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 core machine intelligence-powered title and closing offering into purchase transactions within Local channel

Provides Growth and Margin Outlook for FY 2022

Fourth Quarter 2021 Business Highlights(1):

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

SAN FRANCISCO--()--Doma Holdings, Inc. (NYSE: DOMA) (“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 months and full year ended December 31, 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.

“Our referral partners’ receptivity to our offering, and the Doma team’s ability to execute with a high degree of skill has fortified our pursuit of becoming the unquestioned leader in our industry,” said Max Simkoff, Founder and CEO of Doma. “The successful opening of our first purchase transactions on the Doma Intelligence platform is the latest affirmation of our compelling opportunity to take market share, raise our growth potential, and add even 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 set for retained premium and fees and adjusted gross profit since announcing our plans to go public last March. In terms of our plans for 2022, we are taking advantage of the momentum in our business and will focus on broadening the use and coverage of our proven Doma Intelligence platform. We will use the capital we raised from going public to expand our core machine intelligence-powered title and closing offering into purchase transactions, as well as to capture opportunities in adjacent markets."

Doma remains committed to strategic investment in growth in order to accelerate and secure its leadership position in the industry. Doma's key strategic initiatives for 2022 include an acceleration 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.

(1)

Reconciliations of retained premiums and fees, adjusted gross profit, and the other financial measures used in this press release that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”) to the nearest measures prepared in accordance with GAAP have been provided in this press release in the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

(2)

Doma completed its business combination with Capitol Investment Corp. V ("Capitol") on July 28, 2021. The financial results and key 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 Highlights

  • Successful launch of purchase transactions on the Doma Intelligence platform in December, delivering on one of the Company's key commitments for 2021. Given the recent rise in lending rates and an accelerated drop-off in mortgage refinances, Doma will aggressively pursue the migration of purchase transactions from the Local business to the Doma Intelligence platform, further 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 affordable.
  • 296% year over year closed order growth from Doma Enterprise, despite a 59% decline in the overall refinance market. Total order growth in the fourth quarter was propelled by the addition of several new Enterprise referral partners that include another top 10 national mortgage lender, a leading provider of innovative home equity products, and a technology-led non-bank originator, as well as increases in wallet share from existing referral partners, reflecting confidence in Doma's technology by the nation's largest mortgage lenders.
  • Home purchase transaction volume increased by a healthy 4% over the same period in 2020, outpacing market contraction in purchase of 8%.
  • Continued improvements to the Doma Intelligence platform helped deliver better customer outcomes through the application of cutting-edge machine learning technology.
    • Added more transparency for co-signers within the Doma Close product which allows homeowners to review and eSign about 50% of documents prior to the in-person signing, making the overall experience less daunting and stressful.
    • Added new capabilities within Doma Escrow for payoff parsing, policy automation, and automated funding disbursement that all help to further expedite the final 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 real estate market based on gross written premium.

2022 Full Year Outlook (1):

  • GAAP Financial Measures
    • For the full year, Doma expects gross profit of between $118 million and $136 million
  • Non-GAAP Financial Measures
    • Doma expects retained premiums and fees of between $300 million and $320 million
    • Doma expects ratio of adjusted gross profit to retained premiums and fees between 44% and 47%
    • Doma expects adjusted EBITDA between negative $90 million and negative $70 million
    • Doma intends to reach adjusted EBITDA positive in 2023

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 additional tools 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 5:00 PM Eastern Time on Thursday, February 17, to present its fourth 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: 7967607

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 (NYSE: DOMA) 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 December 31,

 

Year ended December 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

(in thousands, except for open 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

)

 

$

(8,563

)

 

$

(113,056

)

 

$

(35,103

)

Non-GAAP financial data (3):

 

 

 

 

 

 

 

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. = 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 table reconciles our retained premiums and fees to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:

 

Three 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

 

 

5,272

 

 

21,335

 

 

15,337

Depreciation and amortization

 

2,615

 

 

2,579

 

 

10,321

 

 

5,815

Other direct costs (1)

 

10,322

 

 

4,186

 

 

35,065

 

 

20,535

Gross Profit

$

22,031

 

$

24,412

 

$

103,261

 

$

85,830

__________________

(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 December 31,

 

Year 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 amortization

 

2,615

 

 

2,579

 

 

10,321

 

 

5,815

Adjusted Gross Profit

$

24,646

 

$

26,991

 

$

113,582

 

$

91,645

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 December 31,

 

Year ended December 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

 

Interest expense

 

4,519

 

 

 

1,151

 

 

 

16,861

 

 

 

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

 

