectively, and are included in product and technology expense |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Note 6. Intangible Assets and Goodwill Intangible Assets Intangible assets are stated at cost or acquisition-date fair value, less accumulated amortization and impairment. The following tables summarize intangible asset balances. As of December 31, 2023 Weighted Intangible Accumulated Intangible Customer relationships 8 $ 69,504 $ (24,153) $ 45,351 Acquired technology 5 36,041 (22,358) 13,683 Trademarks and tradenames 11 23,443 (6,701) 16,742 Non-compete agreements 3 616 (455) 161 Value of business acquired 1 400 (400) — Renewal rights 6 9,734 (3,415) 6,319 Insurance licenses Indefinite 4,960 — 4,960 Total intangible assets $ 144,698 $ (57,482) $ 87,216 As of December 31, 2022 Weighted Intangible Accumulated Intangible Customer relationships 9 $ 69,730 $ (15,079) $ 54,651 Acquired technology 5 37,932 (16,468) 21,464 Trademarks and tradenames 10 25,071 (5,724) 19,347 Non-compete agreements 3 619 (407) 212 Value of business acquired 1 400 (400) — Renewal rights 6 9,734 (2,113) 7,621 Insurance licenses Indefinite 4,960 — 4,960 Total intangible assets $ 148,446 $ (40,191) $ 108,255 During the first quarter of 2023, we identified various qualitative factors that collectively indicated triggering events including a sustained decrease in stock price, increased costs due to inflationary pressures, and a deterioration of the macroeconomic environment in the housing and real estate industry. We used an income approach to determine that the estimated fair value of certain asset groups was less than their carrying values, which resulted in impairment charges of $2.0 million in the first quarter, primarily related to acquired technology, trademarks and tradenames, and customer relationships for certain businesses within the Vertical Software segment. Impairment charges are included in impairment loss on intangible assets and goodwill Aggregate amortization expense related to intangibles was $19.4 million, $23.8 million, $12.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. The following table shows estimated future intangible amortization expense for the next five years and thereafter. Year ending December 31, Estimated 2024 $ 18,439 2025 14,862 2026 10,201 2027 9,063 2028 8,347 Thereafter 21,344 $ 82,256 Goodwill The following table summarizes the changes in the carrying amount of goodwill: Balance as of December 31, 2020 $ 28,289 Acquisitions 197,365 Balance as of December 31, 2021 225,654 Acquisitions 38,064 Impairment loss (Insurance segment) (43,758) Purchase price adjustments (1) 24,737 Balance as of December 31, 2022, net of accumulated impairment of $43.8 million 244,697 Acquisition 2,421 Impairment loss (Insurance segment) (55,211) Balance as of December 31, 2023, net of accumulated impairment of $99.0 million $ 191,907 ______________________________________ (1) During the year ended December 31, 2022, we recorded an adjustment to the fair value of net assets previously acquired during the year ended December 31, 2021. See Note 12, Business Combinations, for more information. During the first three quarters of 2023, management identified various qualitative factors that collectively indicated triggering events, including a sustained decrease in stock price, increased costs due to inflationary pressures, hardening of the reinsurance markets, volatile weather, and a deterioration of the macroeconomic environment in the housing and real estate and insurance industries. We performed valuations of the Vertical Software and Insurance reporting units using a combination of market and income approaches based on peer performance and discounted cash flow or dividend discount model methodologies. The goodwill impairment analysis required significant judgments to calculate the fair value of the reporting units, including internal forecasts and determination of weighted average cost of capital. The weighted average cost of capital used in our most recent impairment test was risk-adjusted to reflect the specific risk profile of the reporting units and ranged from 13% to 25%. Management considers historical experience and all available information at the time the fair values are estimated. Assumptions are subject to a high degree of judgment and complexity. The results of the quantitative impairment assessment as of March 31, 2023, indicated that the estimated fair values of both the Insurance and Vertical Software reporting units exceeded their carrying values. As such, we determined that the goodwill allocated to our reporting units was not impaired as of March 31, 2023. The results of the quantitative impairment assessment as of June 30, 2023, indicated that the carrying value of the Insurance reporting unit exceeded its estimated fair value. As such, we determined that the goodwill allocated to the Insurance reporting unit was impaired as of June 30, 2023. An impairment charge of $55.2 million, which represented the total remaining balance of goodwill allocated to the Insurance reporting unit, was recognized in impairment loss on intangible assets and goodwill in the Consolidated Statements of Operations and Comprehensive Loss. The results of the quantitative impairment assessment as of June 30, 2023, indicated that the fair value of our Vertical Software reporting unit exceeded its carrying value by less than 10%. The results of the most recent quantitative impairment assessment as of September 30, 2023, indicated that the fair value of the Vertical Software reporting unit exceeded its carrying value by approximately 5%. During our annual impairment testing as of October 1, 2023, we performed a qualitative assessment and determined that it was not more likely than not that the fair value of each reporting unit was less than its carrying value. Therefore, we did not perform a quantitative assessment as of that date. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt The following tables summarize outstanding debt as of December 31, 2023 and 2022. Principal Unaccreted Debt Carrying Convertible senior notes, due 2026 $ 225,000 $ — $ (3,311) $ 221,689 Convertible senior notes, due 2028 333,334 (115,353) (4,312) 213,669 Advance funding arrangement 94 — — 94 Other notes 300 (13) — 287 Balance as of December 31, 2023 $ 558,728 $ (115,366) $ (7,623) $ 435,739 Principal Unaccreted Debt Carrying Convertible senior notes, due 2026 $ 425,000 $ — $ (8,508) $ 416,492 Advance funding arrangement 15,670 (760) — 14,910 Term loan facility, due 2029 10,000 — — 10,000 Other notes 450 (87) — 363 Balance as of December 31, 2022 $ 451,120 $ (847) $ (8,508) $ 441,765 Minimum principal payment commitments as of December 31, 2023, are as follows: Year ending December 31, Principal 2024 $ 244 2025 150 2026 225,000 2027 15,000 2028 318,334 Thereafter — $ 558,728 2026 Convertible Senior Notes In September 2021, we completed a private Rule 144A offering of $425 million aggregate principal amount of 0.75% Convertible Senior Notes due on September 15, 2026 (the “2026 Notes”) at an issue price of 100%, which includes $40 million aggregate principal amount of 2026 Notes issued and sold pursuant to the exercise of the initial purchasers’ option to purchase additional 2026 Notes. The 2026 Notes were offered only to qualified institutional buyers (as defined in the Securities Act of 1933, as amended (the “Securities Act”)), pursuant to Rule 144A under the Securities Act. The net proceeds from the sale of the 2026 Notes were approximately $413.5 million after deducting the initial purchasers’ fees and other estimated expenses. The 2026 Notes are not redeemable at our option prior to September 20, 2024. We may redeem for cash all or any portion of the 2026 Notes, at our option, on or after September 20, 2024, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide a notice of redemption, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the 2026 Notes. The 2026 Notes are convertible at an initial conversion rate of 39.9956 shares of common stock per one thousand dollars principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $25.00 per share of common stock (the “Conversion Rate”). The Conversion Rate is subject to customary adjustments for certain events as described in the indenture governing the 2026 Notes. We may settle the conversion option obligation with cash, shares of our common stock, or any combination of cash and shares of our common stock. Holders of the 2026 Notes may convert the 2026 Notes at their option (in whole or in part) on or after June 15, 2026, until the close of business on the second trading day immediately preceding the maturity date of September 15, 2026. In addition, holders of the 2026 Notes may convert the 2026 Notes at their option (in whole or in part) at any time prior to the close of business on the business day immediately preceding June 15, 2026, only under the following circumstances: • during any fiscal quarter commencing after the calendar quarter ending on December 31, 2021, if our common stock price exceeds 130% of the conversion price for at least 20 trading days during the 30 consecutive trading days at the end of the prior calendar quarter; • during the five business days after any five consecutive trading days in which the trading price per one thousand dollars of 2026 Notes was less than 98% of the product of the closing sale price of our common stock and the then current conversion rate; • upon the occurrence of certain corporate actions; • upon the occurrence of a fundamental change, a make-whole fundamental change or any share exchange event; or • prior to the related redemption date if we elect to exercise the company call option. Upon the occurrence of a make-whole fundamental change or the exercise of our redemption option, we will, under certain circumstances, increase the applicable conversion rate for a holder that elects to convert its 2026 Notes in connection with such make-whole fundamental change or exercise of redemption (not to exceed 52.9941 shares of common stock per one thousand dollars principal amount of the 2026 Notes). As of December 31, 2023, none of the conditions of the 2026 Notes to early convert have been met. We concluded that the 2026 Notes are accounted for as debt, with no bifurcation of the embedded conversion feature. Debt issuance costs were recorded as a direct deduction from the related liability in the . During the second quarter of 2023, we repurchased $200.0 million of the 2026 Notes using the proceeds from issuing new convertibles notes as described in the following “ 2028 Convertible Senior Notes . Interest expense recognized related to the 2026 Notes was $3.7 million, $5.4 million and $1.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Total interest expense is comprised of contractual interest expense of $2.2 million, $3.2 million and $0.9 million and amortization of debt issuance costs of $1.5 million, $2.2 million and $0.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. 2028 Convertible Senior Notes In April 2023, we issued $333.3 million of 6.75% Senior Secured Convertible Notes due in 2028 (the “2028 Notes”) in a private placement transaction. We used a portion of the net proceeds from the 2028 Notes to repurchase $200.0 million of the 2026 Notes and to fund the repayment of the term loan facility, in each case plus accrued and unpaid interest thereon and related fees and expenses. In connection with the partial repurchase of the 2026 Notes, we recognized an $81.4 million gain on extinguishment of debt, calculated as the difference between the reacquisition price and the net carrying amount of the portion of the 2026 Notes that was extinguished. The 2028 Notes are convertible into cash, shares of common stock, or a combination of cash and shares of common stock at our election at an initial conversion rate of 39.9956 shares of common stock per one thousand dollars principal amount of the 2028 Notes, which is equivalent to an initial conversion price of approximately $25.00 per share. The 2028 Notes are senior secured obligations, accrue interest at a fixed rate of 6.75%, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2023, and were initially issued at 95% of par value. The 2028 Notes will mature on October 1, 2028, unless earlier repurchased, redeemed or converted. Prior to the close of business on the business day immediately preceding July 1, 2028, the 2028 Notes will be convertible at the option of the holders only upon the satisfaction of certain conditions and during certain periods. Thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2028 Notes will be convertible at the option of the holders at any time regardless of these conditions. Interest expense recognized related to the 2028 Notes was $26.3 million for the year ended December 31, 2023, including $15.7 million contractual interest expense and $10.6 million amortization of debt issuance costs and discount. The effective interest rate for the 2028 Notes is 17.9%. Capped Call Transactions In connection with the offering of the 2026 Notes, we purchased capped calls from certain financial institutions with respect to our common stock. The capped calls each have an initial strike price of approximately $25.00 per share of our common stock, which corresponds to the initial conversion price of the 2026 Notes. The capped calls each have an initial cap price of $37.74 per share and expire in incremental components on each trading date beginning on September 13, 2021, and ending on September 15, 2026. The capped calls are intended to offset potential dilution to our common stock or offset any cash payments we are required to make in excess of the principal amount, as the case may be, with such reduction or offset subject to a cap. The capped calls are subject to adjustments for certain corporate events and standard antidilution provisions. We paid an aggregate amount of $52.9 million for the capped calls. The maximum number of shares of our common stock that we can purchase under the capped call (assuming no adjustment event) is approximately 6 million. The capped call transactions do not meet the criteria for accounting as a derivative as they are indexed to our own stock. As such, the cost of the capped calls is recorded as a reduction to additional paid-in capital on the Advance Funding Arrangement For certain home warranty contracts, we participate in a financing arrangement with third-party financers that provide us with contract premium upfront, less a financing fee. Third-party financers collect installment payments from the warranty contract customer which satisfies our repayment obligation over a portion of the contract term. We remain obligated to repay the third-party financer if a customer cancels its warranty contract prior to full repayment of the advance funding amount we received. As part of the arrangement, we pay financing fees, which are collected by the third-party financers upfront and are initially recognized as a debt discount. Financing fees are amortized as interest expense under the effective interest method. The implied interest rate varies per contract and is generally approximately 14% of total funding received. As of December 31, 2023, the principal balance of advance funding arrangement is $0.1 million with no unaccreted discount balance. Interest expense recognized related to the advance funding arrangement was $0.9 million and $2.6 million for the years ended December 31, 2023 and 2022, respectively. Line of Credit In connection with the acquisition of HOA on April 5, 2021, we assumed a $5.0 million revolving line of credit (“RLOC”) with Legacy Texas Bank. Outstanding balances under the RLOC bore interest at the Wall Street Journal Prime + 0% and matured on November 16, 2022. The RLOC was terminated with no outstanding balance at December 31, 2022. Term Loan Facility In connection with the acquisition of HOA on April 5, 2021, we assumed a nine Other Notes In connection with an acquisition in 2020, we issued a promissory note payable to the founder of the acquired entity. The promissory note had an initial principal balance of $0.8 million and a stated interest rate of 0.38% per annum. The promissory note is being paid in five equal annual installments. As of December 31, 2023, the promissory note had a carrying amount of $0.3 million. Senior Secured Term Loans In conjunction with the issuance of the 2026 Notes in September 2021 described above, all outstanding obligations under senior secured term loans were repaid. These included the outstanding principal of $40.0 million, $2.3 million of final prepayment fees, and $0.5 million of interest and legal fees. A loss on extinguishment of $3.1 million was recorded for the year ended December 31, 2021. Paycheck Protection Program Loans In 2021, all outstanding loans under the Paycheck Protection Program established under the Coronavirus Aid, Relief and Economic Security Act were forgiven in whole. As a result, the outstanding principal balance of $8.5 million and unpaid interest of $0.1 million were written off and the Company recorded a $8.6 million gain on extinguishment of debt in the Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2021. |
Stockholders' Equity and Warran
Stockholders' Equity and Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Warrants | Note 8. Stockholders' Equity and Warrants Shares Authorized As of December 31, 2023, we had authorized 400 million shares designated as common stock, and 10 million shares designated as preferred stock for issuance. Common Shares Outstanding and Common Stock Equivalents The following table summarizes our fully diluted capital structure. December 31, 2023 2022 Issued and outstanding common shares 97,061 96,406 Earnout shares (1) — 2,050 Total common shares issued and outstanding 97,061 98,456 Common shares reserved for future issuance: Private warrants 1,796 1,796 Stock options (Note 9) 3,642 3,863 Restricted and performance stock units and awards (Note 9) 12,065 6,230 2020 Equity Plan pool reserved for future issuance (Note 9) 8,009 11,190 Convertible senior notes, due 2026 ⁽²⁾ 8,999 16,998 Convertible senior notes, due 2028 13,332 — Contingently issuable shares in connection with acquisitions (3) 5,908 10,632 Total shares of common stock outstanding and reserved for future issuance 150,812 149,165 ______________________________________ (1) Earnout shares expired on December 23, 2023, without vesting and were subsequently cancelled. (2) In connection with the September 16, 2021, issuance of the 2026 Notes, we used a portion of the proceeds to pay for the capped call transactions, which are expected to generally reduce the potential dilution to our common stock. The capped call transactions impact the number of shares that may be issued by effectively increasing our conversion price from $25 per share to approximately $37.74 per share, which would result in approximately 6 million potentially dilutive shares instead of the shares reported in this table as of December 31, 2023. (3) In connection with the acquisitions of Floify and HOA, we provided an obligation to issue a certain amount of common stock to the extent specified market conditions are met in the future. Contingently issuable shares are calculated in accordance with the purchase agreement, assuming they would be issuable if the end of the reporting periods were the end of the contingency period. The contingency period for the Floify acquisition ends in December 2024. The contingency period for the HOA acquisition ended in April 2023. Repurchases of Common Stock In October 2022, our board of directors approved a share repurchase program authorizing management to repurchase up to $15 million in our common stock and/or convertible notes. Repurchases under this program were permitted from time to time on the open market between November 10, 2022, and June 30, 2023, at prevailing market prices, in privately negotiated transactions, in block trades, and/or through other permissible means. During the first quarter of 2023, we repurchased and canceled 1.4 million shares with a total cost of $3.1 million (including commissions). The cost paid to repurchase shares in excess of the par value is charged to accumulated deficit in the Consolidated Balance Sheets. During the fourth quarter of 2022, we repurchased 2.4 million shares with the total cost of $4.4 million (including commissions). The repurchase of $200 million of the 2026 Notes as described in Note 7, Debt, was done under separate authorization and was not part of the $15 million share repurchase program. Warrants Upon completion of the Merger with PropTech Acquisition Corporation (“PTAC”) on December 23, 2020, we assumed 8.6 million public warrants and 5.7 million private warrants to purchase an aggregate 14.3 million shares of common stock, which were outstanding as of December 31, 2020. Each warrant entitles the registered holder to purchase one share of common stock at a price of $11.50 per share, subject to adjustment, commencing 30 days after the completion of the Merger, and expiring on December 23, 2025, which is five years after the Merger . On March 23, 2021, we announced that we would redeem all outstanding public warrants on April 16, 2021, pursuant to a provision of the warrant agreement under which the public warrants were issued. In connection with the redemption, the public warrants stopped trading on the Nasdaq Capital Market and were delisted, with the trading halt announced after close of market on April 16, 2021. As of December 31, 2023 and 2022, there were 1.8 million private warrants outstanding. These private warrants are liability classified financial instruments measured at fair value, with periodic changes in fair value recognized through earnings and are included in the change in fair value of private warrant liability in the Consolidated Statements of Operations and Comprehensive Loss . See Note 4, Fair Value, for more information. Detail related to private warrant activity is as follows: Number of Number of Balances as of December 31, 2020 14,325 — Exercised (12,353) 11,521 Canceled (176) — Balances as of December 31, 2021, 2022, and 2023 1,796 11,521 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 9. Stock-Based Compensation 2020 and 2012 Equity Incentive Plans In 2020, the Board of Directors and stockholders approved the Porch Group, Inc. 2020 Stock Incentive Plan (the “2020 Plan”). As of December 31, 2023, the aggregate number of shares of common stock reserved for future issuance under the 2020 Plan is 8.0 million. The number of shares of common stock available under the 2020 Plan increases annually on the first day of each calendar year until (and including) the calendar year ending December 31, 2030, with such annual increase equal to the lesser of (i) 5% of the number of shares of common stock issued and outstanding on December 31st of the immediately preceding fiscal year and (ii) an amount determined by the Board of Directors. The 2020 Plan provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance awards (“PRSUs”) and other stock awards to our employees, officers, non-employee directors and independent service providers, collectively referred to as “Equity Awards.” Prior to the Merger, our 2012 Equity Incentive Plan (the “2012 Plan”) provided for the grant of equity awards to employees, directors and consultants. Each option from the 2012 Plan that was outstanding immediately prior to the Merger and held by current employees or service providers, whether vested or unvested, was converted into an option to purchase a number of shares of common stock and otherwise continued to be governed by the same terms and conditions (including vesting and exercisability terms) as were applicable to the corresponding former option immediately prior to the consummation of the Merger. The following table summarizes the classification of stock-based compensation expense in the Consolidated Statements of Operations and Comprehensive Loss: Year Ended December 31, 2023 2022 2021 Cost of revenue $ — $ — $ 1 Selling and marketing 3,351 4,855 5,584 Product and technology 4,804 5,435 7,223 General and administrative 12,554 16,751 25,784 Total stock-based compensation expense $ 20,709 $ 27,041 $ 38,592 Stock-based compensation consists of expense related to Equity Awards, earnout restricted stock, and a secondary market transaction as described below: Year Ended December 31, 2023 2022 2021 Secondary market transaction (1) $ — $ — $ 1,933 Employee earnout restricted stock — — 22,961 Employee awards 20,709 27,041 13,698 Total operating expenses $ 20,709 $ 27,041 $ 38,592 ______________________________________ (1) In 2019 and 2020, certain executive officers entered into a series of secondary market transactions related to Porch.com redeemable convertible preferred stock. Stock Options Options granted under the 2020 Plan and 2012 Plan to employees typically vest 25% of the shares one year after the options’ vesting commencement date and the remainder ratably on a monthly basis over the following three years. Other vesting terms are permitted and are determined by the Board of Directors or the Compensation Committee of the Board of Directors. Options have a term of no more than ten years from the date of grant, and vested options are generally cancelled three months after termination of employment. We had no employee stock option grants in 2023. Detail related to stock option activity for the year ended December 31, 2023, is as follows: Number of Weighted- Weighted- Aggregate Balances as of December 31, 2022 3,863 $ 3.58 Options exercised (20) 1.28 $ 9 Options forfeited (34) 7.98 Options expired (167) 5.32 Balances as of December 31, 2023 3,642 $ 3.47 4.6 $ 1,827 Exercisable at December 31, 2023 3,544 $ 3.30 4.5 $ 1,827 The fair value of each employee stock option granted during the years ended December 31, 2022 and 2021, were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2022 2021 Risk-free interest rate 3.2% 0.9 – 1.3 % Expected term (years) 6 5 – 6 Dividend yield — — Volatility 60% 60 – 61 % Weighted-average grant-date fair value per share $1.85 $8.23 The risk-free interest rate used in the Black-Scholes option-pricing model is based on the implied yield currently available in the U.S. Treasury securities at maturity with an equivalent term. The expected term for options granted to employees is estimated using the simplified method. We have not declared or paid any dividends through December 31, 2023, and do not currently expect to do so in the future. We base our estimate of expected volatility on the historical volatility of comparable companies from a representative peer group selected based on industry, financial, and market capitalization data. We use the average expected volatility rates reported by the comparable group for an expected term that approximates our estimated expected term. The total amount of unrecognized stock-based compensation expense for options granted to employees and non-employees as of December 31, 2023, is approximately $0.5 million and is expected to be recognized over a weighted-average period of 0.9 years. RSUs During 2023, we granted RSUs under various equity award programs. RSUs granted to employees typically vest 25% of the shares one year after the vesting commencement date and the remainder ratably on a quarterly or semi-annual basis over the following three years. Certain RSUs vest quarterly over three years from the vesting commencement date. The fair value of RSUs is determined using the closing price of our common stock on the grant date. The following table summarizes the activity of RSUs for the year ended December 31, 2023: Number of Weighted Balances as of December 31, 2022 5,309 $ 8.21 Granted 6,415 1.39 Vested (2,303) 8.14 Forfeited (1,111) 4.40 Balances as of December 31, 2023 8,310 $ 3.34 The total amount of unrecognized stock-based compensation expense for RSUs granted to employees and non-employees as of December 31, 2023 is approximately $21.6 million and is expected to be recognized over a weighted-average period of 2.3 years. RSAs During 2023, we granted 0.8 million RSAs under various equity award programs with a weighted average grant date fair value of $1.46. RSAs granted to employees vest immediately upon the employee accepting the award. The fair value of RSAs is determined using the closing price of our common stock on the grant date. PRSUs During 2023, we granted PRSUs. We have two types of PRSUs outstanding - awards for which the vesting is subject to both a time-based vesting schedule and either (a) achievement of a market condition only (the “Market Only Awards”) or (b) the achievement of both performance conditions and market conditions (the “Performance and Market Awards”). The Market Only Awards will be earned if, within 36 months following the grant date, the closing price of a share of our common stock is greater than or equal to various target prices over any 20 trading days within any 30-consecutive trading day period (each a “Stock Price Hurdle”) as defined in the award terms. The requirement to achieve the Stock Price Hurdles meets the definition of a market condition. To the extent a Stock Price Hurdle is achieved, the Market Only Awards vest in accordance with the defined time-based graded vesting schedule, subject to the individual’s employment or service through the applicable vesting date. The Performance and Market Awards are subject to three performance goals each year over a three • the price of a share of our common stock must achieve specified compound growth rates over any 20 trading days within any 30-consecutive trading day period during the applicable Achievement Period (the “Absolute Share Price Requirement”), and • we must achieve a revenue target in comparison to the Board-approved budget during the applicable Achievement Period (the “Revenue Condition”). If the Revenue Condition was not achieved in the prior Achievement Period, the target revenue amount for the following Achievement Period is increased from the next year’s budget based on the prior year shortfall. • we must achieve an EBITDA target in comparison to the Board-approved budget during the applicable Achievement Period (the “EBITDA Condition”). For certain awards, the Achievement Periods in each of 2022, 2023, and 2024, the percentage of the target shares earned varies based on the achieved growth rate during the period, provided that the Revenue Condition is also met for the applicable Achievement Period. The maximum payout of the award is 200% of the target PRSUs for all Achievement Periods. Therefore, the number of shares of our common stock earned by the grantee will depend on the level of achievement as compared to the target. Any earned PRSUs will time vest as of the Compensation Committee’s determination of achievement following the Achievement Period in 2025, subject to the individual’s employment or service through the end of the Achievement Period in 2025. For the Performance and Market Awards, each of the Achievement Periods effectively represents a separate award. The grant date of each annual award is not established until the associated Revenue and EBITDA Conditions have been established via the Board-approved budget for the applicable fiscal year. The requisite employment or service period for each tranche is from the applicable grant date through the end of each Achievement Period in 2024 and 2025. The Absolute Share Price Requirement represents a market condition, and the Revenue and EBITDA Conditions represent performance conditions. The following table summarizes the activity of PRSUs for the year ended December 31, 2023: Number of Weighted Balances as of December 31, 2022 921 $ 4.94 Granted 2,833 0.93 Balances as of December 31, 2023 3,754 $ 1.91 The grant-date fair value of PRSUs is determined using a Monte Carlo simulation model that utilizes significant assumptions, including volatility, that determine the probability of satisfying the market condition stipulated in the award to calculate the fair value of the award. The total amount of unrecognized stock-based compensation expense for the remaining PRSUs as of December 31, 2023, is approximately $2.1 million and is expected to be recognized over a weighted-average period of 1.9 years. Employee Earnout Restricted Stock Upon the Merger in 2020, 976 thousand restricted common shares, subject to vesting and forfeiture conditions, were issued to employees and service providers pursuant to their holdings of pre-Merger options, RSUs or restricted shares (the “employee earnout shares”). During 2021, 642 thousand employee earnout shares became fully vested, as the first and second market conditions for vesting were fully satisfied as a result of our stock price and trading activity. The earnout period ended on December 24, 2023. The remaining unvested shares were forfeited and subsequently canceled. Prior to the closing of the Merger in 2020, our CEO was granted a restricted stock award under the 2012 Plan which was converted into an award of 1.0 million restricted shares of common stock upon the closing of the Merger. During 2021, 667 thousand CEO restricted earnout shares became fully vested, as the first and second market conditions for vesting were fully satisfied as a result of our stock price and trading activity. The earnout period ended on December 24, 2023. The remaining unvested shares were forfeited and subsequently canceled. