HIPO Earnings Prediction
The chart below shows how HIPO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HIPO sees a -2.96% change in stock price 10 days leading up to the earnings, and a -6.69% change 10 days following the report. On the earnings day itself, the stock moves by +9.79%. This data can give you a slight idea of what to expect for the next quarter's release.
HIPO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
95.60M
65.68%
6.70%
Gross Margin
--
--
--
Operating Margin
-14.02%
-84.01%
-65.48%
Net Margin
-5.44%
-93.76%
-86.90%
EPS
-0.34
-84.82%
-79.27%
No Data Available
HIPO Earnings Analysis
Hippo Holdings Inc. Corporation (HIPO.N) Earnings Conference Call
Positive
Revenue Surge: 1. Strong Revenue Growth: Hippo reported a 65% year-over-year increase in revenue for Q3 2024, reaching $95 million, up from $58 million in Q3 2023.
Loss Ratio Improvement: 2. Improved Loss Ratios: The HHIP non-PCS accident period loss ratio improved by 15 percentage points year-over-year to 52%, contributing to a total HHIP accident period loss ratio improvement of 22 percentage points to 70%.
Cash and Investments Increase: 3. Significant Cash Position: Hippo's ending cash and investments increased by $54 million quarter-over-quarter to $545 million, bolstered by higher collections and proceeds from the sale of a shell insurance carrier.
Expense Reduction Achievement: 4. Cost Management Success: Total operating expenses decreased by $17 million year-over-year, a 33% reduction, leading to a drop in expenses from 89% of revenue in Q3 2023 to 36% in Q3 2024.
Shareholder Value Enhancement: 5. Share Repurchase Program: Following the sale of First Connect, Hippo repurchased and retired 957,242 shares, representing 3.8% of total shares outstanding, enhancing shareholder value.
Negative
Hippo Home Insurance Decline: 1. Decline in TGP for Hippo Home Insurance Program: TGP in the Hippo Home Insurance Program segment declined 18% due to managing exposure to high-CAT geographies, despite overall TGP growth of 21%.
First Connect Sale Impact: 2. Impact of First Connect Sale on Q4 Projections: The removal of First Connect from Hippo's financials is expected to lower Q4 TGP by approximately $50 million to $60 million and revenue by about $1.5 million to $1.8 million.
Ongoing Financial Challenges: 3. Continued Net Loss: Hippo reported a net loss of $8.5 million for Q3 2024, despite an improvement of 84% year-over-year, indicating ongoing financial challenges.
Adjusted EBITDA Improvement: 4. Adjusted EBITDA Loss: The adjusted EBITDA loss for Q3 2024 was $7.5 million, reflecting an 81% improvement year-over-year, but still indicating a lack of profitability.
Operating Expense Challenges: 5. High Operating Expenses: Although operating expenses decreased by $17 million year-over-year, they still represented 36% of revenue in Q3 2024, highlighting ongoing cost management issues.
HIPO FAQs
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HIPO Earning Call Sentiment
Hippo Holdings, Inc. (HIPO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
HIPO.N
-4.24%Positive
The earnings call summary highlights significant financial improvements, including strong revenue growth, improved loss ratios, and reduced expenses. The share repurchase program and positive adjusted EBITDA guidance further bolster confidence. The Q&A session reveals favorable retention rates and better performance of new homes, suggesting a positive outlook. Despite competitive pressures and regulatory risks, the overall sentiment is positive, supported by strategic initiatives and financial health. Given the lack of market cap information, we assume moderate impact, predicting a 2% to 8% stock price increase over the next two weeks.
