Trupanion (NASDAQ: TRUP) reported Q1 EPS of ($0.31), $0.25 worse than the analyst estimate of ($0.06). Revenue for the quarter came in at $154.7 million versus the consensus estimate of $151.97 million.

First Quarter 2021 Financial and Business Highlights

• Total revenue was $154.7 million, an increase of 39% compared to the first quarter of 2020.
• Total enrolled pets (including pets from our other business segment) was 943,854 at March 31, 2021, an increase of 37% over the first quarter of 2020.
• Subscription business revenue was $113.3 million, an increase of 27% compared to the first quarter of 2020.
• Subscription enrolled pets was 609,835 at March 31, 2021, an increase of 20% over the first quarter of 2020.
• Net loss was $(12.4) million, or $(0.31) per basic and diluted share, which is inclusive of stock-based compensation expense of $8.4 million, or $0.21 per share. The amount of stock-based compensation recognized largely reflects the timing and vesting of annual performance grants, including Q1 grants for the Company's strong 2020 performance. Of the $8.4 million, $4.3 million related to a one-time 2020 performance grant, shared with the entire team, which was fully recognized during the quarter. This is compared to a net loss of $(1.1) million, or $(0.03) per basic and diluted share, in the first quarter of 2020.
• Adjusted EBITDA was $(1.1) million, compared to adjusted EBITDA of $2.0 million in the first quarter of 2020.
• Operating cash flow was $(1.7) million and free cash flow was $(4.6) million in the first quarter of 2021. This compared to operating cash flow of $2.9 million and free cash flow of $1.4 million in the first quarter of 2020.

“2021 is off to a flying start, with revenues up 39% year-over-year, led by growth in subscription pets,” said Darryl Rawlings, founder and chief executive officer of Trupanion. “We’re well positioned in a large, underpenetrated market and have the capital to continue to grow at these accelerated rates.”

For earnings history and earnings-related data on Trupanion (TRUP) click here.