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The components of the income tax provision are as follows: Year Ended December 31, 2023 2022 2021 Current: Federal $ — $ (483) $ 1,065 State (399) (644) (205) Total current (399) (1,127) 860 Deferred Federal (66) 285 8,561 State (157) — 852 Total deferred (223) 285 9,413 Income tax (expense) benefit $ (622) $ (842) $ 10,273 The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized. December 31, 2023 2022 Deferred tax assets Accrued expenses and other $ 3,721 $ 1,230 Unrealized gain/loss on investments 811 1,296 Stock-based compensation 2,638 1,626 Deferred revenue 27,599 49,053 Goodwill 9,217 6,378 Operating lease liabilities 793 1,071 Loss and loss adjustment reserves 2,479 16,392 Net operating losses 102,044 100,920 Disallowed interest 9,650 5,676 Research and development capitalized costs 169 521 Valuation allowance (140,535) (117,568) Total deferred tax assets 18,586 66,595 Deferred tax liabilities Property and equipment (98) (87) Intangibles (1,167) (3,614) Operating lease right-of-use assets (774) (1,026) Deferred policy acquisition costs (5,715) (1,907) Reinsurance balance due (11,491) (59,794) Internally developed software — (590) Total deferred tax liabilities (19,245) (67,018) Net deferred tax liabilities $ (659) $ (423) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial accounting purposes and the amounts used for income tax purposes and the tax effect of the tax loss carryforwards. We have recorded a valuation allowance due to the uncertainty surrounding the ultimate realizability or recoverability of such assets. Management evaluates, on an annual basis, both the positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable and the amount of the valuation allowance. In our evaluation, we considered our cumulative losses as significant negative evidence. Based upon a review of the four sources of income identified within ASC 740, Accounting for Income Taxes , we determined that the negative evidence outweighed the positive evidence. At such time as it is determined that it is more likely than not the deferred tax assets are realizable, the valuation allowance will be reduced. The valuation allowance increased by $22.9 million for the year ended December 31, 2023, from $117.6 million at December 31, 2022, to $140.5 million at December 31, 2023. As of December 31, 2023, we had net operating loss carryforwards for federal tax purposes of approximately $425.1 million and $260.4 million for state income tax purposes, which may be used to offset future taxable income. The net operating loss carryforwards for federal tax purposes generated prior to January 1, 2018, will begin to expire in 2031, and the net operating loss carryforwards for state tax purposes began to expire in 2023. The net operating loss with an unlimited carryforward period is $321.9 million for federal tax purposes and $61.3 million for state tax purposes. Utilization of net operating loss and tax credit carryforwards are subject to certain limitations under Sections 382–384 of the Internal Revenue Code of 1986, as amended, in the event of a change in our ownership, as defined in current income tax regulations. We have determined that we have experienced a limited number of ownership changes in our history but do not expect the resulting limitations to impose any significant constraints on the benefit of its tax attributes. Additional ownership changes may occur in the future. A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows: Year Ended December 31, 2023 2022 2021 Tax computed at federal statutory rate $ 27,995 $ 32,701 $ 24,492 State tax, net of federal tax benefit 1,934 4,879 5,531 Loss on impairment (4,775) (3,836) — Equity compensation (3,311) (3,939) 12,821 Officer compensation (15) (860) (5,306) Debt transactions (1,591) 4,808 (1,791) Enacted tax rate changes (2,061) 90 123 Return to provision 4,816 (6,533) (648) Valuation allowance (23,453) (27,724) (25,296) Other (161) (428) 347 Income tax benefit (expense) $ (622) $ (842) $ 10,273 The U.S. federal statutory tax rate is 21%, while our effective tax rate for 2023, 2022, and 2021 was (0.5)%, (0.5)%, and 8.8%, respectively. The difference for all years is due primarily to the tax benefit of pre-tax book losses being offset by the valuation allowance. We file federal and state income tax returns. We are not currently under examination but are open to audit by the I.R.S. and state tax authorities for tax years beginning in 2012. The resolutions of any examinations are not expected to be material to these financial statements. As of December 31, 2023, there are no penalties or accrued interest recorded in the financial statements. We had no uncertain tax position reserves as of December 31, 2023 and 2022. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022. Based upon our analysis of the Inflation Reduction Act of 2022 and subsequently released guidance, we do not believe that its provisions will have a material impact on our financial statements. For tax years beginning on or after January 1, 2022, the Tax Cuts and Jobs Act of 2017 (“TCJA”) eliminates the option to currently deduct research and development expenses and requires taxpayers to capitalize and amortize them over five years for research activities performed in the United States and 15 years for research activities performed outside the United States pursuant to IRC Section 174. Although Congress is considering legislation that would repeal or defer this capitalization and amortization requirement, it is not certain that this provision will be repealed or otherwise modified. |
401(k) Savings Plan
401(k) Savings Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Savings Plan | Note 11. 401(k) Savings Plan |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Note 12. Business Combinations During 2023, 2022, and 2021, we completed several business combination transactions. The purpose of each of the acquisitions was to expand the scope and nature of our product and service offerings, obtain new customer acquisition channels, add additional team members with important skillsets, and realize synergies. The aggregate transaction costs associated with these transactions were $0.1 million, $2.1 million and $5.4 million during the years ended December 31, 2023, 2022, and 2021, respectively, and are included in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Loss. The results of operations for each acquisition are included in our consolidated financial statements from the date of acquisition onwards. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. 2023 Acquisitions The acquisitions of the Florida and California operations of Residential Warranty Services (“RWS”) were closed on March 17, 2023. All other RWS operations were acquired in 2022 as discussed below. We paid approximately $2.1 million in cash to acquire $0.2 million of cash and current assets and $0.2 million of customer relationships with an estimated useful life of three years. The estimated value of the customer relationships intangible asset was calculated using the income approach and may be subject to change as additional information is received. The aggregate transaction costs of $0.1 million are primarily comprised of legal and due diligence fees and are included in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Loss. The results of operations for each acquisition are included in the Insurance segment in our consolidated financial statements from the date of acquisition onwards. 2022 Acquisitions The following table summarizes the total consideration and the estimated fair value of the assets acquired and liabilities assumed for business combinations during 2022: Weighted Average Useful Life (in years) RWS Other Total Purchase consideration: Cash $ 25,572 $ 13,763 $ 39,335 Issuance of common stock 3,552 — 3,552 Holdback liabilities and amounts in escrow 1,000 1,500 2,500 Contingent consideration - liability-classified 8,700 — 8,700 Total purchase consideration: $ 38,824 $ 15,263 $ 54,087 Assets: Cash, cash equivalents and restricted cash $ 2,030 $ 256 $ 2,286 Current assets 525 7 532 Property and equipment 497 — 497 Operating lease right-of-use assets 871 — 871 Intangible assets: Customer relationships 8 13,860 2,750 16,610 Acquired technology 5 500 1,480 1,980 Trademarks and tradenames 9 400 200 600 Non-competition agreements 7 180 20 200 Goodwill 27,366 10,698 38,064 Total assets acquired 46,229 15,411 61,640 Current liabilities (6,869) (148) (7,017) Operating lease liabilities, non-current (536) — (536) Net assets acquired $ 38,824 $ 15,263 $ 54,087 RWS On April 1, 2022, we entered into a stock and membership interest purchase agreement with RWS to acquire its home warranty and inspection software and services businesses. On this date, we completed the acquisition of substantially all of RWS’ operations except for those in Florida and California, which were acquired in 2023. The aggregate consideration, subject to certain closing adjustments, for the 2022 RWS acquisitions was $38.8 million, including $25.6 million in cash, $1.0 million held in escrow for two years to satisfy potential indemnifications, $3.6 million of our common stock, and $8.7 million in contingent consideration based on specific metrics. The purpose of the acquisition is to expand the scope and nature of our service offerings, add addition team members with important skillsets, and realize synergies. Goodwill is expected to be deductible for tax purposes. The following table summarizes the fair value of the intangible assets of RWS as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 13,860 8 Acquired technology 500 3 Trademarks and tradenames 400 9 Non-competition agreements 180 7 $ 14,940 The weighted-average amortization period for the acquired intangible assets is 7.7 years. The estimated fair value of the customer related intangible assets was calculated through the income approach using the multi-period excess earnings methodology. The estimated fair value of the trademarks and tradenames were calculated through the income approach using the relief from royalty methodology. The estimated fair value of the acquired internally developed and used technology was derived using the cost approach considering the estimated costs to replicate existing software. The estimated fair value of the non-competition agreement was calculated through the income approach using the with and without method over the contractual term of the agreement. Other Acquisitions During 2022, we completed one or more acquisitions which were not material to the consolidated financial statements. The purpose of any such acquisition, may include without limitation, to expand the scope and nature of our services offerings, add additional team members with important skillsets, and/or realize synergies. Goodwill of $10.7 million is deductible for tax purposes. Pro forma results of operations have not been presented because the effects of 2022 acquisitions, individually and in the aggregate, were not material to our consolidated results of operations. 2021 Acquisitions The following table summarizes the total consideration and the estimated fair value of the assets acquired and liabilities assumed for business combinations during 2021: Weighted Average Useful Life (in years) V12 Data HOA Rynoh AHP Floify Other Acquisitions Total Purchase consideration: Cash $ 20,196 $ 84,370 $ 32,302 $ 43,750 $ 75,959 $ 27,121 $ 283,698 Issuance of common stock — 22,773 — — 9,908 3,026 35,707 Holdback liabilities and amounts in escrow 150 1,000 3,500 2,500 900 1,775 9,825 Contingent consideration - equity-classified — 6,685 — — — — 6,685 Contingent consideration - liability-classified 1,410 — — — 8,632 327 10,369 Total purchase consideration: $ 21,756 $ 114,828 $ 35,802 $ 46,250 $ 95,399 $ 32,249 $ 346,284 Assets: Cash, cash equivalents and restricted cash $ 1,035 $ 17,766 $ 408 $ 5,078 $ 1,508 $ 1,473 $ 27,268 Current assets 4,939 235,669 932 8,221 221 1,795 251,777 Property and equipment 996 615 334 17 87 80 2,129 Operating lease right-of-use assets 1,383 1,258 159 913 731 445 4,889 Intangible assets: Customer relationships 9 1,650 16,700 12,700 — 7,000 10,320 48,370 Acquired technology 4 3,525 — 2,800 — 28,300 1,340 35,965 Trademarks and tradenames 12 1,225 12,200 900 700 6,025 650 21,700 Non-competition agreements 2 40 — 90 — 40 55 225 Value of business acquired 7 — 400 — — — — 400 Renewal rights 8 — 7,692 — 2,042 — — 9,734 Trademarks and tradenames Indefinite — — — — — 4,750 4,750 Insurance licenses Indefinite — 4,960 — — — — 4,960 Goodwill 16,708 45,370 22,051 45,681 53,056 14,499 197,365 Other non-current assets — 55,165 — 25 — 3 55,193 Total assets acquired 31,501 397,795 40,374 62,677 96,968 35,410 664,725 Current liabilities (6,871) (269,460) (517) (15,487) (1,014) (2,485) (295,834) Operating lease liabilities, non-current (848) (898) (72) (685) (555) (204) (3,262) Long term liabilities (2,026) (7,434) — (79) — (46) (9,585) Deferred tax liabilities, net — (5,175) (3,983) (176) — (426) (9,760) Net assets acquired $ 21,756 $ 114,828 $ 35,802 $ 46,250 $ 95,399 $ 32,249 $ 346,284 V12 Data On January 12, 2021, we acquired V12 Data, an omnichannel marketing platform. The purpose of the acquisition is to expand the scope and nature of our service offerings, add additional team members with important skillsets, and realize synergies. We acquired V12 Data for $20.3 million cash with an additional $1.4 million as contingent consideration. The contingent consideration is based on the achievement of certain Revenue and EBITDA milestones over the two The following table summarizes the fair value of the intangible assets of V12 Data as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 1,650 10 Acquired technology 3,525 4 Trademarks and tradenames 1,225 15 Non-competition agreements 40 2 $ 6,440 The weighted-average amortization period for the acquired intangible assets is 7.6 years. The estimated fair value of the customer relationships intangible asset was calculated through the income approach using the multi-period excess earnings methodology. The estimated fair value of the trademarks and tradenames as well as acquired technology intangible assets were calculated through the income approach using the relief from royalty methodology. The estimated fair value of the non-competition agreement is derived using the with and without method over the contractual term of the agreement. HOA On April 5, 2021, we acquired HOA. The purpose of the acquisition is to expand the scope and nature of our product offerings, add additional team members with important skillsets, and operate as a full-service insurance carrier in 15 states at the time of the acquisition. Total consideration related to this transaction included $114.8 million, consisting of $84.1 million in cash, $22.8 million in Porch common stock, and acquisition hold backs and contingent consideration of $7.7 million. An additional $0.3 million related to the final working capital adjustment was paid to the sellers in the third quarter of 2021. Goodwill is not deductible for tax purposes. Acquisition-related costs of $1.9 million were primarily for legal and due-diligence related fees and are included in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2021. The following table summarizes the fair value of the intangible assets of HOA as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 16,700 10 Trademarks and tradenames 12,200 10 Business acquired 400 1 Renewal rights 7,692 8 Insurance licenses 4,960 Indefinite $ 41,952 The weighted-average amortization period for the acquired intangible assets is 9.5 years. The fair value of customer relationships was estimated through the income approach using the multi-period excess earnings methodology. The fair value of trade name and trademarks was estimated through the income approach using the relief from royalty methodology. The business acquired was valued using the income approach based on estimates of expected future losses and expenses associated with the policies that were in-force as of the closing date of the transaction compared to the future premium remaining to be earned. Renewal rights asset was estimated through the income approach based on premium forecast and cash flows from the renewal policies modeled over the life of the renewals. The insurance licenses were valued using the market approach. Rynoh On May 20, 2021, we acquired Segin Systems, Inc. (“Rynoh”), a software and data analytics company that supports financial management and fraud prevention primarily for the title and real estate industries. The purpose of the acquisition is to expand the scope and nature of our product offerings, add additional team members with important skillsets, and realize synergies. Total consideration related to this transaction includes $35.8 million, consisting of $32.3 million in cash paid at closing, and acquisition hold backs of $3.5 million. Goodwill is not expected to be deductible for tax purposes. Acquisition-related costs of $0.2 million were primarily for legal and due-diligence related fees and are included in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2021. The following table summarizes the fair value of the intangible assets of Rynoh as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 12,700 10 Acquired technology 2,800 7 Trademarks and tradenames 900 20 Non-competition agreements 90 1 $ 16,490 The weighted-average amortization period for the acquired intangible assets is 10 years. The fair value of customer relationships was estimated through the income approach using the multi-period excess earnings methodology. The fair value of trade name and trademarks, as well as acquired technology was estimated through the income approach using the relief from royalty methodology. The fair value of the non-competition agreement is derived using the with and without method over the contractual term of the agreement. American Home Protect On September 9, 2021, we acquired American Home Protect (“AHP”), a company providing home warranty policies. The purpose of the acquisition is to expand the scope and nature of our product offerings, add additional team members with important skillsets, and realize synergies. Total consideration related to this transaction includes $46.3 million, consisting of $43.8 million in cash paid at closing, and acquisition hold backs of $2.5 million. Acquisition-related costs of $0.5 million are included in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2021. Since the acquisition date of AHP, we finalized the preliminary estimated fair value of AHP assets acquired and liabilities assumed. As a result, in the year ended December 31, 2022, we recorded a net increase to goodwill of approximately $23.8 million attributed to increases in current liabilities and net decreases in current assets. The following table summarizes the fair value of the intangible assets of AHP as of the date of the acquisition: Fair Estimated Intangible assets: Renewal rights $ 2,042 6 Trademarks and tradenames 700 10 $ 2,742 The weighted-average amortization period for the acquired intangible assets is 7.0 years. Renewal rights asset was estimated through the income approach based on forecast and cash flows from the renewal policies modeled over the life of the renewals. The fair value of trade name and trademarks was estimated through the income approach using the relief from royalty methodology. Floify On October 27, 2021, we acquired Floify, a company providing digital mortgage automation and point-of-sale software for mortgage companies and loan officers. The purpose of the acquisition is to expand the scope and nature of our product offerings, add additional team members with important skillsets, and realize synergies. Total consideration related to this transaction includes $95.4 million, consisting of $76.0 million in cash, $9.9 million of our common stock, $0.9 million in acquisition hold backs and a guarantee that our common stock will double in value by the end of 2024 with respect to any such common shares retained by the sellers throughout the period. The guarantee requires us to provide additional shares of common stock or cash to sellers if the stock does not double in value. The value of the guarantee at acquisition date was estimated to be $8.6 million. Acquisition-related costs of $0.4 million are included in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2021. The following table summarizes the fair value of the intangible assets of Floify as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 7,000 4 Acquired technology 28,300 4 Trademarks and tradenames 6,025 15 Non-competition agreements 40 3 $ 41,365 The weighted-average amortization period for the acquired intangible assets is 5.6 years. The fair value of customer relationships and non-competition agreements, was estimated through the with-and-without method based on a comparison of the prospective revenues or expenses for the business with and without these intangible assets in place. The fair value of trade name and trademarks, was estimated through the income approach using the relief from royalty methodology. The fair value of the acquired technology was estimated through the multi-period excess earnings method. Revenue and Net Loss Information Related to 2021 Acquisitions Revenue from these five acquisitions included in the Consolidated Statements of Operations and Comprehensive Loss through December 31, 2021 is $79.6 million. Net loss included in the Consolidated Statements of Operations and Comprehensive Loss from these acquisitions through December 31, 2021 is $1.8 million. Other Acquisitions During 2021, we completed other acquisitions which were not individually or in aggregated material to the consolidated financial statements. The purpose of the acquisitions was to expand the scope and nature of our service offerings, add additional team members with important skillsets, and realize synergies. The transaction costs associated with these acquisitions were $1.6 million and are included in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2021. Goodwill of $3.5 million is not deductible for tax purposes, while goodwill of $11.0 million is deductible for tax purposes. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 13. Leases We lease office facilities from unrelated parties under operating lease agreements that have initial terms ranging from 1 to 5 years. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to 10 additional years. In addition, certain leases contain termination options, where the rights to terminate are held by either us, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that we will exercise that option. Our leases generally do not contain any material restrictive covenants. Operating lease cost is recognized on a straight-line basis over the lease term. The components of lease expense are as follows: Year Ended December 31, 2023 2022 2021 Operating lease cost $ 2,123 $ 2,621 $ 2,155 Variable lease cost 129 254 339 $ 2,252 $ 2,875 $ 2,494 Supplemental cash flow information related to leases is as follows: Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows for operating leases $ 1,854 $ 2,082 $ 2,141 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 807 $ 6,835 $ 6,365 The following table presents lease-related assets and liabilities recorded on the balance sheet. December 31, Financial Statement Line Item 2023 2022 Operating lease right-of-use assets Other assets $ 3,209 $ 4,201 Operating lease liabilities, current Accrued expenses and other current liabilities $ 1,669 $ 1,810 Operating lease liabilities, non-current Other liabilities 1,630 2,536 Total operating lease liabilities $ 3,299 $ 4,346 Other information related to operating leases is as follows: Year Ended December 31, 2023 2022 2021 Weighted average remaining lease term 2.6 years 2.9 years 2.1 years Weighted average discount rate 8.6% 8.8% 9.4% Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the Lease 2024 $ 1,871 2025 1,008 2026 528 2027 174 2028 62 Thereafter — Total lease payments 3,643 Less imputed interest (344) Total present value of lease liabilities $ 3,299 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Note 14. Reinsurance Certain premiums and benefits are ceded to other insurance companies under various reinsurance agreements. The reinsurance agreements provide HOA with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. Ceded reinsurance contracts do not relieve HOA from its obligations to policyholders. HOA remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. 2023 Program Our third-party quota share reinsurance program is split into three separate placements to maximize coverage and cost efficiency. The 2023 Coastal Program covers our business in certain Texas coastal regions and the Houston metropolitan area and is placed at 42% of subject property and casualty losses (“P&C losses”), as well as all business in South Carolina which is placed at 7% of P&C losses. The 2023 Core Program, which covers the portion of our business not in the Coastal Program, is placed at 9.5% of P&C losses of our remaining business in Texas and 8% of P&C losses of our business in other states. In addition, the Combined Program covers all of our business and is placed at 5% of P&C losses. All programs are effective for the period January 1, 2023, through December 31, 2023, or March 31, 2024, and are subject to certain limits and exclusions, which vary by participating reinsurer. Property catastrophe excess of loss treaties were placed on April 1, 2023, and were updated in August 2023 after the events described in the “Terminated Reinsurance Contract” section below. Coverage for wind storms starts at $20 million per occurrence. Losses are shared between $20 million and $80 million. Over $80 million, losses are covered up to a net loss of $440 million. We also place reinstatement premium protection to cover any reinstatement premiums due on the first four layers. 2022 Program Our third-party quota share reinsurance program was split into two separate placements to maximize coverage and cost efficiency. The 2022 Coastal program, which covers our business in certain Texas coastal regions and the Houston metropolitan area as well as all business in South Carolina, is placed at 61.75% of subject property and casualty losses. The 2022 Core program covers the remainder of our business and is placed at 90% of subject property and casualty losses. Both programs are effective for the period January 1, 2022, through December 31, 2022, and are subject to certain limits, which vary by participating reinsurer, for single loss occurrences and/or aggregate losses. Property catastrophe excess of loss treaties which were in effect through March 31, 2022, developed over four layers and limited our net retention to $2 million per loss occurrence. Effective April 1, 2022, we purchased property catastrophe excess of loss reinsurance from third party reinsurers which develops over 5 layers to provide coverage up to a net loss of $336 million, in excess of $4 million per occurrence. We also places reinstatement premium protection to cover any reinstatement premiums due on the first three layers. We purchase property per risk reinsurance covering non-weather losses in excess of $500 thousand per occurrence for all property coverage lines, to limit our net retention to $50 thousand per covered event for Core and $191 thousand per covered event for Coastal. These contracts are subject to certain limits for single loss occurrences and/or aggregate losses and provide a certain number of free reinstatements during the treaty period, all of which varies by contract. 2021 Program Our 2021 third-party quota share reinsurance program was split into two separate placements to maximize coverage and cost efficiency. The 2021 Coastal program, which covered our business in certain Texas coastal regions and the Houston metropolitan area as well as all business in South Carolina, was placed at 90% of subject property and casualty losses. The 2021 Core program covered the remainder of our business and was placed at 90% of subject property and casualty losses. Both programs were effective for the period since the acquisition date of April 5, 2021, and through December 31, 2021, and were subject to certain limits, which varied by participating reinsurer, for single loss occurrences and/or aggregate losses. The effects of reinsurance on premiums written and earned for the periods since the acquisition date of April 5, 2021, were as follows: Year Ended December 31, 2023 2022 2021 Written Earned Written Earned Written Earned Direct premiums $ 445,587 $ 462,434 $ 462,179 $ 395,968 $ 266,609 $ 213,423 Ceded premiums (76,643) (235,171) (399,400) (349,952) (237,102) (199,366) Net premiums $ 368,944 $ 227,263 $ 62,779 $ 46,016 $ 29,507 $ 14,057 The effects of reinsurance on incurred losses and LAE for the periods since the acquisition date of April 5, 2021, were as follows: Year Ended December 31, 2023 2022 2021 Direct losses and LAE $ 300,960 $ 280,505 $ 181,256 Ceded losses and LAE (117,455) (224,202) (162,752) Net losses and LAE $ 183,505 $ 56,303 $ 18,504 The detail of reinsurance balances due is as follows: December 31, 2023 2022 Ceded unearned premium $ 50,697 $ 203,157 Losses and LAE reserve 19,911 76,999 Reinsurance recoverable 12,629 18,765 Other 345 139 Reinsurance balance due $ 83,582 $ 299,060 Terminated Reinsurance Contract During 2023, HOA discovered that Vesttoo Ltd (“Vesttoo”), which arranged capital for one of our reinsurance contracts, faced allegations of fraudulent activity in connection with collateral it provided to HOA and certain other third parties, which allegations have since been confirmed. We have communicated and met with regulators and other key stakeholders regarding the evolving situation. This reinsurance agreement provided partial quota share coverage as well as up to approximately $175 million in a catastrophic event. As a result of its findings, and in accordance with the terms of the reinsurance agreement, HOA terminated the associated contract on August 4, 2023, with an effective date of July 1, 2023. Had the contract not been terminated, the contract would have expired on December 31, 2023, and HOA would have been contracted to pay approximately $20 million in additional premium payments during July through December 2023. Following the effective date of the termination, HOA seized available liquid collateral in the amount of approximately $47.6 million from a reinsurance trust, of which HOA was the beneficiary, and recognized a charge of $36.0 million in provision for doubtful accounts in the Consolidated Statements of Operations and Comprehensive Loss. In addition, HOA is evaluating and intends to pursue all available legal claims and remedies to enforce its rights under the letter of credit required by the reinsurance agreement in the amount of $300 million as additional collateral. We are also seeking recovery of all losses and damages incurred as a result of terminating the reinsurance agreement due to allegations of fraudulent activity by third parties. |
