NASDAQ$ROOT

Root Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Root reported strong financial and operating performance.

Root delivered its first $200 million-plus quarter of Direct Written Premium, along with $6 million in Gross Profit and $27 million in Direct Contribution, driven by improvements in loss ratio.

  • Direct Written Premium increased 23% to $203 million.
  • Direct Earned Premium increased 11% to $160 million.
  • Direct Loss Ratio improved 22 points to 71%.
  • Gross Profit increased by $23 million to $6 million.

Headline financials

Total Revenue

$68.6M

Previous: $124M-44.7%
EPS (adj)

-$7.20

Previous: -$9.29+22.5%
Capital Expenditures

-$400K

No prior period
Free Cash Flow

-$100M

No prior period
Net Income

-$99.6M

Previous: -$106M+5.7%
Operating Income

-$94.3M

Previous: -$99.9M+5.6%
Gross Profit

$68.6M

Previous: $124M-44.7%
Cash & Equivalents

$1.11B

No prior period
Total Assets

$1.7B

No prior period
Stock-Based Comp

$2.3M

No prior period

Revenue & EPS history

Root · Revenue · Quarterly

$68.6M

Q1 2021-44.7%vs Q1 2020
Beat estimate in 2 of 10 quarters(20%)
ActualEstimate

Forward guidance

Forward-looking statements relate to future performance, expected financial results for 2021, ability to retain and acquire customers, and ability to improve retention rates and release new products.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+2.8%

Avg return

Earnings day

+6.6%

Avg return

5 days after

+21.5%

Avg return

30 days after

54%

13 / 24 earnings

Positive

+72.8%

Q3 2024

Best reaction

-25.4%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+3.2%-2.6%
Q4 2025-5.3%-21.8%-28.1%
Q3 2025-8.8%-3.2%-9.9%
Q1 2025+0.9%+7.4%+8.4%
Q4 2024+25.6%+34.1%+38.7%
Q3 2024+72.8%+79.3%+152.2%
Q2 2024-22.2%-15.5%-30.8%
Q1 2024+4.6%-15.7%-21.9%
Q4 2023+46.5%+150.9%+492.7%
Q3 2023+13.9%+11.1%+16.7%
Q2 2023+0.5%-11.3%+8.0%
Q1 2023+21.4%+37.8%+23.9%
Q4 2022-2.7%-16.2%-26.3%
Q3 2022+9.7%+10.4%-21.2%
Q2 2022-25.4%-31.2%-55.8%
Q1 2022+15.1%+15.1%-14.5%
Q4 2021+6.5%+17.5%+32.5%
Q3 2021+16.8%+1.6%-31.9%
Q2 2020-23.9%-19.2%-6.7%
Q2 2021-19.4%-19.9%-6.7%
Q1 2021-9.1%-10.1%+29.6%
Q4 2020-17.3%-17.0%-12.1%
Q4 2019-15.9%-8.7%-7.6%
Q3 2020-16.9%-19.4%-11.2%
Q1 2020
Q3 2019
Q2 2019
Q1 2019

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