Doma’s q3 results continue to outpace mortgage industry; tech-led growth expected to fuel future out-performance despite softening market
San francisco--(business wire)--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 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. added important new functionality to doma docs - which is a feature that uses machine intelligence to replace the manual and error-prone process of traditional fee collaboration - that deepens its algorithms to tackle even more complex closing disclosure scenarios and drive better outcomes for doma's largest clients. enhanced the doma connect integration layer to introduce important new integration functionality across several key middleware platforms used by doma's mortgage originator customers, making those connections more seamless and fostering further expansion of wallet share. added important new functionality to doma docs - which is a feature that uses machine intelligence to replace the manual and error-prone process of traditional fee collaboration - that deepens its algorithms to tackle even more complex closing disclosure scenarios and drive better outcomes for doma's largest clients. enhanced the doma connect integration layer to introduce important new integration functionality across several key middleware platforms used by doma's mortgage originator customers, making those connections more seamless and fostering further expansion of wallet share. 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 (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 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) 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. condensed consolidated statements of operations (unaudited) 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. condensed consolidated balance sheets (unaudited) (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. condensed consolidated statements of cash flows (unaudited) 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. condensed consolidated statements of cash flows (unaudited) 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 )
