NYSE$HIPO

Hippo Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Hippo achieved strong top-line growth, substantial loss ratio improvements, and operating leverage gains.

Hippo Holdings reported a revenue increase of 65% year-over-year to $95 million in Q3 2024, driven by higher premium retention and volume increases in the IaaS and Services segments. The company's net loss improved by 84% year-over-year to $8.5 million, and adjusted EBITDA loss improved by 81% to $7.5 million. Loss results improved substantially with HHIP accident period loss ratio improving 22pp YoY to 70%.

  • Revenue increased by 65% year-over-year to $95 million.
  • HHIP accident period loss ratio improved 22 percentage points year-over-year to 70%.
  • Net loss attributable to Hippo improved by 84% year-over-year to $8.5 million.
  • Adjusted EBITDA loss improved by 81% year-over-year to $7.5 million.

Headline financials

Total Revenue

$95.5M

Previous: $57.7M+65.5%
EPS (adj)

-$0.34

Previous: -$2.24+84.8%
Gross Written Premium

$234M

No prior period
Adjusted Net Income

-$1.3M

No prior period
Net Loss Ratio

73.0%

Previous: 111.0%-34.2%
Combined Ratio

128.0%

No prior period
Expense Ratio

55.0%

No prior period
Net Retention

39.0%

No prior period
Book Value Per Share

$14.56

No prior period
Tangible Book Value Per Share

$13.88

No prior period
Annualized Adjusted ROE

-2.0%

No prior period
Capital Expenditures

-$3.4M

Previous: -$29.2M+88.4%
Net Income

-$8.5M

Previous: -$53.1M+84.0%
Operating Income

-$5.2M

Previous: -$6.6M+21.2%
Gross Profit

$95.5M

Previous: $37.4M+155.3%
Stock-Based Comp

$9M

Previous: $13.9M-35.3%

Revenue & EPS history

Hippo Holdings · Revenue · Quarterly

$95.5M

Q3 2024+65.5%vs Q3 2023
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Forward guidance

Hippo expects Q4 revenue of $95 to $99 million and adjusted EBITDA of positive $5 to $6 million.

Tailwinds

  • Reiterating previous Q4 revenue guidance of $95 to $99 million.
  • Reiterating previous Q4 adjusted EBITDA guidance of positive $5 to $6 million.

Headwinds

  • Removal of First Connect from Hippo’s financials from the beginning of November will lower expected Q4 TGP by approximately $50 to $60 million.
  • Removal of First Connect from Hippo’s financials from the beginning of November will lower expected Q4 revenue by approximately $1.5 to $1.8 million.
  • Expected impact of Hurricane Milton in Q4.

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 2024

Historical avgQ3 2024

+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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