Change in fair value of Warrant and Sponsor Covered shares liabilities

 

(11,169

)

 

 

 

 

 

(6,691

)

 

 

 

Adjusted EBITDA

$

(36,303

)

 

$

(3,060

)

 

$

(71,592

)

 

$

(18,986

)

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

 

Three Months Ended December 31,

 

Year ended December 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

(in thousands)

 

(in thousands)

Adjusted Gross Profit

$

24,646

 

 

$

26,991

 

 

$

113,582

 

 

$

91,645

 

Minus:

 

 

 

 

 

 

 

Customer acquisition costs

 

18,251

 

 

 

9,252

 

 

 

55,208

 

 

 

34,482

 

Other indirect costs (1)

 

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 adjusted gross profit to expected gross profit, which, in each case, is the most comparable GAAP measure, for the full year ended December 31, 2022.

 

 

Year Ended December 31, 2022

 

 

Low

 

 

High

 

 

(in thousands)

Retained premiums and fees

$

300,000

 

 

$

320,000

 

Minus:

 

 

 

 

 

Estimated adjustments (1)

$

182,000

 

 

$

184,000

 

Gross Profit

$

118,000

 

 

$

136,000

 

 

Year Ended December 31, 2022

 

Low

 

 

High

 

(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 Key Operating Indicators

 

 

 

 

Ratio of adjusted gross profit to retained premiums and fees

 

44

%

 

 

47

%

Adjusted EBITDA

$

(90,000

)

 

$

(70,000

)

With respect to our guidance on adjusted EBITDA, the Company is not able to provide a quantitative reconciliation without unreasonable efforts to the most directly comparable GAAP financial measure, which would be net loss, due to the high variability, complexity and low visibility with respect to certain items such as 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 impact on future GAAP financial results, and, as such, we also believe that any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.

__________________

(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.

Consolidated Statements of Operations

 

 

Year ended December 31

(In thousands, except share and per share information)

 

2021

 

 

 

2020

 

 

 

2019

 

Revenues:

 

 

 

 

 

Net premiums written (1)

$

475,352

 

 

$

345,608

 

 

$

292,707

 

Escrow, other title-related fees and other

 

79,585

 

 

 

61,275

 

 

 

62,017

 

Investment, dividend and other income

 

3,106

 

 

 

2,931

 

 

 

3,361

 

Total revenues

$

558,043

 

 

$

409,814

 

 

$

358,085

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Premiums retained by Third-Party Agents (2)

$

298,445

 

 

$

220,143

 

 

$

178,265

 

Title examination expense

 

22,137

 

 

 

16,204

 

 

 

14,383

 

Provision for claims

 

21,335

 

 

 

15,337

 

 

 

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:

 

 

 

 

 

Change in fair value of Warrant and Sponsor Covered Shares liabilities

 

6,691

 

 

 

 

 

 

 

Interest expense

 

(16,861

)

 

 

(5,579

)

 

 

(9,282

)

Loss before income taxes

$

(112,129

)

 

$

(34,260

)

 

$

(26,750

)

 

 

 

 

 

 

Income tax expense

 

(927

)

 

 

(843

)

 

 

(387

)

Net loss

$

(113,056

)

 

$

(35,103

)

 

$

(27,137

)

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

Net loss per share attributable to stockholders - basic and diluted

$

(0.64

)

 

$

(0.56

)

 

$

(0.45

)

Weighted average shares outstanding common stock - basic and diluted

 

177,150,914

 

 

 

62,458,039

 

 

 

60,314,163

 

__________________

(1)

Net premiums written includes revenues from a related party of $114.2 million, $88.6 million, and $73.1 million for the years ended December 31, 2021, 2020, and 2019, respectively.

(2)

Premiums retained by Third-Party Agents includes expenses associated with a related party of $92.5 million, $71.2 million, and $59.9 million during the years ended December 31, 2021, 2020, and 2019, respectively.

Doma Holdings, Inc.

