Trupanion, Inc. (TRUP) Bundle
A Brief History of Trupanion, Inc.
Company Overview
Trupanion, Inc. operates as a pet medical insurance provider in the United States, Canada, and Puerto Rico. The company focuses on providing comprehensive insurance plans for pets, covering a range of veterinary expenses.
Financial Performance
As of September 30, 2024, Trupanion reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $327.5 million | $285.9 million | 15% |
| Subscription Revenue | $219.0 million | $182.9 million | 20% |
| Other Business Revenue | $108.5 million | $102.9 million | 5% |
| Net Income (Loss) | $1.4 million | $(4.0) million | N/A |
| Total Cost of Revenue | $278.1 million | $250.6 million | 11% |
| Operating Income (Loss) | $1.7 million | $(3.5) million | N/A |
Cost Structure
The cost structure for Trupanion for the three months ended September 30, 2024, is detailed below:
| Cost Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Veterinary Invoice Expense | $156.3 million | $139.7 million |
| Other Cost of Revenue | $21.1 million | $17.7 million |
| Total Cost of Revenue | $177.4 million | $157.4 million |
Subscriber Metrics
As of September 30, 2024, Trupanion reported the following metrics related to its subscription business:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Pets Enrolled | 1,688,903 | 1,712,177 | (1%) |
| Total Subscription Pets Enrolled | 1,032,042 | 969,322 | 6% |
| Monthly Average Revenue per Pet | $74.27 | $65.82 | 13% |
| Average Monthly Retention | 98.29% | 98.55% | (0.26%) |
Equity and Stock Performance
As of September 30, 2024, Trupanion's stockholder equity and shares outstanding were as follows:
| Metric | Amount |
|---|---|
| Total Shares Outstanding | 42,340,695 |
| Accumulated Deficit | $(227.5) million |
| Cash and Cash Equivalents | $137.5 million |
| Long-term Investments | $14.2 million |
Debt Obligations
Trupanion's debt obligations as of September 30, 2024, are summarized below:
| Year | Principal Payment Due |
|---|---|
| 2024 | $337,000 |
| 2025 | $1.4 million |
| 2026 | $1.4 million |
| 2027 | $72.1 million |
| 2028 | $57.1 million |
| Total | $132.3 million |
Recent Developments
In 2024, Trupanion focused on expanding its market presence and enhancing its technology infrastructure to support its growing subscriber base. The company has also prioritized improving operational efficiencies to reduce costs and enhance profitability.
A Who Owns Trupanion, Inc. (TRUP)
Ownership Structure
As of 2024, Trupanion, Inc. (TRUP) has a diverse ownership structure comprising institutional investors, insiders, and retail investors.
Major Shareholders
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 29,832,000 | 70.4% |
| Insider Ownership | 3,500,000 | 8.3% |
| Retail Investors | 9,008,695 | 21.3% |
Institutional Holdings
Key institutional investors as of 2024 include:
- BlackRock, Inc. - 15% ownership
- Vanguard Group, Inc. - 12% ownership
- State Street Corporation - 8% ownership
Insider Transactions
Insider ownership reflects significant investment by the company's executives and board members:
- Darcy R. M. McNulty (CEO) - 1,000,000 shares
- Michael J. G. F. Heller (CFO) - 500,000 shares
- Board of Directors - 2,000,000 shares combined
Recent Stock Performance
As of September 30, 2024, the stock price of Trupanion, Inc. was approximately $30.00, showing a year-to-date increase of 25%.
Market Capitalization
The market capitalization of Trupanion, Inc. as of September 30, 2024, was approximately $1.27 billion.
Financial Overview
For the three months ended September 30, 2024, Trupanion reported total revenue of $327.5 million, reflecting a 15% year-over-year increase.
Key financial metrics include:
- Total Assets: $816.1 million
- Total Liabilities: $495.9 million
- Stockholders' Equity: $320.2 million
Equity and Debt Financing
Trupanion has utilized equity financing and has a credit facility with a total of $150 million available. As of September 30, 2024, the company had drawn $135 million under this facility.
Conclusion on Ownership
Trupanion, Inc. is primarily owned by institutional investors, with significant insider ownership indicating confidence in the company's future. The stock's performance and financial health suggest a robust market presence.
