Trupanion Inc Reports Financial Results for Second Quarter 2024

Trupanion, Inc. Reports Financial Results for Second Quarter 2024

Seattle, Aug. 8, 2024 (GLOBE NEWSWIRE) -- Trupanion, Inc. (NASDAQ:TRUP), the leading provider of medical insurance for cats and dogs, today announced its financial results for the second quarter ended June 30, 2024.

Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Year-over-Year Change | Q1 2024 | Quarter-over-Quarter Change | Consensus Estimates (Q2 2024) | Actual vs. Consensus | |-----------------------------------|--------------|------------------|------------------------|------------------|----------------------------|-------------------------------|----------------------| | Total Revenue | $314.8M | $271.2M | +16% | $306.1M | +2.8% | $309.33M | Beat by $5.47M | | Earnings per Share (EPS) | $-0.14 | $-0.33 | | $-0.16 | | $-0.18 | Beat by $0.04 |
| Adjusted EBITDA | $7.4M | $(3.2)M | | $4.8M | | | | | Operating Cash Flow | $6.9M | $(3.4)M | | $2.4M | | | | | Free Cash Flow | $4.0M | $(8.1)M | | $1.8M | | | |

Financial Performance Interpretation :
Trupanion's Q2 2024 financial results demonstrate robust growth and substantial improvements from the prior year. The company exceeded both revenue and EPS consensus estimates with notable increases in both total revenue and a reduction in net loss per share, reflecting stronger operational performance and profitability. The positive year-over-year growth of 16% in total revenue and quarter-over-quarter growth of 2.8% indicate consistent upward momentum.

Revenue Performance by Segment
| Segment | Q2 2024 | Q2 2023 | Year-over-Year Change | |----------------------------------|--------------|------------------|------------------------| | Subscription Business Revenue | $208.6M | $173.8M | +20% | | Subscription Enrolled Pets | 1,020,934 | 944,388 | +8% | | Total Enrolled Pets | 1,699,643 | 1,682,820 | +1% |

Segment Performance Interpretation :
Trupanion's subscription business revenue saw a substantial increase of 20% year-over-year, with an 8% rise in subscription enrolled pets, showcasing strong consumer demand and retention. The overall enrollment growth of 1% suggests a steady expansion of the customer base, despite the high base.

Operational Data
| Operational Metric | Q2 2024 | Q2 2023 | Year-over-Year Change | |-----------------------------------|--------------|------------------|------------------------| | Total Enrolled Pets | 1,699,643 | 1,682,820 | +1% | | Subscription Enrolled Pets | 1,020,934 | 944,388 | +8% |

Comments from Company Officers : "Q2 was a strong quarter, benefitting from consistent revenue growth and margin expansion," said Margi Tooth, President and CEO. "We delivered consistent subscription revenue growth while generating a free cash flow of $24 million over the past 12 months. Discretionary profit from our core subscription business increased 63% in the quarter. We look forward to gradually deploying more capital at high estimated internal rates of return while restoring our target margins and operating within our free cash flow guardrail."

Dividends and Share Repurchase Programs :
No information was provided in the earnings release regarding any announced dividends or share repurchase programs.

Forward Guidance : No specific forward guidance was provided in the earnings release.

Stock Price Movement :
Following the earnings release, Trupanion's stock price increased by 4.07%.

Trupanion demonstrated solid performance in Q2 2024, indicating strong growth prospects moving forward and an optimistic outlook from the company's leadership.