Consolidated Balance Sheets

 

 

December 31

(In thousands, except share information)

 

2021

 

 

 

2020

 

Assets

 

 

 

Cash and cash equivalents

$

379,702

 

 

$

111,893

 

Restricted cash

 

4,126

 

 

 

129

 

Investments:

 

 

 

Fixed maturities

 

 

 

Held-to-maturity debt securities, at amortized cost

 

67,164

 

 

 

65,406

 

Available-for-sale debt securities, at fair value (amortized cost $7,139 in 2020)

 

 

 

 

8,057

 

Equity securities, at fair value (cost $2,000 in 2020)

 

 

 

 

2,119

 

Mortgage loans

 

2,022

 

 

 

2,980

 

Other invested assets

 

325

 

 

 

 

Total investments

$

69,511

 

 

$

78,562

 

Receivables (net 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

 

Fixed assets (net of accumulated depreciation of $19,543 and $13,813 at December 31, 2021 and 2020, respectively)

 

45,953

 

 

 

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

$

655,921

 

 

$

363,033

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

Accounts payable

$

6,930

 

 

$

6,626

 

Accrued expenses and other liabilities

 

54,149

 

 

 

33,044

 

Senior secured credit agreement, net of debt issuance costs and original issue discount

 

141,769

 

 

 

 

Loan from a related party

 

 

 

 

65,532

 

Liability for loss and loss adjustment expenses

 

80,267

 

 

 

69,800

 

Warrant liabilities

 

16,467

 

 

 

 

Sponsor Covered Shares liability

 

5,415

 

 

 

 

Total liabilities

$

304,997

 

 

$

175,002

 

 

 

 

 

Stockholders’ equity:

 

 

 

Series 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

$

 

 

$

1

 

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-2 preferred stock, 0.0001 par value; 0 shares authorized at December 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 15,838,828 shares issued and outstanding as of December 31, 2021 and 2020, respectively

 

 

 

 

 

Series 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 December 31, 2021 and 2020, respectively

 

 

 

 

1

 

Common stock, 0.0001 par value; 2,000,000,000 shares authorized at December 31, 2021; 323,347,806 and 62,832,307 shares issued and outstanding as of December 31, 2021 and 2020, respectively

 

33

 

 

 

1

 

Additional paid-in capital

 

543,070

 

 

 

266,464

 

Accumulated deficit

 

(192,179

)

 

 

(79,123

)

Accumulated other comprehensive income

 

 

 

 

686

 

Total stockholders’ equity

$

350,924

 

 

$

188,031

 

Total liabilities and stockholders’ equity

$

655,921

 

 

$

363,033

 

Quarterly Results of Operations and Other Data

The following tables set forth our selected unaudited quarterly 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.

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

 

December 31,
2021

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

$

56,817

 

 

$

86,334

 

 

$

103,587

 

 

$

98,870

 

 

$

107,992

 

 

$

109,271

 

 

$

141,491

 

 

$

116,598

 

Escrow, other title-related fees and other

 

13,174

 

 

 

13,382

 

 

 

16,742

 

 

 

17,977

 

 

 

18,575

 

 

 

20,065

 

 

 

20,452

 

 

 

20,493

 

Investment, dividend and other income

 

818

 

 

 

707

 

 

 

743

 

 

 

663

 

 

 

1,229

 

 

 

650

 

 

 

639

 

 

 

588

 

Total revenues

$

70,809

 

 

$

100,423

 

 

$

121,072

 

 

$

117,510

 

 

$

127,796

 

 

$

129,986

 

 

$

162,582

 

 

$

137,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums retained by Third-Party Agents

$

33,102

 

 

$

56,006

 

 

$

67,024

 

 

$

64,011

 

 

$

70,338

 

 

$

65,181

 

 

$

91,596

 

 

$

71,330

 

Title examination expense

 

3,865

 

 

 

3,322

 

 

 

4,624

 

 

 

4,393

 

 

 

4,853

 

 

 

5,500

 

 

 

5,289

 

 

 

6,495

 

Provision for claims

 

1,783

 

 

 

3,040

 

 

 

5,242

 

 

 

5,272

 

 

 

3,249

 

 

 

6,807

 

 

 

6,685

 

 

 

4,594

 

Personnel costs

 

35,718

 

 

 

32,737

 

 

 

36,197

 

 

 

38,874

 

 

 

43,464

 

 

 

53,954

 

 

 

62,410

 

 

 

78,306

 

Other operating expenses

 

10,640

 

 

 

10,286

 

 

 

10,210

 

 

 

12,149

 

 

 

14,165

 

 

 

17,181

 

 

 

21,693

 

 

 

26,912

 

Total operating expenses

$

85,108

 

 

$

105,391

 

 

$

123,297

 

 

$

124,699

 

 

$

136,069

 

 

$

148,623

 

 

$

187,673

 

 

$

187,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

$

(14,299

)

 

$

(4,968

)

 

$

(2,225

)

 

$

(7,189

)

 

$

(8,273

)

 

$

(18,637

)

 

$

(25,091

)

 

$

(49,958

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant and Sponsor Covered Shares liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,478

)

 

 

11,169

 

Interest expense

 

(2,112

)

 

 

(1,123

)