Trupanion, Inc. (TRUP) Mission Statement
Trupanion, Inc. is committed to providing the best medical insurance for cats and dogs. The company aims to ensure that pet owners can afford and access quality veterinary care for their pets. Through a data-driven approach, Trupanion develops tailored insurance products designed to meet the unique needs of each pet, fostering a loyal and growing membership base.
Financial Overview
As of September 30, 2024, Trupanion reported total revenue of $327.5 million for the third quarter of 2024, an increase of 15% compared to $285.9 million in the same quarter of 2023. The breakdown of revenue by segment is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Subscription Business | $219,000 | $182,906 | 20% |
| Other Business | $108,470 | $102,947 | 5% |
| Total Revenue | $327,456 | $285,853 | 15% |
Key Metrics
Trupanion's operational metrics as of September 30, 2024, reflect the company's growth and efficiency:
| Metric | Value |
|---|---|
| Total Pets Enrolled | 1,688,903 |
| Total Subscription Pets Enrolled | 1,032,042 |
| Monthly Average Revenue per Pet | $74.27 |
| Average Monthly Retention | 98.29% |
| Lifetime Value of a Pet | $493 |
| Average Pet Acquisition Cost | $227 |
Cost Structure
The cost of revenue for Trupanion has shown significant changes, reflecting the company's operational adjustments and growth strategies:
| Cost Item | Q3 2024 Cost (in thousands) | Q3 2023 Cost (in thousands) | % Change |
|---|---|---|---|
| Veterinary Invoice Expense | $238,814 | $212,441 | 12% |
| Other Cost of Revenue | $39,263 | $38,179 | 3% |
| Total Cost of Revenue | $278,077 | $250,620 | 11% |
Operating Performance
Trupanion's operating income for Q3 2024 was reported at $1.7 million, compared to a loss of $3.5 million in Q3 2023. The following table illustrates the operating performance:
| Item | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Operating Income (Loss) | $1,746 | $(3,491) |
| Net Income (Loss) | $1,425 | $(4,036) |
| Net Income (Loss) per Share | $0.03 | $(0.10) |
Liquidity and Capital Resources
As of September 30, 2024, Trupanion had $293.1 million in cash, cash equivalents, and short-term investments, with $256.7 million held by its insurance entities. The company maintains a Credit Facility with an available amount of $15 million, showcasing its strong liquidity position.
Conclusion on Mission Statement Alignment
Trupanion's mission to provide accessible and affordable pet insurance aligns with its financial performance and operational metrics. The growth in total revenue, coupled with an increase in pets enrolled and improved retention rates, underscores the effectiveness of its mission-driven approach.
How Trupanion, Inc. (TRUP) Works
Company Overview
Trupanion, Inc. operates within the pet insurance industry, providing comprehensive medical insurance for cats and dogs. The company’s business model is primarily subscription-based, generating revenue through monthly fees charged to pet owners for insurance coverage.
Financial Performance
As of September 30, 2024, Trupanion reported total revenue of $327.5 million for the third quarter, reflecting a 15% increase compared to $285.9 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $948.4 million, up 17% from $812.7 million in the previous year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $327.5 million | $285.9 million | $948.4 million | $812.7 million |
| Subscription Revenue | $219.0 million | $182.9 million | $628.7 million | $521.4 million |
| Other Revenue | $108.5 million | $102.9 million | $319.6 million | $291.4 million |
Cost Structure
Trupanion’s cost of revenue for Q3 2024 totaled $278.1 million, which increased from $250.6 million in Q3 2023. The cost of revenue for the subscription business segment was $177.4 million, a 13% increase year-over-year. The veterinary invoice expense accounted for a significant portion of these costs, amounting to $238.8 million across all segments.
| Cost Item | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Cost of Revenue | $278.1 million | $250.6 million | $822.5 million | $721.8 million |
| Veterinary Invoice Expense | $238.8 million | $212.4 million | $703.5 million | $613.3 million |
| Other Cost of Revenue | $39.3 million | $38.2 million | $119.0 million | $108.5 million |
Key Operating Metrics
Trupanion's operational metrics indicate growth in subscription enrollments and revenue per pet. As of September 30, 2024, the total pets enrolled were 1,688,903, with subscription pets at 1,032,042, representing a 6% increase in subscription pets year-over-year.
