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, 2021 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: 001-36537 TRUPANION, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $168.3 million, representing a 43% year-over-year growth [15][25] - Adjusted operating income grew 32% to $18.5 million [12][21] - Net loss for the quarter was $9.2 million, compared to a net income of $1.4 million in the prior year period [23] Business Line Data and Key Metrics Changes - Subscription revenue was $120.4 million, up 30% year-over-year [15] - Total enrolled subscription pets increased 22% year-over-year to approximately 643,000 pets [15] - Other business segment revenue was $47.9 million, an increase of 88% year-over-year [19] Market Data and Key Metrics Changes - Average monthly retention rate was 98.72%, slightly up from 98.66% in the prior year [16] - Monthly average revenue per pet increased by 7.2% year-over-year to $63.69 [16] Company Strategy and Development Direction - The company is focused on a 60-month plan that includes expanding product offerings and international growth [10][14] - Investments in member experience and new product development are prioritized to drive retention and referrals [21][22] - The company aims to maintain a target adjusted operating margin of 15% [21][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the pet insurance market, citing low penetration rates in North America [38] - The company anticipates continued strong growth despite potential challenges from wage inflation and other economic factors [42] - Management is optimistic about the progress made in the first half of the year and the execution of the 60-month plan [32] Other Important Information - The company held cash and investments of over $219 million and had no debt at the end of the quarter [24] - Operating cash flow was negative $2.2 million, reflecting accelerated pet growth and investment initiatives [24] Q&A Session Summary Question: Update on ARPU and five-year plan progress measurement - Management indicated ARPU is expected to increase by 5% to 6% for the full year and discussed measuring progress through milestones in various initiatives [30][32] Question: Changes in consumer behavior and vet traffic amidst COVID - Management reported no significant changes in consumer behavior or vet traffic, with lead volume and conversion rates remaining positive [37][38] Question: Breeder channel opportunities - Management confirmed ongoing investments in the breeder channel, emphasizing its potential for high lifetime value [39] Question: Anticipated impacts of wage inflation on pricing - Management acknowledged wage inflation as a challenge but noted that they are aligned with veterinarians to manage costs effectively [42] Question: Update on lower medium price point plans - Management confirmed the launch of a new product in Canada and emphasized maintaining strong growth in the core subscription business [50][52] Question: Frequency of claims and utilization trends - Management stated that frequency levels have stabilized and returned to normal since the initial COVID impact [57] Question: Guidance on pet acquisition cost (PAC) - Management provided guidance on PAC, targeting around $280, while emphasizing a disciplined approach to spending [59]

