Doma Delivers at High End of 2021 Guidance on Retained Premiums and Fees, and Exceeds Guidance on Adjusted Growth Profit|||

Fourth quarter includes successful expansion of cadre car intelligence-powered title and closing offering into buy transactions within Local channel

Provides Growth and Margin Outlook for FY 2022

4th Quarter 2021 Business Highlights(one):

  • Total revenues of $138 million, up 17% versus Q4 2020
  • Retained premiums and fees of $66 million, upward 24% versus Q4 2020
  • Gross profit of $22 1000000, down 10% versus Q4 2020
  • Adjusted gross profit of $25 million, downwards 9% versus Q4 2020
  • Closed orders upwardly 35% versus Q4 2020, Enterprise closed orders up 296% versus Q4 2020
  • Open up orders up 21% versus Q4 2020

SAN FRANCISCO–(Concern WIRE)–Doma Holdings, Inc. (NYSE: DOMA) (“Doma” or the “Company”), a leading force for disruptive change in the existent manor industry, today reported quarterly financial results and key operating data for the three months and full year ended December 31, 2021(ii). Doma’s results demonstrate strong growth that continues to outperform the mortgage manufacture as a whole, driven by the expansion and continued adoption of its proprietary machine learning technology.

“Our referral partners’ receptivity to our offer, and the Doma squad’s ability to execute with a high caste of skill has fortified our pursuit of condign the unquestioned leader in our manufacture,” said Max Simkoff, Founder and CEO of Doma. “The successful opening of our first buy transactions on the Doma Intelligence platform is the latest affidavit of our compelling opportunity to take market share, raise our growth potential, and add fifty-fifty more certainty to our path to profitability,” Mr. Simkoff concluded.

Noaman Ahmad, CFO of Doma, added, “We finished the year in a position of strength, having consistently outperformed the objectives we prepare for retained premium and fees and adjusted gross profit since announcing our plans to become public last March. In terms of our plans for 2022, nosotros are taking reward of the momentum in our business and will focus on broadening the employ and coverage of our proven Doma Intelligence platform. We will utilize the capital nosotros raised from going public to expand our core motorcar intelligence-powered title and closing offering into purchase transactions, besides as to capture opportunities in side by side markets.”

Doma remains committed to strategic investment in growth in order to advance and secure its leadership position in the industry. Doma’south key strategic initiatives for 2022 include an dispatch of investments across its home purchase platform. Investments will take the form of investing in customer acquisition and go-to-market delivery, migration of purchase transactions to the Doma Intelligence platform, new product functionality, and opportunities to expand into adjacent markets.

(one)

Reconciliations of retained premiums and fees, adjusted gross turn a profit, and the other fiscal measures used in this press release that are not calculated in accordance with by and large accustomed accounting principles in the United States (“GAAP”) to the nearest measures prepared in accordance with GAAP take been provided in this printing release in the accompanying tables. An explanation of these measures is also included below nether the heading “Non-GAAP Fiscal Measures.”

(2)

Doma completed its concern combination with Capitol Investment Corp. 5 (“Capitol”) on July 28, 2021. The fiscal results and primal operating data included in this fourth quarter release include operating results of Doma prior to completion of the business combination and operating results of the combined company subsequent to completion of the business combination.

Fourth Quarter 2021 Growth Drivers and Recent Business organization Highlights

  • Successful launch of purchase transactions on the Doma Intelligence platform in December, delivering on one of the Company’s central commitments for 2021. Given the recent rise in lending rates and an accelerated drib-off in mortgage refinances, Doma volition aggressively pursue the migration of buy transactions from the Local business to the Doma Intelligence platform, farther enabling the real estate professionals, lenders, independent title agents and homeowners Doma works with to all benefit from closings that are faster, higher quality, and more than affordable.
  • 296% twelvemonth over yr closed order growth from Doma Enterprise, despite a 59% reject in the overall refinance marketplace. Full gild growth in the fourth quarter was propelled past the addition of several new Enterprise referral partners that include another tiptop x national mortgage lender, a leading provider of innovative home equity products, and a technology-led non-banking company originator, also equally increases in wallet share from existing referral partners, reflecting confidence in Doma’s engineering science by the nation’southward largest mortgage lenders.
  • Home purchase transaction volume increased by a salubrious 4% over the same period in 2020, outpacing marketplace contraction in buy of 8%.
  • Continued improvements to the Doma Intelligence platform helped evangelize meliorate customer outcomes through the application of cut-border machine learning technology.

