{ "docId": "019dd923-622c-750b-8b99-069a37f5f517", "docSlug": "9c995cfa26e4", "documentTitle": "Porch Group Inc (PRCH)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-04-08 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 34, "pageCount": 63, "prevPage": 33, "nextPage": 35, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 1, "notes": "Uses a red flag icon to signal a warning/contradiction.", "elementsJson": [ "headline_text", "callout_box", "paragraph" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-069a37f5f517/34", "deckHref": "/decks/019dd923-622c-750b-8b99-069a37f5f517", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-069a37f5f517.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-069a37f5f517#slide-34", "components": [ { "bbox": { "h": 0.26, "w": 0.86, "x": 0.12, "y": 0.5 }, "kind": "callout", "text": "Risk Factor: \"Additionally, our ERP and CRM SaaS offerings are highly concentrated within our Inspection Support Network (ISN) brand, and reductions in the user base of these offerings or failure to grow such user base may adversely impact our ability to access and collect personal information. If we are unable to collect information from our customers or our service providers and commercial partners do not continue to provide us with information of their customers, or if applicable laws prohibit or materially impair our use of such information, our ability to provide services to consumers and drive early consumer access to service providers may be materially impacted\"", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "862fe025-c612-4c3d-a7d1-02561520a586", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Spruce Point believes that Porch’s partnership with home inspectors is a last ditch effort to make its business model work.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d3-706e-a468-929d940a7de8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.09, "x": 0.03, "y": 0.26 }, "kind": "image", "text": null, "attrs": null, "subkind": "illustration", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c00f1667-6b63-4adc-9f27-aecbe333df6b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.26, "w": 0.86, "x": 0.12, "y": 0.22 }, "kind": "paragraph", "text": "Spruce Point believes that Porch’s partnership with home inspectors is a last ditch effort to make its business model work. Porch’s partnership with home improvement leader Lowe’s and Realtor.com both failed. Now it claims that home inspectors are the right approach to help its business succeed. Porch entered the space through the acquisitions of the Inspection Support Network (\"ISN) and Home Owners Network (\"HON\"). Porch’s prospectus (p. 72) discloses that it made acquisitions with cash and non-cash totaling $20.3m in 2017. There is skepticism expressed best from home inspectors themselves. As noted on InterNACHI’s website, at least one vocal home inspector expresses that inspectors spend limited time with home owners, and that relationships are often deeper between home buyers and real estate brokers and not home inspectors. In addition, there are concerns about the way Porch contacts clients.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ba1fd26b-7808-4353-82ca-71d952f3f030", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Risk Factor: “Additionally, our ERP and CRM SaaS offerings are highly concentrated within our Inspection Support Network (ISN) brand, and reductions in the user base of these offerings or failure to grow such user base may adversely impact our ability to access and collect personal information. If we are unable to collect information from our customers or our service providers and commercial partners do not continue to provide us with information of their customers, or if applicable laws prohibit or materially impair our use of such information, our ability to provide services to consumers and drive early consumer access to service providers may be materially impacted” — Porch Group Inc. Prospectus (p. 72)", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d3-706e-a468-9448d834eede", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.65, "x": 0.32, "y": 0.03 }, "kind": "title", "text": "Home Inspector Seriously Questions Porch’s Angle To Winning In Home Services", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8a4fbe26-bee8-4fe3-b134-b3e7982f3f34", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.1, "x": 0.01, "y": 0.56 }, "kind": "title", "text": "Porch Warning", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cb86cd8d-5ace-4d11-8a26-53dd00d0df2d", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "8f27f52a-06fd-47cc-bbf8-704b36057707", "evidence": "Uses company's own risk disclosures to contradict their business strategy claims.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }