SEATTLE, Nov. 03, 2022 (GLOBE NEWSWIRE) — Trupanion, Inc. (Nasdaq: TRUP), the main supplier of medical insurance for cats and canines, at present introduced monetary outcomes for the third quarter ended September 30, 2022.
“The team’s ability to deploy capital at strong estimated internal rates of return continues to impress. This is illustrated by our record third quarter new subscription pet growth, which was led by the veterinary channel,” stated Darryl Rawlings, founder and chief government officer of Trupanion.
Third Quarter 2022 Financial and Business Highlights
- Total income was $233.8 million, a rise of 29% in comparison with the third quarter of 2021.
- Total enrolled pets (together with pets from our different business section) was 1,439,605 at September 30, 2022, a rise of 30% over the third quarter of 2021.
- Subscription business income was $152.4 million, a rise of 20% in comparison with the third quarter of 2021 (21% on a relentless foreign money foundation).
- Subscription enrolled pets was 808,077 at September 30, 2022, a rise of 19% over the third quarter of 2021.
- Net loss was $(12.9) million, or $(0.32) per fundamental and diluted share, in comparison with web lack of $(6.8) million, or $(0.17) per fundamental and diluted share, within the third quarter of 2021. Net loss per share is inclusive of share-based compensation expense per share of $0.20 and $0.16 for the three months ended September 30, 2022 and September 30, 2021, respectively.
- Adjusted EBITDA was $(0.9) million, in comparison with adjusted EBITDA of $2.2 million within the third quarter of 2021.
- Operating money stream was $(2.3) million and free money stream was $(6.4) million within the third quarter of 2022. This in comparison with working money stream of $6.2 million and free money stream of $3.5 million within the third quarter of 2021.
First Nine Months 2022 Financial and Business Highlights
- Total income was $659.2 million, a rise of 31% in comparison with the primary 9 months of 2021.
- Subscription business income was $438.0 million, a rise of 21% in comparison with the primary 9 months of 2021 (22% on a relentless foreign money foundation).
- Net loss was $(35.4) million, or $(0.87) per fundamental and diluted share, in comparison with web lack of $(28.5) million, or $(0.71) per fundamental and diluted share, within the first 9 months of 2021. Net loss per share is inclusive of share-based compensation expense per share of $0.59 and $0.53 for the 9 months ended September 30, 2022 and September 30, 2021, respectively.
- Adjusted EBITDA was $(1.4) million, in comparison with adjusted EBITDA of $1.2 million within the first 9 months of 2021.
- Operating money stream was $(9.0) million and free money stream was $(20.6) million within the first 9 months of 2022. This in comparison with working money stream of $2.3 million and free money stream of $(6.2) million within the first 9 months of 2021.
PDF accessible: http://ml.globenewswire.com/Resource/Download/10fed8d5-9e31-4791-9a18-80a3b77cc93c
Conference Call
Trupanion’s administration will host a convention name at present to overview its third quarter 2022 outcomes. The name is scheduled to start shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A reside webcast can be accessible via the Investor Relations part of Trupanion’s web site at http://investors.trupanion.com and can be archived on-line for 3 months upon completion of the convention name. Participants can entry the convention name by dialing 1-800-753-6150 (United States) or 1-212-231-2903 (International). A telephonic replay of the decision will even be accessible after the completion of the decision, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and getting into the replay pin quantity: 22020781.
About Trupanion
Trupanion is a pacesetter in medical insurance for cats and canines all through the United States, Canada, Europe, Puerto Rico and Australia with over 800,000 pets enrolled. For over 20 years, Trupanion has given pet house owners peace of thoughts to allow them to concentrate on their pet’s restoration, not monetary stress. Trupanion is dedicated to offering pet house owners with the best worth in pet medical insurance with limitless payouts for the lifetime of their pets. With its patented course of, Trupanion is the one supplier with the expertise to pay veterinarians immediately in seconds on the time of checkout. Trupanion is listed on NASDAQ below the image “TRUP”. The firm was based in 2000 and is headquartered in Seattle, WA. Trupanion insurance policies are issued, within the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Omega General Insurance Company. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. For extra data, please go to trupanion.com.
