NYSE$HIPO

Hippo Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Hippo's revenue increased, but was overshadowed by catastrophe losses, decisive actions are being taken to reduce exposure to risks and improve profitability.

Hippo's Q2 2023 results showed strong growth in revenue and total generated premium, but were significantly impacted by catastrophe losses, particularly from hail events in Texas and Colorado. Despite these challenges, the company is taking actions to reduce exposure to these risks and remains on track to achieve positive adjusted EBITDA by the end of 2024.

  • Core gross loss ratio improved, but was overshadowed by catastrophe losses.
  • Total generated premium and revenue grew significantly year-over-year.
  • Operating expense as a percentage of revenue declined, showing operating leverage.
  • Company remains on track to turn adjusted EBITDA positive by the end of 2024.

Headline financials

Total Revenue

$47.7M

Previous: $28.7M+66.2%
EPS (adj)

-$4.61

Previous: -$3.25-41.8%
Net Loss Ratio

344.0%

No prior period
Capital Expenditures

-$29M

Previous: -$3M-866.7%
Free Cash Flow

-$137M

Previous: -$76.5M-78.8%
Net Income

-$108M

Previous: -$73.5M-46.7%
Operating Income

-$17M

Previous: -$27.4M+38.0%
Gross Profit

$28.9M

Previous: $11.3M+155.8%
Cash & Equivalents

$200M

Previous: $278M-27.9%
Total Assets

$1.68B

Previous: $1.63B+3.2%
Stock-Based Comp

$16.7M

Previous: $15.9M+5.0%

Revenue & EPS history

Hippo Holdings · Revenue · Quarterly

$47.7M

Q2 2023+66.2%vs Q2 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Forward guidance

Hippo is increasing its 2023 guidance for TGP and revenue, but now expects adjusted EBITDA loss to be in the range of $208-$218 million. The company reiterates its expectation of turning adjusted EBITDA positive by the end of 2024.

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 2023

Historical avgQ2 2023

+1.9%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-1.2%

Avg return

30 days after

64%

14 / 22 earnings

Positive

+35.6%

Q3 2023

Best reaction

-22.0%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-5.9%-10.3%
Q4 2025-5.3%-1.7%-12.3%
Q3 2025+5.5%-6.4%-15.2%
Q1 2025-15.9%-7.2%+13.4%
Q4 2024+2.3%-6.7%-23.3%
Q3 2024-3.3%+10.3%+69.8%
Q2 2024+18.5%+20.0%+15.9%
Q1 2024-0.1%-1.0%-3.9%
Q4 2023+27.6%+27.2%+66.3%
Q3 2023+35.6%+29.7%+23.7%
Q2 2023-22.0%-33.0%-29.3%
Q1 2023+7.1%+4.1%-9.2%
Q4 2022+0.1%-0.5%-2.2%
Q3 2022+4.1%-7.5%-9.4%
Q2 2022+10.9%+5.3%+15.6%
Q1 2022-17.2%-4.1%-26.6%
Q4 2021+1.0%-4.1%-2.6%
Q4 2020+2.0%-2.7%-30.1%
Q3 2021+2.0%-2.7%-30.1%
Q3 2020+2.0%-2.7%-30.1%
Q2 2021-11.8%-20.3%+2.7%
Q1 2021+0.2%+0.6%+0.8%
Q2 2020
Q1 2020

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