 

 

(1,193

)

 

 

(1,151

)

 

 

(3,360

)

 

 

(4,451

)

 

 

(4,531

)

 

 

(4,519

)

Loss before income taxes

$

(16,411

)

 

$

(6,091

)

 

$

(3,418

)

 

$

(8,340

)

 

$

(11,633

)

 

$

(23,088

)

 

$

(34,100

)

 

$

(43,308

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

(175

)

 

 

(241

)

 

 

(204

)

 

 

(223

)

 

 

(125

)

 

 

(211

)

 

 

(170

)

 

 

(421

)

Net loss

 

(16,586

)

 

 

(6,332

)

 

 

(3,622

)

 

 

(8,563

)

 

 

(11,758

)

 

 

(23,299

)

 

 

(34,270

)

 

 

(43,729

)

Reconciliation of GAAP to Non-GAAP Measures

The following tables present our reconciliation of GAAP measures 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

 

December 31,
2021

Revenue

$

70,809

 

$

100,423

 

$

121,072

 

$

117,510

 

$

127,796

 

$

129,986

 

$

162,582

 

$

137,679

Minus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums retained by Third-Party Agents

 

33,102

 

 

56,006

 

 

67,024

 

 

64,011

 

 

70,338

 

 

65,181

 

 

91,596

 

 

71,330

Retained premiums and fees

$

37,707

 

$

44,417

 

$

54,048

 

$

53,499

 

$

57,458

 

$

64,805

 

$

70,986

 

$

66,349

Minus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct labor

 

16,314

 

 

13,898

 

 

14,892

 

 

17,050

 

 

17,979

 

 

20,902

 

 

23,948

 

 

26,787

Provision for claims

 

1,783

 

 

3,040

 

 

5,242

 

 

5,272

 

 

3,249

 

 

6,807

 

 

6,685

 

 

4,594

Depreciation and amortization

 

1,116

 

 

899

 

 

1,221

 

 

2,579

 

 

2,707

 

 

3,021

 

 

1,978

 

 

2,615

Other direct costs(1)

 

5,137

 

 

4,898

 

 

6,314

 

 

4,186

 

 

7,109

 

 

7,561

 

 

10,073

 

 

10,322

Gross Profit

$

13,357

 

$

21,682

 

$

26,379

 

$

24,412

 

$

26,414

 

$

26,514

 

$

28,302

 

$

22,031

__________________

(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

 

December 31,
2021

Gross Profit

$

13,357

 

$

21,682

 

$

26,379

 

$

24,412

 

$

26,414

 

$

26,514

 

$

28,302

 

$

22,031

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

1,116

 

 

899

 

 

1,221

 

 

2,579

 

 

2,707

 

 

3,021

 

 

1,978

 

 

2,615

Adjusted Gross Profit

$

14,473

 

$

22,581

 

$

27,600

 

$

26,991

 

$

29,121

 

$

29,535

 

$

30,280

 

$

24,646

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

 

December 31,
2021

Net loss (GAAP)

$

(16,586

)

 

$

(6,332

)

 

$

(3,622

)

 

$

(8,563

)

 

$

(11,758

)

 

$

(23,299

)

 

$

(34,270

)

 

$

(43,729

)

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

1,116

 

 

 

899

 

 

 

1,221

 

 

 

2,579

 

 

 

2,707

 

 

 

3,021

 

 

 

1,978

 

 

 

2,615

 

Interest expense

 

2,112

 

 

 

1,123

 

 

 

1,193

 

 

 

1,151

 

 

 

3,360

 

 

 

4,451

 

 

 

4,531

 

 

 

4,519

 

Income taxes

 

175

 

 

 

241

 

 

 

204

 

 

 

223

 

 

 

125

 

 

 

211

 

 

 

170

 

 

 

421

 

EBITDA

$

(13,183

)

 

$

(4,069

)

 

$

(1,004

)

 

$

(4,610

)

 

$

(5,566

)

 

$

(15,616

)

 

$

(27,591

)

 

$

(36,174

)

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

308

 

 

 

282

 

 

 

355

 

 

 

1,550

 

 

 

2,289

 

 

 

3,713

 

 

 

3,004

 

 

 

11,040

 

COVID-related severance costs

 

 

 

 

1,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant and Sponsor Covered Shares liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,478

 

 

 

(11,169

)

Adjusted EBITDA

$

(12,875

)

 

$

(2,402

)

 

$

(649

)

 

$

(3,060

)

 

$

(3,277

)

 

$

(11,903

)

 

$

(20,109

)

 

$

(36,303

)

 

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

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