Forward-Looking Statements
This press launch incorporates forward-looking statements throughout the that means of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding, amongst different issues, expectations, plans, prospects and monetary outcomes for Trupanion, together with, however not restricted to, its expectations concerning its capacity to proceed to develop its enrollments and income, and in any other case execute its business plan. These forward-looking statements are primarily based upon the present expectations and beliefs of Trupanion’s administration as of the date of this press launch, and are topic to sure dangers and uncertainties that would trigger precise outcomes to vary materially from these described within the forward-looking statements. All forward-looking statements made on this press launch are primarily based on data accessible to Trupanion as of the date hereof, and Trupanion has no obligation to replace these forward-looking statements.
In explicit, the next components, amongst others, may trigger outcomes to vary materially from these expressed or implied by such forward-looking statements: the power to attain or preserve profitability and/or acceptable ranges of money stream in future durations; the power to continue to grow our membership base and income; the accuracy of assumptions utilized in figuring out acceptable member acquisition expenditures; the severity and frequency of claims; the power to keep up excessive retention charges; the accuracy of assumptions utilized in pricing medical plan subscriptions and the power to precisely estimate the impression of recent merchandise or choices on claims frequency; precise claims expense exceeding estimates; regulatory and different constraints on the power to institute, or the choice to in any other case delay, pricing modifications in response to modifications in precise or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner mannequin and of our Territory Partners, veterinarians and different third events in recommending medical plan subscriptions to potential members; the power to retain current Territory Partners and enhance the variety of Territory Partners and energetic hospitals; compliance by us and people referring us members with legal guidelines and laws that apply to our business, together with the sale of a pet medical plan; the power to keep up the safety of our information; fluctuations within the Canadian foreign money change fee; the power to guard our proprietary and member data; the power to keep up our tradition and staff; the power to keep up the requisite quantity of risk-based capital; our capacity to implement and preserve efficient controls, together with over monetary reporting; the power to guard and implement Trupanion’s mental property rights; the power to efficiently implement our alliance with Aflac; the power to proceed key contractual relationships with third events; third-party claims together with litigation and regulatory actions; the power to acknowledge advantages from investments in new options and enhancements to Trupanion’s expertise platform and web site; and our capacity to retain key personnel.
For an in depth dialogue of those and different cautionary statements, please check with the danger components mentioned in filings with the Securities and Exchange Commission (SEC), together with however not restricted to, Trupanion’s Annual Report on Form 10-Ok for the yr ended December 31, 2021 and any subsequently filed stories on Forms 10-Q and 8-Ok. All paperwork can be found via the SEC’s Electronic Data Gathering Analysis and Retrieval system at www.sec.gov or the Investor Relations part of Trupanion’s web site at http://investors.trupanion.com.
Non-GAAP Financial Measures
Trupanion’s said outcomes could embrace sure non-GAAP monetary measures. These non-GAAP monetary measures could not present data that’s immediately similar to that supplied by different firms in its trade as different firms in its trade could calculate or use non-GAAP monetary measures in a different way. In addition, there are limitations in utilizing non-GAAP monetary measures as a result of the non-GAAP monetary measures are usually not ready in accordance with GAAP, could also be totally different from non-GAAP monetary measures utilized by different firms and exclude bills which will have a cloth impression on Trupanion’s reported monetary outcomes. The presentation and utilization of non-GAAP monetary measures isn’t meant to be thought-about in isolation or as an alternative to the immediately comparable monetary measures ready in accordance with GAAP. Trupanion urges its traders to overview the reconciliation of its non-GAAP monetary measures to probably the most immediately comparable GAAP monetary measures in its consolidated monetary statements, and to not depend on any single monetary or working measure to guage its business. These reconciliations are included beneath and on Trupanion’s Investor Relations web site.
Because of various accessible valuation methodologies, subjective assumptions and the number of fairness devices that may impression an organization’s non-cash bills, Trupanion believes that offering numerous non-GAAP monetary measures that exclude stock-based compensation expense and depreciation and amortization expense permits for extra significant comparisons between its working outcomes from interval to interval. Trupanion offsets new pet acquisition expense with sign-up payment income within the calculation of web acquisition value as a result of it collects sign-up payment income from new members on the time of enrollment and considers it to be an offset to a portion of Trupanion’s new pet acquisition expense. Trupanion believes this enables it to calculate and current monetary measures in a constant method throughout durations. Trupanion’s administration believes that the non-GAAP monetary measures and the associated monetary measures derived from them are necessary instruments for monetary and operational decision-making and for evaluating working outcomes over totally different durations of time.
