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Porch Group Reports Third Quarter 2021 Financial Results

- Reports $62.8 Million of Revenue and Increases Full Year 2021 Revenue Guidance to $195 Million, A 170% Year-Over-Year Increase -
- Reports Positive Quarterly Adjusted EBITDA of $873 Thousand and GAAP Net Loss of $5.1 Million -
- Reports $416 Million Cash Balance After Execution of Convertible Senior Notes Offering -

SEATTLE, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a leading vertical software company reinventing the home services industry, today reported financial results for the third quarter ended September 30, 2021.

“Our operational and strategic execution resulted in excellent third quarter financial results, highlighted by almost 200% year-over-year revenue growth and positive quarterly adjusted EBITDA for the first time in Porch’s history as a public company,” said Matt Ehrlichman, Founder, Chairman and CEO. “Bolstered by our balance sheet and cash position, we continue to demonstrate our ability to drive simultaneous strong growth and margins, while strengthening our strategically advantaged position in the marketplace, both organically and through acquisitions. Our strong Q3 and ongoing performance gives us confidence to increase our full year 2021 revenue guidance to $195 million which would be 170% growth year-over-year. I’m proud of our team’s hard work that has positioned us favorably for the remainder of the year and into 2022 to deliver for our shareholders and other key stakeholders. We’re continuing to take Porch to the next level as a truly great and enduring company.”

Third Quarter 2021 Financial Results
Total revenue for the third quarter of 2021 was $62.8 million, an increase of 192% from $21.5 million in the third quarter of 2020. The increase in total revenue was driven by strong performance across the business including increased software sales to more companies and growth in sales of key services such as insurance as well as closed acquisitions.

Revenue less cost of revenue for the third quarter 2021 was 69% and contribution margin was 45%. GAAP net loss for the third quarter of 2021 totaled $5.1 million. Adjusted EBITDA for the third quarter of 2021 totaled $873 thousand (or 1% of total revenue).

For the first time, the company is reporting financials with two reportable operating segments: Vertical Software and Insurance.

Segment Results for the Third Quarter 2021

  • Vertical Software revenue was $42.3 million, revenue less cost of revenue was 66%, contribution margin was 42% and adjusted EBITDA margin was 18%

  • Insurance revenue was $20.5 million, revenue less cost of revenue was 77%, contribution margin was 54% and adjusted EBITDA margin was 27%

  • Insurance gross written premium was $108 million with 292,000 policyholders

In the third quarter, we announced and closed an offering of $425 million aggregate principal amount of convertible senior notes due 2026. As of September 30, 2021, cash, cash equivalents, and restricted cash totaled $416 million. This amount is measured prior to the October acquisition of Floify, a provider of software for mortgage companies.

Third Quarter 2021 Key Performance Indicators (KPIs)
Software and services to companies:

  • Average number of companies increased to 20,472, up 90% year-over-year.

  • Average revenue per company per month increased to $1,022, up 54% year-over-year.

Monetized services for consumers:

  • Number of monetized services was 329,359 in Q3 2021, up 66% year-over-year.

  • Average revenue per monetized service was $144, up 48% year-over-year.

Recent Strategic Acquisitions
On September 9, 2021, Porch announced two strategic acquisitions – CSE Insurance (CSE) and American Home Protect (AHP) – to help the Company further provide high value services to homebuyers across the United States. CSE is expected to close mid-2022 (following regulatory approval) and will advance Porch’s insurance presence into California. AHP closed in September. Porch is now competing through AHP in the direct-to-consumer home warranty market. Porch will provide both of the acquired companies with unique advantages and revenue synergy opportunities, including low-cost access to homebuyers who require these services, and proprietary property data that may improve pricing and underwriting.

