Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Doma's Q2 2022 Results Show Resilience Amidst Continued Housing Market Headwinds; Reaffirms 2022 Adjusted EBITDA Guidance and Commitment to Deliver Positive Adjusted EBITDA by the End of 2023


Doma Holdings, Inc. (NYSE: DOMA) ("Doma" or the "Company"), a leading force for disruptive change in the real estate industry, today reported quarterly financial results and key operating data for the three and six months ended June 30, 2022(2). Doma's results demonstrate the Company's ability to effectively manage the business through a set of macroeconomic and housing industry headwinds that continued to worsen significantly in the first half of 2022. Despite these headwinds, the Company's Q2 results, including strategic investment prioritization, cost restructuring, and a focus on purchase transactions, show that Doma remains on its path to positive Adjusted EBITDA profitability by the end of 2023.

"In the face of heightened cyclical challenges within the mortgage and housing market, I am confident Doma will be recognized as one of the most agile companies to adapt to evolving market conditions, while still remaining focused on our vision of making the home closing experience better, faster, and more affordable," said Max Simkoff, CEO of Doma." The re-prioritization of our investments and our focus on purchase orders, which now make up 66% of our direct Retained Premiums and Fees, give us confidence we'll achieve positive Adjusted EBITDA by the end of 2023, if not sooner."

Doma's financial performance in the second quarter was delivered against the backdrop of a mortgage market that saw overall mortgage demand fall to the lowest level in 22 years, with purchase mortgage applications declining 14% from Q1 2022 to Q2 2022, and where purchase transaction cancellations reached 15% in June, the highest level since April of 2020. Doma's unique value proposition is highlighted by its strong performance in purchase transactions which were up 16% quarter over quarter. In anticipation of further market challenges throughout the remainder of the year, Doma took additional steps in Q2 2022 to protect its path to achieve positive Adjusted EBITDA by the end of 2023. These actions included further cost reductions amidst a narrower focus on a set of strategic home purchase initiatives. Chief among these priorities include the acceleration of additional purchase transactions onto the Doma Intelligence platform (also referred to as Doma for Purchase) and the development of additional product features within Doma for Purchase for select Enterprise referral partners.

"Because of the high degree of volatility in the mortgage market, most of which is being driven by macroeconomic factors outside of Doma's control, we are being strategically selective with our investments and are prudently managing our expenses, including prioritizing profitability and preserving cash over growth," said Mike Smith, Chief Financial Officer at Doma. "We believe that we have taken meaningful actions to guard against the uncertainty in the mortgage market in the back half of this year and to protect our bottom-line results. We are reaffirming our full year 2022 Adjusted EBITDA guidance at the low end of the range and will continue to manage our cost structure and investment prioritization, specifically focused on the purchase market, to ensure that we remain on our near-term path to profitability by the end of 2023."

Second Quarter 2022 Growth Drivers and Recent Business Highlights

2022 Full Year Outlook (1):

Non-GAAP Financial Measures

Some of the financial information and data contained in this press release, such as retained premiums and fees, adjusted gross profit and adjusted EBITDA, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). Retained premiums and fees is defined as revenue less premiums retained by third-party agents. Adjusted gross profit is defined as gross profit, plus depreciation and amortization. Adjusted EBITDA is defined as net loss before interest expense, income taxes, depreciation and amortization, stock-based compensation, severance costs and change in fair value of warrant and sponsor covered shares liabilities. Doma believes that the use of retained premiums and fees, adjusted gross profit and adjusted EBITDA provides additional tools to assess operational performance and trends in, and in comparing Doma's financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. Doma's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Doma's financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

(1)

Reconciliations of retained premiums and fees, adjusted gross profit, and the other financial measures used in this press release that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP") to the nearest measures prepared in accordance with GAAP have been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

(2)

Doma completed its business combination with Capitol Investment Corp. V ("Capitol") on July 28, 2021. The financial results and key operating data included in this second quarter release include operating results of Doma prior to completion of the business combination and operating results of the combined company subsequent to completion of the business combination.