| Trupanion, Inc. Consolidated Statements of Operations (in hundreds, besides share information) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (unaudited) | |||||||||||||||
| Revenue: | |||||||||||||||
| Subscription business | $ | 152,401 | $ | 127,077 | $ | 438,048 | $ | 360,742 | |||||||
| Other business | 81,359 | 54,590 | 221,122 | 143,870 | |||||||||||
| Total income | 233,760 | 181,667 | 659,170 | 504,612 | |||||||||||
| Cost of income: | |||||||||||||||
| Subscription business(1) | 128,158 | 103,754 | 365,861 | 299,037 | |||||||||||
| Other business | 75,543 | 49,747 | 204,773 | 131,764 | |||||||||||
| Total value of income(2) | 203,701 | 153,501 | 570,634 | 430,801 | |||||||||||
| Operating bills: | |||||||||||||||
| Technology and improvement(1) | 6,553 | 4,391 | 18,178 | 12,201 | |||||||||||
| General and administrative(1) | 10,314 | 8,246 | 28,907 | 22,897 | |||||||||||
| New pet acquisition expense(1) | 22,434 | 19,708 | 67,043 | 58,802 | |||||||||||
| Depreciation and amortization | 2,600 | 2,944 | 8,024 | 9,195 | |||||||||||
| Total working bills | 41,901 | 35,289 | 122,152 | 103,095 | |||||||||||
| Gain (loss) from funding in three way partnership | (57 | ) | (69 | ) | (168 | ) | (149 | ) | |||||||
| Operating loss | (11,899 | ) | (7,192 | ) | (33,784 | ) | (29,433 | ) | |||||||
| Interest expense | 1,408 | — | 2,680 | 1 | |||||||||||
| Other revenue, web | (889 | ) | (61 | ) | (1,568 | ) | (222 | ) | |||||||
| Loss earlier than revenue taxes | (12,418 | ) | (7,131 | ) | (34,896 | ) | (29,212 | ) | |||||||
| Income tax expense (profit) | 496 | (312 | ) | 491 | (724 | ) | |||||||||
| Net loss | $ | (12,914 | ) | $ | (6,819 | ) | $ | (35,387 | ) | $ | (28,488 | ) | |||
| Net loss per share: | |||||||||||||||
| Basic and diluted | $ | (0.32 | ) | $ | (0.17 | ) | $ | (0.87 | ) | $ | (0.71 | ) | |||
| Weighted common shares of frequent inventory excellent: | |||||||||||||||
| Basic and diluted | 40,799,819 | 40,283,818 | 40,707,677 | 40,044,518 | |||||||||||
| (1)Includes stock-based compensation expense as follows: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Cost of income | $ | 1,472 | $ | 1,311 | $ | 5,138 | $ | 5,769 | |||||||
| Technology and improvement | 1,184 | 749 | 3,193 | 2,213 | |||||||||||
| General and administrative | 3,792 | 2,271 | 9,281 | 6,412 | |||||||||||
| New pet acquisition expense | 2,195 | 2,112 | 7,214 | 7,024 | |||||||||||
| Total stock-based compensation expense | $ | 8,643 | $ | 6,443 | $ | 24,826 | $ | 21,418 | |||||||
| (2)The breakout of value of income between veterinary bill expense and different value of income is as follows: | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Veterinary bill expense | $ | 171,112 | $ | 125,058 | $ | 473,654 | $ | 353,210 | |||||||
| Other value of income | 32,589 | 28,443 | 96,980 | 77,591 | |||||||||||
| Total value of income | $ | 203,701 | $ | 153,501 | $ | 570,634 | $ | 430,801 | |||||||
| Trupanion, Inc. Consolidated Balance Sheets (in hundreds, besides share information) |
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| September 30, 2022 | December 31, 2021 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current belongings: | |||||||
| Cash and money equivalents | $ | 85,506 | $ | 87,400 | |||
| Short-term investments | 97,438 | 126,012 | |||||
| Accounts and different receivables, web of allowance for uncertain accounts of $384 at September 30, 2022 and $342 at December 31, 2021 | 224,082 | 165,217 | |||||
| Prepaid bills and different belongings | 14,802 | 12,325 | |||||
| Total present belongings | 421,828 | 390,954 | |||||
| Restricted money | 13,477 | 13,469 | |||||
| Long-term investments, at honest worth | 55,119 | 7,061 | |||||
