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Hippo (HIPO) - 2024 Q3 - Quarterly Report
HIPOHippo (HIPO)2024-11-07 23:16
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Financial Performance - Total revenue for the nine months ended September 30, 2024, reached 270.2million,up86.0270.2 million, up 86.0% from 145.2 million in the same period of 2023[11]. - Total revenue for the three months ended September 30, 2024, was 95.5million,asignificantincreasefrom95.5 million, a significant increase from 57.7 million in the same period of 2023, representing a growth of 65.5%[11]. - Net earned premium for the three months ended September 30, 2024, was 70.6million,comparedto70.6 million, compared to 32.9 million in the prior year, reflecting a growth of 114.5%[11]. - The net loss attributable to Hippo for the three months ended September 30, 2024, was 8.5million,animprovementfromanetlossof8.5 million, an improvement from a net loss of 53.1 million in the same period of 2023[11]. - Comprehensive loss attributable to Hippo for the nine months ended September 30, 2024, was 81.3million,downfrom81.3 million, down from 230.9 million in the same period of 2023[11]. - The net loss attributable to Hippo for the nine months ended September 30, 2024, was 84.7million,reflectingongoingchallengesinthemarket[79].AssetsandLiabilities−Totalassetsincreasedto84.7 million, reflecting ongoing challenges in the market[79]. Assets and Liabilities - Total assets increased to 1,545.4 million as of September 30, 2024, compared to 1,524.7millionatDecember31,2023[10].−Totalliabilitiesroseto1,524.7 million at December 31, 2023[10]. - Total liabilities rose to 1,215.3 million, up from 1,140.0millionattheendof2023,reflectinganincreaseinlossreservesandunearnedpremiums[10].−Theaccumulateddeficitgrewto1,140.0 million at the end of 2023, reflecting an increase in loss reserves and unearned premiums[10]. - The accumulated deficit grew to (1,319.2) million from (1,234.4)million,highlightingongoingfinancialchallenges[10].−Totalstockholders′equitydecreasedto(1,234.4) million, highlighting ongoing financial challenges[10]. - Total stockholders' equity decreased to 330.1 million from 384.7million,indicatingadeclineinshareholdervalue[10].−Thecompany′stotalfinancialassetsamountedto384.7 million, indicating a decline in shareholder value[10]. - The company's total financial assets amounted to 585.2 million as of September 30, 2024, compared to 543.9milliononDecember31,2023,reflectingagrowthof7.6543.9 million on December 31, 2023, reflecting a growth of 7.6%[36]. Cash Flow and Investments - Cash and cash equivalents increased to 191.2 million from 142.1million,indicatingimprovedliquidity[10].−Cashprovidedbyoperatingactivitieswas142.1 million, indicating improved liquidity[10]. - Cash provided by operating activities was 53.9 million for the quarter, a significant improvement compared to cash used in operating activities of 43.9millioninthesamequarterlastyear[16].−ThenetinvestmentincomeforQ32024was43.9 million in the same quarter last year[16]. - The net investment income for Q3 2024 was 6.2 million, up from 5.7millioninQ32023,indicatingagrowthof8.85.7 million in Q3 2023, indicating a growth of 8.8%[11]. - The total gross investment income for the nine months ended September 30, 2024, is 18.5 million, an increase from 16.9millioninthesameperiodof2023[29].−Thetotalshort−terminvestmentsamountto16.9 million in the same period of 2023[29]. - The total short-term investments amount to 152.4 million, with a fair value of 152.5millionasofSeptember30,2024[23].ExpensesandCostManagement−Thecompany’stotalexpensesfortheninemonthsendedSeptember30,2024,were152.5 million as of September 30, 2024[23]. Expenses and Cost Management - The company’s total expenses for the nine months ended September 30, 2024, were 344.7 million, a decrease from 368.7millioninthesameperiodof2023[11].−TechnologyanddevelopmentexpensesforQ32024were368.7 million in the same period of 2023[11]. - Technology and development expenses for Q3 2024 were 7.0 million, a decrease of 41.0% from 11.9millioninQ32023[11].−Stock−basedcompensationexpensefortheninemonthsendedSeptember30,2024,was11.9 million in Q3 2023[11]. - Stock-based compensation expense for the nine months ended September 30, 2024, was 29.3 million, down from 46.8millioninthesameperiodof2023,representingadecreaseofapproximately3746.8 million in the same period of 2023, representing a decrease of approximately 37%[72]. - Adjusted operating expenses totaled 93.5 million for the three months ended September 30, 2024, compared to 95.5millionforthesameperiodin2023[77].PremiumsandUnderwriting−DirectwrittenpremiumsforthethreemonthsendedSeptember30,2024,were95.5 million for the same period in 2023[77]. Premiums and Underwriting - Direct written premiums for the three months ended September 30, 2024, were 233.2 million, compared to 225.9millionforthesameperiodin2023,reflectinganincreaseofapproximately3.0225.9 million for the same period in 2023, reflecting an increase of approximately 3.0%[52]. - The company retained approximately 85% of the premium and associated risk for business produced through its builder channel for policies effective in 2024, before purchasing catastrophic protection[48]. - The gross written premiums for the three months ended September 30, 2024, were 234.4 million, a slight increase from 229.5millioninthesameperiodin2023[56].−Thereserveforlossesandlossadjustmentexpenses(LAE),netofreinsurancerecoverables,increasedfrom229.5 million in the same period in 2023[56]. - The reserve for losses and loss adjustment expenses (LAE), net of reinsurance recoverables, increased from 110.4 million as of September 30, 2023, to 122.5millionasofSeptember30,2024,reflectingariseofapproximately11.9122.5 million as of September 30, 2024, reflecting a rise of approximately 11.9%[45]. Strategic Initiatives and Future Outlook - The company continues to focus on expanding its product offerings and enhancing customer satisfaction as part of its growth strategy[5]. - Future plans include expanding into new markets and product offerings, leveraging proprietary technology to improve underwriting accuracy and risk management[5]. - The company anticipates continued growth in its customer base and aims to enhance its brand and reputation through diversified distribution strategies[5]. - The company is focusing on expanding its Hippo Home Insurance Program, which contributed significantly to its revenue growth[79]. Shareholder Actions and Stock Performance - The Company authorized a share repurchase program of up to 50.0 million in March 2023, with $48.2 million remaining available for repurchase as of September 30, 2024[68]. - The total number of common shares increased from 24,148,308 on January 1, 2024, to 25,232,297 by September 30, 2024[13]. - The company has not declared or paid any dividends since inception, with common stock trading under the ticker symbol "HIPO" on the NYSE[59].