CSE Business Overview

  • Personal lines insurer focused on property and auto

  • 71-year history and management team with significant home and auto experience in California

  • CSE operates in six states, including its primary focus of California, as well as Arizona, Nevada and Utah. It is licensed in an additional six states

AHP Business Overview

  • Texas-based provider of whole home warranty policies across the United States

  • Utilizes a direct-to-consumer model to acquire customers for their multi-year warranty plans

On October 27, Porch announced the acquisition of Floify, a leading SaaS provider for mortgage companies and loan officers. The acquisition deepens Porch’s strategy of providing software to companies involved in key moments of the homebuying process and expands its early access to high-intent homebuyers who need key services including insurance, warranty and moving services.

Full Year 2021 Financial Outlook
Porch provides guidance based on current market conditions and expectations.

Previous 2021E Guidance

Current 2021E Guidance

Gross Written Premium
$300M

Increase

Gross Written Premium
$305M

Revenue
$187.5M

Increase

Revenue
$195M
(170% YOY Growth)

Revenue Less Cost of Revenue %
~72%

Adj. for mix shift

Revenue Less Cost of Revenue %
~70%

Contribution Margin %
~40%

No Change

Contribution Margin %
~40%

Adj. EBITDA %
-14 to -16%

No Change

Adj. EBITDA %
-14 to -16%

Porch is not providing reconciliations of expected Adjusted EBITDA margin or contribution margin for future periods to the most directly comparable measures prepared in accordance with GAAP because Porch is unable to provide these reconciliations without unreasonable effort as certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of Porch’s control.

Conference Call
Porch management will host a conference call today (November 15, 2021) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). The presentation will be accompanied by a slide presentation available on the Investor Relations section of the Company’s website. A question-and-answer session will follow management’s prepared remarks.

All are invited to listen to the event by registering for the webinar here.

To access the webinar by telephone, please see below:

Or One tap mobile:
U.S.: +14086380968,,85153860010# or +16699006833,,85153860010#

Or join by phone:
Dial (for higher quality, dial a number based on your current location):
US: +1 408 638 0968 or +1 669 900 6833 or +1 253 215 8782 or +1 346 248 7799 or +1 646 876 9923 or +1 301 715 8592 or +1 312 626 6799

Webinar ID: 851 5386 0010

International numbers available here.

If you have any difficulty connecting with the conference call or webcast, please contact Porch’s investor relations team at (949) 574-3860 or PRCH@gatewayir.com.

A replay of the webinar will also be available in the Investors section of Porch’s corporate website.

About Porch Group
Seattle-based Porch Group, the vertical software platform for the home, provides software and services to more than 20,000 home services companies such as home inspectors, mortgage companies and loan officers, title companies, moving companies, real estate agencies, utility companies, and warranty companies. Through these relationships and its multiple brands, Porch provides a moving concierge service to homebuyers, helping them save time and make better decisions on critical services, including insurance, warranty, moving, security, TV/internet, home repair and improvement, and more. To learn more about Porch, visit porchgroup.com or porch.com.

Forward-Looking Statements
Certain statements in this release may be considered “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 generally relate to future events or Porch’s future financial or operating performance. For example, projections of future revenue, contribution margin, Adjusted EBITDA and other metrics, business strategy and plans, and anticipated impacts from pending or completed acquisitions, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Porch and its management at the time they are made, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) the ability to recognize the anticipated benefits of Porch’s December 2020 business combination (the “Merger”) with PropTech Acquisition Corporation (“PropTech”), which may be affected by, among other things, competition and the ability of the combined company to grow and manage growth profitably, maintain key commercial relationships and retain its management and key employees; (2) expansion plans and opportunities, including recently completed acquisitions as well as future and pending acquisitions or additional business combinations; (3) costs related to the Merger and being a public company; (4) litigation, complaints, and/or adverse publicity; (5) the impact of changes in consumer spending patterns, consumer preferences, local, regional and national economic conditions, crime, weather, demographic trends and employee availability; (6) privacy and data protection laws, privacy or data breaches, or the loss of data; (7) the impact of the COVID-19 pandemic and its effect on the business and financial conditions of Porch; and (8) other risks and uncertainties described in Porch’s most recent annual report on Form 10-K/A and subsequent reports filed with the Securities and Exchange Commission (the “SEC”), such as Porch’s quarterly report on Form 10-Q for the quarter ended June 30, 2021, and September 30, 2021, which are available on the SEC’s website at www.sec.gov.