| Property and tools, web | 87,066 | 77,950 | |||||
| Intangible belongings, web | 19,327 | 22,663 | |||||
| Other long-term belongings | 21,553 | 17,776 | |||||
| Goodwill | 29,526 | 32,709 | |||||
| Total belongings | $ | 647,896 | $ | 562,582 | |||
| Liabilities and stockholders’ fairness | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 7,627 | $ | 8,952 | |||
| Accrued liabilities and different present liabilities | 31,112 | 28,162 | |||||
| Reserve for veterinary invoices | 39,542 | 39,671 | |||||
| Deferred income | 202,504 | 146,911 | |||||
| Long-term debt – present portion | 600 | — | |||||
| Total present liabilities | 281,385 | 223,696 | |||||
| Long-term debt | 53,560 | — | |||||
| Deferred tax liabilities | 2,601 | 2,827 | |||||
| Other liabilities | 4,612 | 3,859 | |||||
| Total liabilities | 342,158 | 230,382 | |||||
| Stockholders’ fairness: | |||||||
| Common inventory: $0.00001 par worth per share, 100,000,000 shares approved; 41,901,548 and 40,873,362 issued and excellent at September 30, 2022; 41,408,350 and 40,475,185 shares issued and excellent at December 31, 2021 | — | — | |||||
| Preferred inventory: $0.00001 par worth per share, 10,000,000 shares approved; no shares issued and excellent | — | — | |||||
| Additional paid-in capital | 490,566 | 466,792 | |||||
| Accumulated different complete loss | (6,017 | ) | 3,077 | ||||
| Accumulated deficit | (162,277 | ) | (126,890 | ) | |||
| Treasury inventory, at value: 1,028,186 shares at September 30, 2022 and 933,165 shares at December 31, 2021 | (16,534 | ) | (10,779 | ) | |||
| Total stockholders’ fairness | 305,738 | 332,200 | |||||
| Total liabilities and stockholders’ fairness | $ | 647,896 | $ | 562,582 | |||
| Trupanion, Inc. Consolidated Statements of Cash Flows (in hundreds) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (unaudited) | |||||||||||||||
| Operating actions | |||||||||||||||
| Net loss | $ | (12,914 | ) | $ | (6,819 | ) | $ | (35,387 | ) | $ | (28,488 | ) | |||
| Adjustments to reconcile web loss to money supplied by working actions: | |||||||||||||||
| Depreciation and amortization | 2,600 | 2,944 | 8,024 | 9,195 | |||||||||||
| Stock-based compensation expense | 8,643 | 6,443 | 24,826 | 21,418 | |||||||||||
| Other, web | 102 | (386 | ) | 28 | (931 | ) | |||||||||
| Changes in working belongings and liabilities: | |||||||||||||||
| Accounts and different receivables | (19,821 | ) | (17,977 | ) | (58,948 | ) | (58,773 | ) | |||||||
| Prepaid bills and different belongings | (1,599 | ) | 170 | (4,420 | ) | (1,922 | ) | ||||||||
| Accounts payable, accrued liabilities, and different liabilities | 45 | 5,225 | 748 | 4,353 | |||||||||||
| Reserve for veterinary invoices | 3,061 | 2,984 | 63 | 9,854 | |||||||||||
| Deferred income | 17,584 | 13,640 | 56,047 | 47,596 | |||||||||||
| Net money (utilized in) supplied by working actions | (2,299 | ) | 6,224 | (9,019 | ) | 2,302 | |||||||||
| Investing actions | |||||||||||||||
| Purchases of funding securities | (78,292 | ) | (18,915 | ) | (125,660 | ) | (62,288 | ) | |||||||
| Maturities of funding securities | 73,280 | 8,486 | 104,492 | 39,066 | |||||||||||
| Cash paid in business acquisition, web of money acquired | (2,755 | ) | — | (2,755 | ) | — | |||||||||
| Purchases of property and tools | (4,131 | ) | (2,767 | ) | (11,610 | ) | (8,537 | ) | |||||||
| Other | 71 | 25 | (1,431 | ) | (48 | ) | |||||||||
| Net money utilized in investing actions | (11,827 | ) | (13,171 | ) | (36,964 | ) | (31,807 | ) | |||||||
| Financing actions | |||||||||||||||
| Proceeds from debt financing, web of financing charges | (119 | ) | — | 54,312 | — | ||||||||||
| Repayments of debt | (150 | ) | — | (300 | ) | — | |||||||||