Unpaid Losses and Loss Adjustme
Unpaid Losses and Loss Adjustment Reserve | 12 Months Ended |
Dec. 31, 2023 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Unpaid Losses and Loss Adjustment Reserve | Note 15. Unpaid Losses and Loss Adjustment Reserve The following tables summarizes the changes in the reserve balances for unpaid losses and LAE, gross of reinsurance, for the year ended December 31, 2023: Reserve for unpaid losses and LAE at December 31, 2022 $ 100,632 Reinsurance recoverables on losses and LAE at December 31, 2022 (76,999) Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2022 23,633 Add provisions (reductions) for losses and LAE occurring in: Current year (1) 197,792 Prior years (158) Net incurred losses and LAE during the current year 197,634 Deduct payments for losses and LAE occurring in: Current year (125,370) Prior years (20,202) Net claim and LAE payments during the current year (145,572) Reserve for losses and LAE, net of reinsurance recoverables at December 31, 2023 75,695 Reinsurance recoverables on losses and LAE at December 31, 2023 19,808 Reserve for unpaid losses and LAE at December 31, 2023 $ 95,503 ______________________________________ (1) Also includes certain charges related to Vesttoo (see Note 14, Reinsurance, for more information). The following tables summarizes the changes in reserve balances for unpaid losses and LAE, gross of reinsurance for the year ended December 31, 2022: Reserve for unpaid losses and LAE at December 31, 2021 $ 61,949 Reinsurance recoverables on losses and LAE at December 31, 2021 (56,752) Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2021 5,197 Add provisions (reductions) for losses and LAE occurring in: Current year (1) 55,148 Prior years 1,155 Net incurred losses and LAE during the current year 56,303 Deduct payments for losses and LAE occurring in: Current year (32,111) Prior years (5,756) Net claim and LAE payments during the current year (37,867) Reserve for losses and LAE, net of reinsurance recoverables at December 31, 2022 23,633 Reinsurance recoverables on losses and LAE at December 31, 2022 76,999 Reserve for unpaid losses and LAE at December 31, 2022 $ 100,632 As a result of additional information on claims occurring in prior years becoming available to management, changes in estimates of provisions of losses and loss adjustment expenses were made resulting in a decrease of $(0.2) million and an increase of $1.2 million for the years ended December 31, 2023 and December 31, 2022, respectively. The claim counts in the following tables are cumulative reported claim counts as of December 31, 2023, and are equal to the sum of cumulative open and cumulative closed claims, including claims closed without payment. The following supplementary information presents incurred and paid losses by accident year, net of reinsurance ($ in thousands, except for number of claims): December 31, 2023 Incurred losses and allocated loss adjustment expenses, net of reinsurance, Cumulative 2019 2020 2021 2022 2023 IBNR Reserves Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) Accident Year 2019 $ 9,666 $ 9,678 $ 9,773 $ 9,786 $ 9,812 $ 42 10,838 2020 12,664 14,281 14,587 14,717 57 13,230 2021 19,795 20,614 23,149 585 35,082 2022 55,110 52,065 2,147 25,274 2023 183,669 36,599 20,188 Total $ 283,412 $ 39,430 104,612 Cumulative paid losses and allocated adjustment expenses, net of reinsurance, 2019 2020 2021 2022 2023 (unaudited) (unaudited) (unaudited) (unaudited) Accident Year 2019 $ 7,405 $ 9,324 $ 9,578 $ 9,694 $ 9,715 2020 9,750 13,865 14,142 14,500 2021 15,335 20,569 21,652 2022 32,073 50,705 2023 125,370 Total $ 221,942 Liability for losses and loss adjustment expenses, net of reinsurance $ 61,471 Payments for losses, net of reinsurance, related to accident year 2018 and prior was $108 thousand for the year ended December 31, 2023. Average annual percentage payout of accident year incurred claims by age, net of reinsurance (unaudited supplementary information) as of December 31, 2023: 1 2 3 4 5 85.6% 13.5% 7.0% 0.2% —% |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Purchase Commitments As of December 31, 2023, we had non-cancelable purchase commitments over the next five years, primarily for data purchases, as follows: 2024 $ 4,435 2025 3,030 2026 1,021 2027 1,121 2028 — $ 9,607 Litigation From time to time we are or may become subject to various legal proceedings arising in the ordinary course of business, including proceedings initiated by users, other entities, or regulatory bodies. Estimated liabilities are recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In many instances, we are unable to determine whether a loss is probable or to reasonably estimate the amount of such a loss and, therefore, the potential future losses arising from a matter may differ from the amount of estimated liabilities we have recorded in the financial statements covering these matters. We review our estimates periodically and make adjustments to reflect negotiations, estimated settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. Cases under Telephone Consumer Protection Act Porch and/or an acquired entity, GoSmith.com, are party to a legal proceeding alleging violations of the automated calling and/or internal and National Do Not Call restrictions of the Telephone Consumer Protection Act of 1991 and a related Washington state law claim. The proceedings were commenced as thirteen separate mass tort actions brought by a single plaintiffs’ law firm in December 2019 and April/May 2020 in federal district courts throughout the United States. One of the actions was dismissed with prejudice and appealed to the Ninth Circuit Court of Appeals. While the appeal was pending, the remaining cases were consolidated in the United States District Court for the Western District of Washington, where Porch resides. On October 12, 2022, in a split decision, the Ninth Circuit Court of Appeals reversed. Following remand, that case was also consolidated with the Western District of Washington action. Plaintiffs then filed a motion for leave to file a second amended complaint, which was granted in part and denied in part. The Second Amended Complaint was filed in July 2023. In September 2023, Defendants filed a Motion to Strike the Second Amended Complaint; this motion was denied. Defendants’ Motion to Dismiss was filed on February 15, 2024. The parties’ filed a required Joint Status Report and Discovery Plan on February 16, 2024. Plaintiffs seek actual, statutory, and/or treble damages, injunctive relief, and reasonable attorneys’ fees and costs. The action is at an early stage in the litigation process. It is not possible to determine the likelihood of an unfavorable outcome of these disputes, although it is reasonably possible that the outcome of these actions may be unfavorable. Further, it is not possible to estimate the range or amount of potential loss (if the outcome should be unfavorable). We intend to contest this case vigorously. Kandela, LLC v Porch.com, Inc. In May 2020, the former owners of Kandela, LLC filed complaints against Porch in the Superior Court of the State of California, alleging a breach of contract related to the terms and achievement of an earnout agreement related to the acquisition of the Kandela business and related fraudulent inducement claims. Claimants sought to recover compensatory damages based on an asset purchase agreement entered into with Porch and related employment agreements. Claimants also sought punitive damages, attorney’s fees and costs. Certain claimants settled their claims, and this settlement is within the range of the estimated accrual. Arbitration of the remaining claims occurred in March 2022. In July 2022, the Arbitrator issued his Final Award finding no merit to any of the claims asserted by claimant Kandela, LLC and determined Porch to be the prevailing party on all counts. The Arbitrator also awarded Porch and its insurers legal fees and costs in the amount of $1.4 million as the prevailing party and, if recovered in full, a significant portion of which would be expected to be allocable to its corporate insurance providers who paid for the significant portion of Porch’s fees and costs. On October 12, 2022, the Los Angeles Superior Court confirmed the Arbitration Award and entered Judgment in Porch’s favor. Kandela has failed to pay the judgment in Porch’s favor. Kandela filed a Notice of Appeal as to the Judgment on December 9, 2022. On January 18, 2023, Porch filed a Fraudulent Conveyance Action against Kandela and its members for wrongfully distributing assets that could have satisfied the judgement. On March 1, 2023, Kandela filed for protection under Chapter 7 of the Bankruptcy Code and the case closed on May 26, 2023. As a result of the Chapter 7 filing, Kandela’s appellate action was automatically stayed. At this time, Porch’s Fraudulent Conveyance Action has also been stayed as to all defendants. Porch intends to take all necessary steps so that the Fraudulent Conveyance Action can proceed against the Kandela members who Porch believes received the fraudulently transferred assets that could be used to satisfy the Judgment. Other In addition, in the ordinary course of business, us and our subsidiaries are (or may become) parties to litigation involving property, personal injury, contract, intellectual property and other claims, as well as stockholder derivative actions, class action lawsuits and other matters. The amounts that may be recovered in such matters may be subject to insurance coverage. Although the results of legal proceedings and claims cannot be predicted with certainty, neither us nor any of our subsidiaries are currently a party to any legal proceedings the outcome of which, we believe, if determined adversely to us, would individually or in the aggregate have a material adverse effect on our business, financial condition or results of operations. Regulatory Requirements and Restrictions HOA is subject to the laws and regulations of the State of Texas and the regulations of any other states in which HOA conducts business. State regulations cover all aspects of HOA’s business and are generally designed to protect the interests of insurance policyholders, as opposed to the interests of stockholders. The Texas Insurance Code requires all property and casualty insurers to have a minimum of $2.5 million in capital stock and $2.5 million in surplus. HOA has capital and surplus in excess of this requirement. As of December 31, 2023, HOA’s total statutory surplus is $51.7 million (capital stock of $3.0 million and surplus of $48.7 million). As of December 31, 2022, HOA’s total statutory surplus was $76.3 million (capital stock of $3.0 million and surplus of $73.3 million). As of December 31, 2023 and 2022, HOA had restricted cash and investments totaling $3.3 million and $3.7 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. See Note 1, Description of Business and Summary of Significant Accounting Policies, for additional disclosures. The Texas Insurance Code limits dividends from insurance companies to their stockholders to net income accumulated in the Company’s surplus account, or “earned surplus.” The maximum dividend that may be paid without approval of the Insurance Commissioner is limited to the greater of 10% of the statutory surplus at the end of the preceding calendar year or the statutory net income of the preceding calendar year. No dividends were paid by HOA in 2023 and 2022. In 2024, HOA is not permitted to pay any dividends due to the statutory net loss in the preceding calendar year. HOA prepares its statutory-based financial statements in conformity with accounting practices prescribed or permitted by the Texas Department of Insurance. Prescribed statutory accounting practices primarily include those published as statements of Statutory Accounting Principles by the National Association of Insurance Commissioners, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practice not so prescribed. As of December 31, 2023, there were no material permitted statutory accounting practices utilized by HOA. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 17. Segment Information We have two reportable segments that are also our operating segments: Vertical Software and Insurance. Reportable segments were identified based on how the chief operating decision-maker (“CODM”) manages the business, makes operating decisions, and evaluates operating and financial performance. Our chief executive officer acts as the CODM and reviews financial and operational information for our reportable segments. Operating segments are components of an enterprise for which separate discrete financial information is available and operational results are regularly evaluated by the CODM for the purposes of making decisions regarding resource allocation and assessing performance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, which was 54% of total vertical software revenue in 2023, and move and post-move services, which was 46% of total vertical software revenue in 2023. The Vertical Software segment operates as several key businesses, including inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. Our Insurance segment provides consumers with insurance and warranty products to protect their homes, earning revenue through premiums collected on policies, policy fees and commissions. The Insurance segment includes Homeowners of America (“HOA”), a wholly owned insurance carrier, Porticus Reinsurance (“Porticus RE”), our Cayman Islands captive reinsurer, and Porch Warranty, among other warranty brands. The following table summarizes revenue by segment. Year Ended December 31, 2023 2022 2021 Vertical Software $ 125,116 $ 154,915 $ 137,150 Insurance 305,186 121,033 55,283 Total revenue $ 430,302 $ 275,948 $ 192,433 Our segment operating and financial performance measure is Segment Adjusted EBITDA (Loss). Segment Adjusted EBITDA (Loss) is defined as revenue less the following expenses associated with each segment: cost of revenue, selling and marketing, product and technology, general and administrative, and provision for doubtful accounts. Segment Adjusted EBITDA (Loss) also excludes non-cash items or items that management does not consider reflective of ongoing core operations. We do not allocate shared expenses to the reportable segments. These expenses are included in the “Corporate and other” row in the following reconciliation. “Corporate and other” includes shared expenses such as selling and marketing; certain product and technology; accounting; human resources; legal; general and administrative; and other income, expenses, gains, and losses that are not allocated in assessing segment performance due to their function. Such transactions are excluded from the reportable segments’ results but are included in consolidated results. The reconciliation of Segment Adjusted EBITDA (Loss) to consolidated “Operating loss” below includes the effects of corporate and other items that the CODM does not consider in assessing segment performance. Year Ended December 31, 2023 2022 2021 Segment Adjusted EBITDA (Loss): Vertical Software $ 4,307 $ 14,678 $ 20,733 Insurance 12,320 (5,499) 9,007 Subtotal 16,627 9,179 29,740 Reconciling items: Corporate and other (61,141) (58,780) (53,760) Depreciation and amortization (24,415) (27,930) (16,386) Impairment loss on intangible assets and goodwill (57,232) (61,386) — Impairment loss on property, equipment and software (254) (637) (550) Stock-based compensation expense (20,709) (27,041) (38,592) Restructuring costs (1) (4,015) (647) — Acquisition and other transaction costs (552) (1,687) (5,360) Loss on reinsurance contract (see Note 14) (36,042) — — Change in fair value of contingent consideration 5,664 (6,944) 2,244 Investment income and realized gains (8,285) (1,174) (701) Operating loss $ (190,354) $ (177,047) $ (83,365) ______________________________________ (1) Primarily consists of costs related to forming a reciprocal exchange. The CODM does not review assets on a segment basis. As of December 31, 2023, goodwill for the Vertical Software segment was $191.9 million and was zero for the Insurance segment which was fully impaired during 2023 (see Note 6, Intangible Assets and Goodwill, for additional information). As of December 31, 2022, goodwill for the Vertical Software segment and the Insurance segment was $191.9 million and $52.8 million, respectively. All of our revenue is generated in the United States, except for an immaterial amount. As of December 31, 2023, and 2022, we did not have material assets located outside of the United States. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 18. Net Loss Per Share Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options, RSUs, PRSUs, RSAs, convertible notes, earnout shares and warrants. As we have reported losses for all periods presented, all potentially dilutive securities are antidilutive and accordingly, basic net loss per share equals diluted net loss per share. The following table sets summarizes the computation of basic and diluted net loss per share attributable to common stockholders for the years ended December 31, 2023, 2022 and 2021. Year Ended December 31, 2023 2022 2021 Numerator: Net loss used to compute net loss per share - basic and diluted $ (133,933) $ (156,559) $ (106,606) Denominator: Weighted average shares outstanding used to compute net loss used to compute net loss per share - basic and diluted 96,057 97,351 93,885 Net loss per share - basic and diluted $ (1.39) $ (1.61) $ (1.14) The following table discloses securities that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for the periods presented. Year Ended December 31, 2023 2022 2021 Stock options 3,642 3,863 4,823 Restricted stock units and awards 8,311 5,309 2,713 Performance restricted stock units 3,754 921 — Public and private warrants 1,796 1,796 1,796 Earnout shares (1) — 2,050 2,050 Convertible debt (2) 22,331 16,998 16,998 Contingently issuable shares in connection with acquisitions (3) 5,908 10,632 1,193 ______________________________________ (1) Earnout shares expired on December 23, 2023, without vesting and were subsequently cancelled. (2) In connection with the September 16, 2021, issuance of the 2026 Notes, we used a portion of the proceeds to pay for the capped call transactions, which are expected to generally reduce the potential dilution to our common stock. The capped call transactions impact the number of shares that may be issued by effectively increasing our conversion price from $25 per share to approximately $37.74 per share, which would result in approximately 6 million potentially dilutive shares instead of the shares reported in this table as of December 31, 2023. (3) In connection with the acquisitions of Floify and HOA described in Note 12, Business Combinations, we provided an obligation to issue certain amount of common stock to the extent specified market conditions are met in the future. Contingently issuable shares are calculated in accordance with the purchase agreement, assuming they would be issuable if the end of the reporting periods were the end of the contingency period. See Note 8, Stockholders' Equity and Warrants, for additional information regarding the terms of warrants. See Note 9, Stock-Based Compensation, for additional information regarding stock options and restricted stock units and awards. See Note 7, Debt, for additional information regarding convertible debt. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net loss | $ (133,933) | $ (156,559) | $ (106,606) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Matt Ehrlichman [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Matt Ehrlichman, our Chairman, Chief Executive Officer, and Founder, entered into a Rule 10b5-1 trading arrangement (as such term is defined in Item 408(a) of Regulation S-K) on June 2, 2023 (such plan, a “10b5-1 Plan”). The 10b5-1 Plan was scheduled to terminate on December 31, 2023, unless earlier terminated pursuant to its terms, and covered the purchase of up to an aggregate of 2,327,777 shares of the Company’s common stock. The 10b5-1 Plan was intended to satisfy the affirmative defense Rule of 10b5-1(c). Trades under the 10b5-1 Plan did not commence until at least 90 days following the date on which such plan was entered. As of October 2, 2023, all shares of the Company's common stock subject to the 10b5-1 Plan had been purchased and the 10b5-1 Plan terminated in accordance with its terms. | |
Name | Matt Ehrlichman | |
Title | Chairman, Chief Executive Officer, and Founder | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 2, 2023 | |
Arrangement Duration | 212 days | |
Aggregate Available | 2,327,777 | 2,327,777 |
Shawn Tabak [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Shawn Tabak, our Chief Financial Officer, entered into a 10b5-1 Plan on December 15, 2023. The 10b5-1 Plan is scheduled to terminate on April 1, 2025, and covers the sale of up to an aggregate of 247,500 shares of the Company’s common stock. The 10b5-1 Plan is intended to satisfy the affirmative defense Rule of 10b5-1(c). Trades under the 10b5-1 Plan will not commence until at least 90 days following the date on which such plan was entered. | |
Name | Shawn Tabak | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Arrangement Duration | 473 days | |
Aggregate Available | 247,500 | 247,500 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and accompanying notes include the accounts of Porch Group, Inc., and its wholly owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions are eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current year’s presentation. Except for per share data or as otherwise indicated, all U.S. dollar amounts presented in the tables in these Notes to Consolidated Financial Statements are in thousands unless otherwise stated, except per share data. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of adjustments related to unrealized gains and losses on available-for-sale securities. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from those estimates and assumptions. |
Concentrations | Concentrations Financial instruments which potentially subject us to credit risk consist principally of cash, money market accounts on deposit with financial institutions, money market funds, certificates of deposit, fixed-maturity securities, and receivable balances in the course of collection. Our insurance carrier subsidiary has exposure and remains liable in the event of insolvency of its reinsurers. Management and its reinsurance intermediary regularly assess the credit quality and ratings of its reinsurer counterparties. For the year ended December 31, 2023, four reinsurers represented more than 10% individually, and 57% in the aggregate, of our total reinsurance balance due. For the year ended December 31, 2022, two reinsurers represented more than 10% individually, and 45% in the aggregate, of our total reinsurance balance due. Substantially all of our revenues in the Insurance segment are derived from customers in Texas (which represent approximately 64%, 52% and 61% of Insurance segment revenues in the years ended December 31, 2023, 2022 and 2021, respectively), South Carolina (which represent approximately 11%, 10% and 9% of Insurance segment revenues in the years ended December 31, 2023, 2022 and 2021, respectively), North Carolina, Georgia, Virginia, and Arizona, which could be adversely affected by economic conditions, an increase in competition, local weather events, or environmental impacts and changes. No individual customer represented more than 10% of our total revenue for the years ended 2023, 2022 or 2021. As of December 31, 2023 and 2022, no individual customer accounted for 10% or more of our total accounts receivable. As of December 31, 2023, we held approximately $263.6 million of cash with five U.S. commercial banks. As of December 31, 2022, we held approximately $148.0 million of cash with three U.S. commercial bank. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. We maintain cash balances that exceed the insured limits by the Federal Deposit Insurance Corporation. Restricted cash and cash equivalents as of December 31, 2023, includes $28.3 million held by our captive reinsurance business as collateral for the benefit of Homeowners of America Insurance Company (“HOA”), $1.3 million held in certificates of deposit and money market mutual funds pledged to the Department of Insurance in certain states as a condition of our Certificate of Authority for the purpose of meeting obligations to policyholders and creditors, $7.3 million in funds held for the payment of possible warranty claims as required under regulatory guidelines in 19 states, and $1.9 million related to acquisition indemnifications. Restricted cash and cash equivalents as of December 31, 2022, includes $5.1 million held by our captive reinsurance business as collateral for the benefit of HOA, $1.0 million held in money market mutual funds pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors, $5.0 million in funds held for the payment of possible warranty claims as required under regulatory guidelines in 19 states, and $2.4 million related to acquisition indemnifications. The reconciliation of cash, cash equivalents, and restricted cash to amounts presented in the December 31, 2023 2022 Cash and cash equivalents $ 258,418 $ 215,060 Restricted cash and cash equivalents 38,814 13,545 Cash, cash equivalents, and restricted cash $ 297,232 $ 228,605 |
Investments | Investments Our investments are primarily comprised of short-term certificates of deposit, U.S. Treasury, corporate and municipal bonds, and mortgage-backed securities and are classified as available-for-sale and reported at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Investments are classified as current or non-current based upon the remaining maturity of the investment. Amortization of premium and accretion of discount are computed using the effective interest method. The accretion or amortization of discounts and premiums on mortgage-backed securities takes into consideration actual and future estimated principal prepayments. We utilize estimated prepayment speed information obtained from published sources. The effects of the yield of a security from changes in principal prepayments are recognized prospectively. The degree to which a security is susceptible to yield adjustments is influenced by the difference between its carrying value and par, the relative sensitivity of the underlying mortgages backing the assets to prepayment in a changing interest rate environment, and the repayment priority for structured securities. We evaluate whether declines in the fair value of investments have resulted from an expected credit loss. See Note 3, Investments, for additional information about management’s evaluation. Realized gains and losses on sales of investments are determined using the specific-identification method. |
Accounts Receivable and Long-term Insurance Commissions Receivable | Accounts Receivable and Long-term Insurance Commissions Receivable Accounts receivable consist principally of amounts due from enterprise customers, other corporate partnerships, and individual policyholders. We estimate allowances for uncollectible receivables based on the creditworthiness of our customers, historical trend analysis, and macro-economic conditions. Consequently, an adverse change in those factors could affect our estimate of allowance for doubtful accounts. The allowance for uncollectible receivables at December 31, 2023, and 2022, was $0.6 million and $0.5 million, respectively. Long-term insurance commissions receivable balance consists of the estimated commissions from policy renewals expected to be collected. We record the amount of renewal insurance commissions expected to be collected in the next twelve months as current accounts receivable. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs We capitalize deferred policy acquisitions costs (“DAC”) which consist primarily of commissions, premium taxes and policy underwriting and production expenses that are directly related to the successful acquisition by our insurance company subsidiary of new or renewal insurance contracts. DAC are amortized on a straight-line basis over the terms of the policies to which they relate, which is generally one year. DAC is also reduced by ceding commissions paid by reinsurance companies which represent recoveries of acquisition costs. DAC is periodically reviewed for recoverability and adjusted if necessary. Future investment income is considered in determining the recoverability of DAC. Amortized deferred acquisition costs included in sales and marketing expense, amounted to $49.2 million, $14.5 million, and $2.5 million for the years ended December 31, 2023, 2022, and 2021, respectively. |
Property, Equipment and Software | Property, Equipment, and Software Property, equipment, and software are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets, as follows: Estimated Useful Lives Software and computer equipment 3 years Furniture, office equipment and other 3 – 5 years Internally developed software 2 years Leasehold improvements Shorter of useful life or remaining lease term When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the We capitalize costs incurred in the development of internal use software. The capitalized costs are amortized over the estimated useful life of the software. If capitalized projects are determined to no longer be in use, they are impaired and the cost and accumulated depreciation are removed from the accounts. The resulting loss on impairment, if any, is included in the |
