Porch Group, Inc. (NASDAQ:PRCH) Q3 2023 Earnings Call Transcript

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The second is, as it gets more competitive, agents are going to be looking for ways to stand out. Agents are going to be looking for ways to take some of the services that they do and not have to worry about doing them themselves. And that plays really well to our core thesis that consumers going through a home purchase are going through a really stressful time in their life and we can step in at scale and provide all sorts of wraparound services to benefit that consumer and to make that agent look well. So obviously it’s early, lots of things are going to unfold. But things that cause agents to want to be more competitive, I think, plays well to our value prop.

Matt Ehrlichman: Yes. Generally, there’s more home sale transactions we benefit. So there’ll be more inspections, more transactions that the title industry is dealing with. Those are all good things for us. And if commissions are lower and that allows housing to be that much more affordable, for consumers, clearly, that would benefit, our core businesses. If warranties happen to not get bundled into a home transaction because that’s not really a market, a channel that we have focused on and that leaves that consumer available for us to be able to help them with a home warranty that again — that would just help our business.

Unidentified Analyst: And then I also have a follow-up on vertical software segment. Can you discuss what customer types and products you are seeing more traction and demand in the current environment?

Matthew Neagle: What customer types and products?

Unidentified Analyst: Yes. Within the vertical software segment.

Matthew Neagle: Yes. So we — I mean, we have — we operate in, multiple different segments there. I think, broadly speaking, that part of our business has held up fairly well despite the headwinds. We’re obviously looking at ways that we can help those businesses to either save money or to grow their business, right? And so, a lot of our innovation has been focused on that type of feature. So there’s, for example, things we’re doing that allow inspectors to move the cost of the inspection to close, and they can help the consumer save a little bit of money upfront, and they get to make more money at the same time. There’s stuff we’re doing in the mortgage space that essentially reduces some of the fees that happen throughout the process through a service that we offer.

And then of course in the title space, we’re now rolling out several new products driven out essentially automating, additional workflows for title companies. And so, for us, it’s really emphasize the role that we can play to help these businesses be more efficient at a time they need to be really lean and help these businesses generate more revenue. And those customers are very open now to those ideas. So, some of these products are actually gaining traction because people are like, this isn’t a nice to have, but I need to do some of these things to be more efficient or generate more revenue.

Operator: Thank you. And that does conclude today’s presentation. Thank you for your participation today, and you may now disconnect.

Matt Ehrlichman: Thanks, all.

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