Hippo Reports Second Quarter 2024 Financial Results
Hippo (NYSE: HIPO) reported its Q2 2024 financial results, showing significant improvements in key metrics. Revenue increased 88% YoY to $90 million, while Total Generated Premium (TGP) grew 20% YoY. The company's focus on reducing volatility in its homeowners program led to a substantial reduction in catastrophic losses. Hippo's HHIP Q2 gross loss ratio improved by 94 percentage points YoY to 84%, and the Net Loss Ratio improved by 475 percentage points YoY to 113%.
The company achieved substantial operating leverage, with Sales & Marketing, Technology & Development, and General & Administrative expenses collectively declining from 120% of revenue a year ago to 46% in Q2. Net loss attributable to Hippo decreased by 62% YoY to $41 million, and Adjusted EBITDA loss reduced by 72% YoY to $25 million. Hippo maintains a strong financial position with $491 million in cash and investments, excluding restricted cash.
Hippo (NYSE: HIPO) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando miglioramenti significativi nei principali indicatori. I ricavi sono aumentati dell'88% su base annua, raggiungendo i 90 milioni di dollari, mentre il Totale dei Premi Generati (TGP) è cresciuto del 20% rispetto all'anno precedente. L'attenzione dell'azienda nella riduzione della volatilità del suo programma per proprietari di casa ha portato a una sostanziale diminuzione delle perdite catastrofiche. Il rapporto di perdita lordo HHIP del secondo trimestre di Hippo è migliorato di 94 punti percentuali su base annua, passando all'84%, mentre il Rapporto di Perdita Netta è migliorato di 475 punti percentuali su base annua, raggiungendo il 113%.
L'azienda ha ottenuto una notevole leva operativa, con le spese per Vendite & Marketing, Tecnologia & Sviluppo e Amministrazione Generale che sono scese complessivamente dal 120% dei ricavi dell'anno scorso al 46% nel secondo trimestre. La perdita netta attribuibile a Hippo è diminuita del 62% su base annua, attestandosi a 41 milioni di dollari, mentre la perdita EBITDA rettificata è scesa del 72% su base annua, arrivando a 25 milioni di dollari. Hippo mantiene una solida posizione finanziaria con 491 milioni di dollari in contante e investimenti, escludendo il contante vincolato.
Hippo (NYSE: HIPO) reportó sus resultados financieros del segundo trimestre de 2024, mostrando mejoras significativas en métricas clave. Los ingresos aumentaron un 88% interanual, alcanzando los 90 millones de dólares, mientras que el Total de Primas Generadas (TGP) creció un 20% interanual. El enfoque de la empresa en reducir la volatilidad en su programa para propietarios de viviendas condujo a una reducción sustancial en las pérdidas catastróficas. El ratio de pérdida bruta HHIP del segundo trimestre de Hippo mejoró en 94 puntos porcentuales interanuales, llegando al 84%, y el Ratio de Pérdida Neta mejoró en 475 puntos porcentuales interanuales, alcanzando el 113%.
La compañía logró una importante palanca operativa, con los gastos de Ventas y Marketing, Tecnología y Desarrollo, y Administración General disminuyendo colectivamente del 120% de los ingresos del año pasado al 46% en el segundo trimestre. La pérdida neta atribuible a Hippo disminuyó un 62% interanual a 41 millones de dólares, y la pérdida de EBITDA ajustado se redujo un 72% interanual a 25 millones de dólares. Hippo mantiene una sólida posición financiera con 491 millones de dólares en efectivo e inversiones, excluyendo el efectivo restringido.
히포(Hippo) (NYSE: HIPO)는 2024년 2분기 재무 결과를 발표하며 주요 지표에서 실질적인 개선을 보여주었습니다. 수익이 전년 대비 88% 증가하여 9천만 달러에 도달했습니다, 그리고 전체 발생된 보험료(TGP)는 전년 대비 20% 성장했습니다. 주택 소유자 프로그램에서 변동성을 줄이는 데 집중한 결과, 재앙적 손실이 상당히 감소했습니다. 히포의 2분기 HHIP 총 손실 비율은 전년 대비 94%p 개선되어 84%가 되었고, 순 손실 비율은 475%p 개선되어 113%에 도달했습니다.
회사는 운영 레버리지를 상당히 확보했으며, 판매 및 마케팅, 기술 및 개발, 일반 및 관리 비용이 작년의 수익 120%에서 2분기에는 46%로 집계되었습니다. 히포에 귀속된 순 손실은 전년 대비 62% 감소하여 4,100만 달러로 줄었습니다, 조정 EBITDA 손실은 전년 대비 72% 감소하여 2,500만 달러에 이르렀습니다. 히포는 제한된 현금을 제외하고 4억 9,100만 달러의 현금 및 투자 자산으로 강력한 재무 상태를 유지하고 있습니다.