(3)

With respect to our guidance on adjusted EBITDA, the Company is not able to provide a quantitative reconciliation without unreasonable efforts to the most directly comparable GAAP financial measure, which would be net loss, due to the high variability, complexity and low visibility with respect to certain items such as income taxes and changes in the fair value of Warrant and Sponsor Covered shares liabilities. We expect the variability of these items to have a potentially unpredictable and potentially significant impact on future GAAP financial results, and, as such, we also believe that any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.

Conference Call Information

Doma will host a conference call at 5:00 PM Eastern Time on Tuesday, August 9, to present its second quarter 2022 financial results.

Dial-in Details: To access the call by phone, please go to this link (registration link), and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

The live webcast of the call will be accessible on the Company's website at investor.doma.com. Approximately two hours after conclusion of the live event, an archived webcast of the conference call will be accessible from the Investor Relations section of the Company's website for twelve months.

About Doma Holdings, Inc.

Doma is a real estate technology company that is disrupting a century-old industry by building an instant and frictionless home closing experience for buyers and sellers. Doma uses proprietary machine intelligence technology and deep human expertise to create a vastly more simple and affordable experience for everyone involved in a residential real estate transaction, including current and prospective homeowners, mortgage lenders, title agents, and real estate professionals. With Doma, what used to take days can now be done in minutes, replacing an arcane and cumbersome process with a digital experience designed for today's world. To learn more visit doma.com.

Forward-Looking Statements Legend

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The absence of these words does not mean that a statement is not forward-looking. Such statements are based on the beliefs of, as well as assumptions made by information currently available to Doma management. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics, projections of market opportunity, total addressable market ("TAM"), market share and competition. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectation of Doma's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict, will differ from assumptions and are beyond the control of Doma.

These forward-looking statements are subject to a number of risks and uncertainties, including changes in business, market, financial, political and legal conditions; risks relating to the uncertainty of the projected financial information with respect to Doma; future global, regional or local economic, political, market and social conditions, including due to the COVID-19 pandemic; the development, effects and enforcement of laws and regulations, including with respect to the title insurance industry; Doma's ability to manage its future growth or to develop or acquire enhancements to its platform; the effects of competition on Doma's future business; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those other factors described in Part I, Item 1A - "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent reports filed by Doma from time to time with the U.S. Securities and Exchange Commission (the "SEC").

If any of these risks materialize or Doma's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Doma does not presently know or that Doma currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Doma's expectations, plans or forecasts of future events and views as of the date of this press release. Doma anticipates that subsequent events and developments will cause Doma's assessments to change. However, while Doma may elect to update these forward-looking statements at some point in the future, Doma specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Doma's assessment as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Key Operating and Financial Indicators

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(in thousands, except for open and closed order numbers)

Key operating data:

 

 

 

 

 

 

 

Opened orders

 

25,231

 

 

 

41,491

 

 

 

60,423

 

 

 

82,575

 

Closed orders

 

18,799

 

 

 

31,436

 

 

 

46,146

 

 

 

64,086

 

 

 

 

 

 

 

 

 

GAAP financial data:

 

 

 

 

 

 

 

Revenue (1)

$

123,744

 

 

$

129,986

 

 

$

235,951

 

 

$

257,782

 

Gross profit (2)

$

7,143

 

 

$

26,514

 

 

$

14,277

 

 

$

52,930

 

Net loss (3)

$

(58,652

)

 

$

(23,299

)

 

$

(108,678

)

 

$

(35,057

)

Non-GAAP financial data (4):

 

 

 

 

 

 

 

Retained premiums and fees

$

49,106

 

 

$

64,805

 

 

$

100,711

 

 

$

122,263

 

Adjusted gross profit

$

10,890

 

 

$

29,535

 

 

$

21,260

 

 

$

58,657

 

Ratio of adjusted gross profit to retained premiums and fees

 

22

%

 

 

46

%

 

 

21

%

 

 

48

%

Adjusted EBITDA

$

(43,390

)

 

$

(11,903

)

 

$

(88,295

)

 

$

(15,182

)

_________________

(1)

Revenue is comprised of (i) net premiums written, (ii) escrow, other title-related fees and other, and (iii) investment, dividend and other income.

