Shares of ROOT (ROOT) have rallied 627% year to date, zooming past the industry’s increase of 28.6%, the Finance sector’s rise of 22.3% and the Zacks S&P 500 composite’s gain of 28.6% in the same time frame. Being the largest auto insurtech in the United States and delivering one of the best loss ratios in the industry, ROOT is poised to gain from opportunities offered by more than $300 billion market in which it operates. This company has a market capitalization of $1.2 billion. The average volume of share ...

Shares of Root, Inc. (ROOT) have been struggling lately and have lost 5.5% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earning ...

My articles are written with a mind to owning a stock for years, not trying to predict price movements in a few months. I don't do target prices; I do valuations.I first entered investing in 2020 as an individual value investor, keen to understand the fundamentals of businesses and buy their shares at attractive prices. From May 2022 to May 2023, I worked as an investment advisory representative at Fidelity Investments. I am now self-employed through other ventures.Part of my technique is to write an articl ...

Shares of insurance name Root (ROOT) are trading at roughly three-year highs, on track for their best session on record after a surprise third-quarter earnings beat. While ROOT is outperforming, peers Lemonade Inc (NYSE:LMND), Prudential Financial Inc (NYSE:PRU), and Aflac Inc (NYSE:AFL) are all scattered this afternoon after their own reports.Lemonade stock was last seen 26.2% higher at $23.64, and earlier surged to its highest level since September 2022. One of the best stocks on the New York Stock Exchan ...

Shares of Root Inc (NASDAQ:ROOT) are skyrocketing to nearly three-year highs, after the auto insurance name posted surprise third-quarter profits of $1.35 per share. Analysts expected a loss of 87 cents per share to match last year's results, while revenue beat estimates as well. Per CEO Alex Timm, the company "performed well beyond outside expectations."ROOT was last seen up 156% at $103.67, earlier trading as high as $105.50, and on track for its largest single-day percentage gain ever. The stock soared a ...

Financial Data and Key Metrics - The company achieved net income profitability for the first time in Q3 2024, with net income of $23 million, a $69 million improvement year-over-year [19][20] - Operating income was $34 million, and adjusted EBITDA was $42 million, representing year-over-year improvements of $68 million and $61 million, respectively [20] - Gross combined ratio improved by nearly 30 points year-over-year to 89%, with a gross accident period loss ratio of 58%, a 4-point improvement [22] - Operating cash flow was nearly $50 million in the quarter, driven by net income and strong loss ratio performance [23] Business Line Performance - The partnerships channel saw new writings more than double year-over-year, with several new partnerships launched, including one with Goosehead Insurance [13] - The company continues to expand and test new areas of the marketing funnel, with a focus on both direct and partnerships channels [10] - The partnerships channel is expected to drive strong growth in 2025 and beyond, with a robust pipeline of opportunities [14] Market Performance - The company is currently operating in 75% of the U S population and plans to expand to 100%, with growth capital deployed in new geographies [28] - The company reduced rates in select states without compromising target returns, leveraging data science and high telematics adoption rates [15][16] Strategic Direction and Industry Competition - The company aims to become the largest and most profitable personalized insurance carrier in the U S, with a focus on disciplined underwriting and innovation [18] - The company plans to reinvest profits into growth engines, including R&D and marketing, to accelerate policies in force growth over the long term [10][12] - The company's proprietary technology platform and data science algorithms have led to an industry-best 57% gross loss ratio [14] Management Commentary on Operating Environment and Future Outlook - Management highlighted the achievement of profitability as a pivotal moment and a validation of the business model, technology, and customer experience [9] - The company expects to see more contributions from renewals and a gradual return to policies in force growth following a hyper-growth period [11][12] - Management is optimistic about growth opportunities in 2025, including new partnerships, geographic expansion, and better products at better prices [17] Other Important Information - The company successfully refinanced its term loan with BlackRock, reducing the facility size from $300 million to $200 million and improving the cost of capital by at least 300 basis points [23] - The company expects a 50% run rate reduction in interest expense moving forward, enhancing operating performance and enabling further investment in growth [23] Q&A Session Summary Question: Growth spend expectations and geographic expansion [26] - The company plans to reinvest profits into growth, particularly in the partnerships channel and mid-to-upper funnel marketing channels [27] - Geographic expansion is a priority, with growth capital to be deployed in new states to drive profitable growth [28] - Sales and marketing spend will depend on the competitive environment, with a focus on driving new business at target return levels [29][30] Question: Retention rates and rate reductions [31] - Retention rates have improved as the policy in force (PIF) has aged, with churn expected to continue declining [31] - Rate reductions are expected to improve retention and conversion rates, benefiting the business [32] - The partnerships channel has higher retention rates compared to direct-to-consumer, with stickier customers and higher average premiums [33] Question: Cohort-based churn improvement [36] - Retention rates have improved modestly as the rate environment has stabilized, with better retention in newer cohorts [37] - The expansion of the partnerships channel and product changes are expected to further improve retention [38][39] Question: Pricing strategy and loss ratio [40] - The company focuses on hitting target loss ratios and will lower rates only when credible data supports it, without compromising market share [41][42] - Improved segmentation through new loss models and telematics models will also contribute to rate adjustments [43]

Root, Inc. (ROOT) came out with quarterly earnings of $1.35 per share, beating the Zacks Consensus Estimate of a loss of $0.61 per share. This compares to loss of $3.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 321.31%. A quarter ago, it was expected that this company would post a loss of $1.74 per share when it actually produced a loss of $0.52, delivering a surprise of 70.11%. Over the last four quarters, the company ...

COLUMBUS, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the parent company of Root Insurance Company, announced financial results for the quarter today. Root's third quarter financial results and management commentary can be found by accessing the shareholder letter posted to the company's investor relations website. An updated version of the company's investor presentation will also be available. Both can be found on ir.joinroot.com. Root will host a conference call and earnings webcas ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____________to____________ Commission File Number: 001-39658 ROOT, INC. (Exact name of Registrant as specified in its charter) Delaware 84-2717903 (State o ...

Q3 2024 Shareholder Letter Root Inc Dear Shareholders For the first time in company history, Root reached net income profitability. This milestone, achieved in the third quarter of 2024, is on both a quarter-to- date and year-to-date basis. This is a pivotal moment for Root. This quarter validates the strength of our business model, our technology, and our customer value proposition. We have maintained conviction that our data science and machine learning acumen, our modern technology stack, and our delight ...