Trupanion Inc (TRUP) Reports 22% Revenue Increase in Q3 2023
Trupanion Inc (NASDAQ:TRUP) reports a 22% increase in total revenue compared to Q3 2022, reaching $285.9 million.
The company's net loss reduced to $(4.0) million, compared to a net loss of $(12.9) million in Q3 2022.
Operating cash flow and free cash flow were $11 million and $7 million respectively, marking a return to positive cash flow.
Total enrolled pets increased by 19% year-over-year, reaching 1,712,177 at the end of Q3 2023.
On November 2, 2023, Trupanion Inc (NASDAQ:TRUP), a leading provider of medical insurance for cats and dogs, announced its financial results for the third quarter ended September 30, 2023. The company reported a significant increase in total revenue and a reduction in net loss compared to the same period in 2022.
Financial Highlights
Trupanion Inc (NASDAQ:TRUP) reported total revenue of $285.9 million in Q3 2023, marking a 22% increase compared to the third quarter of 2022. The company's subscription business revenue also increased by 20% year-over-year, reaching $182.9 million.
The company's net loss was $(4.0) million, or $(0.10) per basic and diluted share, a significant improvement from a net loss of $(12.9) million, or $(0.32) per basic and diluted share, in Q3 2022. Adjusted EBITDA was $6.1 million, compared to adjusted EBITDA of $(0.9) million in the third quarter of 2022.
Trupanion Inc (NASDAQ:TRUP) returned to positive cash flow in Q3 2023, with operating cash flow of $11.4 million and free cash flow of $7.0 million. This is a significant improvement from operating cash flow of $(2.3) million and free cash flow of $(6.4) million in Q3 2022.
Business Highlights
The total number of enrolled pets, including pets from other business segments, was 1,712,177 at the end of Q3 2023, marking a 19% increase over the third quarter of 2022. Subscription enrolled pets also increased by 20% year-over-year, reaching 969,322 at the end of Q3 2023.
CEO and Chair of the Board, Darryl Rawlings, stated,
I am happy to report we achieved $11 million in operating cash flow and $7 million in free cash flow, while continuing to grow our revenue at historical levels. The team, under Margi's leadership, accomplished these impressive quarter-over-quarter results with strong execution throughout the organization and the momentum of an over 40% sequential increase in discretionary profit driven by our core subscription business."
Financial Position
As of September 30, 2023, Trupanion Inc (NASDAQ:TRUP) held $265.9 million in cash and short-term investments, including $37.9 million held outside the insurance entities, with an additional $15 million available under its credit facility. The company maintained $227.0 million of capital surplus at its insurance subsidiaries, which was $60.8 million more than the estimated risk-based capital requirement of $166.2 million.
Looking Ahead
Trupanion Inc (NASDAQ:TRUP) continues to demonstrate strong financial performance and growth in its subscription business. The company's return to positive cash flow and the reduction in net loss indicate a positive trajectory for the future. However, investors should continue to monitor the company's performance and financial position closely.
Explore the complete 8-K earnings release (here) from Trupanion Inc for further details.
This article first appeared on GuruFocus.