Nothing in this release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this release. Porch does not undertake any duty to update these forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may be required by law.

Non-GAAP Financial Measures
This press release includes one or more non-GAAP financial measures, such as Adjusted EBITDA (loss), Adjusted EBITDA (loss) as a percentage of revenue, contribution margin, and average revenue per monetized service.

Porch defines Adjusted EBITDA (loss) as net income (loss) adjusted for interest expense, net, income taxes, other expenses, net, depreciation and amortization, certain non-cash long-lived asset impairment charges, stock-based compensation expense and acquisition-related impacts, including compensation to the sellers that requires future service, amortization of intangible assets, gains (losses) recognized on changes in the value of contingent consideration arrangements, if any, gain or loss on divestures and certain transaction costs. Adjusted EBITDA (loss) as a percentage of revenue is defined as Adjusted EBITDA (loss) divided by GAAP total revenue. Contribution margin is defined as revenue less all variable expenses, including cost of revenue, variable marketing and sales. Average revenue per monetized services in quarter is the average revenue generated per monetized service performed in a quarterly period. When calculating average revenue per monetized service in quarter, average revenue is defined as total quarterly monetized service revenues generated from monetized services.

Porch’s management and Board of Directors use these non-GAAP financial measures as supplemental measures of Porch’s operating and financial performance for historical and forward-looking periods, for internal budgeting and forecasting purposes, to evaluate financial and strategic planning matters, and for certain measures, to establish performance goals for incentive programs. Porch believes that the use of these non-GAAP financial measures provides investors with useful information to evaluate projected operating results and trends and in comparing Porch’s financial measures with competitors, other similar companies and companies across different industries, many of which present similar non-GAAP financial measures to investors. However, Porch's definitions and methodology in calculating these non-GAAP measures may not be comparable to those used by other companies. In addition, Porch may modify the presentation of these non-GAAP financial measures in the future, and any such modification may be material.

You should not consider these non-GAAP financial measures in isolation, as a substitute to or superior to financial performance measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude specified income and expenses, some of which may be significant or material, that are required by GAAP to be recorded in Porch’s consolidated financial statements. Porch may also incur future income or expenses similar to those excluded from these non-GAAP financial measures, and Porch’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures reflect the exercise of management judgment about which income and expense are included or excluded in determining these non-GAAP financial measures.

You should review the tables accompanying this press release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure. Porch is not providing reconciliations of non-GAAP financial measures for future periods to the most directly comparable measures prepared in accordance with GAAP. Porch is unable to provide these reconciliations without unreasonable effort because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of Porch’s control.

Adjusted EBITDA (loss) For Three Months Ended September 30, 2021

CORPORATE

INSURANCE

VERTICAL SOFTWARE

Consolidated

Adjusted EBITDA (loss)

$

(12,312

)

$

5,473

$

7,713

$

873

Adjusted EBITDA as % of total revenue

N/A

27

%

18

%

1

%

Acquisition and related (income) expense

1,958

-

-

1,958

Loss on re-measurement of warrants

(2,692

)

-

-

(2,692

)

Loss on re-measurement of earnout liability

(7,413

)

-

-

(7,413

)

Revaluation of contingent consideration

195

-

-

195

Non-cash bonus expense

695

-

-

695

Non-cash stock-based compensation

5,172

156

555

5,884

Non-cash long-lived asset impairment charge

76

-

-

76

Other, net

(40

)

(187

)

(89

)

(315

)

Investment Income and Realized Gains

-

-

-

-

Gain (loss) on extinguishment of debt

3,133

-

-

3,133

Depreciation and amortization

727

1,262

2,442

4,430

Income tax expense

354

(1,838

)

(353

)

(1,836

)

Interest expense

1,148

31

679

1,857

Net Loss

$

(15,627

)

$

6,049

$

4,479

$

(5,099

)

Adjusted EBITDA (loss) For Nine Months Ended September 30, 2021

CORPORATE

INSURANCE

VERTICAL SOFTWARE

Consolidated

Adjusted EBITDA (loss)

$

(40,754)

$

3,068

$

19,040

$

(18,646)

Adjusted EBITDA as % of total revenue

N/A

8

%

19

%

-13

%

Acquisition and related (income) expense

4,648

-

-

4,648

Loss on re-measurement of warrants

17,521

-

17,521

Loss on re-measurement of earnout liability

15,388

-

-

15,388

Revaluation of contingent consideration

(380

)

-

-

(380

)

Non-cash bonus expense

1,378

-

-

1,378

Non-cash stock-based compensation

26,579

476

2,195

29,249

Non-cash long-lived asset impairment charge

202

-

14

216

Other, net

(43

)

(0

)

(181

)

(225

)

Investment Income and Realized Gains

-

-

(0

)

(0

)

Gain (loss) on extinguishment of debt

(5,099

)

-

(11

)

(5,110

)

Depreciation and amortization

2,318

2,431

6,038

10,788

Income tax expense

(7,003

)

(2,566

)

(348

)

(9,917

)

Interest expense

3,391

64

842

4,296

Net Loss

$

(99,653

)

$

2,664

$

10,492

$

(86,497

)

Monetized Services Revenue

Three and Nine Months Ended September 30, 2021

2021

2021

Monetized Services Revenue

$

47,398

$

103,311

Other Operating Revenue

$

15,371

37,541

Total Revenue

$

62,769

140,852

Revenue Less Cost of Revenue and Contribution Margin Reconciliation for Three Months Ended September 30, 2021

CORPORATE

INSURANCE

VERTICAL SOFTWARE

Consolidated

Revenue

$

-

$

20,482

$

42.287

$

62,769

Cost of Revenue

$

-

$

4,678

$

14,480

$

19,158

Revenue Less Cost of Revenue

$

-

$

15,804

$

27,808

$

43,611

N/A

77

%

66

%

69

%

Revenue

$

-

$

20,482

$

42,287

$

62,769

Cost of Revenue

$

-

$

4,768

$

14,480

$

19,158

Sales & Marketing (Variable)

$

800

$

4,834

$

10,039

$

15,673

Contribution Margin

$

(800

)

$

10,969

$

17,769

$

27,939

N/A

54

%

42

%

45

%

Sales & Marketing (Fixed)

$

940

$

1,663

$

3,266

$

5,869

Product & Technology

$

5,882

$

429

$

5,006

$

11,317

General & Administrative

$

13,514

$

4,875

$

4,782

$

23,170

Total Operating Expenses

$

21,135

$

16,479

$

37,572

$

75,186

Operating Loss

$

(21,135

)

$

4,003

$

4,716

$

(12,417

)

Revenue Less Cost of Revenue and Contribution Margin Reconciliation for Nine Months Ended September 30, 2021

CORPORATE

INSURANCE

VERTICAL SOFTWARE

Consolidated

Revenue

$

-

$

39,223

$

101,629

$

140,852

Cost of Revenue

$

-

$

15,408

$

29,179

$

44,587

Revenue Less Cost of Revenue

$

-

$

23,815

$

72,450

$

96,265

N/A

61

%

71

%

68

%

Revenue

$

-

$

39,223

$

101,629

$

140,852

Cost of Revenue

$

-

$

15,408

$

29,179

$

44,587

Sales & Marketing (Variable)

$

4,602

$

8,794

$

28,047

$

41,443

Contribution Margin

$

(4,602

)

$

15,021

$

44,404

$

54,882

N/A

38

%

44

%

39

%

Sales & Marketing (Fixed)

$

3,625

$

6,490

$

9,079

$

19,193

Product & Technology

$

20,778

$

433

$

12,946

$

34,158

General & Administrative

$

46,497

$

8,366

$

11,601

$

66,463

Total Operating Expenses

$

75,502

$

39,491

$

90,851

$

205,844

Operating Loss

$

(75,502

)

$

(268

)

$

10,778

$

(64,992

)

