Trupanion reports second quarter 2015 results

Trupanion, Inc. (NYSE:TRUP), a direct-to-consumer, monthly subscription business that provides medical plans for cats and dogs, today announced financial results for the second quarter of 2015 and for the six months ended June 30, 2015.

“We’re encouraged by our performance in the second quarter – our fifth quarter as a public company –which reflects continued and consistent growth in revenue and enrolled pets,” said Darryl Rawlings, Trupanion’s Chief Executive Officer. “Our performance was strong, with revenue growing 30% year-over-year on a constant currency basis, fueled by 25% growth in total enrolled pets and a continued strong increase in average revenue per pet. Importantly, the health of our core subscription business is evidenced by our 98.67% retention rate in the quarter. Looking ahead, we will continue to make strategic investments in Trupanion Express, our Territory Partners and in corporate partnerships to increase the number of our active hospitals, which we believe will be a key driver to strengthen our leadership position in the medical insurance for pets’ category in North America.  With our first year as a public company behind us, our platform is increasingly efficient and our team is focused on driving the business to scale long-term.”

Second Quarter 2015 Financial Highlights
(All comparisons on a year-over-year basis)

  • Total revenue was $35.6 million, an increase of 27%.
  • Revenue for the subscription business was $32.2 million, an increase of 29%.
  • Adjusted EBITDA was $(3.2) million, compared to $(2.5) million.
  • Net loss was $(4.6) million, compared to $(3.5) million.

First Half 2015 Financial Highlights
(All comparisons on a year-over-year basis)

  • Total revenue was $68.9 million, an increase of 28%.
  • Revenue for the subscription business was $62.3 million, an increase of 30%.
  • Adjusted EBITDA was $(6.5) million, compared to $(4.5) million.
  • Net loss was $(9.6) million, compared to $(8.4) million.
  • Cash, cash equivalents and short-term investments of $47.7 million and zero debt.

Second Quarter 2015 Operating Metrics
(All comparisons on a year-over-year basis)

  • Average monthly adjusted revenue per pet was $45.10, an increase of 3%.  During the second quarter, the Canadian currency exchange rate dropped to an average of 81% compared to an average of 92% in the second quarter of 2014. If the exchange rate had stayed consistent with the average rate in the prior year, monthly adjusted revenue per pet would have increased 6% to 30% consolidated revenue growth year over year.
  • The ratio of lifetime value of a pet (LVP) to average pet acquisition cost (PAC) was 4.3 to 1.
  • Total enrolled pets (including pets from our other business segment) was 259,948 at quarter-end, up 25%.
  • Total subscription pets enrolled was 241,808 at quarter-end, up 26%.
  • During 2015, Trupanion reclassified pets previously included in its monthly subscription business that is not direct to consumer into its other business segment. All prior period amounts have been recast as a result of this change. Financial tables regarding this reclassification can be found at the end of this press release as well as under the financial information section of Trupanion’s Investor Relations website.

Outlook

Trupanion currently expects to achieve the following results for the third quarter ending September 30, 2015 and full year ending December 31, 2015:


Third Quarter 2015

  • Total revenue is expected to be in the range of $36.5-$38.5 million.
  • Adjusted EBITDA is expected to be in the range of $(4.5)-$(2.5) million.
  • The company’s third quarter 2015 outlook assumes a 77% Canadian currency exchange rate, the approximate rate at the end of July 2015.

Full Year 2015

  • Total revenue is expected to be in the range of $145-$150 million.
  • Adjusted EBITDA is expected to be in the range of $(13)-$(10) million.

 

Visit investors.Trupanion.com for more information.

 

About Trupanion
Founded in 2000, Trupanion is an industry-leading, direct-to-consumer, monthly subscription business that provides medical plans for cats and dogs in the United States, Canada and Puerto Rico through its affiliated entities. With over 260,000 total enrolled pets (as of August 4, 2015), Trupanion is one of the largest pet medical insurance companies in North America with the mission to help the pets we all love receive the best veterinary care. Trupanion offers a simple, fair and comprehensive pet medical plan that pays 90% of covered veterinary costs for pets’ illness and injury claims. Trupanion’s shares are traded on the New York Stock Exchange under the ticker symbol TRUP. The company is headquartered in Seattle, WA and can be found online at Trupanion.com.