Trupanion (TRUP) Tops Q3 EPS by 4c, Revenues Beat
Trupanion (NASDAQ: TRUP) reported Q3 EPS of $0.03, $0.04 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $78.2 million versus the consensus estimate of $77.7 million.
“Performance in the third quarter was particularly strong, led by continued success in growing same store sales, improving conversion rates and scaling fixed expenses. We also made meaningful strides in claims automation, which improves the overall customer experience and helps grow the volume of organic referrals,” said Darryl Rawlings, CEO of Trupanion. “These strategic initiatives will remain a long-term focus, as will building greater awareness of Trupanion and the benefits of high-quality medical insurance for pets, through strong relationships with veterinarians across North America.”
Third Quarter 2018 Financial and Business Highlights
- Total revenue of $78.2 million, an increase of 24% compared to the third quarter of 2017.
- Total enrolled pets (including pets from our other business segment) was 497,942 at September 30, 2018, an increase of 23% over September 30, 2017.
- Subscription business revenue of $67.4 million, an increase of 19% compared to the third quarter of 2017.
- Subscription enrolled pets was 416,527 at September 30, 2018, an increase of 16% over September 30, 2017.
- Net income of $1.2 million, or $0.04 per basic share and $0.03 per diluted share, compared to net income of $0.4 million, or $0.01 per basic and diluted share, in the third quarter of 2017.
- Adjusted EBITDA of $3.7 million, compared to adjusted EBITDA of $2.4 million in the third quarter of 2017.
- Operating cash flow of $4.2 million and free cash flow of $(46.1) million in the third quarter of 2018. Excluding the cash outflow of $49.3 million related to the purchase of our headquarters building, free cash flow was $3.2 million. This compared to free cash flow in the third quarter of 2017 of $2.0 million, which included operating cash flow of $3.0 million.
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