Slide 1: Quarterly Earnings Supplement Q1 2024
Quarterly Earnings Supplement Q1 2024
Slide 2: Total Subscription Revenue Growth
Q1 '24 $201.1 $191.5 $182.9 2023 $173.3 $165.2 $158.6 $152.4 2022 $145.8 $139.8 $134.1 $127.1 2021 $120.4 Miscellaneous Revenue $113.3 Total Subscription Revenue Growth $106.4 $99.4 2020 $92.5 $89.5 $86.6 $82.6 2019 $77.7 $74.2 $70.9 Revenue from New Subscription Pets $67.4 2018 $63.9 $61.5 $59.0 $5
Slide 3: Subscription Revenue By Cohort
Subscription Revenue By Cohort $240.0 ($ in millions) $200.0 $160.0 $120.0 $80.0 $40.0 $0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 '24 Pre-2010 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 4: Product Offerings
Product Offerings Other Business Subscription Segment Segment Other Subscription Other Subscription Trupanion Core Products Products Pets Best North America North America International Veteran Affairs PetExpert* Service Dog US PHI Direct (Czechia, Slovakia, Belgium, Poland) Program Legacy Worksite F
Slide 5: Estimated Internal Rates of Return (Trupanion Core)
Estimated Internal Rates of Return (Trupanion Core) • 52,700 gross new pets • $71.46 new pet ARPU • 11.8% per pet adjusted operating margin (AOM)* • 73.0 month average subscriber life* • $618 pet lifetime value (LVP)* • $229 pet acquisition cost (PAC); $13.1 million (87%) total PAC spend • 44% Inter
Slide 6: Estimated Internal Rates of Return (Other North American Subscription)
Estimated Internal Rates of Return (Other North American Subscription) • 10,600 gross new pets • $38.35 new pet ARPU • 18.1 month average subscriber life* • Negative per pet AOM & IRR due to lack of operating scale • $102 PAC; $1.1 million (7%) total PAC spend *Based on data since product launch in
Slide 7: International Metrics
International Metrics • 3,900 gross new pets • $800K (6%) of total PAC spend • International policies are currently underwritten by third parties and therefore, per pet subscription metrics exclude these policies
Slide 8: Estimated Internal Rates of Return by P&L
Estimated Internal Rates of Return by P&L Q1 2024 Q1 2024 Q1 2024 Q1 2024 Other North Managing General Total Sub Segment Trupanion Core American Products Agent Products Gross new pets 67,200 52,700 10,600 3,900 Quarterly new pet ARPU $65.90 $71.46 $38.35 Not included Quarterly pet acquisition cost $
Slide 9: Free Cash Flow
Free Cash Flow The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands): Three Months Ended March 31, 2024 2023 Net cash provided by (used in) operating activities $2,434 $(6,862) Purchases of property, equipment, and internal–use soft
Slide 10: Outlook
Outlook Q2 2024 Full Year 2024 Revenue $306M to $311M $1.244B to $1.276B Subscription revenue $206M to $208M $842M to $862M Adjusted operating income $21M to $23M $100M to $120M CAD FX Rate 74% 74%
Slide 11: Q&A
Q&A e > trwpanion Medical insurance for the life of your pet.
Slide 12: Appendix
Appendix trwpanion
Slide 13: Estimated Internal Rates of Return (New Methodology)
Estimated Internal Rates of Return (New Methodology) Q1 2024 Quarterly average revenue per new pet $65.90 Estimated trailing 3-year profit per pet per month (11.7% $7.74 X 70.4 months = $545 (Lifetime value of a pet, including fixed expenses) margin) Year 0 1 2 3 4 5 6 Months* 6 12 12 12 12 12 4.4 7
Slide 14: Estimated Internal Rates of Return (Prior Methodology)
Estimated Internal Rates of Return (Prior Methodology) Year 0 1 2 3 4 5 6 Months* 6 12 12 12 12 12 8.9 62.9 Estimated profit per pet per month $7 $7 $7 $7 $7 $7 $7 Estimated profit per pet $41 $82 $82 $82 $82 $82 $61 $428 Capital charge** $(4) $(8) $(8) $(8) $(8) $(8) $(6) Quarterly pet acquisition
Slide 15: Unit Economics – Single Average Subscription Pet (Prior Methodology)
Unit Economics1 – Single Average Subscription Pet (Prior Methodology) Monthly ARPU $66.82 Paying veterinary invoices (50.32) Variable expenses (providing 24/7 fast service) (6.43) Fixed expenses (G&A + IT) (3.27) Cash generated per month, prior to capital charge $6.80 x 62.9 months2 = $428 LVP, incl
Slide 16: Definitions
Definitions • Total pets enrolled. Total pets enrolled reflects the number of subscription pets or pets enrolled in one of the insurance products offered in our other business segment at the end of each period presented. We monitor total pets enrolled because it provides an indication of the growth