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press release

Nov. 10, 2021, 4:11 p.m. EST

Doma’s Q3 Results Continue to Outpace Mortgage Industry; Tech-Led Growth Expected to Fuel Future Out-Performance Despite Softening Market

Affirms Guidance At or Above the High End of Annual Ranges Third Quarter 2021 Business Highlights(1): Total revenues of $163 million, up 34% versus Q3 2020 Closed orders of 35,300, up 39% versus Q3 2020 Retained premiums and fees of $71 million, up 31% versus Q3 2020 Gross profit of $28 million, up 7% versus Q3 2020 Adjusted gross profit of $30 million, up 10% versus Q3 2020 Enterprise segment closed orders grew 386% versus Q3 2020 Open orders of 52,867, up 41% versus Q3 2020 2021 Full Year Outlook (1): For the full year, Doma now expects to come in at or above the high end of its previous ranges for both revenue of between $475 million and $525 million and retained premiums and fees of between $250 million and $260 million Similarly, Doma expects finishing the year at or above the high end of its previous ranges for both gross profit between $83 million and $93 million and adjusted gross profit between $95 million and $105 million  

SAN FRANCISCO, (BUSINESS WIRE) -- Doma Holdings, Inc. /zigman2/quotes/224084230/composite DOMA +4.12% (“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 nine months ended September 30, 2021 [(2)] . Doma’s results demonstrate strong growth that continues to outperform the mortgage industry as a whole, driven by the expansion and continued adoption of its proprietary machine learning technology. Because of its continued momentum in the third quarter of 2021 and an accelerating rate of growth in open order volume, Doma is now affirming that it expects full year 2021 results to be at or above the high end of its previously stated guidance ranges.

“Doma’s impressive growth relative to the industry is driven by our unique technology, and we continue to gain momentum,” said Max Simkoff, Founder and CEO of Doma. “Given our proven ability to grow market share, we will be heavily focused on investing in the extension of our game-changing technology to serve more of the market - specifically across home purchase transactions. As soon as possible, we want prospective homeowners to experience the same value proposition that we’ve been delivering to our Enterprise channel: an instant, digital home closing that is vastly more simple and more affordable," Mr. Simkoff concluded.

Third Quarter 2021 Growth Drivers

  • Continued improvements to the Doma Intelligence platform helped deliver better customer outcomes through the application of cutting-edge machine learning technology.

  • Increased orders at the Enterprise level, despite a softening mortgage market, reflect confidence in Doma's technology by the nation's largest mortgage lenders. Total order growth in the third quarter came from both new customers starting to transact as well as increases in wallet share among existing Doma Enterprise customers, who are among the nation's leading lenders.

  • Home purchase transaction volume increased by a healthy 9% over the same period last year, outpacing overall market trends in Doma's Local channel.

  • Top talent from leading global tech companies like Amazon, Apple, Facebook, Netflix, LogMeIn, and Splunk joined the Doma team in the third quarter, in key roles across customer acquisition, account management, fulfillment, software engineering, data science, and product management, helping the Company deliver on its fast pace of innovation.

“Our strong third quarter results are reflective of the increasing demand for our differentiated technology offering, most notably by our largest Enterprise clients,” stated Noaman Ahmad, CFO of Doma. “Our recent performance and momentum allow us the confidence to invest more aggressively in our product roll-out, particularly as it relates to the accelerated migration of our Local Purchase business to the Doma Intelligence platform, which we remain on track to start by year-end. We believe that the acceleration of these investments is worth any short-term trade off in margins that will likely be required to get to larger scale faster."

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, COVID-related 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 an additional tool 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.

Conference Call Information

Doma will host a conference call at 5:30 PM Eastern Time on Wednesday, November 10, 2021, to present its third quarter 2021 financial results.