Goodwill | Goodwill We test goodwill for impairment for each reporting unit on an annual basis, or more frequently when events or changes in circumstances indicate the fair value of a reporting unit may be below its carrying value. We have the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If we can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, we would not need to perform a quantitative impairment test. If we cannot support such a conclusion or we do not elect to perform the qualitative assessment, we perform a quantitative assessment. If a quantitative goodwill impairment assessment is performed, we utilize a combination of market and income valuation approaches. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that fair value of the reporting unit is less than its carrying value. We have selected October 1 as the date to perform its annual impairment test. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of operating and macroeconomic changes on each reporting unit. The fair value of each reporting unit was estimated using a combination of income and market valuation approaches using publicly traded company multiples in similar businesses. Such fair value measurements are based predominately on Level 3 inputs. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internally developed forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. |
Intangible Assets | Intangible Assets Intangible assets consist of acquired customer relationships, acquired technology, trademarks and trade names, renewal rights, insurance licenses, non-compete agreements, value of businesses acquired, and related assets that are amortized over their estimated useful lives. Certain intangible assets are considered to have indefinite lives. We test indefinite-lived intangible assets for impairment annually on October 1 and whenever events or circumstances arise that indicate an impairment may exist. See the Impairment of Long-Lived Assets section below. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. Events that trigger a test for recoverability include a significant decrease in the market price for a long-lived asset, significant negative industry or economic trends, an accumulation of costs significantly in excess of the amount originally expected for the acquisition, a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset, or a sustained decrease in share price. When a triggering event occurs, a test for recoverability is performed, comparing projected undiscounted future cash flows to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured relying primarily on an income approach. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value. Management identifies the asset group that includes the potentially impaired long-lived asset, at the lowest level at which there are separate, identifiable cash flows. We estimate the fair value of an asset group using the income approach. Such fair value measurements are based predominately on Level 3 inputs. Inherent in our development of cash flow projections are assumptions and estimates derived from a review of our operating results, business plan forecasts, expected growth rates, and cost of capital, similar to those a market participant would use to assess fair value. We also make certain assumptions about future economic conditions and other data. Many of these factors used in assessing fair value are outside the control of management and these assumptions and estimates may change in future periods. |
Losses and Loss Adjustment Expenses Reserves | Losses and Loss Adjustment Expenses Reserves The liability for losses and loss adjustment expenses (“LAE”) is an estimate of the amounts required to cover known incurred losses and LAE and is developed through the review and assessment of loss reports, along with the analysis of known claims. These reserves include management’s estimate of the amounts for losses incurred but not reported (“IBNR”). IBNR is reviewed regularly using a variety of actuarial techniques. We update the reserve estimates as historical loss experience develops, additional claims are reported and/or settled and new information becomes available. Any changes in estimates are reflected in operating results in the period in which the estimates are changed. Although management believes that the balance of these reserves is adequate, such liabilities are necessarily dependent on estimates, the ultimate expense may be more or less than the amounts presented. The approach and methods for developing these estimates and for recording the resulting liability are continually reviewed. Any adjustments to this reserve are recognized in the Consolidated Statements of Operations and Comprehensive Loss. Losses and LAE, less related reinsurance is charged to expense as incurred. |
Reinsurance | Reinsurance In the normal course of business, we monitor return and risk and seeks to reduce the overall exposure to losses that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk with other insurance enterprises or reinsurers. Our insurance company subsidiary has entered proportional and non-proportional reinsurance treaties, under which the insurance company subsidiary has ceded some, but not all, of the liabilities to third-party reinsurers including, but not limited to, catastrophe exposure. The amount and type of reinsurance employed is based on management’s analysis of capital as well as its estimates of probable maximum loss and evaluation of the conditions within the reinsurance market. We remain liable to our policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize our exposure to significant losses from reinsurer insolvencies, HOA evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers. Additionally, the insurance contracts are subject to contingent commission adjustments and loss participation features, which aligns our interests with those of our reinsurers. Ceded premium written is recorded in accordance with the applicable terms of the reinsurance contracts and ceded premium earned is charged against revenue over the period of the reinsurance contracts. Ceded losses incurred reduce net loss and LAE incurred over the applicable periods of the reinsurance contracts with third-party reinsurers. |
Other Insurance Liabilities, Current | Other Insurance Liabilities, Current The following table details the components of other insurance liabilities, current, in the December 31, 2023 2022 Ceded reinsurance premiums payable $ 10,500 $ 29,204 Commissions payable, reinsurers and agents 4,650 21,045 Advance premiums 5,975 8,668 Funds held under reinsurance treaty 9,820 1,851 General and accrued expenses payable 640 942 Other insurance liabilities, current $ 31,585 $ 61,710 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value principles require disclosures regarding the manner in which fair value is determined for assets and liabilities and establishes a three-tiered fair value hierarchy into which these assets and liabilities must be grouped, based upon significant levels of inputs as follows: Level 1 Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date; Level 2 Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. Management’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. |
Revenue Recognition | Revenue Recognition We generate revenue from a variety of sources: • Insurance revenue in the form of insurance and warranty premiums, policy fees, commissions from reinsurers and other insurance-related fees generated through our owned insurance carrier, as well as commissions from third-party insurance carriers where we act as an independent agent; • Software and service subscription revenue generated from fees paid by companies for access to our software and provision of services; • Move-related revenue through fees received for connecting homeowners to service providers during the time of a move including movers, TV/Internet, warranty, and security monitoring providers and for providing select services directly to the homeowner; and • Post-move related revenue in the form of fees earned from introducing homeowners to home service professionals including handyman, plumbers, electricians, roofers, etc. We identify performance obligations in our non-insurance contracts with customers, which primarily include delivery of homeowner leads and commissions from third-party insurance carriers, performance of home project and moving services, and providing access to our software platforms and services. The transaction price is determined based on the amount to which we expect to be entitled in exchange for providing the promised services to the customer. The transaction price in the contract is allocated to each distinct performance obligation on a relative standalone selling price basis. Revenue is recognized when or as performance obligations are satisfied. Contract payment terms vary from due upon receipt to net 30 days. Collectability is assessed based on a number of factors including collection history and creditworthiness of the customer. If collectability of substantially all consideration to which we are entitled under the contract is determined to be not probable, revenue is not recorded until collectability becomes probable at a later date. Revenue is recorded based on the transaction price excluding amounts collected on behalf of third parties, such as sales taxes collected and remitted to governmental authorities. Insurance and Warranty Revenue Insurance Revenue Starting in April 2021, through the newly acquired HOA, we are authorized to write various forms of homeowners insurance. Insurance-related revenues primarily relate to premiums, policy fees, ceding commissions and reinsurance profit share. Premiums are recognized as revenue over the policy term. The portion of premiums related to the unexpired term of policies in force as of the end of the reporting period and to be earned over the remaining term of these policies, is deferred and reported as deferred revenue. Policy fees on policies where premium is traditionally paid in full upon inception of the policy are recognized when written. Excess ceding commissions represent the commissions from reinsurers in excess of the portion which represents the reimbursement of acquisition costs associated with insurance risk ceded to reinsurers and is earned on a pro-rata basis over the life of the reinsurance policy. Reinsurance profit share is additional ceding commissions payable to us based on attaining specified loss ratios within individual treaty years. Reinsurance profit share income is recognized when earned, which includes adjustments to earned reinsurance profit share based on changes in incurred losses. We sell homeowner and auto insurance policies for third-party insurance carriers. The transaction price for these arrangements is the estimated lifetime value (“LTV”) of the commissions to be paid by the third-party carrier for the policies sold. The LTV represents fixed first-year commission upon sale of the policy as well as the estimated variable future renewal commissions expected. We constrain the transaction price based on its best estimate of the amount which will not result in a significant reversal of revenue in a future period. After a policy is sold for an insurance carrier, we have no additional or ongoing contractual obligation to the policyholder or insurance carrier. We estimate LTV each period by evaluating various factors, including commission rates for specific carriers and estimated average plan duration based on insurance carrier and market data related to policy renewals for similar insurance policies. Management reviews and monitors changes in the data used to estimate LTV as well as the cash received for each policy type compared to original estimates. If we identify changes that we believe are indicative of an increase or decrease to prior period LTVs, we will update estimates of variable consideration. There were no changes to the estimated variable consideration for the periods presented. Warranty Revenue We provide warranty products to homeowners which are sold through various channels including home inspection companies, real estate agents and direct to customers. These products provide customers with product protection that enhances or extends coverage offered by the manufacturer’s warranty and provides additional customer-friendly benefits that go beyond the scope of a manufacturer’s warranty. Typically, our home warranty policies cover a ninety three year period. Revenue for these policies is recognized ratably over the actual warranty coverage period for each individual policy. We also offer products that customers may purchase to extend the manufacturer’s covered warranties for a term of up to twenty-five years. Revenue for these policies is recognized over the term of the agreement in proportion to our relief from risk we expect to incur in satisfying the contract obligations. Software and Service Subscription Revenue Software and service subscription revenue is primarily generated from the vertical software services provided to home inspectors, roofing companies, title insurance companies, mortgage companies, and other home services companies. We do not provide the customer with the right to take possession of any part of the software supporting the cloud-based application services. Our typical subscription contracts are monthly or annual contracts in which pricing is based on a specified volume of activity. We also provide certain data analytics, transaction monitoring and marketing services under subscription and service contracts. Fees earned for providing access to the software and services are non-refundable, and there is no right of return. Revenue is recognized based on the amount to which we are entitled for providing access to the software and services during the contract term. Move-Related Revenue Move-related revenue is generated when we connect service providers directly to homeowners and includes fees earned from providing primarily moving services directly to the homeowner. We generally invoice for move-related services on a fixed-fee or time-and-materials basis as contractually agreed-upon with the end customer. Revenue is generally recognized as services are performed, which is typically on the same day or over a few days. Fees earned for providing move-related services are non-refundable, and there is generally no right of return. In certain of our move-related product offerings, we act as the principal in the revenue transactions as we are primarily responsible to the end customer for providing the service, we have a level of discretion in establishing pricing, and we control the service prior to providing it to the end customer. This control is evidenced by the ability to identify, select, and direct the service provider that provides the ultimate service to end customers, and we recognize these revenues on a gross basis. In other instances, third-party merchant partners are responsible for delivering the service to the end customer. Revenue for these arrangements is recognized on a net basis. Post-Move Revenue Post-move revenue is generated by connecting third-party service providers (“Service Providers”) with homeowners that meet pre-defined criteria and who may be looking for relevant services. Revenue generated from Service Providers is recognized at a point in time upon the connection of a homeowner to the Service Provider, at which point our performance obligation has been satisfied. The transaction price is generally either a fixed price per qualifying lead or activated service (fixed consideration), or a percentage of the revenue the Service Provider ultimately generates through the homeowner connection (variable consideration). When the transaction price is variable, the transaction price is constrained and limited to an amount we believe is not probable of significant reversal. Amounts received in advance of delivery of leads to the Service Provider is recorded as deferred revenue. Certain Service Providers have the right to return leads in limited instances. An estimate of returns is included as a reduction of revenue based on historical experience or specific identification depending on the contractual terms of the arrangement. Estimated returns are not material in any period presented. Post-move revenue also includes fees earned from providing a variety of services directly to the homeowner, mainly handyman services. We generally invoice for service projects on a fixed fee or time and materials basis as contractually agreed-upon with the end customer (i.e., the transaction price). Revenue is recognized as services are performed based on an output measure of progress, which is generally over a short duration. Fees earned for providing service projects are non-refundable, and there is generally no right of return. We act as the principal in these service transactions as we are primarily responsible to the end customer for providing the service, we have a level of discretion in establishing pricing, and we control the service prior to providing it to the end customer. This control is evidenced by the ability to identify, select, and direct the service provider that provides the ultimate service to end customers. We have applied the practical expedients not to present unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which we recognize revenue at the amount which we have the right to invoice for services performed. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of insurance losses and loss adjustment expenses, claims personnel costs, warranty claims, third-party providers for executing moving labor and handyman services when we are managing the job, data costs related to marketing campaigns, certain call center costs, credit card processing, and merchant fees. |
Product and Technology Development | Product and Technology Development Product and technology development costs primarily include payroll, employee benefits, stock-based compensation expense, and other headcount-related costs associated with product development, net of costs capitalized as internally developed software. Also included are cloud computing, hosting and other technology costs, software subscriptions, professional services, and amortization of internally developed software. |
Advertising | Advertising Advertising costs are expensed as incurred. During the years ended December 31, 2023, 2022, and 2021, we incurred $13.9 million, $13.5 million, and $3.6 million in advertising costs, respectively. Advertising costs are included in selling and marketing expenses in our |
Income Taxes | Income Taxes We account for income taxes in accordance with Accounting Standards Codification (“ASC”) Topic 740, Income Taxes . Under the asset and liability method specified by ASC 740, deferred tax assets and liabilities are recognized for the future consequences of differences between the carrying amounts of existing assets and liabilities and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets are established when it is more likely than not that some or all of the deferred tax assets will not be realized. In addition, ASC 740 provides comprehensive guidance on the recognition and measurement of tax positions in previously filed tax returns or positions expected to be taken in future tax returns. The benefit from an uncertain tax position must meet a more-likely-than-not recognition threshold and is measured at the largest amount of benefit greater than 50% determined by cumulative probability of being realized upon ultimate settlement with the taxing authority. Our policy is to recognize interest and penalties expense, if any, related to uncertain tax positions as a component of income tax expense. |
Stock-Based Compensation | Stock-Based Compensation We issue stock-based compensation to employees in the form of stock options, restricted stock units, and restricted stock awards. The awards are accounted for by expensing the grant-date fair value of the related award over the requisite service period, which is generally the vesting period. Forfeitures are accounted for when they occur. We also issue awards which contain performance and/or market conditions. For awards with performance conditions, we recognize compensation expense only if the specified performance condition is probable of achievement. We update our assessment of probability at each reporting period. All compensation expense for performance awards with only market conditions is recognized if the requisite service period is fulfilled, even if the market condition is not satisfied. The awards are generally expensed on a straight-line basis, except for awards with performance or market conditions which are expensed on a graded vesting basis. |
Warrants | Warrants We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms. For warrants that meet all of the criteria for equity classification, the warrants are recorded as a component of additional paid-in capital at the time of issuance. For warrants that do not meet all the criteria for equity classification, the warrants are recorded as a liability at their initial fair value, and then are remeasured as of each balance sheet date thereafter. Changes in the estimated fair value of the liability for warrants are recognized as a non-cash gain or loss on the |
Business Combinations | Business Combinations We account for business acquisitions using the acquisition method of accounting and record any identifiable definite-lived intangible assets separate from goodwill. Intangible assets are recorded at their fair values based on estimates as of the date of acquisition. Goodwill is recorded as the residual amount of the purchase price consideration less the fair value assigned to the individual identifiable assets acquired and liabilities assumed as of the date of acquisition. We allocate the purchase price of the acquisition to the assets acquired and liabilities assumed based on estimates of the fair value at the dates of the acquisitions. Contingent consideration, which represents an obligation to make additional payments or equity interests to the former owner(s) as part of the purchase price if specified future events occur or conditions are met, is accounted for at the acquisition date fair value either as a liability or as equity depending on the terms of the acquisition agreement. |
Leases | Leases We determine if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under ASC 842, Leases , a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. We also consider whether its service arrangements include the right to control the use of an asset. Operating leases are primarily for office space and are included in operating lease right-of-use assets (“ROU assets”), accrued expenses and other current liabilities, and other liabilities on our Our leases may include a non-lease component representing additional services transferred to us, such as common area maintenance for real estate. We have made an accounting policy election to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. Non-lease components that are variable in nature are recorded in variable lease expense in the period incurred. We use our incremental borrowing rate to determine the present value of lease payments, as our leases do not have a readily determinable implicit discount rate. The incremental borrowing rate is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term and amount in a similar economic environment. Judgment is applied in assessing factors such as Company-specific credit risk, lease term, nature and quality of the underlying collateral, currency, and economic environment in determining the incremental borrowing rate to apply to each lease. For operating leases with a term of one year or less, we have elected to not recognize a lease liability or ROU asset on our |
Other Income (Expense), Net | Other Income (Expense), Net The following table details the components of other income, net, on the Year Ended December 31, 2023 2022 2021 Interest income $ 3,895 $ 717 $ 33 Gain on settlement of accounts payable — — 175 Other, net (2) (146) 132 Other income, net $ 3,893 $ 571 $ 340 |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting--Improvements to Reportable Segment Disclosures, which requires incremental disclosures about a public entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. The guidance will first be effective in our annual disclosures for the year ending December 31, 2024, and will be adopted retrospectively unless impracticable. Early adoption is permitted. We are in the process of assessing the impact of ASU 2023-07 on our disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires disaggregated information about our effective tax rate reconciliation as well as information on income taxes paid. The new guidance will first be effective in our annual disclosures for the year ending December 31, 2025, and should be applied on a prospective basis with the option to apply retrospectively. Early adoption is permitted. We are in the process of assessing the impact of ASU 2023-09 on our disclosures. In March 2024, the SEC adopted new rules relating to the disclosure of a range of climate-change-related physical and transition risks, data, and opportunities. The adopted rule contains several new disclosure obligations, including, (i) disclosure on how the board of directors and management oversee climate-related risks and certain climate-related governance items, (ii) disclosure of information related to a registrant’s climate-related targets, goals, and/or transition plans, and (iii) disclosure on whether and how climate-related events and transition activities impact line items above a threshold amount on a registrant’s consolidate financial statements, including the impact of the financial estimates and the assumptions used. This new rule will first be effective in our annual disclosures for the year ending December 31, 2027. We are in the process of assessing the impact on our consolidated financial statements and disclosures. Accounting Standards Recently Adopted On January 1, 2023, we adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the Current Expected Credit Losses (“CECL”) methodology. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. In addition, ASC 326 made changes to the accounting for available-for-sale securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities we do not intend to sell or believe that is more likely than not we will be required to sell. We adopted ASC 326 using a modified retrospective method. During the year ended December 31, 2023, we did not have any credit losses and, as such, we have not presented any allowance. See Note 3, Investments, for more details. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The reconciliation of cash, cash equivalents, and restricted cash to amounts presented in the December 31, 2023 2022 Cash and cash equivalents $ 258,418 $ 215,060 Restricted cash and cash equivalents 38,814 13,545 Cash, cash equivalents, and restricted cash $ 297,232 $ 228,605 |
Schedule of Property Plant and Equipment Useful Lives | Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets, as follows: Estimated Useful Lives Software and computer equipment 3 years Furniture, office equipment and other 3 – 5 years Internally developed software 2 years Leasehold improvements Shorter of useful life or remaining lease term |
Schedule of Components of Other Insurance Liabilities, Current | The following table details the components of other insurance liabilities, current, in the December 31, 2023 2022 Ceded reinsurance premiums payable $ 10,500 $ 29,204 Commissions payable, reinsurers and agents 4,650 21,045 Advance premiums 5,975 8,668 Funds held under reinsurance treaty 9,820 1,851 General and accrued expenses payable 640 942 Other insurance liabilities, current $ 31,585 $ 61,710 |
Schedule of Components of Other Income (Expense), Net | The following table details the components of other income, net, on the Year Ended December 31, 2023 2022 2021 Interest income $ 3,895 $ 717 $ 33 Gain on settlement of accounts payable — — 175 Other, net (2) (146) 132 Other income, net $ 3,893 $ 571 $ 340 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Total revenue consisted of the following: Year Ended December 31, 2023 2022 2021 Vertical Software segment Software and service subscriptions $ 67,697 $ 72,777 $ 57,004 Move-related transactions 40,350 62,317 60,996 Post-move transactions 17,069 19,821 19,150 Total Vertical Software segment revenue 125,116 154,915 137,150 Insurance segment Insurance and warranty premiums, commissions and policy fees (1) 305,186 121,033 55,283 Total Insurance segment revenue 305,186 121,033 55,283 Total revenue $ 430,302 $ 275,948 $ 192,433 _________________________________________________________ (1) Revenue recognized during the years ended December 31, 2023, 2022 and 2021, includes revenue in the Insurance segment of $271.1 million, $83.9 million and $26.6 million, respectively, which is accounted for in accordance with ASC Topic 944, Financial Services-Insurance, separately from revenue from contracts with customers. |
Summary of the Activity Impacting the Contract Assets | A summary of the activity impacting insurance commissions receivable is presented below: Balance at January 1, 2021 $ 3,529 Estimated lifetime value of commissions on insurance policies sold by carriers 8,089 Cash receipts (2,234) Balance at December 31, 2021 9,384 Estimated lifetime value of commissions on insurance policies sold by carriers 9,925 Cash receipts (3,788) Balance at December 31, 2022 15,521 Estimated lifetime value of commissions on insurance policies sold by carriers 6,583 Cash receipts (4,711) Balance at December 31, 2023 $ 17,393 |
Summary of the Activity Impacting Deferred Revenue | A summary of the activity impacting deferred revenue in the Vertical Software segment is presented below: Vertical Software Segment Deferred Revenue Balance at January 1, 2021 $ 5,208 Additional amounts deferred 5,539 Impact of acquisitions 1,170 Revenue recognized (8,103) Balance at December 31, 2021 3,814 Additional amounts deferred 19,421 Impact of acquisitions 137 Revenue recognized (19,498) Balance at December 31, 2022 3,874 Revenue recognized (16,301) Additional amounts deferred 16,142 Balance at December 31, 2023 $ 3,715 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Schedule of Gain and Losses on Investments | The following table summarizes investment income and realized gains and losses on investments during the periods presented. Year Ended December 31, 2023 2022 2021 Investment income, net of investment expenses $ 8,428 $ 1,544 $ 768 Realized gains on investments 113 22 62 Realized losses on investments (256) (392) (129) Investment income and realized gains, net of investment expenses $ 8,285 $ 1,174 $ 701 |
Summary of Amortized Cost, Market Value and Unrealized Gains (Losses) of Debt Securities | The following tables summarize the amortized cost, fair value, and unrealized gains and losses of investment securities: December 31, 2023 Amortized Cost Gross Unrealized Fair Value Gains Losses U.S. Treasuries $ 43,931 $ 95 $ (330) $ 43,696 Obligations of states, municipalities and political subdivisions 18,281 100 (961) 17,420 Corporate bonds 51,678 430 (2,067) 50,041 Residential and commercial mortgage-backed securities 25,452 153 (1,004) 24,601 Other loan-backed and structured securities 3,694 13 (289) 3,418 Total investment securities $ 143,036 $ 791 $ (4,651) $ 139,176 December 31, 2022 Amortized Cost Gross Unrealized Fair Value Gains Losses U.S. Treasuries $ 35,637 $ 5 $ (320) $ 35,322 Obligations of states, municipalities and political subdivisions 11,549 2 (1,326) 10,225 Corporate bonds 31,032 32 (2,837) 28,227 Residential and commercial mortgage-backed securities 12,790 11 (1,268) 11,533 Other loan-backed and structured securities 6,804 6 (476) 6,334 Total investment securities $ 97,812 $ 56 $ (6,227) $ 91,641 |