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements) The company reports a 43% revenue increase to $168.3 million for Q2 2021 but a net loss of $9.2 million Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $168,260 | $117,920 | $322,945 | $229,221 | | **Operating (loss) income** | $(9,512) | $1,509 | $(22,241) | $499 | | **Net (loss) income** | $(9,221) | $1,353 | $(21,669) | $220 | | **Diluted (loss) income per share** | $(0.23) | $0.04 | $(0.54) | $0.01 | Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $117,332 | $139,878 | | **Total assets** | $531,966 | $498,250 | | **Total liabilities** | $197,761 | $158,311 | | **Total stockholders' equity** | $334,205 | $339,939 | Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(3,922) | $7,774 | | **Net cash used in investing activities** | $(18,636) | $(8,878) | | **Net cash (used in) provided by financing activities** | $(393) | $2,383 | - The company operates through a 'subscription business' and an 'other business' segment, with Q2 2021 revenues of **$120.4 million** and **$47.9 million**, respectively[61](index=61&type=chunk)[63](index=63&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue growth from pet enrollment, offset by higher marketing spend and a resulting net loss [Overview and Key Operating Metrics](index=21&type=section&id=Overview%20and%20Key%20Operating%20Metrics) The company's growth is driven by member acquisition, with total enrolled pets up 38% to over one million - The business model prioritizes acquiring pets at a targeted internal rate of return over short-term profit[69](index=69&type=chunk) Key Operating Metrics (as of June 30, 2021) | Metric | Q2 2021 | Q2 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Pets Enrolled | 1,024,226 | 744,727 | 38% | | Total Subscription Pets Enrolled | 643,395 | 529,400 | 22% | | Monthly Average Revenue per Pet | $63.69 | $59.40 | 7% | | Average Pet Acquisition Cost (PAC) | $284 | $199 | 43% | | Average Monthly Retention | 98.72% | 98.66% | +0.06 p.p. | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2021 revenue grew 43% to $168.3 million, but a 110% rise in marketing costs led to a $9.5 million operating loss Revenue by Segment (Three Months Ended June 30) | Segment | 2021 (in thousands) | 2020 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Subscription business | $120,373 | $92,453 | 30% | | Other business | $47,887 | $25,467 | 88% | | **Total revenue** | **$168,260** | **$117,920** | **43%** | - Sales and marketing expenses **increased by $10.1 million (110%)** year-over-year in Q2 2021, driving a 46% increase in new subscription pet enrollments[118](index=118&type=chunk) - Depreciation and amortization expense **increased 83% to $3.2 million** in Q2 2021, primarily due to incremental amortization from a recent acquisition[120](index=120&type=chunk)[121](index=121&type=chunk) - Total stock-based compensation expense was **$6.5 million for Q2 2021**, a significant increase from $2.2 million in Q2 2020[123](index=123&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $219.4 million in cash and investments, with sufficient liquidity for the next 12 months - The insurance subsidiary, APIC, held **$93.2 million** in risk-based capital, exceeding the required **$79.1 million** as of year-end 2020[134](index=134&type=chunk) - A new wholly-owned insurance subsidiary, ZPIC Insurance Company, was established in Q2 2021[135](index=135&type=chunk) - A share repurchase program was approved in April 2021, but **no shares were repurchased** during the quarter[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures are reported for the period ended June 30, 2021 - Management believes there have been **no material changes** to the company's market risks since the end of the previous fiscal year[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[145](index=145&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter[146](index=146&type=chunk) [PART II - OTHER INFORMATION](index=38&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material impact - The company is subject to ordinary course litigation but does not currently consider any matters to be **material**[150](index=150&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Key business risks include the COVID-19 pandemic, a history of net losses, and regulatory compliance challenges - The company has incurred significant net losses since inception, with an **accumulated deficit of $91.4 million** as of December 31, 2020[157](index=157&type=chunk) - A key risk involves the potential **misclassification of its Territory Partners** as independent contractors[175](index=175&type=chunk) - The insurance subsidiary must maintain required risk-based capital levels, which was **$79.1 million** as of December 31, 2020[184](index=184&type=chunk) - The business is subject to **extensive and complex insurance regulations**, with non-compliance posing significant risks[247](index=247&type=chunk)[251](index=251&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period - None[282](index=282&type=chunk) [Item 3. Defaults Upon Senior Securities](index=61&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - None[283](index=283&type=chunk) [Item 4. Mine Safety Disclosures](index=61&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[284](index=284&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) The company reports no other material information for the period - None[285](index=285&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the quarterly report

Trupanion, Inc. (NASDAQ:TRUP) Q1 2021 Earnings Conference Call April 29, 2021 4:30 PM ET Company Participants Laura Bainbridge - Investor Relations Darryl Rawlings - Chief Executive Officer Tricia Plouf - Co-President and Chief Financial Officer Margi Tooth - Co-President Conference Call Participants Maria Ripps - Canaccord Genuity Shweta Khajuria - Evercore ISI David Westenberg - Guggenheim Securities Jon Block - Stifel Ryan Tunis - Autonomous Research Elliot Wilbur - Raymond James Operator Greetings, and ...

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 March 31, 2021 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: 001-36537 TRUPANION, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporat ...

March 2021 Trupanion Investor Presentation | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

For the fiscal year ended December 31, 2020 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: 001-36537 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 TRUPANION, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Trupanion, Inc. (NASDAQ:TRUP) Q4 2020 Earnings Conference Call February 10, 2021 4:30 PM ET Company Participants Laura Bainbridge - Head of Corporate Communications Darryl Rawlings - CEO Tricia Plouf - Co-President and CFO Margi Tooth - Co-President Conference Call Participants John Godin - Lake Street Capital Markets Maria Ripps - Canaccord Genuity David Westenberg - Guggenheim Securities Jonathan Block - Stifel Financial Corp Andrew Cooper - Raymond James & Associates Gregory Gibas - Northland Capital Mar ...

Three and Twelve Months Ended December 31, 2020 Supplementary Information | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------|-------|-------|------------------------------------------------|-------|--------|-------|--------------------------------|-------|--------| | | | | Three Months Ended December 31, \n2020 | | 2019 | | Year Ended December 31, \n2020 | | 2019 | | | | | (unaudited ...

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, 2020 or TRUPANION, INC. ☐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: 001-36537 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...