(2)

Gross profit, calculated in accordance with GAAP, is calculated as total revenue, minus premiums retained by third-party agents, direct labor expense (including mainly personnel expense for certain employee involved in the direct fulfillment of policies) and direct non-labor expense (including mainly title examination expense, provision for claims, and depreciation and amortization). In our consolidated income statements, depreciation and amortization is recorded under the "other operating expenses" caption.

(3)

Net loss is made up of the components of revenue and expenses.

(4)

Retained premiums and fees, adjusted gross profit and adjusted EBITDA are non-GAAP financial measures.

Non-GAAP Financial Measures

Retained premiums and fees

The following table reconciles our retained premiums and fees to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

(in thousands)

 

(in thousands)

Revenue

$

123,744

 

$

129,986

 

$

235,951

 

$

257,782

Minus:

 

 

 

 

 

 

 

Premiums retained by third-party agents

 

74,638

 

 

65,181

 

 

135,240

 

 

135,519

Retained premiums and fees

$

49,106

 

$

64,805

 

$

100,711

 

$

122,263

Minus:

 

 

 

 

 

 

 

Direct labor

 

23,890

 

 

20,902

 

 

51,688

 

 

38,881

Provision for claims

 

6,310

 

 

6,807

 

 

10,921

 

 

10,055

Depreciation and amortization

 

3,747

 

 

3,021

 

 

6,983

 

 

5,727

Other direct costs (1)

 

8,016

 

 

7,561

 

 

16,842

 

 

14,670

Gross Profit

$

7,143

 

$

26,514

 

$

14,277

 

$

52,930

__________________

(1)

Includes title examination expense, office supplies, and premium and other taxes.

Adjusted gross profit

The following table reconciles our adjusted gross profit to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

(in thousands)

 

(in thousands)

Gross Profit

$

7,143

 

$

26,514

 

$

14,277

 

$

52,930

Adjusted for:

 

 

 

 

 

 

 

Depreciation and amortization

 

3,747

 

 

3,021

 

 

6,983

 

 

5,727

Adjusted Gross Profit

$

10,890

 

$

29,535

 

$

21,260

 

$

58,657

Adjusted EBITDA

The following table reconciles our adjusted EBITDA to our net loss, the most closely comparable GAAP financial measure, for the periods indicated:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(in thousands)

 

(in thousands)

Net loss (GAAP)

$

(58,652

)

 

$

(23,299

)

 

$

(108,678

)

 

$

(35,057

)

Adjusted for:

 

 

 

 

 

 

 

Depreciation and amortization

 

3,747

 

 

 

3,021

 

 

 

6,983

 

 

 

5,727

 

Interest expense

 

4,489

 

 

 

4,451

 

 

 

8,696

 

 

 

7,810

 

Income taxes

 

136

 

 

 

211

 

 

 

321

 

 

 

336

 

EBITDA

$

(50,280

)

 

$

(15,616

)

 

$

(92,678

)

 

$

(21,184

)

Adjusted for:

 

 

 

 

 

 

 

Stock-based compensation

 

8,255

 

 

 

3,713

 

 

 

19,648

 

 

 

6,002

 

Severance costs

 

3,828

 

 

 

?

 

 

 

3,828

 

 

 

?

 

Change in fair value of Warrant and Sponsor Covered shares liabilities

 

(5,193

)

 

 

?

 

 

 

(19,093

)

 

 

?

 

Adjusted EBITDA

$

(43,390

)

 

$

(11,903

)

 

$

(88,295

)

 

$

(15,182

)

The following table reconciles our adjusted gross profit to our adjusted EBITDA, for the periods indicated:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(in thousands)

 

(in thousands)

Adjusted Gross Profit

$

10,890

 

 

$

29,535

 

 

$

21,260

 

 

$

58,657

 

Minus:

 

 

 

 

 

 

 

Customer acquisition costs

 

14,853

 

 

 

12,192

 

 

 

30,778

 

 

 

22,087

 

Other indirect costs (1)

 

39,427

 

 

 

29,246

 

 

 

78,777

 

 

 

51,752

 

Adjusted EBITDA

$

(43,390

)

 

$

(11,903

)

 

$

(88,295

)

 

$

(15,182

)

__________________

(1)

Includes corporate support, research and development, and other operating costs.

Doma Holdings, Inc.

Consolidated Statements of Operations

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(In thousands, except share and per share information)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

Net premiums written (1)

$

108,926

 

 

$

109,271

 

 

$

204,592

 

 

$

217,263

 

Escrow, other title-related fees and other

 

14,366

 

 

 

20,065

 

 

 

30,479

 

 

 

38,640

 

Investment, dividend and other income

 

452

 

 

 

650

 

 

 

880

 

 

 

1,879

 

Total revenues

$

123,744

 

 

$

129,986

 

 

$

235,951

 

 

$

257,782

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Premiums retained by Third-Party Agents (2)

$

74,638

 

 

$

65,181

 

 

$

135,240

 

 

$

135,519

 

Title examination expense

 

5,146

 

 

 

5,500

 

 

 

11,127

 

 

 

10,353

 

Provision for claims

 

6,310

 

 

 

6,807

 

 

 

10,921

 

 

 

10,055

 

Personnel costs

 

73,233

 

 

 

53,954

 

 

 

151,026

 

 

 

97,419

 

Other operating expenses

 

23,637

 

 

 

17,181

 

 

 

46,391

 

 

 

31,347

 

Total operating expenses

$

182,964

 

 

$

148,623

 

 

$

354,705

 

 

$

284,693

 

 

 

 

 

 

 

 

 

Loss from operations

$

(59,220

)

 

$

(18,637

)

 

$

(118,754

)

 

$

(26,911

)

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

Change in fair value of Warrant and Sponsor Covered Shares liabilities

 

5,193

 

 

 

?

 

 

 

19,093

 

 

 

?

 

Interest expense

 

(4,489

)

 

 

(4,451

)

 

 

(8,696

)

 

 

(7,810

)

Loss before income taxes

$

(58,516

)

 

$

(23,088

)

 

$

(108,357

)

 

$

(34,721

)

 

 

 

 

 

 

 

 

Income tax expense

 

(136

)

 

 

(211

)

 

 

(321

)

 

 

(336

)

Net loss

$

(58,652

)

 

$

(23,299

)

 

$

(108,678

)

 

$

(35,057

)

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Net loss per share attributable to stockholders - basic and diluted

$

(0.18

)

 

$

(0.33

)

 

$

(0.34

)

 

$

(0.51

)

Weighted average shares outstanding common stock - basic and diluted

 

324,879,934

 

 

 

69,944,477

 

 

 

324,387,981

 

 

 

68,688,288

 

__________________

(1)

Net premiums written includes revenues from a related party of $33.7 million and $27.0 million during the three months ended June 30, 2022 and 2021, respectively. Net premiums written includes revenues from a related party of $61.3 million and $51.6 million during the six months ended June 30, 2022 and 2021, respectively.

(2)

Premiums retained by Third-Party Agents includes expenses associated with a related party of $27.2 million and $22.0 million during the three months ended June 30, 2022 and 2021, respectively. Premiums retained by Third-Party Agents includes expenses associated with a related party of $49.6 million and $41.8 million during the six months ended June 30, 2022 and 2021, respectively.

Doma Holdings, Inc.

Consolidated Balance Sheets

 

(In thousands, except share information)

June 30,
2022

 

December 31,
2021

Assets

 

 

 

Cash and cash equivalents

$

226,339

 

 

$

379,702

 

Restricted cash

 

2,959

 

 

 

4,126

 

Investments:

 

 

 

Fixed maturities

 

 

 

Held-to-maturity debt securities, at amortized cost (net of allowance for credit losses of $443 at June 30, 2022 and $0 at December 31, 2021)

 

51,307

 

 

 

67,164

 

Available-for-sale debt securities, at fair value (amortized cost $49,664 at June 30, 2022 and $0 at December 31, 2021)

 

49,966

 

 

 

?

