NASDAQ$TRUP

Trupanion Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Trupanion's Q3 2021 financial results reflected strong momentum and continued growth, with strategic reinvestments in its portfolio.

Trupanion reported a 40% increase in total revenue, reaching $181.7 million in Q3 2021. The company's total enrolled pets increased by 37% year-over-year, while subscription business revenue grew by 28%. Despite these gains, Trupanion experienced a net loss of $(6.8) million, or $(0.17) per share, impacted by increased stock-based compensation and depreciation and amortization.

  • Total revenue increased by 40% to $181.7 million compared to Q3 2020.
  • Total enrolled pets reached 1,104,376, a 37% increase year-over-year.
  • Subscription business revenue grew by 28% to $127.1 million compared to Q3 2020.
  • Net loss was $(6.8) million, or $(0.17) per share, impacted by increased stock-based compensation and depreciation and amortization.

Headline financials

Total Revenue

$182M

Previous: $130M+39.6%
EPS (adj)

-$0.17

Previous: -$0.07-142.9%
Capital Expenditures

-$8.54M

Previous: -$4.51M-89.2%
Free Cash Flow

-$16M

Previous: -$7.07M-126.0%
Net Income

-$7.44M

Previous: -$2.56M-191.0%
Operating Income

-$7.19M

Previous: -$2.26M-218.7%
Gross Profit

$28.2M

Previous: $20.6M+36.8%
Cash & Equivalents

$110M

Previous: $35.2M+211.2%
Total Assets

$551M

Previous: $317M+73.6%
Stock-Based Comp

$6.44M

Previous: $2.43M+165.1%

Revenue & EPS history

Trupanion · Revenue · Quarterly

$182M

Q3 2021+39.6%vs Q3 2020
Beat estimate in 16 of 16 quarters(100%)
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

The press release contains forward-looking statements related to expectations, plans, prospects and financial results for Trupanion, including expectations regarding its ability to continue to grow its enrollments and revenue, implement its alliance with Aflac and otherwise execute its business plan.

Tailwinds

  • Ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods
  • Ability to keep growing our membership base and revenue
  • Ability to maintain high retention rates
  • Effectiveness and statutory or regulatory compliance of our Territory Partner model
  • Ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals

Headwinds

  • Accuracy of assumptions used in determining appropriate member acquisition expenditures
  • Severity and frequency of claims
  • Accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency
  • Actual claims expense exceeding estimates
  • 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 Q3 2021

Historical avgQ3 2021

-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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