Summary of Remaining Time to Maturity | Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2023 Remaining Time to Maturity Amortized Cost Fair Value Due in one year or less $ 34,620 $ 34,542 Due after one year through five years 45,411 44,607 Due after five years through ten years 25,397 23,951 Due after ten years 8,462 8,057 Residential and commercial mortgage-backed securities 25,452 24,601 Other loan-backed and structured securities 3,694 3,418 Total $ 143,036 $ 139,176 |
Summary of Investments Pledged to the Department of Insurance | The following table presents investments pledged to the Department of Insurance in certain states as a condition of the Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. December 31, 2023 2022 Certificates of deposit $ 1,266 $ 1,463 U.S. Treasury notes 706 1,216 1,972 2,679 |
Summary of Securities with Gross Unrealized Loss Position | Securities with gross unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Greater Total As of December 31, 2023 Gross Fair Gross Fair Gross Fair U.S. Treasuries $ (280) $ 12,345 $ (50) $ 515 $ (330) $ 12,860 Obligations of states, municipalities and political subdivisions (813) 8,445 (148) 1,639 (961) 10,084 Corporate bonds (1,698) 21,104 (369) 4,677 (2,067) 25,781 Residential and commercial mortgage-backed securities (621) 8,673 (383) 3,072 (1,004) 11,745 Other loan-backed and structured securities (281) 2,790 (8) 52 (289) 2,842 Total securities $ (3,693) $ 53,357 $ (958) $ 9,955 $ (4,651) $ 63,312 Less Than Twelve Months Twelve Months or Greater Total As of December 31, 2022 Gross Fair Gross Fair Gross Fair U.S. Treasuries $ (127) $ 10,748 $ (193) $ 9,824 $ (320) $ 20,572 Obligations of states, municipalities and political subdivisions (929) 6,258 (397) 3,504 (1,326) 9,762 Corporate bonds (1,623) 16,531 (1,214) 10,328 (2,837) 26,859 Residential and commercial mortgage-backed securities (687) 6,565 (581) 4,952 (1,268) 11,517 Other loan-backed and structured securities (359) 4,633 (117) 1,094 (476) 5,727 Total securities $ (3,725) $ 44,735 $ (2,502) $ 29,702 $ (6,227) $ 74,437 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements of Liabilities Measured at Fair Value on Recurring Basis | The following table details the fair value measurements of assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurement as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market mutual funds $ 165,744 $ — $ — $ 165,744 Debt securities: U.S. Treasuries 43,696 — — 43,696 Obligations of states, municipalities and political subdivisions — 17,420 — 17,420 Corporate bonds — 50,041 — 50,041 Residential and commercial mortgage-backed securities — 24,601 — 24,601 Other loan-backed and structured securities — 3,418 — 3,418 $ 209,440 $ 95,480 $ — $ 304,920 Liabilities Contingent consideration - business combinations (1) $ — $ — $ 18,455 $ 18,455 Private warrant liability — — 1,151 1,151 Embedded derivatives — — 28,131 28,131 $ — $ — $ 47,737 $ 47,737 Fair Value Measurement as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Money market mutual funds $ 6,619 $ — $ — $ 6,619 Debt securities: U.S. Treasuries 35,322 — — 35,322 Obligations of states, municipalities and political subdivisions — 10,225 — 10,225 Corporate bonds — 28,227 — 28,227 Residential and commercial mortgage-backed securities — 11,533 — 11,533 Other loan-backed and structured securities — 6,334 — 6,334 $ 41,941 $ 56,319 $ — $ 98,260 Liabilities Contingent consideration - business combinations (2) $ — $ — $ 24,546 $ 24,546 Contingent consideration - earnout — — 44 44 Private warrant liability — — 707 707 $ — $ — $ 25,297 $ 25,297 ______________________________________ (1) The (2) The |
Schedule of Level 3 Items Measured at Fair Value on a Recurring Basis | The changes for Level 3 items measured at fair value on a recurring basis using significant unobservable inputs are as follows: Contingent Consideration - Earnout Contingent Consideration - Business Combinations Embedded Derivatives Private Warrant Liability Fair value as of December 31, 2022 $ 44 $ 24,546 $ — $ 707 Additions — — 23,870 — Settlements — (427) — — Change in fair value, loss (gain) included in net loss (1) (44) (5,664) 4,261 444 Fair value as of December 31, 2023 $ — $ 18,455 $ 28,131 $ 1,151 Contingent Consideration - Earnout Contingent Consideration - Business Combinations Private Warrant Liability Fair value as of December 31, 2021 $ 13,866 $ 9,617 $ 15,193 Additions — 8,700 — Settlements — (715) — Change in fair value, loss (gain) included in net loss (1) (13,822) 6,944 (14,486) Fair value as of December 31, 2022 $ 44 $ 24,546 $ 707 _________________________________________________________ (1) Changes in fair value of contingent consideration related to business combinations are included in general and administrative expenses in the |
Property, Equipment, and Soft_2
Property, Equipment, and Software (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment, and Software Net | Property, equipment, and software, net, consists of the following: December 31, 2023 2022 Software and computer equipment $ 8,340 $ 8,326 Furniture, office equipment, and other 1,573 2,118 Internally developed software 24,526 17,128 Leasehold improvements 1,176 1,178 Total 35,615 28,750 Less: Accumulated depreciation and amortization (18,754) (16,510) Property, equipment, and software, net $ 16,861 $ 12,240 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following tables summarize intangible asset balances. As of December 31, 2023 Weighted Intangible Accumulated Intangible Customer relationships 8 $ 69,504 $ (24,153) $ 45,351 Acquired technology 5 36,041 (22,358) 13,683 Trademarks and tradenames 11 23,443 (6,701) 16,742 Non-compete agreements 3 616 (455) 161 Value of business acquired 1 400 (400) — Renewal rights 6 9,734 (3,415) 6,319 Insurance licenses Indefinite 4,960 — 4,960 Total intangible assets $ 144,698 $ (57,482) $ 87,216 As of December 31, 2022 Weighted Intangible Accumulated Intangible Customer relationships 9 $ 69,730 $ (15,079) $ 54,651 Acquired technology 5 37,932 (16,468) 21,464 Trademarks and tradenames 10 25,071 (5,724) 19,347 Non-compete agreements 3 619 (407) 212 Value of business acquired 1 400 (400) — Renewal rights 6 9,734 (2,113) 7,621 Insurance licenses Indefinite 4,960 — 4,960 Total intangible assets $ 148,446 $ (40,191) $ 108,255 |
Schedule of Estimated Intangibles Amortization Expense | The following table shows estimated future intangible amortization expense for the next five years and thereafter. Year ending December 31, Estimated 2024 $ 18,439 2025 14,862 2026 10,201 2027 9,063 2028 8,347 Thereafter 21,344 $ 82,256 |
Summary of Changes in the Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill: Balance as of December 31, 2020 $ 28,289 Acquisitions 197,365 Balance as of December 31, 2021 225,654 Acquisitions 38,064 Impairment loss (Insurance segment) (43,758) Purchase price adjustments (1) 24,737 Balance as of December 31, 2022, net of accumulated impairment of $43.8 million 244,697 Acquisition 2,421 Impairment loss (Insurance segment) (55,211) Balance as of December 31, 2023, net of accumulated impairment of $99.0 million $ 191,907 ______________________________________ (1) During the year ended December 31, 2022, we recorded an adjustment to the fair value of net assets previously acquired during the year ended December 31, 2021. See Note 12, Business Combinations, for more information. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables summarize outstanding debt as of December 31, 2023 and 2022. Principal Unaccreted Debt Carrying Convertible senior notes, due 2026 $ 225,000 $ — $ (3,311) $ 221,689 Convertible senior notes, due 2028 333,334 (115,353) (4,312) 213,669 Advance funding arrangement 94 — — 94 Other notes 300 (13) — 287 Balance as of December 31, 2023 $ 558,728 $ (115,366) $ (7,623) $ 435,739 Principal Unaccreted Debt Carrying Convertible senior notes, due 2026 $ 425,000 $ — $ (8,508) $ 416,492 Advance funding arrangement 15,670 (760) — 14,910 Term loan facility, due 2029 10,000 — — 10,000 Other notes 450 (87) — 363 Balance as of December 31, 2022 $ 451,120 $ (847) $ (8,508) $ 441,765 |
Schedule of Minimum Principal Payment Commitments | Minimum principal payment commitments as of December 31, 2023, are as follows: Year ending December 31, Principal 2024 $ 244 2025 150 2026 225,000 2027 15,000 2028 318,334 Thereafter — $ 558,728 |
Stockholders' Equity and Warr_2
Stockholders' Equity and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Summary of Fully Diluted Capital Structure | The following table summarizes our fully diluted capital structure. December 31, 2023 2022 Issued and outstanding common shares 97,061 96,406 Earnout shares (1) — 2,050 Total common shares issued and outstanding 97,061 98,456 Common shares reserved for future issuance: Private warrants 1,796 1,796 Stock options (Note 9) 3,642 3,863 Restricted and performance stock units and awards (Note 9) 12,065 6,230 2020 Equity Plan pool reserved for future issuance (Note 9) 8,009 11,190 Convertible senior notes, due 2026 ⁽²⁾ 8,999 16,998 Convertible senior notes, due 2028 13,332 — Contingently issuable shares in connection with acquisitions (3) 5,908 10,632 Total shares of common stock outstanding and reserved for future issuance 150,812 149,165 ______________________________________ (1) Earnout shares expired on December 23, 2023, without vesting and were subsequently cancelled. (2) In connection with the September 16, 2021, issuance of the 2026 Notes, we used a portion of the proceeds to pay for the capped call transactions, which are expected to generally reduce the potential dilution to our common stock. The capped call transactions impact the number of shares that may be issued by effectively increasing our conversion price from $25 per share to approximately $37.74 per share, which would result in approximately 6 million potentially dilutive shares instead of the shares reported in this table as of December 31, 2023. (3) In connection with the acquisitions of Floify and HOA, we provided an obligation to issue a certain amount of common stock to the extent specified market conditions are met in the future. Contingently issuable shares are calculated in accordance with the purchase agreement, assuming they would be issuable if the end of the reporting periods were the end of the contingency period. The contingency period for the Floify acquisition ends in December 2024. The contingency period for the HOA acquisition ended in April 2023. |
Schedule of Stockholders' Equity Note, Warrants or Rights | Detail related to private warrant activity is as follows: Number of Number of Balances as of December 31, 2020 14,325 — Exercised (12,353) 11,521 Canceled (176) — Balances as of December 31, 2021, 2022, and 2023 1,796 11,521 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes the classification of stock-based compensation expense in the Consolidated Statements of Operations and Comprehensive Loss: Year Ended December 31, 2023 2022 2021 Cost of revenue $ — $ — $ 1 Selling and marketing 3,351 4,855 5,584 Product and technology 4,804 5,435 7,223 General and administrative 12,554 16,751 25,784 Total stock-based compensation expense $ 20,709 $ 27,041 $ 38,592 Stock-based compensation consists of expense related to Equity Awards, earnout restricted stock, and a secondary market transaction as described below: Year Ended December 31, 2023 2022 2021 Secondary market transaction (1) $ — $ — $ 1,933 Employee earnout restricted stock — — 22,961 Employee awards 20,709 27,041 13,698 Total operating expenses $ 20,709 $ 27,041 $ 38,592 ______________________________________ (1) |
Schedule of Stock Option Activity | Detail related to stock option activity for the year ended December 31, 2023, is as follows: Number of Weighted- Weighted- Aggregate Balances as of December 31, 2022 3,863 $ 3.58 Options exercised (20) 1.28 $ 9 Options forfeited (34) 7.98 Options expired (167) 5.32 Balances as of December 31, 2023 3,642 $ 3.47 4.6 $ 1,827 Exercisable at December 31, 2023 3,544 $ 3.30 4.5 $ 1,827 |
Schedule of Fair Value of Assumptions | The fair value of each employee stock option granted during the years ended December 31, 2022 and 2021, were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2022 2021 Risk-free interest rate 3.2% 0.9 – 1.3 % Expected term (years) 6 5 – 6 Dividend yield — — Volatility 60% 60 – 61 % Weighted-average grant-date fair value per share $1.85 $8.23 |
Summary of the Activity of Restricted Stock Awards | The following table summarizes the activity of RSUs for the year ended December 31, 2023: Number of Weighted Balances as of December 31, 2022 5,309 $ 8.21 Granted 6,415 1.39 Vested (2,303) 8.14 Forfeited (1,111) 4.40 Balances as of December 31, 2023 8,310 $ 3.34 |
Summary of the Activity of Performance Restricted Stock Unit Awards | The following table summarizes the activity of PRSUs for the year ended December 31, 2023: Number of Weighted Balances as of December 31, 2022 921 $ 4.94 Granted 2,833 0.93 Balances as of December 31, 2023 3,754 $ 1.91 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of the Income Tax (Benefit) Provision | The components of the income tax provision are as follows: Year Ended December 31, 2023 2022 2021 Current: Federal $ — $ (483) $ 1,065 State (399) (644) (205) Total current (399) (1,127) 860 Deferred Federal (66) 285 8,561 State (157) — 852 Total deferred (223) 285 9,413 Income tax (expense) benefit $ (622) $ (842) $ 10,273 |
Schedule of Significant Deferred Tax Assets and Deferred Tax Liabilities | The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized. December 31, 2023 2022 Deferred tax assets Accrued expenses and other $ 3,721 $ 1,230 Unrealized gain/loss on investments 811 1,296 Stock-based compensation 2,638 1,626 Deferred revenue 27,599 49,053 Goodwill 9,217 6,378 Operating lease liabilities 793 1,071 Loss and loss adjustment reserves 2,479 16,392 Net operating losses 102,044 100,920 Disallowed interest 9,650 5,676 Research and development capitalized costs 169 521 Valuation allowance (140,535) (117,568) Total deferred tax assets 18,586 66,595 Deferred tax liabilities Property and equipment (98) (87) Intangibles (1,167) (3,614) Operating lease right-of-use assets (774) (1,026) Deferred policy acquisition costs (5,715) (1,907) Reinsurance balance due (11,491) (59,794) Internally developed software — (590) Total deferred tax liabilities (19,245) (67,018) Net deferred tax liabilities $ (659) $ (423) |
Schedule of Reconciliation of the Income Tax (Benefit) Provision | A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows: Year Ended December 31, 2023 2022 2021 Tax computed at federal statutory rate $ 27,995 $ 32,701 $ 24,492 State tax, net of federal tax benefit 1,934 4,879 5,531 Loss on impairment (4,775) (3,836) — Equity compensation (3,311) (3,939) 12,821 Officer compensation (15) (860) (5,306) Debt transactions (1,591) 4,808 (1,791) Enacted tax rate changes (2,061) 90 123 Return to provision 4,816 (6,533) (648) Valuation allowance (23,453) (27,724) (25,296) Other (161) (428) 347 Income tax benefit (expense) $ (622) $ (842) $ 10,273 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Estimated Fair Value of the Assets Acquired and Liabilities Assumed for Business Combinations | The following table summarizes the total consideration and the estimated fair value of the assets acquired and liabilities assumed for business combinations during 2022: Weighted Average Useful Life (in years) RWS Other Total Purchase consideration: Cash $ 25,572 $ 13,763 $ 39,335 Issuance of common stock 3,552 — 3,552 Holdback liabilities and amounts in escrow 1,000 1,500 2,500 Contingent consideration - liability-classified 8,700 — 8,700 Total purchase consideration: $ 38,824 $ 15,263 $ 54,087 Assets: Cash, cash equivalents and restricted cash $ 2,030 $ 256 $ 2,286 Current assets 525 7 532 Property and equipment 497 — 497 Operating lease right-of-use assets 871 — 871 Intangible assets: Customer relationships 8 13,860 2,750 16,610 Acquired technology 5 500 1,480 1,980 Trademarks and tradenames 9 400 200 600 Non-competition agreements 7 180 20 200 Goodwill 27,366 10,698 38,064 Total assets acquired 46,229 15,411 61,640 Current liabilities (6,869) (148) (7,017) Operating lease liabilities, non-current (536) — (536) Net assets acquired $ 38,824 $ 15,263 $ 54,087 The following table summarizes the total consideration and the estimated fair value of the assets acquired and liabilities assumed for business combinations during 2021: Weighted Average Useful Life (in years) V12 Data HOA Rynoh AHP Floify Other Acquisitions Total Purchase consideration: Cash $ 20,196 $ 84,370 $ 32,302 $ 43,750 $ 75,959 $ 27,121 $ 283,698 Issuance of common stock — 22,773 — — 9,908 3,026 35,707 Holdback liabilities and amounts in escrow 150 1,000 3,500 2,500 900 1,775 9,825 Contingent consideration - equity-classified — 6,685 — — — — 6,685 Contingent consideration - liability-classified 1,410 — — — 8,632 327 10,369 Total purchase consideration: $ 21,756 $ 114,828 $ 35,802 $ 46,250 $ 95,399 $ 32,249 $ 346,284 Assets: Cash, cash equivalents and restricted cash $ 1,035 $ 17,766 $ 408 $ 5,078 $ 1,508 $ 1,473 $ 27,268 Current assets 4,939 235,669 932 8,221 221 1,795 251,777 Property and equipment 996 615 334 17 87 80 2,129 Operating lease right-of-use assets 1,383 1,258 159 913 731 445 4,889 Intangible assets: Customer relationships 9 1,650 16,700 12,700 — 7,000 10,320 48,370 Acquired technology 4 3,525 — 2,800 — 28,300 1,340 35,965 Trademarks and tradenames 12 1,225 12,200 900 700 6,025 650 21,700 Non-competition agreements 2 40 — 90 — 40 55 225 Value of business acquired 7 — 400 — — — — 400 Renewal rights 8 — 7,692 — 2,042 — — 9,734 Trademarks and tradenames Indefinite — — — — — 4,750 4,750 Insurance licenses Indefinite — 4,960 — — — — 4,960 Goodwill 16,708 45,370 22,051 45,681 53,056 14,499 197,365 Other non-current assets — 55,165 — 25 — 3 55,193 Total assets acquired 31,501 397,795 40,374 62,677 96,968 35,410 664,725 Current liabilities (6,871) (269,460) (517) (15,487) (1,014) (2,485) (295,834) Operating lease liabilities, non-current (848) (898) (72) (685) (555) (204) (3,262) Long term liabilities (2,026) (7,434) — (79) — (46) (9,585) Deferred tax liabilities, net — (5,175) (3,983) (176) — (426) (9,760) Net assets acquired $ 21,756 $ 114,828 $ 35,802 $ 46,250 $ 95,399 $ 32,249 $ 346,284 |
Summary of the Fair Value of the Intangible Assets as of the Date of the Acquisition | The following table summarizes the fair value of the intangible assets of RWS as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 13,860 8 Acquired technology 500 3 Trademarks and tradenames 400 9 Non-competition agreements 180 7 $ 14,940 The following table summarizes the fair value of the intangible assets of V12 Data as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 1,650 10 Acquired technology 3,525 4 Trademarks and tradenames 1,225 15 Non-competition agreements 40 2 $ 6,440 The following table summarizes the fair value of the intangible assets of HOA as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 16,700 10 Trademarks and tradenames 12,200 10 Business acquired 400 1 Renewal rights 7,692 8 Insurance licenses 4,960 Indefinite $ 41,952 The following table summarizes the fair value of the intangible assets of Rynoh as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 12,700 10 Acquired technology 2,800 7 Trademarks and tradenames 900 20 Non-competition agreements 90 1 $ 16,490 The following table summarizes the fair value of the intangible assets of AHP as of the date of the acquisition: Fair Estimated Intangible assets: Renewal rights $ 2,042 6 Trademarks and tradenames 700 10 $ 2,742 The following table summarizes the fair value of the intangible assets of Floify as of the date of the acquisition: Fair Estimated Intangible assets: Customer relationships $ 7,000 4 Acquired technology 28,300 4 Trademarks and tradenames 6,025 15 Non-competition agreements 40 3 $ 41,365 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease Cost | The components of lease expense are as follows: Year Ended December 31, 2023 2022 2021 Operating lease cost $ 2,123 $ 2,621 $ 2,155 Variable lease cost 129 254 339 $ 2,252 $ 2,875 $ 2,494 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows for operating leases $ 1,854 $ 2,082 $ 2,141 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 807 $ 6,835 $ 6,365 |
Schedule of Supplemental Balance Sheet Information Related to Leases | December 31, Financial Statement Line Item 2023 2022 Operating lease right-of-use assets Other assets $ 3,209 $ 4,201 Operating lease liabilities, current Accrued expenses and other current liabilities $ 1,669 $ 1,810 Operating lease liabilities, non-current Other liabilities 1,630 2,536 Total operating lease liabilities $ 3,299 $ 4,346 |
Schedule of Other Information Related to Operating Leases | Other information related to operating leases is as follows: Year Ended December 31, 2023 2022 2021 Weighted average remaining lease term 2.6 years 2.9 years 2.1 years Weighted average discount rate 8.6% 8.8% 9.4% |
Schedule of Future Undiscounted Cash Flows for Each of the Next Five Years and Thereafter and Reconciliation to the Lease Liabilities Recognized on the Balance Sheet | Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the Lease 2024 $ 1,871 2025 1,008 2026 528 2027 174 2028 62 Thereafter — Total lease payments 3,643 Less imputed interest (344) Total present value of lease liabilities $ 3,299 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Effects of Reinsurance on Premiums Written, Earned, Incurred Losses and LAE | The effects of reinsurance on premiums written and earned for the periods since the acquisition date of April 5, 2021, were as follows: Year Ended December 31, 2023 2022 2021 Written Earned Written Earned Written Earned Direct premiums $ 445,587 $ 462,434 $ 462,179 $ 395,968 $ 266,609 $ 213,423 Ceded premiums (76,643) (235,171) (399,400) (349,952) (237,102) (199,366) Net premiums $ 368,944 $ 227,263 $ 62,779 $ 46,016 $ 29,507 $ 14,057 The effects of reinsurance on incurred losses and LAE for the periods since the acquisition date of April 5, 2021, were as follows: Year Ended December 31, 2023 2022 2021 Direct losses and LAE $ 300,960 $ 280,505 $ 181,256 Ceded losses and LAE (117,455) (224,202) (162,752) Net losses and LAE $ 183,505 $ 56,303 $ 18,504 |
Schedule of Reinsurance Balances Due | The detail of reinsurance balances due is as follows: December 31, 2023 2022 Ceded unearned premium $ 50,697 $ 203,157 Losses and LAE reserve 19,911 76,999 Reinsurance recoverable 12,629 18,765 Other 345 139 Reinsurance balance due $ 83,582 $ 299,060 |
Unpaid Losses and Loss Adjust_2
Unpaid Losses and Loss Adjustment Reserve (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Schedule of Rollforward of the Beginning and Ending Reserve Balances for Unpaid Losses and LAE, Gross of Reinsurance | The following tables summarizes the changes in the reserve balances for unpaid losses and LAE, gross of reinsurance, for the year ended December 31, 2023: Reserve for unpaid losses and LAE at December 31, 2022 $ 100,632 Reinsurance recoverables on losses and LAE at December 31, 2022 (76,999) Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2022 23,633 Add provisions (reductions) for losses and LAE occurring in: Current year (1) 197,792 Prior years (158) Net incurred losses and LAE during the current year 197,634 Deduct payments for losses and LAE occurring in: Current year (125,370) Prior years (20,202) Net claim and LAE payments during the current year (145,572) Reserve for losses and LAE, net of reinsurance recoverables at December 31, 2023 75,695 Reinsurance recoverables on losses and LAE at December 31, 2023 19,808 Reserve for unpaid losses and LAE at December 31, 2023 $ 95,503 ______________________________________ (1) Also includes certain charges related to Vesttoo (see Note 14, Reinsurance, for more information). The following tables summarizes the changes in reserve balances for unpaid losses and LAE, gross of reinsurance for the year ended December 31, 2022: Reserve for unpaid losses and LAE at December 31, 2021 $ 61,949 Reinsurance recoverables on losses and LAE at December 31, 2021 (56,752) Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2021 5,197 Add provisions (reductions) for losses and LAE occurring in: Current year (1) 55,148 Prior years 1,155 Net incurred losses and LAE during the current year 56,303 Deduct payments for losses and LAE occurring in: Current year (32,111) Prior years (5,756) Net claim and LAE payments during the current year (37,867) Reserve for losses and LAE, net of reinsurance recoverables at December 31, 2022 23,633 Reinsurance recoverables on losses and LAE at December 31, 2022 76,999 Reserve for unpaid losses and LAE at December 31, 2022 $ 100,632 |
Schedule of Incurred and Paid Losses by Accident Year, Net of Reinsurance | The following supplementary information presents incurred and paid losses by accident year, net of reinsurance ($ in thousands, except for number of claims): December 31, 2023 Incurred losses and allocated loss adjustment expenses, net of reinsurance, Cumulative 2019 2020 2021 2022 2023 IBNR Reserves Reported Claims (unaudited) (unaudited) (unaudited) (unaudited) Accident Year 2019 $ 9,666 $ 9,678 $ 9,773 $ 9,786 $ 9,812 $ 42 10,838 2020 12,664 14,281 14,587 14,717 57 13,230 2021 19,795 20,614 23,149 585 35,082 2022 55,110 52,065 2,147 25,274 2023 183,669 36,599 20,188 Total $ 283,412 $ 39,430 104,612 Cumulative paid losses and allocated adjustment expenses, net of reinsurance, 2019 2020 2021 2022 2023 (unaudited) (unaudited) (unaudited) (unaudited) Accident Year 2019 $ 7,405 $ 9,324 $ 9,578 $ 9,694 $ 9,715 2020 9,750 13,865 14,142 14,500 2021 15,335 20,569 21,652 2022 32,073 50,705 2023 125,370 Total $ 221,942 Liability for losses and loss adjustment expenses, net of reinsurance $ 61,471 |
Schedule of Average Annual Percentage Payout of Accident Year Incurred Claims by Age, Net of Reinsurance | Average annual percentage payout of accident year incurred claims by age, net of reinsurance (unaudited supplementary information) as of December 31, 2023: 1 2 3 4 5 85.6% 13.5% 7.0% 0.2% —% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Non-Cancelable Purchase Commitments | As of December 31, 2023, we had non-cancelable purchase commitments over the next five years, primarily for data purchases, as follows: 2024 $ 4,435 2025 3,030 2026 1,021 2027 1,121 2028 — $ 9,607 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Segment | The following table summarizes revenue by segment. Year Ended December 31, 2023 2022 2021 Vertical Software $ 125,116 $ 154,915 $ 137,150 Insurance 305,186 121,033 55,283 Total revenue $ 430,302 $ 275,948 $ 192,433 |
Schedule of Financial Information of Reportable Segments and Reconciliations to Consolidated Financial Information | The reconciliation of Segment Adjusted EBITDA (Loss) to consolidated “Operating loss” below includes the effects of corporate and other items that the CODM does not consider in assessing segment performance. Year Ended December 31, 2023 2022 2021 Segment Adjusted EBITDA (Loss): Vertical Software $ 4,307 $ 14,678 $ 20,733 Insurance 12,320 (5,499) 9,007 Subtotal 16,627 9,179 29,740 Reconciling items: Corporate and other (61,141) (58,780) (53,760) Depreciation and amortization (24,415) (27,930) (16,386) Impairment loss on intangible assets and goodwill (57,232) (61,386) — Impairment loss on property, equipment and software (254) (637) (550) Stock-based compensation expense (20,709) (27,041) (38,592) Restructuring costs (1) (4,015) (647) — Acquisition and other transaction costs (552) (1,687) (5,360) Loss on reinsurance contract (see Note 14) (36,042) — — Change in fair value of contingent consideration 5,664 (6,944) 2,244 Investment income and realized gains (8,285) (1,174) (701) Operating loss $ (190,354) $ (177,047) $ (83,365) ______________________________________ (1) Primarily consists of costs related to forming a reciprocal exchange. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share, Basic and Diluted | The following table sets summarizes the computation of basic and diluted net loss per share attributable to common stockholders for the years ended December 31, 2023, 2022 and 2021. Year Ended December 31, 2023 2022 2021 Numerator: Net loss used to compute net loss per share - basic and diluted $ (133,933) $ (156,559) $ (106,606) Denominator: Weighted average shares outstanding used to compute net loss used to compute net loss per share - basic and diluted 96,057 97,351 93,885 Net loss per share - basic and diluted $ (1.39) $ (1.61) $ (1.14) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share | The following table discloses securities that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for the periods presented. Year Ended December 31, 2023 2022 2021 Stock options 3,642 3,863 4,823 Restricted stock units and awards 8,311 5,309 2,713 Performance restricted stock units 3,754 921 — Public and private warrants 1,796 1,796 1,796 Earnout shares (1) — 2,050 2,050 Convertible debt (2) 22,331 16,998 16,998 Contingently issuable shares in connection with acquisitions (3) 5,908 10,632 1,193 ______________________________________ (1) Earnout shares expired on December 23, 2023, without vesting and were subsequently cancelled. (2) In connection with the September 16, 2021, issuance of the 2026 Notes, we used a portion of the proceeds to pay for the capped call transactions, which are expected to generally reduce the potential dilution to our common stock. The capped call transactions impact the number of shares that may be issued by effectively increasing our conversion price from $25 per share to approximately $37.74 per share, which would result in approximately 6 million potentially dilutive shares instead of the shares reported in this table as of December 31, 2023. (3) In connection with the acquisitions of Floify and HOA described in Note 12, Business Combinations, we provided an obligation to issue certain amount of common stock to the extent specified market conditions are met in the future. Contingently issuable shares are calculated in accordance with the purchase agreement, assuming they would be issuable if the end of the reporting periods were the end of the contingency period. |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Description of Business (Details) company in Thousands | 12 Months Ended |
Dec. 31, 2023 segment company | |
Accounting Policies [Abstract] | |
Number of companies, service provided | company | 30 |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Concentrations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Five Commercial Banks | Cash and Cash Equivalents | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash in bank | $ 263.6 | ||
Three Commercial Banks | Cash and Cash Equivalents | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash in bank | $ 148 | ||
Accounts Receivable | Customer Concentration Risk | Customer One | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 10% | 10% | |
Accounts Receivable | Customer Concentration Risk | Customer Two | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 10% | 10% | |
Accounts Receivable | Customer Concentration Risk | Customer Three | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 10% | ||
Accounts Receivable | Customer Concentration Risk | Customer Four | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 10% | ||
Accounts Receivable | Customer Concentration Risk | Top Reinsurers | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 57% | ||
Accounts Receivable | Customer Concentration Risk | Two Reinsurers | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 45% | ||
Revenue Benchmark | Geographic Concentration Risk | Customers in Texas | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 64% | 52% | 61% |
Revenue Benchmark | Geographic Concentration Risk | Customers in South Carolina | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, percentage | 11% | 10% | 9% |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) $ in Millions | Dec. 31, 2023 USD ($) state | Dec. 31, 2022 USD ($) state |
Accounting Policies [Abstract] | ||
Restricted cash pledged as collateral | $ 28.3 | $ 5.1 |
Restricted cash pledged against obligations to policyholders and creditors | 1.3 | 1 |
Restricted funds held for payment of possible warranty claims | $ 7.3 | $ 5 |
Number of states regulatory guidelines of warranty claims | state | 19 | 19 |
Indemnification hold back cost | $ 1.9 | $ 2.4 |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 258,418 | $ 215,060 | ||
Restricted cash and cash equivalents | 38,814 | 13,545 | ||
Cash, cash equivalents, and restricted cash | $ 297,232 | $ 228,605 | $ 324,792 | $ 207,453 |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies - Accounts Receivable and Long-term Insurance Commissions Receivable and Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Allowance for uncollectible receivables | $ 0.6 | $ 0.5 | |
Amortized deferred acquisition costs | $ 49.2 | $ 14.5 | $ 2.5 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies - Property, Equipment and Software, Intangible Asset Impairment, Advanced Funding (Details) | Dec. 31, 2023 |
Software and computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Internally developed software | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 2 years |
Minimum | Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Maximum | Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Description of Business and _10
Description of Business and Summary of Significant Accounting Policies - Components of Other Insurance Liabilities, Current (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Ceded reinsurance premiums payable | $ 10,500 | $ 29,204 |
Commissions payable, reinsurers and agents | 4,650 | 21,045 |
Advance premiums | 5,975 | 8,668 |
Funds held under reinsurance treaty | 9,820 | 1,851 |
General and accrued expenses payable | 640 | 942 |
Other insurance liabilities, current | $ 31,585 | $ 61,710 |
Description of Business and _11
Description of Business and Summary of Significant Accounting Policies - Revenue, Advertising, Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Contract Cost [Line Items] | |||
Extension term of home warranty contracts | 25 years | ||
Advertising costs | $ 13.9 | $ 13.5 | $ 3.6 |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Term of home warranty contracts | 90 days | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Term of home warranty contracts | 3 years |
Description of Business and _12
Description of Business and Summary of Significant Accounting Policies - Leases (Details) | Dec. 31, 2023 |
Accounting Policies [Abstract] | |
Operating lease, threshold for recognition | 1 year |
Description of Business and _13
Description of Business and Summary of Significant Accounting Policies - Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Interest income | $ 3,895 | $ 717 | $ 33 |
Gain on settlement of accounts payable | 0 | 0 | 175 |
Other, net | (2) | (146) | 132 |
Total other income (expense), net | $ 3,893 | $ 571 | $ 340 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 430,302 | $ 275,948 | $ 192,433 |
Vertical Software Segment Deferred Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 125,116 | 154,915 | 137,150 |
Insurance | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 305,186 | 121,033 | 55,283 |
Software and service subscriptions | Vertical Software Segment Deferred Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 67,697 | 72,777 | 57,004 |
Move-related transactions | Vertical Software Segment Deferred Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 40,350 | 62,317 | 60,996 |
Post-move transactions | Vertical Software Segment Deferred Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 17,069 | 19,821 | 19,150 |
Insurance and warranty premiums, commissions and policy fees | Insurance | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 305,186 | 121,033 | 55,283 |
Revenue not from contract with customer | $ 271,100 | $ 83,900 | $ 26,600 |
Revenue - Contract Assets (Deta
Revenue - Contract Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Contract with Customer, Asset [Roll Forward] | |||
Balance at beginning of the year | $ 15,521 | $ 9,384 | $ 3,529 |
Estimated lifetime value of commissions on insurance policies sold by carriers | 6,583 | 9,925 | 8,089 |
Cash receipts | (4,711) | (3,788) | (2,234) |
Balance at end of the year | 17,393 | 15,521 | $ 9,384 |
Accounts Receivable Current | |||
Change in Contract with Customer, Asset [Roll Forward] | |||
Balance at beginning of the year | 3,300 | ||
Balance at end of the year | $ 4,000 | $ 3,300 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Allowance for credit loss, current | $ 17,393 | $ 15,521 | $ 9,384 | $ 3,529 |
Long-term accounts receivable | 13,400 | 12,300 | ||
Deferred revenue | 248,683 | 270,690 | ||
Current refundable customer deposits related to outstanding extended service contracts | 17,900 | 20,000 | ||
Refundable customer deposits related to amounts received in advance of warranty services provided, current | 3,900 | 1,900 | ||
Refundable customer deposits related to amounts received in advance of warranty services provided, non-current | 2,900 | 4,400 | ||
Warranty claims expense | 5,500 | 3,700 | ||
Insurance | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | 245,000 | 266,800 | ||
Accounts Receivable Current | ||||
Disaggregation of Revenue [Line Items] | ||||
Allowance for credit loss, current | $ 4,000 | $ 3,300 |
Revenue - Contract Liabilities
Revenue - Contract Liabilities - Activity Impacting Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change In Contract With Customer, Liability [Roll Forward] | |||
Beginning balance | $ 270,690 | ||
Ending balance | 248,683 | $ 270,690 | |
Vertical Software Segment Deferred Revenue | |||
Change In Contract With Customer, Liability [Roll Forward] | |||
Beginning balance | 3,874 | 3,814 | $ 5,208 |
Additional amounts deferred | 16,142 | 19,421 | 5,539 |
Impact of acquisitions | 137 | 1,170 | |
Revenue recognized | 16,301 | 19,498 | 8,103 |
Ending balance | $ 3,715 | $ 3,874 | $ 3,814 |
Investments - Investment Income
Investments - Investment Income, Realized and Unrealized Gains and Losses on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments [Abstract] | |||
Investment income, net of investment expenses | $ 8,428 | $ 1,544 | $ 768 |
Realized gains on investments | 113 | 22 | 62 |
Realized losses on investments | (256) | (392) | (129) |
Investment income and realized gains, net of investment expenses | $ 8,285 | $ 1,174 | $ 701 |
Investments - Amortized Cost, F
Investments - Amortized Cost, Fair Value and Unrealized Gains and (Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Net Investment Income [Line Items] | ||
Amortized Cost | $ 143,036 | $ 97,812 |
Gross Unrealized, Gains | 791 | 56 |
Gross Unrealized, Losses | (4,651) | (6,227) |
Fair Value | 139,176 | 91,641 |
U.S. Treasuries | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 43,931 | 35,637 |
Gross Unrealized, Gains | 95 | 5 |
Gross Unrealized, Losses | (330) | (320) |
Fair Value | 43,696 | 35,322 |
Obligations of states, municipalities and political subdivisions | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 18,281 | 11,549 |
Gross Unrealized, Gains | 100 | 2 |
Gross Unrealized, Losses | (961) | (1,326) |
Fair Value | 17,420 | 10,225 |
Corporate bonds | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 51,678 | 31,032 |
Gross Unrealized, Gains | 430 | 32 |
Gross Unrealized, Losses | (2,067) | (2,837) |
Fair Value | 50,041 | 28,227 |
Residential and commercial mortgage-backed securities | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 25,452 | 12,790 |
Gross Unrealized, Gains | 153 | 11 |
Gross Unrealized, Losses | (1,004) | (1,268) |
Fair Value | 24,601 | 11,533 |
Other loan-backed and structured securities | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 3,694 | 6,804 |
Gross Unrealized, Gains | 13 | 6 |
Gross Unrealized, Losses | (289) | (476) |
Fair Value | $ 3,418 | $ 6,334 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 34,620 | |
Due after one year through five years | 45,411 | |
Due after five years through ten years | 25,397 | |
Due after ten years | 8,462 | |
Amortized Cost | 143,036 | $ 97,812 |
Fair Value | ||
Due in one year or less | 34,542 | |
Due after one year through five years | 44,607 | |
Due after five years through ten years | 23,951 | |
Due after ten years | 8,057 | |
Fair Value | 139,176 | 91,641 |
Residential and commercial mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 25,452 | |
Amortized Cost | 25,452 | 12,790 |
Fair Value | ||
Without single maturity date | 24,601 | |
Fair Value | 24,601 | 11,533 |
Other loan-backed and structured securities | ||
Amortized Cost | ||
Without single maturity date | 3,694 | |
Amortized Cost | 3,694 | 6,804 |
Fair Value | ||
Without single maturity date | 3,418 | |
Fair Value | $ 3,418 | $ 6,334 |
Investments - Investments Pledg
Investments - Investments Pledged to The Department of Insurance (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Debt securities: | $ 139,176 | $ 91,641 |
Asset pledged as collateral | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Debt securities: | 1,972 | 2,679 |
Certificates of deposit | Asset pledged as collateral | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Debt securities: | 1,266 | 1,463 |
U.S. Treasury notes | Asset pledged as collateral | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Debt securities: | $ 706 | $ 1,216 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Net Investment Income [Line Items] | ||
Short-term investments | $ 35,588 | $ 36,523 |
Long-term investments | $ 103,588 | $ 55,118 |
Number of securities in an unrealized loss position | security | 410 | 483 |
Unrealized loss position for 12 months or longer | security | 80 | 218 |
Investments Held By Captive Reinsurance Business | ||
Net Investment Income [Line Items] | ||
Investments | $ 36,400 | |
Short-term investments | 1,700 | |
Long-term investments | 34,700 | |
Certificates of deposit | Asset pledged as collateral | ||
Net Investment Income [Line Items] | ||
Investments, long-term | 1,300 | $ 1,200 |
Investments, short-term | 200 | |
U.S. Treasury notes | Asset pledged as collateral | ||
Net Investment Income [Line Items] | ||
Investments, long-term | $ 700 | 800 |
Investments, short-term | $ 500 |
Investments - Securities with G
Investments - Securities with Gross Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Net Investment Income [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Loss | $ (3,693) | $ (3,725) |
Less Than Twelve Months, Fair Value | 53,357 | 44,735 |
Twelve Months or Greater, Gross Unrealized Loss | (958) | (2,502) |
Twelve Months or Greater, Fair Value | 9,955 | 29,702 |
Total, Gross Unrealized Loss | (4,651) | (6,227) |
Total, Fair Value | 63,312 | 74,437 |
U.S. Treasuries | ||
Net Investment Income [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Loss | (280) | (127) |
Less Than Twelve Months, Fair Value | 12,345 | 10,748 |
Twelve Months or Greater, Gross Unrealized Loss | (50) | (193) |
Twelve Months or Greater, Fair Value | 515 | 9,824 |
Total, Gross Unrealized Loss | (330) | (320) |
Total, Fair Value | 12,860 | 20,572 |
Obligations of states, municipalities and political subdivisions | ||
Net Investment Income [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Loss | (813) | (929) |
Less Than Twelve Months, Fair Value | 8,445 | 6,258 |
Twelve Months or Greater, Gross Unrealized Loss | (148) | (397) |
Twelve Months or Greater, Fair Value | 1,639 | 3,504 |
Total, Gross Unrealized Loss | (961) | (1,326) |
Total, Fair Value | 10,084 | 9,762 |
Corporate bonds | ||
Net Investment Income [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Loss | (1,698) | (1,623) |
Less Than Twelve Months, Fair Value | 21,104 | 16,531 |
Twelve Months or Greater, Gross Unrealized Loss | (369) | (1,214) |
Twelve Months or Greater, Fair Value | 4,677 | 10,328 |
Total, Gross Unrealized Loss | (2,067) | (2,837) |
Total, Fair Value | 25,781 | 26,859 |
Residential and commercial mortgage-backed securities | ||
Net Investment Income [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Loss | (621) | (687) |
Less Than Twelve Months, Fair Value | 8,673 | 6,565 |
Twelve Months or Greater, Gross Unrealized Loss | (383) | (581) |
Twelve Months or Greater, Fair Value | 3,072 | 4,952 |
Total, Gross Unrealized Loss | (1,004) | (1,268) |
Total, Fair Value | 11,745 | 11,517 |
Other loan-backed and structured securities | ||
Net Investment Income [Line Items] | ||
Less Than Twelve Months, Gross Unrealized Loss | (281) | (359) |
Less Than Twelve Months, Fair Value | 2,790 | 4,633 |
Twelve Months or Greater, Gross Unrealized Loss | (8) | (117) |
Twelve Months or Greater, Fair Value | 52 | 1,094 |
Total, Gross Unrealized Loss | (289) | (476) |
Total, Fair Value | $ 2,842 | $ 5,727 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements of Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | $ 139,176 | $ 91,641 |
Assets, fair value disclosure | 304,920 | 98,260 |
Liabilities, fair value disclosure | 47,737 | 25,297 |
Contingent Consideration - Business Combinations | Accrued Expenses And Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 14,800 | 1,400 |
Contingent Consideration - Business Combinations | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 3,700 | 23,200 |
U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 43,696 | 35,322 |
Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 17,420 | 10,225 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 50,041 | 28,227 |
Residential and commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 24,601 | 11,533 |
Other loan-backed and structured securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 3,418 | 6,334 |
Contingent Consideration - Business Combinations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 18,455 | 24,546 |
Contingent Consideration - Earnout | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 44 | |
Private Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 1,151 | 707 |
Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 28,131 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 209,440 | 41,941 |
Liabilities, fair value disclosure | 0 | 0 |
Level 1 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 43,696 | 35,322 |
Level 1 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 1 | Residential and commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 1 | Other loan-backed and structured securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 1 | Contingent Consideration - Business Combinations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 0 | 0 |
Level 1 | Contingent Consideration - Earnout | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 0 | |
Level 1 | Private Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 0 | 0 |
Level 1 | Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 95,480 | 56,319 |
Liabilities, fair value disclosure | 0 | 0 |
Level 2 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 2 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 17,420 | 10,225 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 50,041 | 28,227 |
Level 2 | Residential and commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 24,601 | 11,533 |
Level 2 | Other loan-backed and structured securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 3,418 | 6,334 |
Level 2 | Contingent Consideration - Business Combinations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 0 | 0 |
Level 2 | Contingent Consideration - Earnout | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 0 | |
Level 2 | Private Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 0 | 0 |
Level 2 | Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Liabilities, fair value disclosure | 47,737 | 25,297 |
Level 3 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 3 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 3 | Residential and commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 3 | Other loan-backed and structured securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 0 | 0 |
Level 3 | Contingent Consideration - Business Combinations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 18,455 | 24,546 |
Level 3 | Contingent Consideration - Earnout | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 44 | |
Level 3 | Private Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 1,151 | 707 |
Level 3 | Embedded derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure | 28,131 | |
Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market mutual funds | 165,744 | 6,619 |
Money market mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market mutual funds | 165,744 | 6,619 |
Money market mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market mutual funds | 0 | 0 |
Money market mutual funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market mutual funds | $ 0 | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 23, 2020 tranche shares | Dec. 31, 2021 $ / shares | Mar. 31, 2021 d $ / shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Decrease in stock price | $ (165,500,000) | ||||
Liabilities, fair value disclosure | 47,737,000 | $ 25,297,000 | |||
Convertible senior notes, due 2026 | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Convertible senior notes, fair value | 73,100,000 | 238,600,000 | |||
Convertible senior notes, due 2028 | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Convertible senior notes, fair value | 196,700,000 | ||||
Repurchase Option | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Minimum principal remains outstanding | 30,000,000 | ||||
Redemption price, principal amount | $ 1,000 | ||||
Percentage of repurchase price on principal amount of the notes to be repurchased, plus accrued interest | 106.50% | ||||
Fundamental Change Option | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Redemption price, principal amount | $ 1,000 | ||||
Percentage of repurchase price on principal amount of the notes to be repurchased, plus accrued interest | 105.25% | ||||
Asset Sale Repurchase Option | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Percentage of repurchase price on principal amount of the notes to be repurchased, plus accrued interest | 100% | ||||
Minimum amount of aggregate net cash sale proceeds required for repurchase of notes | $ 2,500,000 | ||||
Percentage of aggregate net cash sales proceeds applied for repurchase | 50% | ||||
Aggregate net cash sale proceed threshold for repurchase of notes | $ 20,000,000 | ||||
Asset Sale Repurchase Option | Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Aggregate net cash sale proceed threshold for repurchase of notes | $ 0 | ||||
Earnout shares | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Shares issued (shares) | shares | 6,000,000 | ||||
Number of tranches | tranche | 3 | ||||
Threshold trading days | d | 20 | ||||
Threshold consecutive trading days | d | 30 | ||||
Share-based Payment Arrangement, Market Vesting Condition, Vested | 0.33333 | ||||
Earnout shares | Tranche One | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Threshold closing price of common stock (in usd per share) | $ / shares | $ 18 | ||||
Earnout shares | Tranche Two | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Threshold closing price of common stock (in usd per share) | $ / shares | $ 20 | ||||
Earnout shares | Tranche Three | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Threshold closing price of common stock (in usd per share) | $ / shares | $ 22 | ||||
Private Warrant Liability | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Liabilities, fair value disclosure | $ 1,151,000 | $ 707,000 | |||
Share Price | Private Warrant Liability | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Warrants, measurement input | $ / shares | 3.08 | 1.88 | |||
Price Volatility | Private Warrant Liability | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Warrants, measurement input | 0.95 | 0.90 | |||
Exercise Price | Private Warrant Liability | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Warrants, measurement input | $ / shares | 11.50 | 11.50 | |||
Expected Term | Private Warrant Liability | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Warrants term | 1 year 11 months 23 days | 2 years 11 months 23 days | |||
Qualifying Asset Sales | Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Measurement input | 0.01 | ||||
Qualifying Asset Sales | Maximum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Measurement input | 0.50 | ||||
Probabilities Of Repurchase | Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Measurement input | 0.01 | ||||
Probabilities Of Repurchase | Maximum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Measurement input | 0.50 | ||||
Fundamental Change | Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Measurement input | 0.01 | ||||
Fundamental Change | Maximum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Measurement input | 0.50 | ||||
Monte Carlo Simulation Method | Contingent Consideration - Earnout | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Liabilities, fair value disclosure | $ 100,000 | ||||
Monte Carlo Simulation Method | Share Price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration earnout, measurement input | $ / shares | 1.88 | ||||
Monte Carlo Simulation Method | Price Volatility | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration earnout, measurement input | 1 | ||||
Monte Carlo Simulation Method | Exercise Price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration earnout, measurement input | $ / shares | 22 | ||||
Monte Carlo Simulation Method | Forfeiture Rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration earnout, measurement input | 0.15 | ||||
Monte Carlo Simulation Method | Floify | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Business combination contingent consideration | $ 14,000,000 | $ 15,500,000 | |||
Monte Carlo Simulation Method | Floify | Share Price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Business combination contingent consideration, measurement input | $ / shares | 3.08 | 1.88 | |||
Monte Carlo Simulation Method | Floify | Strike Price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Business combination contingent consideration, measurement input | $ / shares | 36 | 36 | |||
Monte Carlo Simulation Method | Floify | Discount Rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Business combination contingent consideration, measurement input | 0.279 | 0.103 | |||
Monte Carlo Simulation Method | Floify | Price Volatility | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Business combination contingent consideration, measurement input | 0.90 | 0.95 | |||
Discounted cashflows method | RWS | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Business combination contingent consideration | $ 4,400,000 | $ 9,000,000 | |||
Discounted cashflows method | RWS | Discount Rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Business combination contingent consideration, measurement input | 0.17 | 0.17 |
Fair Value - Level 3 (Details)
Fair Value - Level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contingent Consideration - Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 44 | $ 13,866 |
Additions | 0 | 0 |
Settlements | 0 | 0 |
Change in fair value, loss (gain) included in net loss | (44) | (13,822) |
Ending balance | 0 | 44 |
Contingent Consideration - Business Combinations | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 24,546 | 9,617 |
Additions | 0 | 8,700 |
Settlements | 427 | (715) |
Change in fair value, loss (gain) included in net loss | (5,664) | 6,944 |
Ending balance | 18,455 | 24,546 |
Embedded derivatives | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | |
Additions | 23,870 | |
Settlements | 0 | |
Change in fair value, loss (gain) included in net loss | 4,261 | |
Ending balance | 28,131 | 0 |
Private Warrant Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 707 | 15,193 |
Additions | 0 | 0 |
Settlements | 0 | 0 |
Change in fair value, loss (gain) included in net loss | 444 | (14,486) |
Ending balance | $ 1,151 | $ 707 |
Property, Equipment, and Soft_3
Property, Equipment, and Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, equipment, and software, gross | $ 35,615 | $ 28,750 | |
Less: Accumulated depreciation and amortization | (18,754) | (16,510) | |
Property, equipment, and software, net | 16,861 | 12,240 | |
Depreciation and amortization | 24,415 | 27,930 | $ 16,386 |
Impairment, long-lived asset, held-for-use | $ 300 | $ 600 | $ 600 |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Product and technology | Product and technology | Product and technology |
Software and computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment, and software, gross | $ 8,340 | $ 8,326 | |
Furniture, office equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment, and software, gross | 1,573 | 2,118 | |
Internally developed software | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment, and software, gross | 24,526 | 17,128 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment, and software, gross | 1,176 | 1,178 | |
Property equipment software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 5,000 | $ 4,200 | $ 4,400 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets and Goodwill | ||
Accumulated Amortization And Impairment | $ (57,482) | $ (40,191) |
Intangible Assets, Net | 82,256 | |
Intangible assets, gross | 144,698 | 148,446 |
Intangible assets, net | 87,216 | 108,255 |
Insurance licenses | ||
Intangible Assets and Goodwill | ||
Indefinite-lived intangible assets | $ 4,960 | $ 4,960 |
Customer relationships | ||
Intangible Assets and Goodwill | ||
Weighted Average Useful Life (in years) | 8 years | 9 years |
Intangible Assets, gross | $ 69,504 | $ 69,730 |
Accumulated Amortization And Impairment | (24,153) | (15,079) |
Intangible Assets, Net | $ 45,351 | $ 54,651 |
Acquired technology | ||
Intangible Assets and Goodwill | ||
Weighted Average Useful Life (in years) | 5 years | 5 years |
Intangible Assets, gross | $ 36,041 | $ 37,932 |
Accumulated Amortization And Impairment | (22,358) | (16,468) |
Intangible Assets, Net | $ 13,683 | $ 21,464 |
Trademarks and tradenames | ||
Intangible Assets and Goodwill | ||
Weighted Average Useful Life (in years) | 11 years | 10 years |
Intangible Assets, gross | $ 23,443 | $ 25,071 |
Accumulated Amortization And Impairment | (6,701) | (5,724) |
Intangible Assets, Net | $ 16,742 | $ 19,347 |
Non-compete agreements | ||
Intangible Assets and Goodwill | ||
Weighted Average Useful Life (in years) | 3 years | 3 years |
Intangible Assets, gross | $ 616 | $ 619 |
Accumulated Amortization And Impairment | (455) | (407) |
Intangible Assets, Net | $ 161 | $ 212 |
Value of business acquired | ||
Intangible Assets and Goodwill | ||
Weighted Average Useful Life (in years) | 1 year | 1 year |
Intangible Assets, gross | $ 400 | $ 400 |
Accumulated Amortization And Impairment | (400) | (400) |
Intangible Assets, Net | $ 0 | $ 0 |
Renewal rights | ||
Intangible Assets and Goodwill | ||
Weighted Average Useful Life (in years) | 6 years | 6 years |
Intangible Assets, gross | $ 9,734 | $ 9,734 |
Accumulated Amortization And Impairment | (3,415) | (2,113) |
Intangible Assets, Net | $ 6,319 | $ 7,621 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2023 | Jun. 30, 2023 | |
Goodwill [Line Items] | |||||
Impairment of intangible assets, finite-lived | $ 2,000 | ||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment loss on intangible assets and goodwill | ||||
Aggregate amortization expense | $ 19,400 | $ 23,800 | $ 12,300 | ||
Goodwill impairment loss | 55,211 | $ 43,758 | |||
Vertical Software Segment Deferred Revenue | |||||
Goodwill [Line Items] | |||||
Intangible Assets, Impairment Assessment, Threshold Percentage Of Excess Of Fair Value Over Carrying Value | 5% | ||||
Insurance segment | |||||
Goodwill [Line Items] | |||||
Goodwill impairment loss | $ 55,200 | ||||
Minimum | |||||
Goodwill [Line Items] | |||||
Weighted average cost of capital for impairment test | 13% | ||||
Maximum | |||||
Goodwill [Line Items] | |||||
Weighted average cost of capital for impairment test | 25% | ||||
Maximum | Vertical Software Segment Deferred Revenue | |||||
Goodwill [Line Items] | |||||
Intangible Assets, Impairment Assessment, Threshold Percentage Of Excess Of Fair Value Over Carrying Value | 10% |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Estimated Intangibles Amortization Expenses (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2024 | $ 18,439 |
2025 | 14,862 |
2026 | 10,201 |
2027 | 9,063 |
2028 | 8,347 |
Thereafter | 21,344 |
Intangible Assets, Net | $ 82,256 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 244,697 | $ 225,654 | $ 28,289 |
Acquisitions | 2,421 | 38,064 | 197,365 |
Impairment loss (Insurance segment) | (55,211) | (43,758) | |
Purchase price adjustments | 24,737 | ||
Accumulated impairment loss | 99,000 | 43,800 | |
Goodwill, ending balance | $ 191,907 | $ 244,697 | $ 225,654 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt | ||
Principal | $ 558,728,000 | $ 451,120,000 |
Unaccreted Discount | (115,366,000) | (847,000) |
Debt Issuance Costs | (7,623,000) | (8,508,000) |
Carrying Value | 435,739,000 | 441,765,000 |
Convertible senior notes, due 2026 | ||
Debt | ||
Principal | 225,000,000 | 425,000,000 |
Unaccreted Discount | 0 | 0 |
Debt Issuance Costs | (3,311,000) | (8,508,000) |
Carrying Value | 221,689,000 | 416,492,000 |
Convertible senior notes, due 2028 | ||
Debt | ||
Principal | 333,334,000 | |
Unaccreted Discount | (115,353,000) | |
Debt Issuance Costs | (4,312,000) | |
Carrying Value | 213,669,000 | |
Advance funding arrangement | ||
Debt | ||
Principal | 94,000 | 15,670,000 |
Unaccreted Discount | 0 | (760,000) |
Debt Issuance Costs | 0 | 0 |
Carrying Value | 94,000 | 14,910,000 |
Other notes | ||
Debt | ||
Principal | 300,000 | 450,000 |
Unaccreted Discount | (13,000) | (87,000) |
Debt Issuance Costs | 0 | 0 |
Carrying Value | $ 287,000 | 363,000 |
Term loan facility, due 2029 | ||
Debt | ||
Principal | 10,000,000 | |
Unaccreted Discount | 0 | |
Debt Issuance Costs | 0 | |
Carrying Value | $ 10,000,000 |
Debt - Schedule of Minimum Prin
Debt - Schedule of Minimum Principal Payment Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 244 | |
2025 | 150 | |
2026 | 225,000 | |
2027 | 15,000 | |
2028 | 318,334 | |
Thereafter | 0 | |
Principal | $ 558,728 | $ 451,120 |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes, Capped Call Transactions (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2023 USD ($) $ / shares | Sep. 30, 2021 USD ($) d $ / shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2023 USD ($) | Sep. 16, 2021 $ / shares | |