The telephonic version of the call can be accessed by dialing:

Participant Toll Free Dial-In Number: (844) 615-6508

Participant International Dial-In Number: (918) 922-3146

Conference ID: 5855336

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 /zigman2/quotes/224084230/composite DOMA +4.12% is architecting the future of real estate transactions. The Company uses machine intelligence and its proprietary technology solutions to transform residential real estate, making closings instant and affordable. Doma and its family of brands – States Title, North American Title Company (NATC) and North American Title Insurance Company (NATIC) – offer solutions for current and prospective homeowners, lenders, title agents, and real estate professionals that make closings vastly more simple and efficient, reducing cost and increasing customer satisfaction. Doma’s clients include some of the largest bank and non-bank lenders in the United States. 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 the "Risk Factors" section of the documents filed by Doma from time to time with 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 September 30,   Nine Months Ended September 30,
  2021   2020   2021   2020
  (in thousands, except for open and closed order numbers)
Key operating data:              
Opened orders 52,867     37,572     135,442     101,161  
Closed orders 35,300     25,358     99,386     65,026  
               
GAAP financial data:              
Revenue [(1)] $ 162,582     $ 121,072     $ 420,364     $ 292,304  
Gross profit [(2)] $ 28,302     $ 26,379     $ 81,232     $ 61,418  
Net loss $ (34,270 )   $ (3,622 )   $ (69,327 )   $ (26,540 )
Non-GAAP financial data (3):              
Retained premiums and fees $ 70,986     $ 54,048     $ 193,249     $ 136,172  
Adjusted gross profit $ 30,280     $ 27,600     $ 88,937     $ 64,654  
Ratio of adjusted gross profit to retained premiums and fees 43 %   51 %   46 %   47 %
Adjusted EBITDA $ (20,109 )   $ (649 )   $ (35,291 )   $ (15,926 )

_________________

n.m. = not meaningful

(1) Revenue is comprised of (i) net premiums written, (ii) escrow, other title-related fees and other, and (iii) investment, dividend and other income. Net loss is made up of the components of revenue and expenses.
(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 employees 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) 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 presents our retained premiums and fees and reconciles the measure to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:

  Three Months Ended September 30,   Nine Months Ended September 30,
  2021   2020   2021   2020
  (in thousands)   (in thousands)
Revenue $ 162,582     $ 121,072     $ 420,364     $ 292,304  
Minus:              
Premiums retained by third-party agents 91,596     67,024     227,115     156,132  
Retained premiums and fees $ 70,986     $ 54,048     $ 193,249     $ 136,172  
Minus:              
Direct labor 23,948     14,892     62,829     45,104  
Provision for claims 6,685     5,242     16,741     10,065  
Depreciation and amortization 1,978     1,221     7,705     3,236  
Other direct costs [(1)] 10,073     6,314     24,742     16,349  
Gross Profit $ 28,302     $ 26,379     $ 81,232     $ 61,418  

__________________

(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 September 30,   Nine Months Ended September 30,
  2021   2020   2021   2020
  (in thousands)   (in thousands)
Gross Profit $ 28,302     $ 26,379     $ 81,232     $ 61,418  
Adjusted for:              
Depreciation and amortization 1,978     1,221     7,705     3,236  
Adjusted Gross Profit $ 30,280     $ 27,600     $ 88,937     $ 64,654  

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 September 30,   Nine Months Ended September 30,
  2021     2020     2021     2020  
  (in thousands)   (in thousands)
Net loss (GAAP) $ (34,270 )     $ (3,622 )     $ (69,327 )     $ (26,540 )  
Adjusted for:              
Depreciation and amortization 1,978       1,221       7,705       3,236    
Interest expense 4,531       1,193       12,341       4,428    
Income taxes 170       204       506       620    
EBITDA $ (27,591 )     $ (1,004 )     $ (48,775 )     $ (18,256 )  
Adjusted for:              
Stock-based compensation 3,004       355       9,006       945    
COVID-related severance costs                   1,385    
Change in fair value of warrant and sponsor covered shares liabilities 4,478             4,478          
Adjusted EBITDA $ (20,109 )     $ (649 )     $ (35,291 )     $ (15,926 )  

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

  Three Months Ended September 30,   Nine Months Ended September 30,
  2021     2020     2021     2020  
  (in thousands)   (in thousands)
Adjusted Gross Profit $ 30,280       $ 27,600       $ 88,937       $ 64,654    
Minus:              
Customer acquisition costs 14,870       8,849       36,956       25,227    
Other indirect costs [(1)] 35,519       19,400       87,272       55,353    
Adjusted EBITDA $ (20,109 )     $ (649 )     $ (35,291 )     $ (15,926 )  

__________________

(1) Includes corporate support, research and development, and other operating costs.

Outlook reconciliations

The following tables reconcile the ranges of expected gross profit to expected retained premiums and fees and the ranges of expected gross profit to expected adjusted gross profit for the full year ended December 31, 2021:

  Year Ended December 31, 2021
  Low   High
  (in thousands)
Revenue $ 475,000     $ 525,000  
Minus:      
Premiums retained by third-party agents 225,000     265,000  
Retained premiums and fees $ 250,000     $ 260,000  
Minus:      
Estimated adjustments [(1)] $ 167,000     $ 167,000  
Gross Profit $ 83,000     $ 93,000  
 
  Year Ended December 31, 2021
  Low   High
  (in thousands)
Gross Profit $ 83,000     $ 93,000  
Adjusted for:      
Depreciation and amortization 12,000     12,000  
Adjusted Gross Profit $ 95,000     $ 105,000  

__________________

(1) Estimated adjustments include direct labor, provision for claims, depreciation and amortization, and other direct costs (which includes title examination expense, office supplies, and premium and other taxes).
Doma Holdings, Inc.
       
  Three Months Ended September 30,   Nine Months Ended September 30,
(In thousands, except share and per share information) 2021     2020     2021     2020  
Revenues:              
Net premiums written [(1)] $ 141,491       $ 103,587       $ 358,754       $ 246,738    
Escrow, other title-related fees and other 20,452       16,742       59,092       43,298    
Investment, dividend and other income 639       743       2,518       2,268    
Total revenues $ 162,582       $ 121,072       $ 420,364       $ 292,304    
               
Expenses:              
Premiums retained by third-party agents [(2)] $ 91,596       $ 67,024       $ 227,115       $ 156,132    
Title examination expense 5,289       4,624       15,643       11,811    
Provision for claims 6,685       5,242       16,741       10,065    
Personnel costs 62,410       36,197       159,829       104,652    
Other operating expenses 21,693       10,210       53,038       31,136    
Total operating expenses $ 187,673       $ 123,297       $ 472,366       $ 313,796    
               
Loss from operations $ (25,091 )     $ (2,225 )     $ (52,002 )     $ (21,492 )  
               
Other (expense) income:              
Change in fair value of warrant and sponsor covered shares liabilities (4,478 )           (4,478 )        
Interest expense (4,531 )     (1,193 )     (12,341 )     (4,428 )  
Loss before income taxes $ (34,100 )     $ (3,418 )     $ (68,821 )     $ (25,920 )  
               
Income tax expense (170 )     (204 )     (506 )     (620 )  
Net loss (34,270 )     (3,622 )     (69,327 )     (26,540 )  
               
Earnings per share:              
Net loss per share attributable to shareholders - basic and diluted $ (0.14 )     $ (0.06 )     $ (0.54 )     $ (0.43 )  
Weighted average shares outstanding common stock - basic and diluted 245,003,754       64,060,987       128,105,954       62,255,035    

__________________

(1) Net premiums written includes revenues from a related party of $30.3 million and $22.9 million during the three months ended September 30, 2021 and 2020, respectively. Net premiums written includes revenues from a related party of $81.9 million and $64.2 million during the nine months ended September 30, 2021 and 2020, respectively.
(2) Premiums retained by third-party agents includes expenses associated with a related party of $24.8 million and $18.4 million during the three months ended September 30, 2021 and 2020, respectively. Premiums retained by third-party agents includes expenses associated with a related party of $66.6 million and $51.9 million during the nine months ended September 30, 2021 and 2020, respectively.
Doma Holdings, Inc.
 
(In thousands, except share information) September 30, 2021   December 31, 2020
       
Assets      
Cash and cash equivalents $ 411,669       $ 111,893    
Restricted cash 2,021       129    
Investments:      
Fixed maturities      
Held-to-maturity debt securities, at amortized cost 74,872       65,406    
Available-for-sale debt securities, at fair value (amortized cost $7,139 at December 31, 2020)       8,057    
Equity securities, at fair value (cost $2,000 at December 31, 2020)       2,119    
Mortgage loans 2,920       2,980    
Other invested assets 306          
Total Investments $ 78,098       $ 78,562    
Receivables (net of provision for doubtful accounts of $571 at September 30, 2021 and $492 at December 31, 2020) 14,485       15,244    
Prepaid expenses, deposits and other assets 22,161       7,365    
Fixed assets (net of accumulated depreciation of $17,283 at September 30, 2021 and $15,065 at December 31, 2020) 35,243       21,661    
Title plants 13,952       14,008    
Goodwill 111,487       111,487    
Trade names (net of accumulated amortization of $3,187 at December 31, 2020)       2,684    
Total assets $ 689,116       $ 363,033    
       
Liabilities and stockholders' equity      
Accounts payable $ 6,651       $ 6,626    
Accrued expenses and other liabilities 50,187       33,044    
Senior secured credit agreement, net of debt issuance costs and original issue discount 138,684          
Loan from a related party       65,532    
Liability for loss and loss adjustment expenses 78,671       69,800    
Warranty liabilities 24,440          
Sponsor covered shares liability 8,610          
Total liabilities $ 307,243       $ 175,002    
       
Stockholders' equity:      
Series A preferred stock, 0.0001 par value; 0 shares authorized at September 30, 2021; 0 shares and 43,737,586 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively $       $ 1    
Series A-1 preferred stock, 0.0001 par value; 0 shares authorized at September 30, 2021; 0 shares and 48,913,906 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively       1    
Series A-2 preferred stock, 0.0001 par value; 0 shares authorized at September 30, 2021; 0 shares and 14,003,187 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively          
Series B preferred stock, 0.0001 par value; 0 shares authorized at September 30, 2021; 0 shares and 15,838,828 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively          
Series C preferred stock, 0.0001 par value; 0 shares authorized at September 30, 2021; 0 shares and 60,665,631 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively       1    
Common stock, 0.0001 par value; 2,000,000,000 shares authorized at September 30, 2021; 321,544,052 and 62,832,307 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively 33       1    
Additional paid-in capital 530,290       266,464    
Accumulated deficit (148,450 )     (79,123 )  
Accumulated other comprehensive income       686    
Total stockholders’ equity $ 381,873       $ 188,031    
Total liabilities and stockholders' equity $ 689,116       $ 363,033    
Doma Holdings, Inc.
   
  Nine Months Ended September 30,
(In thousands) 2021     2020  
Cash flow from operating activities:      
Net loss $ (69,327 )     $ (26,540 )  
Adjustments to reconcile net loss to net cash used in operating activities:      
Interest expense - paid in kind 6,353       5,085    
Depreciation and amortization 7,705       3,236    
Stock-based compensation expense 8,447       945    
Amortization of debt issuance costs and original issue discount 1,429          
Provision for doubtful accounts 562       304    
Deferred income taxes 377       535    
Realized gain on debt securities (908 )     (141 )  
Net unrealized loss on equity securities 119       10    
Gain on disposal of fixed assets and title plants (11 )     (281 )  
Accretion of discounts on held-to-maturity securities 901       369    
Change in fair value of warrant and sponsor covered shares liabilities 4,478          
Change in operating assets and liabilities:      
Accounts receivable (284 )     (261 )  
Prepaid expenses, deposits and other assets (14,799 )     (6,166 )  
Accounts payable (274 )     2,658    
Accrued expenses and other liabilities 13,813       472    
Liability for loss and loss adjustments expenses 8,872       3,374    
Net cash used in operating activities $ (32,547 )     $ (16,401 )  
Cash flow from investing activities:      
Proceeds from sales, calls and maturities of investments: Held-to-maturity $ 23,514       $ 15,394    
Proceeds from sales, calls and maturities of investments: Available-for-sale 7,817       18    
Proceeds from sales of investments: Equity securities 2,000          
Proceeds from sales and principal repayments of investments: Mortgage loans 60       378    
Purchases of investments: Held-to-maturity (33,650 )     (57,624 )  
Purchases of investments: Equity securities       (1,000 )  
Proceeds from sales of fixed assets 306       246    
Purchases of fixed assets (18,842 )     (12,670 )  
Proceeds from sale of title plants and dividends from title plants 482       1,349    
Net cash used in investing activities $ (18,313 )     $ (53,909 )  
Doma Holdings, Inc.
   
  Nine Months Ended September 30,
(In thousands) 2021     2020  
Cash flow from financing activities:      
Proceeds from issuance of Series C preferred stock, net of financing costs $       $ 70,701    
Proceeds from issuance of senior secured credit agreement 150,000          
Payments on loan from a related party (65,532 )     (28,092 )  
Debt issuance costs (579 )        
Exercise of stock warrants 48          
Exercise of stock options 1,690       92    
Redemptions of redeemable common and preferred stock (294,856 )        
Net proceeds from Business Combination and PIPE Investment 624,952          
Payment of costs directly attributable to the issuance of common stock in connection with Business Combination and PIPE Investment (63,195 )        
Net cash provided by financing activities $ 352,528       $ 42,701    
Net change in cash and cash equivalents and restricted cash 301,668       (27,609 )  
Cash and cash equivalents and restricted cash at the beginning period 112,022       141,668    
Cash and cash equivalents and restricted cash at the end of period $ 413,690       $ 114,059    
Supplemental cash flow disclosures:      
Cash paid for interest $ 5,347       $ 1    
Supplemental disclosure of non-cash investing activities:      
Unrealized loss on available-for-sale debt securities $ (179 )     $ (53 )  
Supplemental disclosure of non-cash financing activities:      
Issuance of penny warrants related to the senior secured credit agreement $ (18,519 )     $    
Warrant liabilities recognized in conjunction with the Business Combination $ 19,240       $    
Net liabilities assumed in the Business Combination $ 9,517       $    

Quarterly Results of Operations and Other Data

The following tables set forth our selected unaudited quarterly condensed 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.

Condensed Consolidated Statements of Operations

  Three months ended
(In thousands) March 31, 2020   June 30, 2020   September 30, 2020   December 31, 2020   March 31, 2021   June 30, 2021   September 30, 2021
Revenues:                          
Net premiums written $ 56,817       $ 86,334       $ 103,587       $ 98,870       $ 107,992       $ 109,271       $ 141,491    
Escrow, other title-related fees and other 13,174       13,382       16,742       17,977       18,575       20,065       20,452    
Investment, dividend and other income 818       707       743       663       1,229       650       639    
Total revenues $ 70,809       $ 100,423       $ 121,072       $ 117,510       $ 127,796       $ 129,986       $ 162,582    
                           
Expenses:                          
Premiums retained by third-party agents $ 33,102       $ 56,006       $ 67,024       $ 64,011       $ 70,338       $ 65,181       $ 91,596    
Title examination expense 3,865       3,322       4,624       4,393       4,853       5,500       5,289    
Provision for claims 1,783       3,040       5,242       5,272       3,249       6,807       6,685    
Personnel costs 35,718       32,737       36,197       38,874       43,464       53,954       62,410    
Other operating expenses 10,640       10,286       10,210       12,149       14,165       17,181       21,693    
Total operating expenses $ 85,108       $ 105,391       $ 123,297       $ 124,699       $ 136,069       $ 148,623       $ 187,673    
                           
Loss from operations $ (14,299 )     $ (4,968 )     $ (2,225 )     $ (7,189 )     $ (8,273 )     $ (18,637 )     $ (25,091 )  
                           
Other income (expense):                          
Change in fair value of warrant and sponsor earnout liabilities                                     (4,478 )  
Interest expense (2,112 )     (1,123 )     (1,193 )     (1,151 )     (3,360 )     (4,451 )     (4,531 )  
Loss before income taxes $ (16,411 )     $ (6,091 )     $ (3,418 )     $ (8,340 )     $ (11,633 )     $ (23,088 )     $ (34,100 )  
                           
Income tax expense (175 )     (241 )     (204 )     (223 )     (125 )     (211 )     (170 )  
Net loss (16,586 )     (6,332 )     (3,622 )     (8,563 )     (11,758 )     (23,299 )     (34,270 )  

Reconciliation of GAAP to Non-GAAP Measures

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

Retained premiums and fees

  Three Months Ended
(In thousands) March 31, 2020   June 30, 2020   September 30, 2020   December 31, 2020   March 31, 2021   June 30, 2021   September 30, 2021
Revenue $ 70,809     $ 100,423     $ 121,072     $ 117,510     $ 127,796     $ 129,986     $ 162,582  
Minus:                          
Premiums retained by third-party agents 33,102     56,006     67,024     64,011     70,338     65,181     91,596  
Retained premiums and fees $ 37,707     $ 44,417     $ 54,048     $ 53,499     $ 57,458     $ 64,805     $ 70,986  
Minus:                          
Direct labor 16,314     13,898     14,892     17,050     17,979     20,902     23,948  
Provision for claims 1,783     3,040     5,242     5,272     3,249     6,807     6,685  
Depreciation and amortization 1,116     899     1,221     2,579     2,707     3,021     1,978  
Other direct costs [(1)] 5,137     4,898     6,314     4,186     7,109     7,561     10,073  
Gross Profit $ 13,357     $ 21,682     $ 26,379     $ 24,412     $ 26,414     $ 26,514     $ 28,302  

__________________

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

Adjusted gross profit

  Three Months Ended
(in thousands) March 31, 2020   June 30, 2020   September 30, 2020   December 31, 2020   March 31, 2021   June 30, 2021   September 30, 2021
Gross Profit $ 13,357     $ 21,682     $ 26,379     $ 24,412     $ 26,414     $ 26,514     $ 28,302  
Adjusted for:                          
Depreciation and amortization 1,116     899     1,221     2,579     2,707     3,021     1,978  
Adjusted Gross Profit $ 14,473     $ 22,581     $ 27,600     $ 26,991     $ 29,121     $ 29,535     $ 30,280  

Adjusted EBITDA

  Three Months Ended
(in thousands) March 31, 2020   June 30, 2020   September 30, 2020   December 31, 2020   March 31, 2021   June 30, 2021   September 30, 2021
Net loss (GAAP) $ (16,586 )     $ (6,332 )     $ (3,622 )     $ (8,563 )     $ (11,758 )     $ (23,299 )     $ (34,270 )  
Adjusted for:                          
Depreciation and amortization 1,116       899       1,221       2,579       2,707       3,021       1,978    
Interest expense 2,112       1,123       1,193       1,151       3,360       4,451       4,531    
Income taxes 175       241       204       223       125       211       170    
EBITDA $ (13,183 )     $ (4,069 )     $ (1,004 )     $ (4,610 )     $ (5,566 )     $ (15,616 )     $ (27,591 )  
Adjusted for:                          
Stock-based compensation 308       282       355       1,550       2,289       3,713       3,004    
COVID-related severance costs       1,385                                
Change in fair value of warrant and sponsor covered shares liabilities                                     4,478    
Adjusted EBITDA $ (12,875 )     $ (2,402 )     $ (649 )     $ (3,060 )     $ (3,277 )     $ (11,903 )     $ (20,109 )  

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006274/en/

SOURCE: Doma Holdings, Inc.

Investor Contact: Chris Mammone | The Blueshirt Group for Doma | ir@doma.com
Media Contact: Martha Shaughnessy | The Key PR for Doma | press@doma.com

COMTEX_396685480/2456/2021-11-10T16:10:32

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

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/zigman2/quotes/224084230/composite
US : U.S.: NYSE
$ 0.98
+0.04 +4.12%
Volume: 1.52M
Aug. 12, 2022 4:00p
P/E Ratio
N/A
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N/A
Market Cap
$319.46 million
Rev. per Employee
$264,960
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/zigman2/quotes/224084230/composite
US : U.S.: NYSE
$ 0.98
+0.04 +4.12%
Volume: 1.52M
Aug. 12, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$319.46 million
Rev. per Employee
$264,960
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