Easy to follow DD on $PRCH 
A unique business model (a play on vertical SaaS). We see 2X potential with continued execution and large TAM ahead.
@JonahLupton @Fintech_IBank @saxena_puru @WallStJesus @MatthewMcCall @BSchulz33868165 @sunriverflow @LFGBOOM @IrnestKaplan

A unique business model (a play on vertical SaaS). We see 2X potential with continued execution and large TAM ahead.
@JonahLupton @Fintech_IBank @saxena_puru @WallStJesus @MatthewMcCall @BSchulz33868165 @sunriverflow @LFGBOOM @IrnestKaplan
1/ Business Model
They provide CRM and ERM software to home inspectors and moving companies. These companies, in turn, can pay PRCH in SaaS fees or customer access. When they give the customer access, magic happens as 71% of home movers make big-ticket purchases before moving.
They provide CRM and ERM software to home inspectors and moving companies. These companies, in turn, can pay PRCH in SaaS fees or customer access. When they give the customer access, magic happens as 71% of home movers make big-ticket purchases before moving.
2/
PRCH unique early access (6 weeks prior to the move) allows them to act as white-glove concierge for home service across the vertical.
They provide some of these services themselves, in other cases, serve as a platform for others to do so but charge commissions
PRCH unique early access (6 weeks prior to the move) allows them to act as white-glove concierge for home service across the vertical.
They provide some of these services themselves, in other cases, serve as a platform for others to do so but charge commissions
Attractive Unit Economics
30x LTV/CAC by bundling ERP/CRM software with a customer access freemium pricing model
Transaction pricing model company pay either $4 or $25. 59% of companies pay via SaaS fees and 41% pay via transaction



Home of America – this acquisition will allow them to infiltrate deeper into the insurance valuee chain. They will now become both insurance brokers and underwriters. (Continued)

Also, bundle the insurance - let's say home insurance with car







Can they Deliver and unlock value?
Before becoming publicly listed $PRCH promised 4 acquisitions this year – they delivered. Good sign
ISN their previous acquisition has grown 5x in revenues and Hire a Helper 3x in revenue
(Continued)


(Continued)


Risks
Open Door and other competitors might able to front-run Porch. Is this the reason why PRCH is moving so fast?
Can they repeatedly service the same homeowner, or is it just during the initial moving journey? It isn't easy to do the later
(Continued)


(Continued)


Valuation
Based on our DCF model, we obtain a target price of $25.4. Representing 50% upside from current prices.
With Implied P/Sales (2022E) at multiple of 8, sounds yummy given large TAM untapped with massive growth still lying ahead



Conclusion
PRCH is trying to make a fragmented market of Home Services into a complete market in the US. I.e What Amazon did vs retailers.
Early access of the client.High-Quality data. Variety of services will create moats - economy of scale and barriers of entry.


Feel free to join our Telegram chat for investment/trade ideas: https://t.me/joinchat/J90VAhuJOZsEBhm
Follow us on seeking alpha https://seekingalpha.com/author/moat-investing/followers
Follow us on seeking alpha https://seekingalpha.com/author/moat-investing/followers