Porch Group raises FY21 revenue outlook to $187.5M from $184M, consensus $185.2M 08:02 PRCH Last night, in conjunction with Porch Group announcing two strategic acquisitions, the company said it is raising its revenue outlook from $184M to $187.5M, representing approximately 159% year-over-year revenue growth. "The vast majority of Porch's revenue is recurring, with the company continuing to expect approximately 90% of 2021 revenues from its vertical software solutions - 25% from B2B software and service subscription fees and approximately 65% from corresponding move-related transaction revenues which includes insurance and now warranty- and approximately 10% of revenues from post-move services. The company recently reiterated full-year 2021 guidance for revenue less cost of revenue of approximately 72% and contribution margin of approximately 40% which remains intact. AHP operated at negative $2.5M Adjusted EBITDA in 2020 and as such, Porch is tightening its adjusted EBITDA margin guidance range to -14% to -16% from -13% to -16% to account for incremental loss from this acquisition during the balance of 2021. The company anticipates providing incremental disclosure of its Vertical Software and Insurance segments beginning in Q3," Porch stated.
Porch Group acquisitions 'two more smart deals,' says Stephens 07:35 PRCH After Porch Group announced it is acquiring CSE Insurance and American Home Protect, Stephens analyst John Campbell called the deals "smart" and "important" acquisitions that should further support the company's ongoing push into InsurTech and offer up both enhanced and new offerings. He "really" likes both deals from a strategic standpoint and also likes the cost and synergies potential, said Campbell, who would be a "strong buyer" at current levels and reiterates an Overweight rating and $30 price target on Porch shares.
Copart price target raised to $150 from $130 at Baird 07:07 CPRT Baird analyst Craig Kennison raised the firm's price target on Copart to $150 from $130 and keeps an Outperform rating on the shares. The analyst noted they reported strong results while average selling prices (ASP) remained elevated. He expects ASP growth to fade but remains willing to pay a premium for a market leader with wide moats, and he expects long-term investors to accumulate on weakness.