 

Mortgage loans

 

1,132

 

 

 

2,022

 

Other long-term investments

 

325

 

 

 

325

 

Total investments

$

102,730

 

 

$

69,511

 

Receivables (net of allowance for credit losses of $1,332 at June 30, 2022 and $1,082 at December 31, 2021)

 

12,910

 

 

 

15,498

 

Prepaid expenses, deposits and other assets

 

9,250

 

 

 

15,692

 

Lease right-of-use assets

 

27,979

 

 

 

?

 

Fixed assets (net of accumulated depreciation of $25,775 at June 30, 2022 and $19,543 at December 31, 2021)

 

59,474

 

 

 

45,953

 

Title plants

 

13,952

 

 

 

13,952

 

Goodwill

 

111,487

 

 

 

111,487

 

Total assets

$

567,080

 

 

$

655,921

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

Accounts payable

$

3,306

 

 

$

6,930

 

Accrued expenses and other liabilities

 

36,487

 

 

 

54,149

 

Lease liabilities

 

29,222

 

 

 

?

 

Senior secured credit agreement, net of debt issuance costs and original issue discount

 

148,061

 

 

 

141,769

 

Liability for loss and loss adjustment expenses

 

84,936

 

 

 

80,267

 

Warrant liabilities

 

2,080

 

 

 

16,467

 

Sponsor Covered Shares liability

 

709

 

 

 

5,415

 

Total liabilities

$

304,801

 

 

$

304,997

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock, 0.0001 par value; 2,000,000,000 shares authorized at June 30, 2022; 325,497,629 and 323,347,806 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

33

 

 

 

33

 

Additional paid-in capital

 

563,265

 

 

 

543,070

 

Accumulated deficit

 

(301,256

)

 

 

(192,179

)

Accumulated other comprehensive income

 

237

 

 

 

?

 

Total stockholders' equity

$

262,279

 

 

$

350,924

 

Total liabilities and stockholders' equity

$

567,080

 

 

$

655,921

 

Quarterly Results of Operations and Other Data

The following tables set forth our selected unaudited quarterly consolidated statements of operations data for each of the quarters indicated. The information for each quarter has been prepared on a basis consistent with our audited consolidated financial statements, and reflect, in the opinion of management, all adjustments, which consist only of a normal, recurring nature that are necessary for a fair statement of the financial information contained in those financial statements. Our historical results are not necessarily indicative of the results that may be expected in the future. The following quarterly financial data should be read in conjunction with our consolidated financial statements.

Consolidated Statements of Operations

 

 

Three Months Ended

(In thousands)

June 30,
2020

 

September
30, 2020

 

December
31, 2020

 

March 31,
2021

 

June 30,
2021

 

September
30, 2021

 

December
31, 2021

 

March 31,
2022

 

June 30,
2022

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

$

86,334

 

 

$

103,587

 

 

$

98,870

 

 

$

107,992

 

 

$

109,271

 

 

$

141,491

 

 

$

116,598

 

 

$

95,666

 

 

$

108,926

 

Escrow, other title-related fees and other

 

13,382

 

 

 

16,742

 

 

 

17,977

 

 

 

18,575

 

 

 

20,065

 

 

 

20,452

 

 

 

20,493

 

 

 

16,113

 

 

 

14,366

 

Investment, dividend and other income

 

707

 

 

 

743

 

 

 

663

 

 

 

1,229

 

 

 

650

 

 

 

639

 

 

 

588

 

 

 

428

 

 

 

452

 

Total revenues

$

100,423

 

 

$

121,072

 

 

$

117,510

 

 

$

127,796

 

 

$

129,986

 

 

$

162,582

 

 

$

137,679

 

 

$

112,207

 

 