Hippo (NYSE: HIPO) a présenté ses résultats financiers pour le deuxième trimestre de 2024, montrant des améliorations significatives dans des indicateurs clés. Le chiffre d'affaires a augmenté de 88% par rapport à l'année dernière, atteignant 90 millions de dollars, tandis que le Total des Primes Générées (TGP) a progressé de 20% par rapport à l'année précédente. L'accent mis par l'entreprise sur la réduction de la volatilité de son programme de propriétaires a conduit à une réduction substantielle des pertes catastrophiques. Le ratio de perte brute HHIP pour le deuxième trimestre de Hippo s'est amélioré de 94 points de pourcentage par rapport à l'année dernière, atteignant 84%, et le Ratio de Perte Nette s'est amélioré de 475 points de pourcentage par rapport à l'année dernière, atteignant 113%.
L'entreprise a obtenu un effet de levier opérationnel important, les dépenses en Ventes & Marketing, Technologie & Développement, et Administration Générale ayant diminué collectivement de 120% des revenus de l'année dernière à 46% au deuxième trimestre. La perte nette attribuable à Hippo a diminué de 62% par rapport à l'année dernière pour s'établir à 41 millions de dollars, et la perte EBITDA ajustée a diminué de 72% d'une année sur l'autre, atteignant 25 millions de dollars. Hippo maintient une solide position financière avec 491 millions de dollars en liquidités et investissements, excluant les liquidités restreintes.
Hippo (NYSE: HIPO) hat die Finanzzahlen für das zweite Quartal 2024 veröffentlicht und zeigt bedeutende Verbesserungen in den wichtigsten Kennzahlen. Der Umsatz stieg im Jahresvergleich um 88% auf 90 Millionen Dollar, während die insgesamt generierten Prämien (TGP) um 20% im Jahresvergleich wuchsen. Der Fokus des Unternehmens auf die Verringerung der Volatilität seines Hausbesitzerprogramms führte zu einer erheblichen Reduzierung der katastrophalen Verluste. Die Bruttoschadenquote von Hippo für das 2. Quartal verbesserte sich im Vorjahresvergleich um 94 Prozentpunkte auf 84%, und die Nettoschadenquote verbesserte sich um 475 Prozentpunkte auf 113% im Jahresvergleich.
Das Unternehmen erzielte eine beträchtliche operative Hebelwirkung, wobei die Ausgaben für Vertrieb & Marketing, Technologie & Entwicklung sowie Allgemeine & Verwaltungskosten insgesamt von 120% des Umsatzes im Vorjahr auf 46% im 2. Quartal sanken. Der den Hippo zugerechnete Nettoverlust verringerte sich im Jahresvergleich um 62% auf 41 Millionen Dollar, und der bereinigte EBITDA-Verlust reduzierte sich um 72% im Jahresvergleich auf 25 Millionen Dollar. Hippo hält eine starke finanzielle Position mit 491 Millionen Dollar in Bar und Investitionen, ohne den eingeschränkten Bargeldbetrag.
- Revenue increased 88% YoY to $90 million
- Total Generated Premium (TGP) grew 20% YoY
- HHIP Q2 gross loss ratio improved by 94 percentage points YoY to 84%
- Net Loss Ratio improved by 475 percentage points YoY to 113%
- Operating expenses reduced from 120% of revenue to 46% in Q2
- Net loss decreased by 62% YoY to $41 million
- Adjusted EBITDA loss reduced by 72% YoY to $25 million
- Strong financial position with $491 million in cash and investments
- Company still reporting net losses
- Adjusted EBITDA remains negative
Insights
Hippo's Q2 2024 results show significant progress in their financial turnaround. Revenue surged 88% YoY to
The shift towards Services and Insurance-as-a-Service (IaaS) is a positive trend, now representing
However, investors should note that despite improvements, Hippo is still operating at a loss. The path to sustained profitability and positive cash flow will be important to watch in upcoming quarters.
Hippo's strategic pivot to reduce catastrophic losses is showing promising results. The
The company's focus on technology-driven efficiencies is paying dividends, with significant improvements in agent productivity (
The increase in Spinnaker surplus to
Complete financial results and full year guidance for 2024 can be found in the company's shareholder letter in the Investor Relations section of Hippo's website at https://investors.hippo.com/.
"Our plan to reduce the volatility in our homeowners program passed its first meaningful test, as we delivered a substantial year-over-year reduction in catastrophic losses despite another quarter of elevated severe weather," said Hippo President and CEO Rick McCathron. "We used proprietary technology to drive efficiencies into our operations, which resulted in higher customer lifetime value and lower customer acquisition costs, and we improved access to insurance for customers buying new homes. We are well-positioned for continued growth and on track to achieve our long-stated goal of positive Adjusted EBITDA in Q4."