| Repurchases of frequent inventory | (4 | ) | — | (5,755 | ) | — | |||||||||
| Proceeds from train of inventory choices | 413 | 698 | 1,584 | 3,056 | |||||||||||
| Shares withheld to fulfill tax withholding | (850 | ) | (979 | ) | (3,780 | ) | (3,730 | ) | |||||||
| Net money (utilized in) supplied by financing actions | (710 | ) | (281 | ) | 46,061 | (674 | ) | ||||||||
| Effect of overseas change fee modifications on money, money equivalents, and restricted money, web | (1,268 | ) | (461 | ) | (1,964 | ) | (53 | ) | |||||||
| Net change in money, money equivalents, and restricted money | (16,104 | ) | (7,689 | ) | (1,886 | ) | (30,232 | ) | |||||||
| Cash, money equivalents, and restricted money at starting of interval | 115,087 | 123,654 | 100,869 | 146,197 | |||||||||||
| Cash, money equivalents, and restricted money at finish of interval | $ | 98,983 | $ | 115,965 | $ | 98,983 | $ | 115,965 | |||||||
| The following tables set forth our key working metrics: | |||||||||||||||||||||||||||||||
| Nine Months Ended September 30, |
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| 2022 | 2021 | ||||||||||||||||||||||||||||||
| Total Business: | |||||||||||||||||||||||||||||||
| Total pets enrolled (at interval finish) | 1,439,605 | 1,104,376 | |||||||||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at interval finish) | 808,077 | 676,463 | |||||||||||||||||||||||||||||
| Monthly common income per pet | $ | 64.09 | $ | 63.43 | |||||||||||||||||||||||||||
| Lifetime worth of a pet, together with fastened bills | $ | 673 | $ | 697 | |||||||||||||||||||||||||||
| Average pet acquisition value (PAC) | $ | 291 | $ | 281 | |||||||||||||||||||||||||||
| Average month-to-month retention | 98.71 | % | 98.72 | % | |||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sept. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
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| Total Business: | |||||||||||||||||||||||||||||||
| Total pets enrolled (at interval finish) | 1,439,605 | 1,348,145 | 1,267,253 | 1,176,778 | 1,104,376 | 1,024,226 | 943,854 | 862,928 | |||||||||||||||||||||||
| Subscription Business: | |||||||||||||||||||||||||||||||
| Total subscription pets enrolled (at interval finish) | 808,077 | 770,318 | 736,691 | 704,333 | 676,463 | 643,395 | 609,835 | 577,957 | |||||||||||||||||||||||
| Monthly common income per pet | $ | 63.80 | $ | 64.26 | $ | 64.21 | $ | 63.89 | $ | 63.60 | $ | 63.69 | $ | 62.97 | $ | 62.03 | |||||||||||||||
| Lifetime worth of a pet, together with fastened bills | $ | 673 | $ | 713 | $ | 730 | $ | 717 | $ | 697 | $ | 681 | $ | 684 | $ | 653 | |||||||||||||||
| Average pet acquisition value (PAC) | $ | 268 | $ | 309 | $ | 301 | $ | 306 | $ | 280 | $ | 284 | $ | 279 | $ | 272 | |||||||||||||||
| Average month-to-month retention | 98.71 | % | 98.74 | % | 98.75 | % | 98.74 | % | 98.72 | % | 98.72 | % | 98.73 | % | 98.71 | % | |||||||||||||||
| The following desk displays the reconciliation of money supplied by working actions to free money stream (in hundreds): | |||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net money (utilized in) supplied by working actions | $ | (2,299 | ) | $ | 6,224 | $ | (9,019 | ) | $ | 2,302 | |||||
| Purchases of property and tools | (4,131 | ) | (2,767 | ) | (11,610 | ) | (8,537 | ) | |||||||
| Free money stream | $ | (6,430 | ) | $ | 3,457 | $ | (20,629 | ) | $ | (6,235 | ) | ||||
| The following desk displays the reconciliation between GAAP and non-GAAP measures (in hundreds besides percentages): | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Veterinary bill expense | $ | 171,112 | $ | 125,058 | $ | 473,654 | $ | 353,210 | ||||||||
| Less: | ||||||||||||||||