Debt | |||||||
Conversion price (in usd per share) | $ / shares | $ 37.74 | ||||||
Gain on extinguishment of debt | $ 81,354 | $ 0 | $ 5,110 | ||||
Convertible senior notes, due 2026 | |||||||
Debt | |||||||
Amount borrowed | $ 425,000 | ||||||
Interest rate (stated) | 0.75% | ||||||
Issue price ( as percentage) | 100% | ||||||
Net proceeds | $ 413,500 | ||||||
Sale price (as percentage) | 130% | ||||||
Threshold trading days | d | 20 | ||||||
Consecutive trading days | d | 30 | ||||||
Redemption price (as percentage) | 100% | ||||||
Conversion ratio | 39.9956 | ||||||
Principal amount denomination for conversion | $ 1 | ||||||
Conversion price (in usd per share) | $ / shares | $ 25 | ||||||
Business days | d | 5 | ||||||
Consecutive trading period | d | 5 | ||||||
Trading price per $1,000notes (as percentage) | 98% | ||||||
Conditional conversion ratio | 52.9941 | ||||||
Effective interest rate | 1.30% | ||||||
Repurchased amount | $ 200,000 | $ 200,000 | |||||
Interest expense | $ 3,700 | 5,400 | 1,600 | ||||
Contractual interest expense | 2,200 | 3,200 | 900 | ||||
Amortization of debt issuance costs and discount | $ 1,500 | $ 2,200 | $ 700 | ||||
Initial strike price (in usd per share) | $ / shares | $ 25 | ||||||
Initial cap price (in usd per share) | $ / shares | $ 37.74 | ||||||
Capped calls, authorized shares (in shares) | shares | 6 | ||||||
Amount paid for capped calls | $ 52,900 | ||||||
Notes Issued On Exercise Of Initial Purchasers' Option | |||||||
Debt | |||||||
Amount borrowed | $ 40,000 | ||||||
Senior Secured Convertible Notes 6.75% due 2028 | |||||||
Debt | |||||||
Amount borrowed | $ 333,300 | ||||||
Interest rate (stated) | 6.75% | ||||||
Issue price ( as percentage) | 95% | ||||||
Conversion ratio | 39.9956 | ||||||
Principal amount denomination for conversion | $ 1 | ||||||
Conversion price (in usd per share) | $ / shares | $ 25 | ||||||
Effective interest rate | 17.90% | ||||||
Interest expense | $ 26,300 | ||||||
Contractual interest expense | 15,700 | ||||||
Amortization of debt issuance costs and discount | $ 10,600 | ||||||
Gain on extinguishment of debt | $ 81,400 |
Debt - Advance Funding Arrangem
Debt - Advance Funding Arrangement (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt | |||
Principal | $ 558,728,000 | $ 451,120,000 | |
Unaccreted discount | 115,366,000 | 847,000 | |
Interest expense | $ 31,828,000 | 8,723,000 | $ 5,757,000 |
Advance funding arrangement | |||
Debt | |||
Interest rate (stated) | 14% | ||
Principal | $ 94,000 | 15,670,000 | |
Unaccreted discount | 0 | 760,000 | |
Interest expense | $ 900,000 | $ 2,600,000 |
Debt - Line of Credit and Term
Debt - Line of Credit and Term Loan Facility (Details) - USD ($) $ in Millions | Apr. 05, 2021 | Dec. 31, 2022 |
Revolving Credit Facility | ||
Debt | ||
Line of credit maximum borrowing capacity | $ 5 | |
Line of credit, outstanding | $ 0 | |
Revolving Credit Facility | Prime Rate | ||
Debt | ||
Basis spread on interest rate | 0% | |
Term loan facility, due 2029 | ||
Debt | ||
Debt instrument term | 9 years | |
Loans assumed | $ 10 | |
Amount borrowed | $ 10 | |
Term loan facility, due 2029 | Prime Rate | ||
Debt | ||
Basis spread on interest rate | 0% |
Debt - Other Notes (Details)
Debt - Other Notes (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) installment |
Debt | |||
Amount outstanding | $ 435,739 | $ 441,765 | |
Other notes | |||
Debt | |||
Amount borrowed | $ 800 | ||
Interest rate (stated) | 0.38% | ||
Promissory note, number of installments | installment | 5 | ||
Amount outstanding | $ 287 | $ 363 |
Debt - Senior Secured Term Loan
Debt - Senior Secured Term Loans (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt | ||||
Loss on extinguishment of debt | $ (81,354) | $ 0 | $ (5,110) | |
Senior Secured Term Loans | ||||
Debt | ||||
Outstanding principle | $ 40,000 | |||
Prepayment fees | 2,300 | |||
Interest expense | $ 500 | |||
Loss on extinguishment of debt | $ 3,100 |
Debt - Paycheck Protection Plan
Debt - Paycheck Protection Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt | |||
Amount outstanding | $ 435,739 | $ 441,765 | |
Gain on extinguishment of debt | $ 81,354 | $ 0 | $ 5,110 |
Paycheck Protection Program, Cares Act Loans | |||
Debt | |||
Amount outstanding | 8,500 | ||
Unpaid interest | 100 | ||
Gain on extinguishment of debt | $ 8,600 |
Stockholders' Equity and Warr_3
Stockholders' Equity and Warrants - Common Stock (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Preferred stock, shares authorized (in shares) | 10,000,000 |
Stockholders' Equity and Warr_4
Stockholders' Equity and Warrants - Common Shares Outstanding and Common Stock Equivalents (Details) - $ / shares shares in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2021 | Sep. 16, 2021 | Sep. 15, 2021 | |
Common Stock and Redeemable Convertible Preferred Stock | |||||
Issued and outstanding common shares (in shares) | 97,061 | 96,406 | |||
Earnout shares (in shares) | 0 | 2,050 | |||
Total common shares issued and outstanding (in shares) | 97,061 | 98,456 | |||
Common shares reserved for future issuance: | |||||
Total shares of common stock outstanding and reserved for future issuance (in shares) | 150,812 | 149,165 | |||
Conversion price (in usd per share) | $ 37.74 | ||||
Convertible senior notes, due 2026 | |||||
Common shares reserved for future issuance: | |||||
Total shares of common stock outstanding and reserved for future issuance (in shares) | 8,999 | 16,998 | |||
Share price (in usd per share) | $ 25 | ||||
Conversion price (in usd per share) | $ 25 | ||||
Potentially dilutive shares (in shares) | 6,000 | ||||
Convertible senior notes, due 2028 | |||||
Common shares reserved for future issuance: | |||||
Total shares of common stock outstanding and reserved for future issuance (in shares) | 13,332 | 0 | |||
Restricted Stock Units (RSUs) | |||||
Common shares reserved for future issuance: | |||||
Total shares of common stock outstanding and reserved for future issuance (in shares) | 12,065 | 6,230 | |||
Contingent Consideration - Business Combinations | |||||
Common shares reserved for future issuance: | |||||
Contingently issuable shares in connection with acquisitions (in shares) | 5,908 | 10,632 | |||
2020 Equity Plan | |||||
Common shares reserved for future issuance: | |||||
Total shares of common stock outstanding and reserved for future issuance (in shares) | 8,009 | 11,190 | |||
Contingently issuable shares in connection with acquisitions (in shares) | 8,000 | ||||
Private warrants | |||||
Common shares reserved for future issuance: | |||||
Total shares of common stock outstanding and reserved for future issuance (in shares) | 1,796 | 1,796 | |||
Stock options (Note 9) | |||||
Common shares reserved for future issuance: | |||||
Total shares of common stock outstanding and reserved for future issuance (in shares) | 3,642 | 3,863 |
Stockholders' Equity and Warr_5
Stockholders' Equity and Warrants - Repurchase of Shares, Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 23, 2020 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Apr. 30, 2023 | Oct. 31, 2022 | Sep. 15, 2021 | Dec. 31, 2020 | |
Common Stock and Redeemable Convertible Preferred Stock | |||||||||||
Value of shares authorized to repurchase | $ 15,000 | ||||||||||
Repurchases of common stock (in shares) | 1,400,000 | 2,400,000 | |||||||||
Repurchase and retirement of common stock (in shares) | 1,400,000 | ||||||||||
Repurchases of common stock | $ 3,100 | $ 4,400 | $ 3,100 | $ 4,352 | |||||||
Warrants outstanding (in shares) | 11,521,000 | 11,521,000 | 11,521,000 | 11,521,000 | 0 | ||||||
Warrants, exercised (in shares) | 0 | 0 | 12,353,000 | ||||||||
Warrants, canceled (in shares) | 0 | 0 | 176,000 | ||||||||
Convertible senior notes, due 2026 | |||||||||||
Common Stock and Redeemable Convertible Preferred Stock | |||||||||||
Repurchased amount | $ 200,000 | $ 200,000 | |||||||||
Share price (in usd per share) | $ 25 | ||||||||||
Merger Agreement | |||||||||||
Common Stock and Redeemable Convertible Preferred Stock | |||||||||||
Stock called by warrants | 14,300,000 | ||||||||||
Single share price | 1 | ||||||||||
Share price (in usd per share) | $ 11.50 | ||||||||||
Number of days for determining share price commencement | 30 days | ||||||||||
Expiring period after merger for determining share price | 5 years | ||||||||||
Public Warrants | Merger Agreement | |||||||||||
Common Stock and Redeemable Convertible Preferred Stock | |||||||||||
Stock called by warrants | 8,600,000 | ||||||||||
Private warrants | |||||||||||
Common Stock and Redeemable Convertible Preferred Stock | |||||||||||
Warrants outstanding (in shares) | 1,800,000 | 1,800,000 | 1,800,000 | ||||||||
Private warrants | Merger Agreement | |||||||||||
Common Stock and Redeemable Convertible Preferred Stock | |||||||||||
Stock called by warrants | 5,700,000 |
Stockholders' Equity and Warr_6
Stockholders' Equity and Warrants - Public and Private Warrant Activity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Warrants (in thousands) | |||
Warrants, beginning balance (in shares) | 1,796,000 | 1,796,000 | 14,325,000 |
Warrants, exercised (in shares) | 0 | 0 | (12,353,000) |
Warrants, canceled (in shares) | 0 | 0 | (176,000) |
Warrants, ending balance (in shares) | 1,796,000 | 1,796,000 | 1,796,000 |
Number of Common Shares Issued (in thousands) | |||
Common shares issued, beginning balance (in shares) | 11,521,000 | 11,521,000 | 0 |
Common shares issued, exercised (in shares) | 11,521,000 | ||
Common shares issued, canceled (in shares) | 0 | ||
Common shares issued, ending balance (in shares) | 11,521,000 | 11,521,000 | 11,521,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 23, 2020 shares | Dec. 31, 2023 USD ($) d type goal $ / shares shares | Dec. 31, 2021 shares | |
Stock-Based Compensation | |||
Percentage of aggregate number of shares | 5% | ||
Options granted (in shares) | 0 | ||
Stock options | |||
Stock-Based Compensation | |||
Vesting percentage | 25% | ||
Cost not recognized | $ | $ 0.5 | ||
Weighted-average period of unrecognized compensation cost to be recognized | 10 months 24 days | ||
Stock options | Maximum | |||
Stock-Based Compensation | |||
Expiration period | 10 years | ||
Cancellation Period after termination of employment | 3 months | ||
Stock options | Tranche One | |||
Stock-Based Compensation | |||
Vesting period | 1 year | ||
Stock options | Tranche Three | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Restricted Stock Units (RSUs) | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Cost not recognized | $ | $ 21.6 | ||
Weighted-average period of unrecognized compensation cost to be recognized | 2 years 3 months 18 days | ||
Shares granted (in shares) | 6,415,000 | ||
Granted (in usd per share) | $ / shares | $ 1.39 | ||
Shares vested (in shares) | 2,303,000 | ||
Restricted Stock Units (RSUs) | Tranche One | |||
Stock-Based Compensation | |||
Vesting percentage | 25% | ||
Vesting period | 1 year | ||
Restricted Stock Units (RSUs) | Tranche Two | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Restricted Stock Award | |||
Stock-Based Compensation | |||
Shares granted (in shares) | 800,000 | ||
Granted (in usd per share) | $ / shares | $ 1.46 | ||
Performance based RSU | |||
Stock-Based Compensation | |||
Cost not recognized | $ | $ 2.1 | ||
Weighted-average period of unrecognized compensation cost to be recognized | 1 year 10 months 24 days | ||
Shares granted (in shares) | 2,833,000 | ||
Granted (in usd per share) | $ / shares | $ 0.93 | ||
Number of PRSU outstanding awards | type | 2 | ||
Maximum payout award percentage | 200% | ||
Market Only Performance Based Restricted Stock Units | |||
Stock-Based Compensation | |||
Threshold period | 36 months | ||
Threshold trading days | d | 20 | ||
Threshold consecutive number of trading days | d | 30 | ||
Performance and Market Condition Based Restricted Stock Units | |||
Stock-Based Compensation | |||
Threshold trading days | d | 20 | ||
Threshold consecutive number of trading days | d | 30 | ||
Number of performance goals | goal | 3 | ||
Performance period | 3 years | ||
Employee earnout restricted stock | CEO | |||
Stock-Based Compensation | |||
Shares issued (in shares) | 1,000,000 | ||
Shares vested (in shares) | 667,000 | ||
2020 Equity Plan | |||
Stock-Based Compensation | |||
Aggregate number of shares of common stock reserved for future issuance (in shares) | 8,000,000 | ||
Employee awards | Employee earnout restricted stock | Employee | |||
Stock-Based Compensation | |||
Shares issued (in shares) | 976,000 | ||
Vesting of earnout shares (in shares) | 642,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation by Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | |||
Total stock-based compensation expense | $ 20,709 | $ 27,041 | $ 38,592 |
Cost of revenue | |||
Stock-Based Compensation | |||
Total stock-based compensation expense | 0 | 0 | 1 |
Selling and marketing | |||
Stock-Based Compensation | |||
Total stock-based compensation expense | 3,351 | 4,855 | 5,584 |
Product and technology | |||
Stock-Based Compensation | |||
Total stock-based compensation expense | 4,804 | 5,435 | 7,223 |
General and administrative | |||
Stock-Based Compensation | |||
Total stock-based compensation expense | 12,554 | 16,751 | 25,784 |
Secondary market transaction | |||
Stock-Based Compensation | |||
Total stock-based compensation expense | 0 | 0 | 1,933 |
Employee earnout restricted stock | |||
Stock-Based Compensation | |||
Total stock-based compensation expense | 0 | 0 | 22,961 |
Employee awards | |||
Stock-Based Compensation | |||
Total stock-based compensation expense | $ 20,709 | $ 27,041 | $ 13,698 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Number of Options Outstanding | |
Beginning balance | shares | 3,863,000 |
Options exercised | shares | (20,000) |
Options forfeited | shares | (34,000) |
Options expired | shares | (167,000) |
Ending balance | shares | 3,642,000 |
Number of Options Outstanding, Exercisable ending balance | shares | 3,544,000 |
Weighted- Average Exercise Price | |
Beginning balance | $ / shares | $ 3.58 |
Options exercised | $ / shares | 1.28 |
Options forfeited | $ / shares | 7.98 |
Options expired | $ / shares | 5.32 |
Ending balance | $ / shares | 3.47 |
Weighted- Average Exercise Price, Exercisable ending balance | $ / shares | $ 3.30 |
Weighted- Average Remaining Contractual Life (Years), Outstanding | 4 years 7 months 6 days |
Weighted- Average Remaining Contractual Life (Years), Exercisable | 4 years 6 months |
Aggregate Intrinsic Value, exercised | $ | $ 9 |
Aggregate Intrinsic Value, Outstanding | $ | 1,827 |
Aggregate Intrinsic Value, Exercisable | $ | $ 1,827 |
Stock-Based Compensation - Blac
Stock-Based Compensation - Black-Scholes Option Pricing Model Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock-Based Compensation | ||
Risk-free interest rate | 3.20% | |
Risk-free interest rate, minimum | 90% | |
Risk-free interest rate, maximum | 130% | |
Expected term (years) | 6 years | |
Dividend yield | 0% | 0% |
Volatility | 60% | |
Volatility, minimum | 6,000% | |
Volatility, maximum | 6,100% | |
Weighted-average grant date fair value of options granted | $ 1.85 | $ 8.23 |
Maximum | ||
Stock-Based Compensation | ||
Expected term (years) | 6 years | |
Minimum | ||
Stock-Based Compensation | ||
Expected term (years) | 5 years |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Activity (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Restricted Stock Awards | |
Beginning balance (in shares) | shares | 5,309,000 |
Shares granted (in shares) | shares | 6,415,000 |
Vested (in shares) | shares | (2,303,000) |
Canceled (in shares) | shares | (1,111,000) |
Ending balance (in shares) | shares | 8,310,000 |
Weighted Average Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 8.21 |
Granted (in usd per share) | $ / shares | 1.39 |
Vested (in usd per share) | $ / shares | 8.14 |
Canceled (in usd per share) | $ / shares | 4.40 |
Ending balance (in usd per share) | $ / shares | $ 3.34 |
Stock-Based Compensation - PRSU
Stock-Based Compensation - PRSU Activity (Details) - Performance based RSU | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Restricted Stock Awards | |
Beginning balance (in shares) | shares | 921,000 |
Shares granted (in shares) | shares | 2,833,000 |
Ending balance (in shares) | shares | 3,754,000 |
Weighted Average Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 4.94 |
Granted (in usd per share) | $ / shares | 0.93 |
Ending balance (in usd per share) | $ / shares | $ 1.91 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of The Income Tax (Benefit) Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 0 | $ (483) | $ 1,065 |
State | (399) | (644) | (205) |
Total current | (399) | (1,127) | 860 |
Deferred | |||
Federal | (66) | 285 | 8,561 |
State | (157) | 0 | 852 |
Total deferred | (223) | 285 | 9,413 |
Income tax (expense) benefit | $ (622) | $ (842) | $ 10,273 |
Income Taxes - Significant defe
Income Taxes - Significant deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Accrued expenses and other | $ 3,721 | $ 1,230 |
Unrealized gain/loss on investments | 811 | 1,296 |
Stock-based compensation | 2,638 | 1,626 |
Deferred revenue | 27,599 | 49,053 |
Goodwill | 9,217 | 6,378 |
Operating lease liabilities | 793 | 1,071 |
Loss and loss adjustment reserves | 2,479 | 16,392 |
Net operating losses | 102,044 | 100,920 |
Disallowed interest | 9,650 | 5,676 |
Research and development capitalized costs | 169 | 521 |
Valuation allowance | (140,535) | (117,568) |
Total deferred tax assets | 18,586 | 66,595 |
Deferred tax liabilities | ||
Property and equipment | (98) | (87) |
Intangibles | (1,167) | (3,614) |
Operating lease right-of-use assets | (774) | (1,026) |
Deferred policy acquisition costs | (5,715) | (1,907) |
Reinsurance balance due | (11,491) | (59,794) |
Internally developed software | 0 | (590) |
Total deferred tax liabilities | (19,245) | (67,018) |
Net deferred tax liabilities | $ (659) | $ (423) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase in valuation allowance | $ 22,900,000 | ||
Deferred tax assets, valuation allowance | $ 140,535,000 | $ 117,568,000 | |
U.S. federal statutory tax rate | 21% | ||
Effective income tax rate | (0.50%) | (0.50%) | 8.80% |
Unrecognized tax benefits | $ 0 | $ 0 | |
Domestic Tax Authority | |||
Net operating loss carryforwards | 425,100,000 | ||
Net operating loss carry forwards without expiry | 321,900,000 | ||
State and Local Jurisdiction | |||
Net operating loss carryforwards | 260,400,000 | ||
Net operating loss carry forwards without expiry | $ 61,300,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income tax (Benefit) provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the income tax (Benefit) provision | |||
Tax computed at federal statutory rate | $ 27,995 | $ 32,701 | $ 24,492 |
State tax, net of federal tax benefit | 1,934 | 4,879 | 5,531 |
Loss on impairment | (4,775) | (3,836) | 0 |
Equity compensation | (3,311) | (3,939) | 12,821 |
Officer compensation | (15) | (860) | (5,306) |
Debt transactions | (1,591) | 4,808 | (1,791) |
Enacted tax rate changes | (2,061) | 90 | 123 |
Return to provision | 4,816 | (6,533) | (648) |
Valuation allowance | (23,453) | (27,724) | (25,296) |
Other | (161) | (428) | 347 |
Income tax (expense) benefit | $ (622) | $ (842) | $ 10,273 |
401(k) Savings Plan (Details)
401(k) Savings Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Contributions made | $ 0.3 | $ 0.8 | $ 0.6 |
Business Combinations - Acquisi
Business Combinations - Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||||
Mar. 17, 2023 | Apr. 01, 2022 | Oct. 27, 2021 | Sep. 09, 2021 | May 20, 2021 | Apr. 05, 2021 | Jan. 12, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2020 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Goodwill | $ 244,697 | $ 225,654 | $ 191,907 | $ 28,289 | |||||||
Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 8 years | 9 years | |||||||||
Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 5 years | 4 years | |||||||||
Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 9 years | 12 years | |||||||||
Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 7 years | 2 years | |||||||||
Value of business acquired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 7 years | ||||||||||
Renewal rights | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 8 years | ||||||||||
RWS | |||||||||||
Business Combination, Consideration Transferred [Abstract] | |||||||||||
Cash | $ 2,100 | $ 25,600 | $ 25,572 | ||||||||
Issuance of common stock | 3,600 | 3,552 | |||||||||
Holdback liabilities and amounts in escrow | 1,000 | ||||||||||
Contingent consideration - liability-classified | 8,700 | 8,700 | |||||||||
Total purchase consideration: | $ 38,800 | 38,824 | |||||||||
Assets: | |||||||||||
Cash, cash equivalents and restricted cash | 2,030 | ||||||||||
Current assets | $ 200 | 525 | |||||||||
Property and equipment | 497 | ||||||||||
Operating lease right-of-use assets | 871 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 7 years 8 months 12 days | ||||||||||
Goodwill | 27,366 | ||||||||||
Total assets acquired | 46,229 | ||||||||||
Current liabilities | (6,869) | ||||||||||
Operating lease liabilities, non-current | (536) | ||||||||||
Net assets acquired | 38,824 | ||||||||||
RWS | Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 13,860 | ||||||||||
RWS | Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 500 | ||||||||||
RWS | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 400 | ||||||||||
RWS | Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 180 | ||||||||||
Other | |||||||||||
Business Combination, Consideration Transferred [Abstract] | |||||||||||
Cash | 13,763 | $ 27,121 | |||||||||
Issuance of common stock | 0 | 3,026 | |||||||||
Holdback liabilities and amounts in escrow | 1,500 | 1,775 | |||||||||
Contingent consideration - equity-classified | 0 | ||||||||||
Contingent consideration - liability-classified | 0 | 327 | |||||||||
Total purchase consideration: | 15,263 | 32,249 | |||||||||
Assets: | |||||||||||
Cash, cash equivalents and restricted cash | 256 | 1,473 | |||||||||
Current assets | 7 | 1,795 | |||||||||
Property and equipment | 0 | 80 | |||||||||
Operating lease right-of-use assets | 0 | 445 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Goodwill | 10,698 | 14,499 | |||||||||
Other non-current assets | 3 | ||||||||||
Total assets acquired | 15,411 | 35,410 | |||||||||
Current liabilities | (148) | (2,485) | |||||||||
Operating lease liabilities, non-current | 0 | (204) | |||||||||
Long term liabilities | (46) | ||||||||||
Deferred tax liabilities, net | (426) | ||||||||||
Net assets acquired | 15,263 | 32,249 | |||||||||
Other | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 4,750 | ||||||||||
Other | Insurance licenses | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Other | Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 2,750 | 10,320 | |||||||||
Other | Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 1,480 | 1,340 | |||||||||
Other | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 200 | 650 | |||||||||
Other | Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 20 | 55 | |||||||||
Other | Value of business acquired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Other | Renewal rights | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Total | |||||||||||
Business Combination, Consideration Transferred [Abstract] | |||||||||||
Cash | 39,335 | 283,698 | |||||||||
Issuance of common stock | 3,552 | 35,707 | |||||||||
Holdback liabilities and amounts in escrow | 2,500 | 9,825 | |||||||||
Contingent consideration - equity-classified | 6,685 | ||||||||||
Contingent consideration - liability-classified | 8,700 | 10,369 | |||||||||
Total purchase consideration: | 54,087 | 346,284 | |||||||||
Assets: | |||||||||||
Cash, cash equivalents and restricted cash | 2,286 | 27,268 | |||||||||
Current assets | 532 | 251,777 | |||||||||
Property and equipment | 497 | 2,129 | |||||||||
Operating lease right-of-use assets | 871 | 4,889 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Goodwill | 38,064 | 197,365 | |||||||||
Other non-current assets | 55,193 | ||||||||||
Total assets acquired | 61,640 | 664,725 | |||||||||
Current liabilities | (7,017) | (295,834) | |||||||||
Operating lease liabilities, non-current | (536) | (3,262) | |||||||||
Long term liabilities | (9,585) | ||||||||||
Deferred tax liabilities, net | (9,760) | ||||||||||
Net assets acquired | 54,087 | 346,284 | |||||||||
Total | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 4,750 | ||||||||||
Total | Insurance licenses | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 4,960 | ||||||||||
Total | Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 16,610 | 48,370 | |||||||||
Total | Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 1,980 | 35,965 | |||||||||
Total | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 600 | 21,700 | |||||||||
Total | Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | $ 200 | 225 | |||||||||
Total | Value of business acquired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 400 | ||||||||||
Total | Renewal rights | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 9,734 | ||||||||||
V12 Data | |||||||||||
Business Combination, Consideration Transferred [Abstract] | |||||||||||
Cash | 20,196 | ||||||||||
Issuance of common stock | 0 | ||||||||||
Holdback liabilities and amounts in escrow | 150 | ||||||||||
Contingent consideration - equity-classified | 0 | ||||||||||
Contingent consideration - liability-classified | $ 1,400 | 1,410 | |||||||||
Total purchase consideration: | 21,756 | ||||||||||
Assets: | |||||||||||
Cash, cash equivalents and restricted cash | 1,035 | ||||||||||
Current assets | 4,939 | ||||||||||
Property and equipment | 996 | ||||||||||
Operating lease right-of-use assets | 1,383 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 7 years 7 months 6 days | ||||||||||
Goodwill | 16,708 | ||||||||||
Other non-current assets | 0 | ||||||||||
Total assets acquired | 31,501 | ||||||||||
Current liabilities | (6,871) | ||||||||||
Operating lease liabilities, non-current | (848) | ||||||||||
Long term liabilities | (2,026) | ||||||||||
Deferred tax liabilities, net | 0 | ||||||||||
Net assets acquired | $ 21,800 | 21,756 | |||||||||
V12 Data | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
V12 Data | Insurance licenses | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
V12 Data | Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 1,650 | ||||||||||
V12 Data | Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 3,525 | ||||||||||
V12 Data | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 1,225 | ||||||||||
V12 Data | Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 40 | ||||||||||
V12 Data | Value of business acquired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
V12 Data | Renewal rights | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
HOA | |||||||||||
Business Combination, Consideration Transferred [Abstract] | |||||||||||
Cash | 84,370 | ||||||||||
Issuance of common stock | $ 22,800 | 22,773 | |||||||||
Holdback liabilities and amounts in escrow | 1,000 | ||||||||||
Contingent consideration - equity-classified | 6,685 | ||||||||||
Contingent consideration - liability-classified | 0 | ||||||||||
Total purchase consideration: | $ 114,800 | 114,828 | |||||||||
Assets: | |||||||||||
Cash, cash equivalents and restricted cash | 17,766 | ||||||||||
Current assets | 235,669 | ||||||||||
Property and equipment | 615 | ||||||||||
Operating lease right-of-use assets | 1,258 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 9 years 6 months | ||||||||||
Goodwill | 45,370 | ||||||||||
Other non-current assets | 55,165 | ||||||||||
Total assets acquired | 397,795 | ||||||||||
Current liabilities | (269,460) | ||||||||||
Operating lease liabilities, non-current | (898) | ||||||||||
Long term liabilities | (7,434) | ||||||||||
Deferred tax liabilities, net | (5,175) | ||||||||||
Net assets acquired | 114,828 | ||||||||||
HOA | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
HOA | Insurance licenses | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 4,960 | ||||||||||
HOA | Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 16,700 | ||||||||||
HOA | Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
HOA | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 12,200 | ||||||||||
HOA | Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
HOA | Value of business acquired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 400 | ||||||||||
HOA | Renewal rights | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 7,692 | ||||||||||
Rynoh | |||||||||||
Business Combination, Consideration Transferred [Abstract] | |||||||||||
Cash | $ 32,300 | 32,302 | |||||||||
Issuance of common stock | 0 | ||||||||||
Holdback liabilities and amounts in escrow | 3,500 | ||||||||||
Contingent consideration - equity-classified | 0 | ||||||||||
Contingent consideration - liability-classified | 0 | ||||||||||
Total purchase consideration: | $ 35,800 | 35,802 | |||||||||
Assets: | |||||||||||
Cash, cash equivalents and restricted cash | 408 | ||||||||||
Current assets | 932 | ||||||||||
Property and equipment | 334 | ||||||||||
Operating lease right-of-use assets | 159 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 10 years | ||||||||||
Goodwill | 22,051 | ||||||||||
Other non-current assets | 0 | ||||||||||
Total assets acquired | 40,374 | ||||||||||
Current liabilities | (517) | ||||||||||
Operating lease liabilities, non-current | (72) | ||||||||||
Long term liabilities | 0 | ||||||||||
Deferred tax liabilities, net | (3,983) | ||||||||||
Net assets acquired | 35,802 | ||||||||||
Rynoh | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Rynoh | Insurance licenses | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Rynoh | Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 12,700 | ||||||||||
Rynoh | Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 2,800 | ||||||||||
Rynoh | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 900 | ||||||||||
Rynoh | Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 90 | ||||||||||
Rynoh | Value of business acquired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Rynoh | Renewal rights | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
AHP | |||||||||||
Business Combination, Consideration Transferred [Abstract] | |||||||||||
Cash | $ 43,800 | 43,750 | |||||||||
Issuance of common stock | 0 | ||||||||||
Holdback liabilities and amounts in escrow | 2,500 | ||||||||||
Contingent consideration - equity-classified | 0 | ||||||||||
Contingent consideration - liability-classified | 0 | ||||||||||
Total purchase consideration: | $ 46,300 | 46,250 | |||||||||
Assets: | |||||||||||
Cash, cash equivalents and restricted cash | 5,078 | ||||||||||
Current assets | 8,221 | ||||||||||
Property and equipment | 17 | ||||||||||
Operating lease right-of-use assets | 913 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 7 years | ||||||||||
Goodwill | 45,681 | ||||||||||
Other non-current assets | 25 | ||||||||||
Total assets acquired | 62,677 | ||||||||||
Current liabilities | (15,487) | ||||||||||
Operating lease liabilities, non-current | (685) | ||||||||||
Long term liabilities | (79) | ||||||||||
Deferred tax liabilities, net | (176) | ||||||||||
Net assets acquired | 46,250 | ||||||||||
AHP | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
