Doma (DOMA) Q2 2024 earnings summary

Executive summary

• Entered into a definitive merger agreement to be acquired for $6.29 per share in cash, with closing expected in the second half of 2024, pending shareholder and regulatory approvals.

• Completed the sale and exit of the Local Component retail title agency business in 2023, with results now reflecting only continuing operations.

• Implemented workforce reduction plans and cost-saving initiatives to improve efficiency and profitability.

• Total revenues reached $78 million in Q2 2024, an 18% increase versus Q1 2024.

• Gross profit was $5 million, up 23% sequentially; adjusted gross profit was $8 million, up 15%.

Financial highlights

• Revenue from continuing operations was $77.6M for Q2 2024, down 4% year-over-year; six-month revenue was $143.7M, down 4%.

• Net loss from continuing operations improved to $19.0M in Q2 2024 from $24.3M in Q2 2023; unchanged from Q1 2024.

• Adjusted gross profit rose 67% to $8.1M in Q2 2024 and 55% to $15.2M for the six months, driven by lower provision for claims.

• Adjusted EBITDA improved to negative $2.7M in Q2 2024 from negative $12.1M in Q2 2023; six-month adjusted EBITDA improved to negative $8.2M from negative $24.9M.

• Cash and cash equivalents and restricted cash totaled $73.1M as of June 30, 2024.

Outlook and guidance

• Management expects the merger to close in the second half of 2024, subject to shareholder and regulatory approvals.

• Current liquidity and new financing facilities are expected to cover working capital and capital expenditures for at least 12 months.

• No earnings call or forward-looking guidance due to pending transaction.