Second Quarter Highlights
Continued Top-line; Favorable Mix-Shift
- Revenue up
88% YoY to$90 million - Consolidated Total Generated Premium ("TGP") up
20% YoY, with Services and Insurance-as-a-Service ("IaaS") representing83% of TGP - Services and IaaS driving TGP growth, up
38% and23% YoY, respectively in Q2
Substantial HHIP Loss Ratio Improvement
- HHIP Q2 gross loss ratio improved 94pp YoY to
84% - Q2 gross PCS loss ratio improved 96pp YoY; higher deductibles and reduced exposure to severe weather
- Q2 gross non-PCS loss ratio increased 2pp YoY, but excluding reserve development, improved 3pp YoY
- HHIP Net Loss Ratio improved 475pp YoY to
113%
Generating Substantial Operating Leverage
- Sales & Marketing, Technology & Development, and General & Administrative expense collectively declined from
120% of revenue a year ago to46% in Q2; this represented a reduction of$16 million 28% - Tech driven efficiencies: Agent productivity (+
60% YoY), Conversion rate (+17% YoY), Cross-sell (+23% YoY)
Net Loss and Adjusted EBITDA continuing to improve
- Q2 Net loss attributable to Hippo down
62% YoY to$41 million - Q2 Adjusted EBITDA loss down
72% YoY to$25 million
Financial Strength
- Cash and investments, excluding restricted cash, of
$491 million - Spinnaker surplus of
$202 million $173 million
Conference Call and Webcast Information
Date: Thursday, August 8, 2024
Time: 8:00 a.m. Eastern Time / 5:00 a.m. Pacific Time
Dial In: +1 833 470 1428 (
Conf ID: 090869
Webcast: https://events.q4inc.com/attendee/425537578
A replay of the webcast will be made available after the call in the investor relations section of the company's website at https://investors.hippo.com/
Information about Key Operating Metrics/Non-GAAP Financial Measures
We define gross loss ratio expressed as a percentage, as the ratio of the gross losses and loss adjustment expenses, to the gross earned premium. We define TGP as the aggregate written premium placed across all of our business platforms for the period presented. We measure TGP as it reflects the volume of our business irrespective of choices related to how we structure our reinsurance treaties, the amount of risk we retain on our own balance sheet, or the amount of business written in our capacity as an MGA, agency, or as an insurance carrier/reinsurer. We define adjusted EBITDA, a Non-GAAP financial measure, as net loss attributable to Hippo excluding interest expense, income tax expense, depreciation, amortization, stock-based compensation, net investment income, restructuring charges, impairment expense, other non-cash fair market value adjustments, contingent consideration for one of our acquisitions, and other transactions, which may include certain legal fees and settlement costs, that we consider to be unique in nature. We exclude these items from Adjusted EBITDA because we do not consider them to be directly attributable to our underlying operating performance. This Non-GAAP financial measure is in addition to, and not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP. Reconciliations of this Non-GAAP financial measure to its most directly comparable GAAP counterpart is included in the shareholder letter referenced above. We believe that these non-GAAP measures of financial results provide useful supplemental information to investors about Hippo.
Forward-looking statements safe harbor
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial results and other operating and performance metrics, our business strategy, our cost reduction efforts, the quality of our products and services, and the potential growth of our business. These statements are based on the current expectations of Hippo's management and are not predictions of actual performance. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, and many actual events and circumstances are beyond the control of Hippo. These forward-looking statements are subject to a number of risks and uncertainties, including our ability to navigate extensive insurance industry regulations and the scrutiny of state insurance regulators, our ability to achieve or maintain profitability in the future; our ability to retain and expand our customer base and grow our business, including our builder network; our ability to manage growth effectively; risks relating to Hippo's brand and brand reputation; denial of claims or our failure to accurately and timely pay claims; the effects of intense competition in the segments of the insurance industry in which we operate; the availability and adequacy of reinsurance, including at current coverage, limits or pricing; our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers, and the sufficiency of the analytical models we use to assess and predict exposure to catastrophe losses; risks related to our proprietary technology and our digital platform; outages or interruptions or delays in services provided by our third party providers, including our data vendors; risks related to our intellectual property; the seasonal and cyclical nature of our business; the effects of severe weather events and other natural or man-made catastrophes, including the effects of climate change, global pandemics, and terrorism; continued disruptions from the COVID-19 pandemic; any overall decline in economic activity; regulators' identification of errors in the policy forms we use, the rates we charge, and our customer communications including, but not limited to, cancellations, non-renewals and reinstatements through market conducts, complaints, or other inquiries; the effects of existing or new legal or regulatory requirements on our business, including with respect to maintenance of risk-based capital and financial strength ratings, data privacy and cybersecurity, and the insurance industry generally; and other risks set forth in the sections entitled "Risk Factors" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Hippo does not presently know, or that Hippo currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Hippo's expectations, plans, or forecasts of future events and views as of the date of this press release. Hippo anticipates that subsequent events and developments will cause Hippo's assessments to change. However, while Hippo may elect to update these forward-looking statements at some point in the future, Hippo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Hippo's assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
About Hippo
Hippo is protecting the joy of homeownership, helping to safeguard customers' most important financial asset by harnessing the power of real-time data, smart home technology, and a growing suite of home services to deliver proactive home protection.
Hippo Holdings Inc. operating subsidiaries include Hippo Insurance Services, Hippo Home Care, First Connect Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Mainsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies. For more information, including licensing details, visit http://www.hippo.com.
Contacts
Investors:
Sammy Ng
Investors@hippo.com
Press:
Mark Olson
press@hippo.com
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SOURCE Hippo Analytics, Inc
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