Q1 2024 Trupanion Inc Earnings Call Transcript
Key Points
- Trupanion Inc (TRUP) reported a 19% increase in total revenue for the quarter, with subscription revenue growing even faster at 22% year-over-year.
- Adjusted operating income for the subscription business increased by 55% compared to the prior year period.
- The company successfully reduced its investment in pet acquisition by 23%, while gross adds declined by only 9% year-over-year.
- Trupanion Inc (TRUP) achieved a significant RPU growth of 9.8% across its subscription business, marking the highest level since becoming public.
- The company has made progress in addressing material weaknesses with investments in internal controls and technology, including assistance from PWC.
- Net loss for the quarter was $6.9 million, or a loss of $0.16 per basic and diluted share.
- The cost of veterinary invoices as a percent of revenue increased by 260 basis points from Q4 due to seasonality in pricing.
- Fixed expenses as a percentage of revenue increased from 4.7% to 5.3% year-over-year, driven by higher technology and G&A expenses.
- Adjusted operating income for the 'other business' segment decreased by 41% from last year, influenced by increased fixed expenses and a lower gross margin.
- Free cash flow was negative $0.6 million, although it showed an improvement from the prior year's first quarter.
Good day and welcome to the Trupanion First Quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Laura Bainbridge, Senior Vice President of Corporate Communications. Please go ahead.
Good afternoon, and welcome to Trupanion's First Quarter 2024 financial results conference call. Participating on today's call are Darryl Rawlings, Chief Executive Officer and Chair of the Board; Margi Tooth President; and Fawwad Qureshi, Chief Financial Officer.
For ease of reference, we've included a slide presentation to accompany today's discussion, which will be made available on our Investor Relations website under our Quarterly Earnings tab.
Before we begin, please be advised that remarks today contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements. These include, but are not limited to, statements regarding our future operations,
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