    • Added more transparency for co-signers within the Doma Shut product which allows homeowners to review and eSign about 50% of documents prior to the in-person signing, making the overall feel less daunting and stressful.
    • Added new capabilities within Doma Escrow for payoff parsing, policy automation, and automated funding disbursement that all help to farther expedite the concluding stages of closing and drive faster payouts to the parties involved.
  • Expansion of the Doma Intelligence platform in the States of Washington, Maine, and Mississippi, bringing total coverage to approximately 83% of US residential existent estate market based on gross written premium.
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2022 Full Year Outlook
(ane):

  • GAAP Fiscal Measures

    • For the full year, Doma expects gross turn a profit of between $118 million and $136 million
  • Non-GAAP Financial Measures

    • Doma expects retained premiums and fees of between $300 meg and $320 million
    • Doma expects ratio of adjusted gross profit to retained premiums and fees between 44% and 47%
    • Doma expects adjusted EBITDA betwixt negative $xc million and negative $seventy million
    • Doma intends to reach adapted EBITDA positive in 2023

Not-GAAP Financial Measures

Some of the financial information and data contained in this press release, such every bit retained premiums and fees, adapted gross profit and adjusted EBITDA, have not been prepared in accordance with United States generally accustomed accounting principles (“GAAP”). Retained premiums and fees is defined every bit revenue less premiums retained by third-party agents. Adjusted gross profit is defined equally gross turn a profit, plus depreciation and amortization. Adjusted EBITDA is defined equally net loss before involvement expense, income taxes, depreciation and amortization, stock-based compensation, COVID-related severance costs and alter 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 additional tools to assess operational performance and trends in, and in comparison Doma’s fiscal measures with, other similar companies, many of which present like non-GAAP fiscal measures to investors. Doma’s non-GAAP fiscal measures may be different from non-GAAP fiscal measures used past other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or every bit a substitute for, or superior to, fiscal measures determined in accordance with GAAP. Considering of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Doma’s fiscal 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 nigh comparable fiscal measure prepared in accordance with GAAP.

Conference Phone call Information

Doma will host a conference call at 5:00 PM Eastern Time on Thursday, February 17, to present its quaternary quarter 2021 financial results.

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

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

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

Briefing ID: 7967607

The live webcast of the call will be attainable on the Company’southward website at investor.doma.com. Approximately two hours later conclusion of the live upshot, an archived webcast of the conference phone call will be accessible from the Investor Relations section of the Company’s website for twelve months.

Virtually Doma Holdings, Inc.

Doma (NYSE: DOMA) is architecting the future of real estate transactions. The Company uses machine intelligence and its proprietary technology solutions to transform residential existent estate, making closings instant and affordable. Doma and its family of brands – States Title, North American Title Company (NATC) and N American Title Insurance Company (NATIC) – offering solutions for current and prospective homeowners, lenders, championship agents, and existent manor professionals that make closings vastly more simple and efficient, reducing cost and increasing client satisfaction. Doma’s clients include some of the largest bank and not-banking company lenders in the U.s.. To learn more visit doma.com.

Forrard-Looking Statements Legend

This printing release includes “forward-looking statements” inside the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Human activity of 1995. Forward-looking statements may be identified by the apply of words such as “estimate,” “programme,” “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 absenteeism of these words does non mean that a argument is not forrard-looking. Such statements are based on the behavior of, equally well as assumptions made by information currently available to Doma management. These forrad-looking statements include, but are not express to, statements regarding estimates and forecasts of fiscal and functioning metrics, projections of market opportunity, total addressable market (“TAM”), market share and competition. These statements are based on diverse assumptions, whether or not identified in this printing release, and on the current expectation of Doma’s direction and are not predictions of bodily functioning. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on past any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are hard or incommunicable to predict, volition differ from assumptions and are beyond the control of Doma.

