Trupanion, Inc. · NASDAQ:TRUP
Trupanion — Q3 2024 Earnings Presentation
17 slides from Trupanion's earnings presentation, Oct 30, 2024
Slide 1: Quarterly Earnings Supplement Q3 2024
Quarterly Earnings Supplement Q3 2024
Slide 2: Total Subscription Revenue Growth
$219.0 2024 $208.6 $201.1 $191.5 2023 $182.9 $173.3 $165.2 $158.6 2022 $152.4 $145.8 $139.8 $134.1 Miscellaneous Revenue 2021 $127.1 $120.4 Total Subscription Revenue Growth $113.3 $106.4 2020 $99.4 $92.5 $89.5 $86.6 $82.6 2019 $77.7 $74.2 Revenue from New Subscription Pets $70.9 $67.4 2018 $63.9 $6
Slide 3: Subscription Revenue By Cohort
Subscription Revenue By Cohort $240.0 ($ in millions) $220.0 $200.0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 Pets Best Products 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) • 55,700 gross new pets • $73.33 new pet ARPU • 11.% per pet adjusted operating margin (AOM)* • 69.4 month average subscriber life* • $596 pet lifetime value (LVP)* • $252 pet acquisition cost (PAC); $15.1 million (90%) total PAC spend • 37% Intern
Slide 6: Estimated Internal Rates of Return (Other North American Subscription)
Estimated Internal Rates of Return (Other North American Subscription) • 6,400 gross new pets • $45.53 new pet ARPU • 20.1 month average subscriber life* • Per pet AOM & negative IRR reflect products not at operating scale • $158 PAC; $1.0 million (6%) total PAC spend *Based on data since product la
Slide 7: International Metrics
International Metrics • 3,700 gross new pets • $700K (4%) 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 Q3 2024 Q3 2024 Q3 2024 Q3 2024 Other North Managing General Total Sub Segment Trupanion Core American Products Agent Products Gross new pets 65,800 55,700 6,400 3,700 Quarterly new pet ARPU $70.48 $73.33 $45.53 Not included Quarterly pet acquisition cost $2
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 September 30, 2024 2023 Net cash provided by operating activities $15,296 $11,398 Purchases of property, equipment, and internal–use software $
Slide 10: Outlook
Outlook Q4 2024 Full Year 2024 Revenue $333M-$338M $1.281B-$1.286B Subscription revenue $227M-$229M $856M-$858M Adjusted operating income $35M-$38M $114M-$117M 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) Q3 2024 Quarterly average revenue per new pet $70.48 Estimated trailing 3-year profit per pet per month (11.6% $8.18 X 66.7 months = $546 (Lifetime value of a pet, including fixed expenses) margin) Year 0 1 2 3 4 5 6 Months* 6 12 12 12 12 12 0.7 6
Slide 14: Estimated Internal Rates of Return (Prior Methodology)
Estimated Internal Rates of Return (Prior Methodology) Year 0 1 2 3 4 5 Months* 6 12 12 12 12 4.5 58.5 Estimated profit per pet per month $8 $8 $8 $8 $8 $8 Estimated profit per pet $51 $101 $101 $101 $101 $38 $493 Capital charge** $(4) $(8) $(8) $(8) $(8) $(3) Quarterly pet acquisition cost (PAC) $(
Slide 15: Unit Economics – Single Average Subscription Pet (Prior Methodology)
Unit Economics1 – Single Average Subscription Pet (Prior Methodology) Monthly ARPU $70.75 Paying veterinary invoices (51.88) Variable expenses (providing 24/7 fast service) (6.73) Fixed expenses (G&A + IT) (3.71) Cash generated per month, prior to capital charge $8.43 x 58.5 months2 = $493 LVP, incl
Slide 16: Definitions – New Methodology
Definitions – New Methodology • Average revenue per new pet. Average revenue per new pet is calculated from total premium for all new pets enrolled for the period divided by the total number of new subscription pet months in the period. Total new subscription pet months in a period represents the su
Slide 17: Definitions – Prior Methodology
Definitions – Prior Methodology • Total subscription pets enrolled. Total subscription pets enrolled reflects the number of pets in active memberships at the end of each period presented. We monitor total subscription pets enrolled because it provides an indication of the growth of our subscription