NASDAQ$TRUP

Trupanion Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Trupanion's Q2 2024 results were strong, driven by consistent revenue growth and margin expansion.

Trupanion reported a strong second quarter with a 16% increase in total revenue to $314.8 million. The company generated $4.0 million in free cash flow and saw a significant increase in discretionary profit from its core subscription business.

  • Total revenue increased by 16% to $314.8 million compared to Q2 2023.
  • Subscription business revenue grew by 20% to $208.6 million compared to Q2 2023.
  • Net loss improved to $(5.9) million, or $(0.14) per share, compared to $(13.7) million, or $(0.33) per share, in Q2 2023.
  • Free cash flow was $4.0 million, a significant improvement from $(8.1) million in Q2 2023.

Headline financials

Total Revenue

$315M

Previous: $271M+16.3%
EPS

-$0.14

Previous: -$0.33+57.6%
Total pets enrolled

1.7M

No prior period
Total subscription pets enrolled

1.0M

No prior period
Monthly average revenue per pet

$70.76

No prior period
Average pet acquisition cost

$219.00

No prior period
Average monthly retention

98.3%

No prior period
Capital Expenditures

-$5.95M

Previous: -$9.92M+40.1%
Free Cash Flow

-$11.9M

Previous: -$24.1M+50.7%
Net Income

-$5.95M

Previous: -$14.2M+58.1%
Operating Income

-$5.47M

Previous: -$13.1M+58.2%
Gross Profit

$40.3M

Previous: $29.4M+37.1%
Cash & Equivalents

$124M

Previous: $118M+5.0%
Total Assets

$796M

Previous: $730M+9.0%
Stock-Based Comp

$8.65M

Previous: $6.64M+30.3%

Revenue & EPS history

Trupanion · Revenue · Quarterly

$315M

Q2 2024+16.3%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Trupanion · $246M total across 2 segments · Q4 2022

  • Subscription business
    $159M+18.2%
  • Other business
    $87.4M+45.1%

Forward guidance

Trupanion's management expects to continue growing enrollments and revenue, and otherwise execute its business plan.

Tailwinds

  • Ability to continue to grow enrollments and revenue.
  • Ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods.
  • Effective Territory Partner model and of Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members.
  • Ability to successfully implement alliance with Aflac.
  • Ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website.

Headwinds

  • The ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods
  • The ability to keep growing our membership base and revenue
  • The accuracy of assumptions used in determining appropriate member acquisition expenditures
  • The severity and frequency of claims
  • Regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense

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 Q2 2024

Historical avgQ2 2024

-0.8%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+2.0%

Avg return

30 days after

46%

19 / 41 earnings

Positive

+28.3%

Q2 2020

Best reaction

-31.3%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%+3.9%-9.1%
Q4 2025-13.0%-10.3%-23.0%
Q3 2025-8.4%-7.6%-12.3%
Q1 2025+23.2%+22.4%+29.5%
Q4 2024-25.5%-28.2%-22.1%
Q3 2024+2.9%-6.0%+0.1%
Q2 2024+13.8%+21.5%+29.9%
Q1 2024-14.9%+9.6%+28.1%
Q4 2023-31.3%-26.8%-18.6%
Q3 2023+27.8%+11.7%+43.5%
Q2 2023+7.8%+15.2%+2.3%
Q1 2023-17.5%-30.8%-34.2%
Q4 2022-0.1%-3.1%-7.6%
Q3 2022+2.1%+10.1%+21.6%
Q2 2022+3.0%+13.2%+3.7%
Q1 2022-7.6%-0.9%+0.1%
Q4 2021-19.0%-17.1%-3.4%
Q3 2021+17.0%+20.8%+9.2%
Q2 2021-13.5%-13.4%-20.9%
Q1 2021-3.3%-8.6%+7.5%
Q4 2020-11.2%-9.9%-22.2%
Q3 2020+0.1%+17.6%+37.1%
Q2 2020+28.3%+39.0%+31.7%
Q1 2020-16.1%-13.9%-10.3%
Q4 2019-17.4%-9.3%-22.6%
Q3 2019+23.4%+31.2%+35.8%
Q2 2019-2.6%-4.8%-25.9%
Q1 2019-1.4%-1.9%-11.6%
Q4 2018-4.8%+0.9%+6.0%
Q3 2018+3.0%-7.7%-1.3%
Q2 2018-3.6%-7.5%-7.4%
Q1 2018+5.4%+1.4%+20.9%
Q4 2017-0.0%-9.2%+9.5%
Q3 2017+13.1%+11.6%+3.2%
Q2 2017+0.2%-2.8%-8.1%
Q1 2017+0.9%+4.7%+29.0%
Q4 2016+3.0%-2.2%-10.5%
Q3 2016-7.7%-7.0%+1.9%
Q2 2016-0.3%-0.6%-0.5%
Q1 2016+13.0%
Q2 2014-1.3%
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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