$

123,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums retained by Third-Party Agents

$

56,006

 

 

$

67,024

 

 

$

64,011

 

 

$

70,338

 

 

$

65,181

 

 

$

91,596

 

 

$

71,330

 

 

$

60,602

 

 

$

74,638

 

Title examination expense

 

3,322

 

 

 

4,624

 

 

 

4,393

 

 

 

4,853

 

 

 

5,500

 

 

 

5,289

 

 

 

6,495

 

 

 

5,981

 

 

 

5,146

 

Provision for claims

 

3,040

 

 

 

5,242

 

 

 

5,272

 

 

 

3,249

 

 

 

6,807

 

 

 

6,685

 

 

 

4,594

 

 

 

4,611

 

 

 

6,310

 

Personnel costs

 

32,737

 

 

 

36,197

 

 

 

38,874

 

 

 

43,464

 

 

 

53,954

 

 

 

62,410

 

 

 

78,306

 

 

 

77,793

 

 

 

73,233

 

Other operating expenses

 

10,286

 

 

 

10,210

 

 

 

12,149

 

 

 

14,165

 

 

 

17,181

 

 

 

21,693

 

 

 

26,912

 

 

 

22,754

 

 

 

23,637

 

Total operating expenses

$

105,391

 

 

$

123,297

 

 

$

124,699

 

 

$

136,069

 

 

$

148,623

 

 

$

187,673

 

 

$

187,637

 

 

$

171,741

 

 

$

182,964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

$

(4,968

)

 

$

(2,225

)

 

$

(7,189

)

 

$

(8,273

)

 

$

(18,637

)

 

$

(25,091

)

 

$

(49,958

)

 

$

(59,534

)

 

$

(59,220

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant and Sponsor Covered Shares liabilities

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

(4,478

)

 

 

11,169

 

 

 

13,900

 

 

 

5,193

 

Interest expense

 

(1,123

)

 

 

(1,193

)

 

 

(1,151

)

 

 

(3,360

)

 

 

(4,451

)

 

 

(4,531

)

 

 

(4,519

)

 

 

(4,207

)

 

 

(4,489

)

Loss before income taxes

$

(6,091

)

 

$

(3,418

)

 

$

(8,340

)

 

$

(11,633

)

 

$

(23,088

)

 

$

(34,100

)

 

$

(43,308

)

 

$

(49,841

)

 

$

(58,516

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

(241

)

 

 

(204

)

 

 

(223

)

 

 

(125

)

 

 

(211

)

 

 

(170

)

 

 

(421

)

 

 

(185

)

 

 

(136

)

Net loss

 

(6,332

)

 

 

(3,622

)

 

 

(8,563

)

 

 

(11,758

)

 

 

(23,299

)

 

 

(34,270

)

 

 

(43,729

)

 

 

(50,026

)

 

 

(58,652

)

Reconciliation of GAAP to Non-GAAP Measures

The following tables present our reconciliation of GAAP measures to non-GAAP measures for the historical periods indicated.

Retained premiums and fees

 

 

Three Months Ended

(In thousands)

June 30,
2020

 

September
30, 2020

 

December
31, 2020

 

March 31,
2021

 

June 30,
2021

 

September
30, 2021

 

December
31, 2021

 

March 31,
2022

 

June 30,
2022

Revenue

$

100,423

 

$

121,072

 

$

117,510

 

$

127,796

 

$

129,986

 

$

162,582

 

$

137,679

 

$

112,207

 

$

123,744

Minus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums retained by Third-Party Agents

 

56,006

 

 

67,024

 

 

64,011

 

 

70,338

 

 

65,181

 

 

91,596

 

 

71,330

 

 

60,602

 

 

74,638

Retained premiums and fees

$

44,417

 

$

54,048

 

$

53,499

 

$

57,458

 

$

64,805

 

$

70,986

 

$

66,349

 

$

51,605

 

$

49,106

Minus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct labor

 

13,898

 

 

14,892

 

 

17,050

 

 

17,979

 