| Stock-based compensation expense1 | (960 | ) | (769 | ) | (3,155 | ) | (3,740 | ) | ||||||||
| Other business value of paying veterinary invoices | (58,197 | ) | (34,432 | ) | (152,911 | ) | (91,605 | ) | ||||||||
| Subscription value of paying veterinary invoices (non-GAAP) | $ | 111,955 | $ | 89,857 | $ | 317,588 | $ | 257,865 | ||||||||
| % of subscription income | 73.5 | % | 70.7 | % | 72.5 | % | 71.5 | % | ||||||||
| Other value of income | $ | 32,589 | $ | 28,443 | $ | 96,980 | $ | 77,591 | ||||||||
| Less: | ||||||||||||||||
| Stock-based compensation expense1 | (433 | ) | (542 | ) | (1,818 | ) | (2,029 | ) | ||||||||
| Other business variable bills | (17,346 | ) | (15,315 | ) | (51,862 | ) | (40,159 | ) | ||||||||
| Subscription variable bills (non-GAAP) | $ | 14,810 | $ | 12,586 | $ | 43,300 | $ | 35,403 | ||||||||
| % of subscription income | 9.7 | % | 9.9 | % | 9.9 | % | 9.8 | % | ||||||||
| Technology and improvement expense | $ | 6,553 | $ | 4,391 | $ | 18,178 | $ | 12,201 | ||||||||
| General and administrative expense | 10,314 | 8,246 | 28,907 | 22,897 | ||||||||||||
| Less: | ||||||||||||||||
| Stock-based compensation expense1 | (4,805 | ) | (3,020 | ) | (12,116 | ) | (8,625 | ) | ||||||||
| Business mixture transaction prices | (179 | ) | — | (179 | ) | (82 | ) | |||||||||
| Development bills2 | (2,435 | ) | (919 | ) | (5,705 | ) | (2,861 | ) | ||||||||
| Fixed bills (non-GAAP) | $ | 9,448 | $ | 8,698 | $ | 29,085 | $ | 23,530 | ||||||||
| % of whole income | 4.0 | % | 4.8 | % | 4.4 | % | 4.7 | % | ||||||||
| New pet acquisition expense | $ | 22,434 | $ | 19,708 | $ | 67,043 | $ | 58,802 | ||||||||
| Less: | ||||||||||||||||
| Stock-based compensation expense1 | (2,108 | ) | (2,112 | ) | (7,037 | ) | (7,024 | ) | ||||||||
| Other business pet acquisition expense | (181 | ) | (134 | ) | (476 | ) | (423 | ) | ||||||||
| Subscription acquisition value (non-GAAP) | $ | 20,145 | $ | 17,462 | $ | 59,530 | $ | 51,355 | ||||||||
| % of subscription income | 13.2 | % | 13.7 | % | 13.6 | % | 14.2 | % | ||||||||
| 1Trupanion staff could elect to take restricted inventory items in lieu of money cost for his or her bonuses. We account for such expense as stock-based compensation in accordance with GAAP, however we don’t embrace it in any non-GAAP changes. Stock-based compensation related to bonuses was roughly $0.3 million and $0.7 million for the three and 9 months ended September 30, 2022, respectively. | ||||||||||||||||
| 2As we enter the following section of our development, we count on to spend money on initiatives which are pre-revenue, together with including new merchandise and worldwide growth. These improvement bills are prices associated to product exploration and improvement which are pre-revenue and traditionally have been insignificant. We view these actions as makes use of of our adjusted working revenue separate from pet acquisition spend. | ||||||||||||||||
| The following tables replicate the reconciliation of recent pet acquisition expense, beforehand referred to as “sales and marketing”, to acquisition value and web acquisition value (in hundreds): | |||||||||||||||||||||||||||||||
| Nine Months Ended September 30, |
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| 2022 | 2021 | ||||||||||||||||||||||||||||||
| New pet acquisition expense | $ | 67,043 | $ | 58,802 | |||||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Stock-based compensation expense | (7,037 | ) | (7,024 | ) | |||||||||||||||||||||||||||
| Acquisition value | 60,006 | 51,778 | |||||||||||||||||||||||||||||
| Net of: | |||||||||||||||||||||||||||||||
| Sign-up payment income | (3,793 | ) | (3,792 | ) | |||||||||||||||||||||||||||
| Other business section pet acquisition expense | (476 | ) | (423 | ) | |||||||||||||||||||||||||||