AHP | Insurance licenses | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
AHP | Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
AHP | Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
AHP | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | $ 700 | 700 | |||||||||
AHP | Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
AHP | Value of business acquired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
AHP | Renewal rights | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | $ 2,042 | 2,042 | |||||||||
Floify | |||||||||||
Business Combination, Consideration Transferred [Abstract] | |||||||||||
Cash | $ 76,000 | 75,959 | |||||||||
Issuance of common stock | 9,900 | 9,908 | |||||||||
Holdback liabilities and amounts in escrow | 900 | ||||||||||
Contingent consideration - equity-classified | 0 | ||||||||||
Contingent consideration - liability-classified | 8,632 | ||||||||||
Total purchase consideration: | $ 95,400 | 95,399 | |||||||||
Assets: | |||||||||||
Cash, cash equivalents and restricted cash | 1,508 | ||||||||||
Current assets | 221 | ||||||||||
Property and equipment | 87 | ||||||||||
Operating lease right-of-use assets | 731 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Weighted Average Useful Life (in years) | 5 years 7 months 6 days | ||||||||||
Goodwill | 53,056 | ||||||||||
Other non-current assets | 0 | ||||||||||
Total assets acquired | 96,968 | ||||||||||
Current liabilities | (1,014) | ||||||||||
Operating lease liabilities, non-current | (555) | ||||||||||
Long term liabilities | 0 | ||||||||||
Deferred tax liabilities, net | 0 | ||||||||||
Net assets acquired | 95,399 | ||||||||||
Floify | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Floify | Insurance licenses | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Floify | Customer relationships | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | $ 7,000 | 7,000 | |||||||||
Floify | Acquired technology | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 28,300 | 28,300 | |||||||||
Floify | Trademarks and tradenames | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 6,025 | 6,025 | |||||||||
Floify | Non-compete agreements | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | $ 40 | 40 | |||||||||
Floify | Value of business acquired | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | 0 | ||||||||||
Floify | Renewal rights | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||||||||
Intangible assets: | $ 0 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 17, 2023 USD ($) | Apr. 01, 2022 USD ($) | Oct. 27, 2021 USD ($) | Sep. 09, 2021 USD ($) | May 20, 2021 USD ($) | Apr. 05, 2021 USD ($) state | Jan. 12, 2021 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) acquisition | |
Business Combinations | |||||||||||
Acquisition related costs | $ 100 | $ 2,100 | $ 5,400 | ||||||||
Number of states with full service insurance carrier | state | 15 | ||||||||||
Purchase price adjustments | 24,737 | ||||||||||
Number of business combination transactions | acquisition | 5 | ||||||||||
RWS | |||||||||||
Business Combinations | |||||||||||
Cash | $ 2,100 | $ 25,600 | 25,572 | ||||||||
Current assets | 200 | 525 | |||||||||
Customer relationships acquired | $ 200 | ||||||||||
Estimated Useful Life (in years) | 3 years | ||||||||||
Transaction costs | $ 100 | ||||||||||
Aggregate consideration paid | 38,800 | 38,824 | |||||||||
Held in escrow | $ 1,000 | ||||||||||
Term of escrow deposit | 2 years | ||||||||||
Issuance of common stock | $ 3,600 | 3,552 | |||||||||
Contingent consideration - liability-classified | $ 8,700 | 8,700 | |||||||||
Net assets acquired | 38,824 | ||||||||||
Weighted Average Useful Life (in years) | 7 years 8 months 12 days | ||||||||||
Other | |||||||||||
Business Combinations | |||||||||||
Acquisition related costs | $ 1,600 | ||||||||||
Cash | 13,763 | 27,121 | |||||||||
Current assets | 7 | 1,795 | |||||||||
Aggregate consideration paid | 15,263 | 32,249 | |||||||||
Issuance of common stock | 0 | 3,026 | |||||||||
Contingent consideration - liability-classified | 0 | 327 | |||||||||
Goodwill to be deductible for income tax purposes | 10,700 | 11,000 | |||||||||
Net assets acquired | 15,263 | 32,249 | |||||||||
Goodwill not deductible for income tax purposes | 3,500 | ||||||||||
V12 Data | |||||||||||
Business Combinations | |||||||||||
Cash | 20,196 | ||||||||||
Current assets | 4,939 | ||||||||||
Aggregate consideration paid | 21,756 | ||||||||||
Issuance of common stock | 0 | ||||||||||
Contingent consideration - liability-classified | $ 1,400 | 1,410 | |||||||||
Cash paid in business acquisition, including cash consideration payable | $ 20,300 | ||||||||||
Contingent consideration earnout period | 2 years | ||||||||||
Net assets acquired | $ 21,800 | 21,756 | |||||||||
Weighted Average Useful Life (in years) | 7 years 7 months 6 days | ||||||||||
V12 Data | General and administrative | |||||||||||
Business Combinations | |||||||||||
Acquisition related costs | $ 800 | ||||||||||
HOA | |||||||||||
Business Combinations | |||||||||||
Cash | 84,370 | ||||||||||
Current assets | 235,669 | ||||||||||
Aggregate consideration paid | $ 114,800 | 114,828 | |||||||||
Issuance of common stock | $ 22,800 | 22,773 | |||||||||
Contingent consideration - liability-classified | 0 | ||||||||||
Net assets acquired | 114,828 | ||||||||||
Weighted Average Useful Life (in years) | 9 years 6 months | ||||||||||
Cash paid in business acquisition, excluding working capital cash paid | $ 84,100 | ||||||||||
Acquisition hold backs | $ 7,700 | ||||||||||
Consideration transferred, working capital adjustment | $ 300 | ||||||||||
HOA | General and administrative | |||||||||||
Business Combinations | |||||||||||
Acquisition related costs | 1,900 | ||||||||||
Rynoh | |||||||||||
Business Combinations | |||||||||||
Cash | $ 32,300 | 32,302 | |||||||||
Current assets | 932 | ||||||||||
Aggregate consideration paid | $ 35,800 | 35,802 | |||||||||
Issuance of common stock | 0 | ||||||||||
Contingent consideration - liability-classified | 0 | ||||||||||
Net assets acquired | 35,802 | ||||||||||
Weighted Average Useful Life (in years) | 10 years | ||||||||||
Acquisition hold backs | $ 3,500 | ||||||||||
Rynoh | General and administrative | |||||||||||
Business Combinations | |||||||||||
Acquisition related costs | 200 | ||||||||||
AHP | |||||||||||
Business Combinations | |||||||||||
Cash | $ 43,800 | 43,750 | |||||||||
Current assets | 8,221 | ||||||||||
Aggregate consideration paid | $ 46,300 | 46,250 | |||||||||
Issuance of common stock | 0 | ||||||||||
Contingent consideration - liability-classified | 0 | ||||||||||
Net assets acquired | 46,250 | ||||||||||
Weighted Average Useful Life (in years) | 7 years | ||||||||||
Acquisition hold backs | $ 2,500 | ||||||||||
Purchase price adjustments | 23,800 | ||||||||||
AHP | General and administrative | |||||||||||
Business Combinations | |||||||||||
Acquisition related costs | 500 | ||||||||||
Floify | |||||||||||
Business Combinations | |||||||||||
Cash | $ 76,000 | 75,959 | |||||||||
Current assets | 221 | ||||||||||
Aggregate consideration paid | 95,400 | 95,399 | |||||||||
Issuance of common stock | $ 9,900 | 9,908 | |||||||||
Contingent consideration - liability-classified | 8,632 | ||||||||||
Net assets acquired | 95,399 | ||||||||||
Weighted Average Useful Life (in years) | 5 years 7 months 6 days | ||||||||||
Acquisition hold backs | $ 900 | ||||||||||
Guarantee liability | $ 8,600 | ||||||||||
Floify | General and administrative | |||||||||||
Business Combinations | |||||||||||
Acquisition related costs | 400 | ||||||||||
Total | |||||||||||
Business Combinations | |||||||||||
Cash | 39,335 | 283,698 | |||||||||
Current assets | 532 | 251,777 | |||||||||
Aggregate consideration paid | 54,087 | 346,284 | |||||||||
Issuance of common stock | 3,552 | 35,707 | |||||||||
Contingent consideration - liability-classified | 8,700 | 10,369 | |||||||||
Net assets acquired | $ 54,087 | 346,284 | |||||||||
Revenue since acquisition | 79,600 | ||||||||||
Net loss included in the consolidated statements of operations and comprehensive loss | $ 1,800 |
Business Combinations - Fair Va
Business Combinations - Fair Value and Useful Lives of Intangible Assets, Amortization Period (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Oct. 27, 2021 | Sep. 09, 2021 | May 20, 2021 | Apr. 05, 2021 | Jan. 12, 2021 | Dec. 31, 2023 | Mar. 17, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Customer relationships | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 8 years | 9 years | ||||||||
Acquired technology | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 5 years | 5 years | ||||||||
Trademarks and tradenames | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 11 years | 10 years | ||||||||
Non-compete agreements | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 3 years | 3 years | ||||||||
Value of business acquired | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 1 year | 1 year | ||||||||
Renewal rights | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 6 years | 6 years | ||||||||
RWS | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 14,940 | |||||||||
Estimated Useful Life (in years) | 3 years | |||||||||
RWS | Customer relationships | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 13,860 | |||||||||
Estimated Useful Life (in years) | 8 years | |||||||||
Intangible assets: | $ 13,860 | |||||||||
RWS | Acquired technology | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 500 | |||||||||
Estimated Useful Life (in years) | 3 years | |||||||||
Intangible assets: | 500 | |||||||||
RWS | Trademarks and tradenames | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 400 | |||||||||
Estimated Useful Life (in years) | 9 years | |||||||||
Intangible assets: | 400 | |||||||||
RWS | Non-compete agreements | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 180 | |||||||||
Estimated Useful Life (in years) | 7 years | |||||||||
Intangible assets: | $ 180 | |||||||||
V12 Data | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 6,440 | |||||||||
V12 Data | Insurance licenses | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | $ 0 | |||||||||
V12 Data | Customer relationships | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 1,650 | |||||||||
Estimated Useful Life (in years) | 10 years | |||||||||
Intangible assets: | 1,650 | |||||||||
V12 Data | Acquired technology | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 3,525 | |||||||||
Estimated Useful Life (in years) | 4 years | |||||||||
Intangible assets: | 3,525 | |||||||||
V12 Data | Trademarks and tradenames | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 1,225 | |||||||||
Estimated Useful Life (in years) | 15 years | |||||||||
Intangible assets: | 1,225 | |||||||||
V12 Data | Non-compete agreements | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 40 | |||||||||
Estimated Useful Life (in years) | 2 years | |||||||||
Intangible assets: | 40 | |||||||||
V12 Data | Value of business acquired | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
V12 Data | Renewal rights | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
HOA | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 41,952 | |||||||||
HOA | Insurance licenses | ||||||||||
Business Combinations | ||||||||||
Fair Value | 4,960 | |||||||||
Intangible assets: | 4,960 | |||||||||
HOA | Customer relationships | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 16,700 | |||||||||
Estimated Useful Life (in years) | 10 years | |||||||||
Intangible assets: | 16,700 | |||||||||
HOA | Acquired technology | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
HOA | Trademarks and tradenames | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 12,200 | |||||||||
Estimated Useful Life (in years) | 10 years | |||||||||
Intangible assets: | 12,200 | |||||||||
HOA | Non-compete agreements | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
HOA | Value of business acquired | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 400 | |||||||||
Estimated Useful Life (in years) | 1 year | |||||||||
Intangible assets: | 400 | |||||||||
HOA | Renewal rights | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 7,692 | |||||||||
Estimated Useful Life (in years) | 8 years | |||||||||
Intangible assets: | 7,692 | |||||||||
Rynoh | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 16,490 | |||||||||
Rynoh | Insurance licenses | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
Rynoh | Customer relationships | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 12,700 | |||||||||
Estimated Useful Life (in years) | 10 years | |||||||||
Intangible assets: | 12,700 | |||||||||
Rynoh | Acquired technology | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 2,800 | |||||||||
Estimated Useful Life (in years) | 7 years | |||||||||
Intangible assets: | 2,800 | |||||||||
Rynoh | Trademarks and tradenames | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 900 | |||||||||
Estimated Useful Life (in years) | 20 years | |||||||||
Intangible assets: | 900 | |||||||||
Rynoh | Non-compete agreements | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 90 | |||||||||
Estimated Useful Life (in years) | 1 year | |||||||||
Intangible assets: | 90 | |||||||||
Rynoh | Value of business acquired | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
Rynoh | Renewal rights | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
AHP | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 2,742 | |||||||||
AHP | Insurance licenses | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
AHP | Customer relationships | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
AHP | Acquired technology | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
AHP | Trademarks and tradenames | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 10 years | |||||||||
Intangible assets: | $ 700 | 700 | ||||||||
AHP | Non-compete agreements | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
AHP | Value of business acquired | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
AHP | Renewal rights | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 6 years | |||||||||
Intangible assets: | $ 2,042 | 2,042 | ||||||||
Floify | ||||||||||
Business Combinations | ||||||||||
Fair Value | $ 41,365 | |||||||||
Floify | Insurance licenses | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
Floify | Customer relationships | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 4 years | |||||||||
Intangible assets: | $ 7,000 | 7,000 | ||||||||
Floify | Acquired technology | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 4 years | |||||||||
Intangible assets: | $ 28,300 | 28,300 | ||||||||
Floify | Trademarks and tradenames | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 15 years | |||||||||
Intangible assets: | $ 6,025 | 6,025 | ||||||||
Floify | Non-compete agreements | ||||||||||
Business Combinations | ||||||||||
Estimated Useful Life (in years) | 3 years | |||||||||
Intangible assets: | $ 40 | 40 | ||||||||
Floify | Value of business acquired | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | 0 | |||||||||
Floify | Renewal rights | ||||||||||
Business Combinations | ||||||||||
Intangible assets: | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 31, 2023 |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 10 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 5 years |
Leases - Operating Lease Cost (
Leases - Operating Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 2,123 | $ 2,621 | $ 2,155 |
Variable lease cost | 129 | 254 | 339 |
Operating lease cost | $ 2,252 | $ 2,875 | $ 2,494 |
Leases - Supplemental informati
Leases - Supplemental information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in measurement of lease liabilities: | |||
Operating cash outflows for operating leases | $ 1,854 | $ 2,082 | $ 2,141 |
Operating leases | $ 807 | $ 6,835 | $ 6,365 |
Other assets | Other assets | Other assets | |
Operating lease right-of-use assets | $ 3,209 | $ 4,201 | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
Operating lease, liability, current | $ 1,669 | $ 1,810 | |
Other liabilities | Other liabilities | Other liabilities | |
Operating lease liabilities, non-current | $ 1,630 | $ 2,536 | |
Total operating lease liabilities | $ 3,299 | $ 4,346 | |
Weighted average remaining lease term | 2 years 7 months 6 days | 2 years 10 months 24 days | 2 years 1 month 6 days |
Weighted average discount rate | 8.60% | 8.80% | 9.40% |
Leases - Future undiscounted le
Leases - Future undiscounted lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lease Payments | ||
2024 | $ 1,871 | |
2025 | 1,008 | |
2026 | 528 | |
2027 | 174 | |
2028 | 62 | |
Thereafter | 0 | |
Total lease payments | 3,643 | |
Less imputed interest | (344) | |
Total present value of lease liabilities | $ 3,299 | $ 4,346 |
Reinsurance - Additional inform
Reinsurance - Additional information (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 01, 2022 USD ($) layer | Mar. 31, 2022 USD ($) layer | Aug. 31, 2023 USD ($) layer | Dec. 31, 2023 USD ($) placement | Dec. 31, 2023 USD ($) placement | Dec. 31, 2022 placement layer | Dec. 31, 2021 placement | |
Homeowners of America Insurance Company | |||||||
Reinsurance Retention [Line Items] | |||||||
Supplemental Reinsurance Coverage | $ 146,300 | $ 146,300 | |||||
Vesttoo | Homeowners of America Insurance Company | |||||||
Reinsurance Retention [Line Items] | |||||||
Reinsurance, Collateral Received From Trust | 47,600 | ||||||
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 36,000 | ||||||
Reinsurance, Collateral, Line Of Credit Facility | 300,000 | ||||||
Pro Forma | Vesttoo | Homeowners of America Insurance Company | |||||||
Reinsurance Retention [Line Items] | |||||||
Payments for Reinsurance | $ 20,000 | ||||||
Maximum | Vesttoo | Homeowners of America Insurance Company | |||||||
Reinsurance Retention [Line Items] | |||||||
Reinsurance Coverage Limit | $ 175,000 | ||||||
Reinsurance Quota Share Program | |||||||
Reinsurance Retention [Line Items] | |||||||
Number of placements for reinsurance programs | placement | 3 | 3 | 2 | 2 | |||
Reinsurance Quota Share Program | Core Locations | |||||||
Reinsurance Retention [Line Items] | |||||||
Reinsured risk percentage | 9.50% | 90% | 90% | ||||
Reinsurance Quota Share Program | Coastal Locations | |||||||
Reinsurance Retention [Line Items] | |||||||
Reinsured risk percentage | 61.75% | 90% | |||||
Reinsurance Quota Share Program | TEXAS | |||||||
Reinsurance Retention [Line Items] | |||||||
Reinsured risk percentage | 42% | ||||||
Reinsurance Quota Share Program | SOUTH CAROLINA | |||||||
Reinsurance Retention [Line Items] | |||||||
Reinsured risk percentage | 7% | ||||||
Reinsurance Quota Share Program | Core Locations outside of Texas | |||||||
Reinsurance Retention [Line Items] | |||||||
Reinsured risk percentage | 8% | ||||||
Reinsurance Quota Share Program | Combined Program | |||||||
Reinsurance Retention [Line Items] | |||||||
Reinsured risk percentage | 5% | ||||||
Reinsurance Property Catastrophe Treaties | |||||||
Reinsurance Retention [Line Items] | |||||||
Amount retained | $ 4,000 | $ 2,000 | |||||
Excess amount retained | $ 336,000 | $ 440,000 | |||||
Number of retention layers for reinsurance policy | layer | 5 | 4 | 4 | 3 | |||
Reinsurance Property Catastrophe Treaties | Minimum | |||||||
Reinsurance Retention [Line Items] | |||||||
Amount retained | $ 20,000 | ||||||
Reinsurance Property Catastrophe Treaties | Maximum | |||||||
Reinsurance Retention [Line Items] | |||||||
Amount retained | $ 80,000 | ||||||
Reinsurance Property Non-weather Losses | |||||||
Reinsurance Retention [Line Items] | |||||||
Excess amount retained | $ 500 | ||||||
Reinsurance Property Non-weather Losses | Core Locations | |||||||
Reinsurance Retention [Line Items] | |||||||
Amount retained | 50 | ||||||
Reinsurance Property Non-weather Losses | Coastal Locations | |||||||
Reinsurance Retention [Line Items] | |||||||
Amount retained | $ 191 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance on Premiums Written and Earned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |||
Direct premiums, written | $ 445,587 | $ 462,179 | $ 266,609 |
Ceded premiums, written | (76,643) | (399,400) | (237,102) |
Net premiums, written | 368,944 | 62,779 | 29,507 |
Direct premiums, earned | 462,434 | 395,968 | 213,423 |
Ceded premiums, earned | (235,171) | (349,952) | (199,366) |
Net premiums, earned | $ 227,263 | $ 46,016 | $ 14,057 |
Reinsurance - Effects of Rein_2
Reinsurance - Effects of Reinsurance on Incurred Losses and LAE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |||
Direct losses and LAE | $ 300,960 | $ 280,505 | $ 181,256 |
Ceded losses and LAE | (117,455) | (224,202) | (162,752) |
Net losses and LAE | $ 183,505 | $ 56,303 | $ 18,504 |
Reinsurance - Detail of Reinsur
Reinsurance - Detail of Reinsurance Balances Due (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reinsurance balances due: | ||
Ceded unearned premium | $ 50,697 | $ 203,157 |
Losses and LAE reserve | 19,911 | 76,999 |
Reinsurance recoverable | 12,629 | 18,765 |
Other | 345 | 139 |
Reinsurance balance due | $ 83,582 | $ 299,060 |
Unpaid Losses and Loss Adjust_3
Unpaid Losses and Loss Adjustment Reserve - Unpaid Losses and LAE Gross (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Reserve for unpaid losses and LAE, beginning balance | $ 100,632 | $ 61,949 | |
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | (19,808) | (76,999) | $ (56,752) |
Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables, beginning balance | 23,633 | 5,197 | |
Add provisions (reductions) for losses and LAE occurring in: | |||
Current year | 197,792 | 55,148 | |
Prior years | (158) | 1,155 | |
Net incurred losses and LAE during the current year | 197,634 | 56,303 | |
Deduct payments for losses and LAE occurring in: | |||
Current year | (125,370) | (32,111) | |
Prior years | (20,202) | (5,756) | |
Net claim and LAE payments during the current year | (145,572) | (37,867) | |
Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables, ending balance | 75,695 | 23,633 | |
Reserve for losses and LAE, net of reinsurance recoverables, ending balance | 19,808 | 76,999 | |
Reserve for unpaid losses and LAE, ending balance | $ 95,503 | $ 100,632 |
Unpaid Losses and Loss Adjust_4
Unpaid Losses and Loss Adjustment Reserve - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | ||
(Decrease) increase in changes in estimates of provisions of losses and loss adjustment expenses | $ (158) | $ 1,155 |
Provisions of losses and loss adjustment expense | $ 108 |
Unpaid Losses and Loss Adjust_5
Unpaid Losses and Loss Adjustment Reserve - Cumulative Reported Claim (Details) $ in Thousands | Dec. 31, 2023 USD ($) claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) |
Unpaid Losses and Loss Adjustment Reserve | |||||
Incurred losses and allocated loss adjustment expenses, net of reinsurance, for the year | $ 283,412 | ||||
IBNR Reserves | $ 39,430 | ||||
Cumulative number of reported claims | claim | 104,612 | ||||
Cumulative paid losses and allocated adjustment expenses, net of reinsurance, for the year | $ 221,942 | ||||
Liability for losses and loss adjustment expenses, net of reinsurance | 61,471 | ||||
2019 | |||||
Unpaid Losses and Loss Adjustment Reserve | |||||
Incurred losses and allocated loss adjustment expenses, net of reinsurance, for the year | 9,812 | $ 9,786 | $ 9,773 | $ 9,678 | $ 9,666 |
IBNR Reserves | $ 42 | ||||
Cumulative number of reported claims | claim | 10,838 | ||||
Cumulative paid losses and allocated adjustment expenses, net of reinsurance, for the year | $ 9,715 | 9,694 | 9,578 | 9,324 | $ 7,405 |
2020 | |||||
Unpaid Losses and Loss Adjustment Reserve | |||||
Incurred losses and allocated loss adjustment expenses, net of reinsurance, for the year | 14,717 | 14,587 | 14,281 | 12,664 | |
IBNR Reserves | $ 57 | ||||
Cumulative number of reported claims | claim | 13,230 | ||||
Cumulative paid losses and allocated adjustment expenses, net of reinsurance, for the year | $ 14,500 | 14,142 | 13,865 | $ 9,750 | |
2021 | |||||
Unpaid Losses and Loss Adjustment Reserve | |||||
Incurred losses and allocated loss adjustment expenses, net of reinsurance, for the year | 23,149 | 20,614 | 19,795 | ||
IBNR Reserves | $ 585 | ||||
Cumulative number of reported claims | claim | 35,082 | ||||
Cumulative paid losses and allocated adjustment expenses, net of reinsurance, for the year | $ 21,652 | 20,569 | $ 15,335 | ||
2022 | |||||
Unpaid Losses and Loss Adjustment Reserve | |||||
Incurred losses and allocated loss adjustment expenses, net of reinsurance, for the year | 52,065 | 55,110 | |||
IBNR Reserves | $ 2,147 | ||||
Cumulative number of reported claims | claim | 25,274 | ||||
Cumulative paid losses and allocated adjustment expenses, net of reinsurance, for the year | $ 50,705 | $ 32,073 | |||
2023 | |||||
Unpaid Losses and Loss Adjustment Reserve | |||||
Incurred losses and allocated loss adjustment expenses, net of reinsurance, for the year | 183,669 | ||||
IBNR Reserves | $ 36,599 | ||||
Cumulative number of reported claims | claim | 20,188 | ||||
Cumulative paid losses and allocated adjustment expenses, net of reinsurance, for the year | $ 125,370 |
Unpaid Losses and Loss Adjust_6
Unpaid Losses and Loss Adjustment Reserve - Average Annual Percentage (Details) | Dec. 31, 2023 |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Average annual percentage payout of accident year 1 | 85.60% |
Average annual percentage payout of accident year 2 | 13.50% |
Average annual percentage payout of accident year 3 | 7% |
Average annual percentage payout of accident year 4 | 0.20% |
Average annual percentage payout of accident year 5 | 0% |
Commitments and Contingencies -
Commitments and Contingencies - Non-Cancelable Purchase Commitments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Purchase Commitments | |
2024 | $ 4,435 |
2025 | 3,030 |
2026 | 1,021 |
2027 | 1,121 |
2028 | 0 |
Total | $ 9,607 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) action | Dec. 31, 2022 USD ($) | |
Number of legal actions | action | 13 | ||
Number of legal actions demised | action | 1 | ||
Kandela, LLC case | |||
Amount awarded to entity | $ 1.4 | ||
Homeowners of America Insurance Company | |||
Minimum capital stock to be maintained | $ 2.5 | ||
Minimum surplus to be maintained | 2.5 | ||
Total statutory surplus | 51.7 | $ 76.3 | |
Capital stock | 3 | 3 | |
Surplus | 48.7 | 73.3 | |
Restricted cash and investments | $ 3.3 | 3.7 | |
Minimum percentage of statutory surplus | 10% | ||
Dividends | $ 0 | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Goodwill | $ 191,907 | $ 244,697 | $ 225,654 | $ 28,289 |
Vertical Software Segment Deferred Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 191,900 | 191,900 | ||
Vertical Software Segment Deferred Revenue | Software And Services | Product Concentration Risk | Revenue Benchmark | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 54% | |||
Vertical Software Segment Deferred Revenue | Move And Post Move Services | Product Concentration Risk | Revenue Benchmark | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 46% | |||
Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 0 | $ 52,800 |
Segment Information - Revenue (
Segment Information - Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 430,302 | $ 275,948 | $ 192,433 |
Vertical Software Segment Deferred Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue | 125,116 | 154,915 | 137,150 |
Insurance | |||
Segment Reporting Information [Line Items] | |||
Revenue | 305,186 | 121,033 | 55,283 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 430,302 | 275,948 | 192,433 |
Operating Segments | Vertical Software Segment Deferred Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue | 125,116 | 154,915 | 137,150 |
Operating Segments | Insurance | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 305,186 | $ 121,033 | $ 55,283 |
Segment Information - Consolida
Segment Information - Consolidated Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment adjusted EBITDA (loss) | $ 16,627 | $ 9,179 | $ 29,740 |
Reconciling items: | |||
Corporate and other | (61,141) | (58,780) | (53,760) |
Depreciation and amortization | (24,415) | (27,930) | (16,386) |
Impairment loss on intangible assets and goodwill | (57,232) | (61,386) | 0 |
Impairment loss on property, equipment and software | (254) | (637) | (550) |
Stock-based compensation expense | (20,709) | (27,041) | (38,592) |
Restructuring costs (1) | (4,015) | (647) | 0 |
Acquisition and other transaction costs | (552) | (1,687) | (5,360) |
Loss on reinsurance contract (see Note 14) | (36,042) | 0 | 0 |
Change in fair value of contingent consideration | 5,664 | (6,944) | 2,244 |
Investment income and realized gains | (8,285) | (1,174) | (701) |
Operating loss | (190,354) | (177,047) | (83,365) |
Vertical Software Segment Deferred Revenue | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment adjusted EBITDA (loss) | 4,307 | 14,678 | 20,733 |
Insurance | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment adjusted EBITDA (loss) | $ 12,320 | $ (5,499) | $ 9,007 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss used to compute net loss per share - basic | $ (133,933) | $ (156,559) | $ (106,606) |
Net loss used to compute net loss per share - diluted | $ (133,933) | $ (156,559) | $ (106,606) |
Denominator: | |||
Weighted average shares outstanding used to compute net loss used to compute net loss per share - diluted (in shares) | 96,057,000 | 97,351,000 | 93,885,000 |
Weighted average shares outstanding used to compute net loss used to compute net loss per share - basic (in shares) | 96,057,000 | 97,351,000 | 93,885,000 |
Net loss per share - basic (in dollars per share) | $ (1.39) | $ (1.61) | $ (1.14) |
Net loss per share - diluted (in dollars per share) | $ (1.39) | $ (1.61) | $ (1.14) |
Net Loss Per Share - Computat_2
Net Loss Per Share - Computation of Diluted Net Loss per Antidilutive (Details) - $ / shares shares in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 16, 2021 | Sep. 15, 2021 | |
Basic and Diluted Net Loss Per Share | ||||||
Conversion price (in usd per share) | $ 37.74 | |||||
Convertible senior notes, due 2026 | ||||||
Basic and Diluted Net Loss Per Share | ||||||
Share price (in usd per share) | $ 25 | |||||
Conversion price (in usd per share) | $ 25 | |||||
Potentially dilutive shares (in shares) | 6,000 | |||||
Stock options | ||||||
Basic and Diluted Net Loss Per Share | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 3,642 | 3,863 | 4,823 | |||
Restricted stock units and awards | ||||||
Basic and Diluted Net Loss Per Share | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 8,311 | 5,309 | 2,713 | |||
Performance restricted stock units | ||||||
Basic and Diluted Net Loss Per Share | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 3,754 | 921 | 0 | |||
Public and private warrants | ||||||
Basic and Diluted Net Loss Per Share | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 1,796 | 1,796 | 1,796 | |||
Earnout shares | ||||||
Basic and Diluted Net Loss Per Share | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 2,050 | 2,050 | |||
Convertible debt | ||||||
Basic and Diluted Net Loss Per Share | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 22,331 | 16,998 | 16,998 | |||
Contingently issuable shares in connection with acquisitions | ||||||
Basic and Diluted Net Loss Per Share | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 5,908 | 10,632 | 1,193 |