Investor Relations Contacts:
Walter Ruddy, Head of Investor Relations & Treasury
Porch Group
(206) 715-2369
WalterRuddy@porch.com

Cody Slach/Matt Glover/Alex Thompson
Gateway Group, Inc.
(949) 574-3860
PRCH@gatewayir.com

Porch Press contact:
Jordan Schmidt
Gateway Group, Inc.
(949) 386-6332
PRCH@gatewayir.com

PORCH GROUP, INC.
Condensed Consolidated Statements of Operations
(all numbers in thousands, except share amounts, unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Revenue

$

62,769

$

21,507

$

140,852

$

53,703

Operating expenses(1):

Cost of revenue

19,158

5,361

44,587

13,252

Selling and marketing

22,874

8,803

60,636

30,443

Product and technology

11,317

5,701

34,158

18,124

General and administrative

22,034

5,490

66,463

15,539

Gain on divestiture of businesses

(1,442

)

Total operating expenses

75,383

25,355

205,844

75,916

Operating loss

(12,614

)

(3,848

)

(64,992

)

(22,213

)

Other income (expense):

Interest expense

(1,857

)

(3,952

)

(4,296

)

(10,329

)

Change in fair value of earnout liability

7,413

(15,388

)

Change in fair value of private warrant liability

2,692

(17,521

)

Gain (loss) on extinguishment of debt

(3,133

)

(2,532

)

5,110

1,077

Investment income and realized gains, net of investment expenses

248

448

Other income (expense), net

316

1,418

225

(2,050

)

Total other expense

5,679

(5,066

)

(31,422

)

(11,302

)

Loss before income taxes

(6,935

)

(8,914

)

(96,414

)

(33,515

)

Income tax benefit (expense)

1,836

(9

)

9,917

(33

)

Net loss

$

(5,099

)

$

(8,923

)

$

(86,497

)

$

(33,548

)

Loss per share - basic

$

(0.05

)

$

(0.25

)

$

(0.93

)

$

(0.95

)

Loss per share - diluted (Note 13)

$

(0.08

)

$

(0.25

)

$

(0.93

)

$

(0.95

)

Shares used in computing basic loss per share

96,839,292

35,809,973

92,544,137

35,294,839

Shares used in computing diluted loss per share

97,545,942

35,809,973

92,544,137

35,294,839

  1. Amounts include stock-based compensation expense, as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Cost of revenue

$

$

1

$

1

$

1

Selling and marketing

1,382

88

4,888

186

Product and technology

1,367

115

5,522

619

General and administrative

3,135

303

18,950

735

$

5,884

$

507

$

29,361

$

1,541

PORCH GROUP, INC.
Condensed Consolidated Balance Sheets
(all numbers in thousands, except share amounts)

September 30, 2021

December 31, 2020

Assets

(unaudited)

Current assets

Cash and cash equivalents

$

410,217

$

196,046

Accounts receivable, net

33,641

4,268

Short-term investments

10,142

Reinsurance balance due

246,170

Prepaid expenses and other current assets

8,636

4,080

Restricted cash

4,614

11,407

Total current assets

713,420

215,801

Property, equipment, and software, net

7,656

4,593

Goodwill

170,427

28,289

Long-term investments

58,646

Intangible assets, net

91,650

15,961

Restricted cash, non-current

1,000

Long-term insurance commissions receivable

7,159

3,365

Other assets

368

378

Total assets

$

1,050,326

$

268,387

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

5,525

$

9,203

Accrued expenses and other current liabilities

57,274

9,905

Deferred revenue

190,137

5,208

Refundable customer deposit

1,509

2,664

Current portion of long-term debt

107

4,746

Losses and loss adjustment expense reserves

87,737

Other insurance liabilities, current

34,819

Total current liabilities

377,108

31,726

Long-term debt

417,976

43,237

Refundable customer deposit, non-current

529

Earnout liability, at fair value

39,811

50,238

Private warrant liability, at fair value

17,706

31,534

Other liabilities (includes $2,849 and $3,549 at fair value, respectively)

5,449

3,798

Total liabilities

858,050

161,062

Commitments and contingencies (Note 11)