 

20,902

 

 

23,948

 

 

26,787

 

 

27,798

 

 

23,890

Provision for claims

 

3,040

 

 

5,242

 

 

5,272

 

 

3,249

 

 

6,807

 

 

6,685

 

 

4,594

 

 

4,611

 

 

6,310

Depreciation and amortization

 

899

 

 

1,221

 

 

2,579

 

 

2,707

 

 

3,021

 

 

1,978

 

 

2,615

 

 

3,236

 

 

3,747

Other direct costs(1)

 

4,898

 

 

6,314

 

 

4,186

 

 

7,109

 

 

7,561

 

 

10,073

 

 

10,322

 

 

8,826

 

 

8,016

Gross Profit

$

21,682

 

$

26,379

 

$

24,412

 

$

26,414

 

$

26,514

 

$

28,302

 

$

22,031

 

$

7,134

 

$

7,143

__________________

(1)

Includes title examination expense, office supplies, and premium and other taxes.

Adjusted gross profit

 

 

Three Months Ended

(in thousands)

June 30,
2020

 

September
30, 2020

 

December
31, 2020

 

March 31,
2021

 

June 30,
2021

 

September
30, 2021

 

December
31, 2021

 

March 31,
2022

 

June 30,
2022

Gross Profit

$

21,682

 

$

26,379

 

$

24,412

 

$

26,414

 

$

26,514

 

$

28,302

 

$

22,031

 

$

7,134

 

$

7,143

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

899

 

 

1,221

 

 

2,579

 

 

2,707

 

 

3,021

 

 

1,978

 

 

2,615

 

 

3,236

 

 

3,747

Adjusted Gross Profit

$

22,581

 

$

27,600

 

$

26,991

 

$

29,121

 

$

29,535

 

$

30,280

 

$

24,646

 

$

10,370

 

$

10,890

Adjusted EBITDA

 

Three Months Ended

(in thousands)

June 30,
2020

 

September
30, 2020

 

December
31, 2020

 

March 31,
2021

 

June 30,
2021

 

September
30, 2021

 

December
31, 2021

 

March 31,
2022

 

June 30,
2022

Net loss (GAAP)

$

(6,332

)

 

$

(3,622

)

 

$

(8,563

)

 

$

(11,758

)

 

$

(23,299

)

 

$

(34,270

)

 

$

(43,729

)

 

$

(50,026

)

 

$

(58,652

)

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

899

 

 

 

1,221

 

 

 

2,579

 

 

 

2,707

 

 

 

3,021

 

 

 

1,978

 

 

 

2,615

 

 

 

3,236

 

 

 

3,747

 

Interest expense

 

1,123

 

 

 

1,193

 

 

 

1,151

 

 

 

3,360

 

 

 

4,451

 

 

 

4,531

 

 

 

4,519

 

 

 

4,207

 

 

 

4,489

 

Income taxes

 

241

 

 

 

204

 

 

 

223

 

 

 

125

 

 

 

211

 

 

 

170

 

 

 

421

 

 

 

185

 

 

 

136

 

EBITDA

$

(4,069

)

 

$

(1,004

)

 

$

(4,610

)

 

$

(5,566

)

 

$

(15,616

)

 

$

(27,591

)

 

$

(36,174

)

 

$

(42,398

)

 

$

(50,280

)

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

282

 

 

 

355

 

 

 

1,550

 

 

 

2,289

 

 

 

3,713

 

 

 

3,004

 

 

 

11,040

 

 

 

11,393

 

 

 

8,255

 

Severance costs

 

1,385

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

3,828

 

Change in fair value of warrant and Sponsor Covered Shares liabilities

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

4,478

 

 

 

(11,169

)

 

 

(13,900

)

 

 

(5,193

)

Adjusted EBITDA

$

(2,402

)

 

$

(649

)

 

$

(3,060

)

 

$

(3,277

)

 

$

(11,903

)

 

$

(20,109

)

 

$

(36,303

)

 

$

(44,905

)

 

$

(43,390

)

 


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