| Net acquisition value | $ | 55,737 | $ | 47,563 | |||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sept. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
||||||||||||||||||||||||
| New pet acquisition expense | $ | 22,434 | $ | 22,982 | $ | 21,627 | $ | 19,845 | $ | 19,708 | $ | 19,390 | $ | 19,704 | $ | 14,809 | |||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Stock-based compensation expense | (2,108 | ) | (2,601 | ) | (2,328 | ) | (2,136 | ) | (2,112 | ) | (2,181 | ) | (2,731 | ) | $ | (801 | ) | ||||||||||||||
| Acquisition value | 20,326 | 20,381 | 19,299 | 17,709 | 17,596 | 17,209 | 16,973 | $ | 14,008 | ||||||||||||||||||||||
| Net of: | |||||||||||||||||||||||||||||||
| Sign-up payment income | (1,339 | ) | (1,252 | ) | (1,202 | ) | (1,162 | ) | (1,268 | ) | (1,260 | ) | (1,264 | ) | $ | (919 | ) | ||||||||||||||
| Other business section pet acquisition expense | (181 | ) | (186 | ) | (109 | ) | (76 | ) | (134 | ) | (118 | ) | (171 | ) | $ | (201 | ) | ||||||||||||||
| Net acquisition value | $ | 18,806 | $ | 18,943 | $ | 17,988 | $ | 16,471 | $ | 16,194 | $ | 15,831 | $ | 15,538 | $ | 12,888 | |||||||||||||||
| The following tables replicate the reconciliation of adjusted EBITDA to web revenue (loss) (in hundreds): | |||||||||||||||||||||||||||||||
| Nine Months Ended September 30, |
|||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||
| Net loss | $ | (35,387 | ) | $ | (28,488 | ) | |||||||||||||||||||||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Stock-based compensation expense | 24,125 | 21,418 | |||||||||||||||||||||||||||||
| Depreciation and amortization expense | 8,024 | 9,195 | |||||||||||||||||||||||||||||
| Interest revenue | (1,412 | ) | (257 | ) | |||||||||||||||||||||||||||
| Interest expense | 2,680 | 1 | |||||||||||||||||||||||||||||
| Other non-operating bills | (1 | ) | 2 | ||||||||||||||||||||||||||||
| Income tax expense (profit) | 491 | (724 | ) | ||||||||||||||||||||||||||||
| Business mixture transaction prices | 179 | 82 | |||||||||||||||||||||||||||||
| (Gain) loss from fairness technique funding | (131 | ) | 6 | ||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (1,432 | ) | $ | 1,235 | ||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Sept. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
||||||||||||||||||||||||
| Net loss | $ | (12,914 | ) | $ | (13,618 | ) | $ | (8,855 | ) | $ | (7,042 | ) | $ | (6,819 | ) | $ | (9,221 | ) | $ | (12,448 | ) | $ | (3,502 | ) | |||||||
| Excluding: | |||||||||||||||||||||||||||||||
| Stock-based compensation expense | 8,306 | 8,462 | 7,358 | 6,808 | 6,443 | 6,527 | 8,448 | 2,602 | |||||||||||||||||||||||
| Depreciation and amortization expense | 2,600 | 2,707 | 2,717 | 2,770 | 2,944 | 3,158 | 3,093 | 2,301 | |||||||||||||||||||||||
| Interest revenue | (1,018 | ) | (297 | ) | (97 | ) | (80 | ) | (85 | ) | (84 | ) | (88 | ) | (83 | ) | |||||||||||||||
| Interest expense | 1,408 | 1,193 | 79 | 9 | — | 3 | (2 | ) | 337 | ||||||||||||||||||||||
| Other non-operating bills | — | (1 | ) | — | — | (1 | ) | 3 | — | 1 | |||||||||||||||||||||
| Income tax expense (profit) | 496 | 19 | (24 | ) | 1,034 | (312 | ) | (195 | ) | (217 | ) | 44 | |||||||||||||||||||
| Business mixture transaction prices | 179 | — | — | — | — | — | 82 | 522 | |||||||||||||||||||||||
| (Gain) loss from fairness technique funding | — | (131 | ) | — | — | — | 6 | — | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | (943 | ) | $ | (1,666 | ) | $ | 1,178 | $ | 3,499 | $ | 2,170 | $ | 197 | $ | (1,132 | ) | $ | 2,222 | ||||||||||||
Contacts:
Investors:
Laura Bainbridge, Vice President, Corporate Communications
[email protected]
