On November 2, 2023, Trupanion Inc (TRUP, Financial), 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 (TRUP, Financial) 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 (TRUP, Financial) 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 (TRUP, Financial) 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 (TRUP, Financial) 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.