These frontwards-looking statements are subject field to a number of risks and uncertainties, including changes in business, market, fiscal, political and legal weather condition; risks relating to the dubiousness of the projected financial information with respect to Doma; future global, regional or local economical, 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 manufacture; Doma’s power to manage its future growth or to develop or acquire enhancements to its platform; the effects of competition on Doma’due south future business; the result of any potential litigation, authorities 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 fourth dimension with the SEC.

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If any of these risks materialize or Doma’s assumptions evidence incorrect, bodily 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 too crusade actual results to differ from those contained in the frontward-looking statements. In addition, forwards-looking statements reverberate Doma’due south expectations, plans or forecasts of futurity events and views as of the date of this press release. Doma anticipates that subsequent events and developments will cause Doma’southward assessments to modify. Nevertheless, while Doma may elect to update these frontwards-looking statements at some point in the future, Doma specifically disclaims whatever obligation to practise and then, except every bit required past law. These forward-looking statements should not be relied upon as representing Doma’due south assessment as of any date subsequent to the engagement of this printing release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Cardinal Operating and Fiscal Indicators

Iii Months Ended December 31,

Year ended December 31,

2021

2020

2021

2020

(in thousands, except for open up and closed order numbers)


Key operating data:

Opened orders

43,247

35,712

178,689

136,873

Closed orders

37,042

27,363

136,428

92,389


GAAP financial data:

Revenue
(1)

$

137,679

$

117,510

$

558,043

$

409,814

Gross profit
(2)

$

22,031

$

24,412

$

103,261

$

85,830

Net loss

$

(43,729

)

$

(viii,563

)

$

(113,056

)

$

(35,103

)


Non-GAAP financial data
(three):

Retained premiums and fees

$

66,349

$

53,499

$

259,598

$

189,671

Adjusted gross profit

$

24,646

$

26,991

$

113,582

$

91,645

Ratio of adjusted gross profit to retained premiums and fees

37

%

50

%

44

%

48

%

Adjusted EBITDA

$

(36,303

)

$

(3,060

)

$

(71,592

)

$

(18,986

)

_________________
n.m. = non meaningful

(1)

Acquirement is comprised of (i) net premiums written, (ii) escrow, other title-related fees and other, and (iii) investment, dividend and other income. Cyberspace loss is fabricated up of the components of revenue and expenses.

(two)

Gross profit, calculated in accord with GAAP, is calculated as total revenue, minus premiums retained by third-party agents, directly labor expense (including mainly personnel expense for sure employees involved in the direct fulfillment of policies) and direct not-labor expense (including mainly title exam expense, provision for claims, and depreciation and amortization). In our consolidated income statements, depreciation and amortization is recorded nether 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 table reconciles our retained premiums and fees to our gross turn a profit, the most closely comparable GAAP financial measure out, for the periods indicated:

Iii Months Ended December 31,

Year ended December 31,

2021

2020

2021

2020

(in thousands)

(in thousands)

Revenue

$

137,679

$

117,510

$

558,043

$

409,814

Minus:

Premiums retained by third-party agents

71,330

64,011

298,445

220,143

Retained premiums and fees

$

66,349

$

53,499

$

259,598

$

189,671

Minus:

Direct labor

26,787

17,050

89,616

62,154

Provision for claims

4,594

five,272

21,335

fifteen,337

Depreciation and amortization

ii,615

two,579

10,321

5,815

Other direct costs
(1)

10,322

four,186

35,065

20,535

Gross Profit

$

22,031

$

24,412

$

103,261

$

85,830

__________________

(one)

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


Adjusted gross profit

The following tabular array reconciles our adjusted gross profit to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:

Three Months Concluded December 31,

Yr ended December 31,

2021

2020

2021

2020

(in thousands)

(in thousands)

Gross Profit

$

22,031

$

24,412

$

103,261

$

85,830

Adjusted for:

Depreciation and acquittal

2,615

2,579

x,321

v,815

Adjusted Gross Profit

$

24,646

$

26,991

$

113,582

$

91,645


Adjusted EBITDA

The post-obit table reconciles our adjusted EBITDA to our net loss, the most closely comparable GAAP financial measure, for the periods indicated:

Three Months Ended December 31,

Year ended Dec 31,

2021

2020

2021

2020

(in thousands)

(in thousands)

Net loss (GAAP)

$

(43,729

)

$

(8,563

)

$

(113,056

)

$

(35,103

)

Adjusted for:

Depreciation and amortization

2,615

2,579

10,321

5,815

Involvement expense

four,519

ane,151

sixteen,861

5,579

Income taxes

421

223

927

843

EBITDA

$

(36,174

)

$

(4,610

)

$

(84,947

)

$

(22,866

)

Adjusted for:

Stock-based compensation

11,040

1,550

20,046

2,495

COVID-related severance costs

1,385

Alter in fair value of Warrant and Sponsor Covered shares liabilities

(11,169

)

(vi,691

)

Adapted EBITDA

$

(36,303

)

$

(3,060

)

$

(71,592

)

$

(18,986

)

The post-obit tabular array reconciles our adjusted gross profit to our adjusted EBITDA, for the periods indicated:

Three Months Concluded Dec 31,

Yr ended Dec 31,

2021

2020

2021

2020

(in thousands)

(in thousands)

Adjusted Gross Profit

$

24,646

$

26,991

$

113,582

$

91,645

Minus:

Customer conquering costs

18,251

ix,252

55,208

34,482

Other indirect costs
(i)

42,698

20,799

129,966

76,149

Adjusted EBITDA

$

(36,303

)

$

(3,060

)

$

(71,592

)

$

(18,986

)

__________________

(1)

Includes corporate support, research and development, and other operating costs.


Outlook reconciliations

The following tables reconcile the ranges of expected retained premiums and fees to expected gross profit and the ranges expected adapted gross profit to expected gross profit, which, in each case, is the most comparable GAAP measure, for the full year ended Dec 31, 2022.

Yr Ended Dec 31, 2022

Low

Loftier

(in thousands)

Retained premiums and fees

$

300,000

$

320,000

Minus:

Estimated adjustments
(1)

$

182,000

$

184,000

Gross Profit

$

118,000

$

136,000

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Year Ended December 31, 2022

Depression

Loftier

(in thousands)

Gross Profit

$

118,000

$

136,000

Adjusted for:

Depreciation and amortization

14,000

14,000

Adjusted Gross Profit

$

132,000

$

150,000

Outlook for Other Fundamental Operating Indicators

Ratio of adjusted gross profit to retained premiums and fees

44

%

47

%

Adjusted EBITDA

$

(90,000

)

$

(seventy,000

)

With respect to our guidance on adjusted EBITDA, the Visitor is not able to provide a quantitative reconciliation without unreasonable efforts to the nearly directly comparable GAAP financial measure, which would be net loss, due to the high variability, complexity and depression visibility with respect to certain items such equally income taxes and changes in the fair value of Warrant and Sponsor Covered shares liabilities. We expect the variability of these items to have a potentially unpredictable and potentially significant touch on futurity GAAP financial results, and, as such, we likewise believe that whatsoever reconciliations provided would imply a degree of precision that would be disruptive or misleading to investors.

__________________

(ane)

Estimated adjustments include direct labor, provision for claims, depreciation and acquittal, and other direct costs (which includes title examination expense, office supplies, and premium and other taxes).

Doma Holdings, Inc.

Consolidated Statements of Operations

Twelvemonth ended December 31

(In thousands, except share and per share information)

2021

2020

2019

Revenues:

Net premiums written
(one)

$

475,352

$

345,608

$

292,707

Escrow, other title-related fees and other

79,585

61,275

62,017

Investment, dividend and other income

iii,106

2,931

3,361

Full revenues

$

558,043

$

409,814

$

358,085

Expenses:

Premiums retained by 3rd-Party Agents
(2)

$

298,445

$

220,143

$

178,265

Title examination expense

22,137

16,204

14,383

Provision for claims

21,335

fifteen,337

12,285

Personnel costs

238,134

143,526

130,876

Other operating expenses

79,951

43,285

39,744

Total operating expenses

$

660,002

$

438,495

$

375,553

Loss from operations

$

(101,959

)

$

(28,681

)

$

(17,468

)

Other (expense) income:

Modify in fair value of Warrant and Sponsor Covered Shares liabilities

6,691

Interest expense

(16,861

)

(v,579

)

(9,282

)

Loss before income taxes

$

(112,129

)

$

(34,260

)

$

(26,750

)

Income taxation expense

(927

)

(843

)

(387

)

Net loss

$

(113,056

)

$

(35,103

)

$

(27,137

)

Earnings per share:

Internet loss per share attributable to stockholders – basic and diluted

$

(0.64

)

$

(0.56

)

$

(0.45

)

Weighted boilerplate shares outstanding mutual stock – basic and diluted

177,150,914

62,458,039

60,314,163

__________________

(1)

Net premiums written includes revenues from a related political party of $114.two million, $88.half dozen million, and $73.1 million for the years ended December 31, 2021, 2020, and 2019, respectively.

(two)

Premiums retained by Third-Party Agents includes expenses associated with a related party of $92.5 million, $71.2 million, and $59.ix million during the years ended December 31, 2021, 2020, and 2019, respectively.

Doma Holdings, Inc.

Consolidated Balance Sheets

Dec 31

(In thousands, except share data)

2021

2020

Assets

Greenbacks and cash equivalents

$

379,702

$

111,893

Restricted greenbacks

four,126

129

Investments:

Fixed maturities

Held-to-maturity debt securities, at amortized toll

67,164

65,406

Available-for-auction debt securities, at off-white value (amortized price $7,139 in 2020)

eight,057

Disinterestedness securities, at fair value (price $ii,000 in 2020)

2,119

Mortgage loans

two,022

2,980

Other invested assets

325

Full investments

$

69,511

$

78,562

Receivables (internet of provision for doubtful accounts of $1,082 and $492 at December 31, 2021 and 2020, respectively)

15,498

15,244

Prepaid expenses, deposits and other assets

15,692

7,365

Stock-still assets (net of accumulated depreciation of $19,543 and $13,813 at Dec 31, 2021 and 2020, respectively)

45,953

21,661

Championship plants

13,952

xiv,008

Goodwill

111,487

111,487

Trade names (net of accumulated amortization of $three,187 at December 31, 2020)

2,684

Full assets

$

655,921

$

363,033

Liabilities and stockholders’ equity

Accounts payable

$

six,930

$

six,626

Accrued expenses and other liabilities

54,149

33,044

Senior secured credit understanding, cyberspace of debt issuance costs and original issue discount

141,769

Loan from a related party

65,532

Liability for loss and loss aligning expenses

80,267

69,800

Warrant liabilities

16,467

Sponsor Covered Shares liability

five,415

Total liabilities

$

304,997

$

175,002

Stockholders’ equity:

Serial A preferred stock, 0.0001 par value; 0 shares authorized at December 31, 2021; 0 and 43,737,586 shares issued and outstanding as of December 31, 2021 and 2020, respectively

$

$

ane

Series A-1 preferred stock, 0.0001 par value; 0 shares authorized at December 31, 2021; 0 and 48,913,906 shares issued and outstanding as of December 31, 2021 and 2020, respectively

1

Series A-two preferred stock, 0.0001 par value; 0 shares authorized at Dec 31, 2021; 0 and 14,003,187 shares issued and outstanding as of December 31, 2021 and 2020, respectively

Series B preferred stock, 0.0001 par value; 0 shares authorized at December 31, 2021; 0 and fifteen,838,828 shares issued and outstanding every bit of Dec 31, 2021 and 2020, respectively

Serial C preferred stock, 0.0001 par value; 0 shares authorized at December 31, 2021; 0 and 60,665,631 shares issued and outstanding as of Dec 31, 2021 and 2020, respectively

1

Mutual stock, 0.0001 par value; two,000,000,000 shares authorized at Dec 31, 2021; 323,347,806 and 62,832,307 shares issued and outstanding as of December 31, 2021 and 2020, respectively

33

ane

Additional paid-in capital

543,070

266,464

Accumulated deficit

(192,179

)

(79,123

)

Accumulated other comprehensive income

686

Full stockholders’ equity

$

350,924

$

188,031

Full liabilities and stockholders’ equity

$

655,921

$

363,033

Contacts

Investor Contact:
Beatriz Bartolome | Head of Investor Relations for Doma | ir@doma.com

Media Contact:
Camilla Whitmore | Lead, Public Relations for Doma | camilla.whitmore@doma.com

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Source: https://www.dailyhostnews.com/doma-delivers-at-high-end-of-2021-guidance-on-retained-premiums-and-fees-and-exceeds-guidance-on-adjusted-growth-profit