Stockholders’ equity

Common stock, $0.0001 par value:

10

8

Authorized shares – 400,000,000 and 400,000,000, respectively

Issued and outstanding shares – 97,332,998 and 81,669,151, respectively

Additional paid-in capital

596,156

424,823

Accumulated other comprehensive income

113

Accumulated deficit

(404,003

)

(317,506

)

Total stockholders’ equity

192,276

107,325

Total liabilities and stockholders’ equity

$

1,050,326

$

268,387

PORCH GROUP, INC.
Condensed Consolidated Statements of Cash Flows
(all numbers in thousands, unaudited)

Nine Months Ended September 30,

2021

2020

Cash flows from operating activities:

Net loss

$

(86,497

)

$

(33,548

)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization

10,787

5,021

Loss on sale and impairment of long-lived assets

202

807

Gain on extinguishment of debt

(5,110

)

(1,077

)

Loss on remeasurement of debt

924

Gain on divestiture of businesses

(1,442

)

Loss on remeasurement of warrants

17,521

1,214

Loss (gain) on remeasurement of contingent consideration

(380

)

1,500

Loss on remeasurement of earnout liability

15,388

Stock-based compensation

29,361

1,541

Amortization of premium/accretion of discount, net

941

Net realized losses on investments

45

Interest expense (non-cash)

67

4,899

Other

(1,379

)

106

Change in operating assets and liabilities, net of acquisitions and divestitures

Accounts receivable

(5,424

)

(1,056

)

Reinsurance balance due

(33,097

)

Prepaid expenses and other current assets

90

208

Long-term insurance commissions receivable

(3,794

)

(1,947

)

Accounts payable

(23,284

)

3,723

Accrued expenses and other current liabilities

3,031

1,575

Losses and loss adjustment expense reserves

1,892

Other insurance liabilities, current

5,085

Deferred revenue

42,948

3,109

Refundable customer deposits

(2,441

)

(2,641

)

Deferred income tax benefit

(8,153

)

Other

484

69

Net cash used in operating activities

(41,717

)

(17,015

)

Cash flows from investing activities:

Purchases of property and equipment

(588

)

(121

)

Capitalized internal use software development costs

(2,629

)

(2,113

)

Purchases of short-term and long-term investments

(19,126

)

Maturities, sales of short-term and long-term investments

16,367

Acquisitions, net of cash acquired

(178,681

)

(1,618

)

Net cash used in investing activities

(184,657

)

(3,852

)

Cash flows from financing activities:

Proceeds from debt issuance, net of fees

413,537

61,190

Repayments of principal and related fees

(42,965

)

(42,858

)

Proceeds from issuance of redeemable convertible preferred stock, net of fees

4,714

Capped call transactions

(42,330

)

Proceeds from exercises of warrants

126,772

Proceeds from exercises of stock options

3,516

76

Income tax withholdings paid upon vesting of restricted stock units

(23,778

)

Deferred offering costs

(1,255

)

Repurchase of stock

(42

)

Net cash provided by financing activities

434,752

21,825

Net change in cash, cash equivalents, and restricted cash

$

208,378

$

958

Cash, cash equivalents, and restricted cash, beginning of period

$

207,453

$

7,179

Cash, cash equivalents, and restricted cash end of period

$

415,831

$

8,137

PORCH GROUP, INC.
Condensed Consolidated Statements of Cash Flows - Continued
(all numbers in thousands, unaudited)

Nine Months Ended September 30,

2021

2020

Supplemental disclosures

Cash paid for interest

$

2,675

$

4,344

Reduction of earnout liability due to a vesting event

$

25,815

$

Non-cash consideration for acquisitions

$

42,229

$

1,829

Payable for capped call transactions

$

10,583

$

Debt discount for warrants issued (non-cash)

$

$

1,215

Cancelation of a convertible promissory note on divestiture of a business

$

$

2,724

Conversion of debt to redeemable convertible preferred stock (non-cash)

$

$

1,436

Capital contribution from a shareholder

$

$

300


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