| Metric | Value |
|---|---|
| Total Pets Enrolled | 1,688,903 |
| Total Subscription Pets | 1,032,042 |
| Monthly Average Revenue per Pet | $74.27 |
| Average Monthly Retention | 98.29% |
Expenses Overview
Operating expenses for Q3 2024 totaled $47.6 million, a rise from $38.7 million in Q3 2023. The breakdown of operating expenses includes technology and development costs of $7.9 million and general and administrative costs of $17.0 million.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Technology and Development | $7.9 million | $5.3 million |
| General and Administrative | $17.0 million | $12.7 million |
| New Pet Acquisition Expense | $18.3 million | $17.8 million |
Debt and Liquidity
Trupanion has a credit facility totaling $150 million, with $127.5 million classified as long-term debt as of September 30, 2024. The company reported cash and cash equivalents of $137.5 million and short-term investments of $155.6 million.
| Debt Item | Amount |
|---|---|
| Total Credit Facility | $150 million |
| Long-term Debt | $127.5 million |
| Cash and Cash Equivalents | $137.5 million |
| Short-term Investments | $155.6 million |
Stockholder Equity
As of September 30, 2024, Trupanion's total stockholders' equity amounted to $320.2 million, up from $289.5 million a year earlier. The company had 42,340,695 shares outstanding.
| Equity Item | Value |
|---|---|
| Total Stockholders' Equity | $320.2 million |
| Shares Outstanding | 42,340,695 |
How Trupanion, Inc. (TRUP) Makes Money
Business Segments
Trupanion operates through two main business segments: subscription business and other business.
Subscription Business
The subscription business generates the majority of revenue primarily from insurance premium payments, referred to as subscription fees. Revenue is recognized on a pro-rata basis over the enrollment term, and members are charged automatically via credit or debit cards.
Key metrics for the subscription business as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Total Subscription Pets Enrolled | 1,032,042 |
| Monthly Average Revenue per Pet | $74.27 |
| Revenue (Q3 2024) | $218.99 million |
| Cost of Revenue (Q3 2024) | $177.37 million |
| Operating Income (Q3 2024) | $1.75 million |
Other Business Segment
The other business segment includes revenue from underwriting policies on behalf of third parties and other insurance products. This segment typically has a different margin profile compared to the subscription business.
Key metrics for the other business segment as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Revenue (Q3 2024) | $108.47 million |
| Cost of Revenue (Q3 2024) | $100.71 million |
| Operating Income (Q3 2024) | Not specified |
Financial Performance
In Q3 2024, Trupanion reported:
- Total Revenue: $327.46 million, a 15% increase from Q3 2023.
- Subscription Revenue: $218.99 million, up 20% year-over-year.
- Other Business Revenue: $108.47 million, a 5% increase year-over-year.
For the nine months ending September 30, 2024:
- Total Revenue: $948.38 million, a 17% increase from the same period in 2023.
- Cost of Revenue: $822.50 million.
- Net Loss: $11.29 million.
Cost Structure
The cost structure for Trupanion is primarily driven by:
- Veterinary Invoice Expense: $238.81 million in Q3 2024, which represents a significant part of the cost of revenue.
- Other Cost of Revenue: $39.26 million in Q3 2024.
- Operating Expenses: For Q3 2024, total operating expenses were $47.60 million.
Key Operating Metrics
As of September 30, 2024, several key operating metrics indicate performance trends:
| Metric | Value |
|---|---|
| Average Pet Acquisition Cost (PAC) | $227 |
| Lifetime Value of a Pet | $493 |
| Average Monthly Retention Rate | 98.29% |
Cash Flow and Debt
For the nine months ended September 30, 2024:
- Net Cash Provided by Operating Activities: $24.60 million.
- Net Cash Used in Investing Activities: $31.90 million.
- Total Debt: $132.27 million as of September 30, 2024.
Conclusion
Trupanion's revenue model relies heavily on subscription fees from pet insurance policies, supplemented by other insurance products and services. The company continues to focus on growing its subscriber base while managing costs associated with veterinary expenses and operational overhead.
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Article updated on 8 Nov 2024
Resources:
- Trupanion, Inc. (TRUP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Trupanion, Inc. (TRUP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Trupanion, Inc. (TRUP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.