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Hippo (HIPO) - 2024 Q4 - Annual Results
HIPOHippo (HIPO)2025-03-05 23:44

Financial Performance - Q4 revenue increased by 58% year-over-year to 102million,withFY2024revenueup77102 million, with FY2024 revenue up 77% to 372 million[5] - Q4 net income attributable to Hippo was 44million,comparedtoanetlossof44 million, compared to a net loss of 42 million in the same quarter last year[5] - Adjusted EBITDA for Q4 was positive 8.5million,animprovementof8.5 million, an improvement of 31 million year-over-year[43] - The company reported a net loss attributable to Hippo of 44.2millionforQ42024,comparedtoanetlossof44.2 million for Q4 2024, compared to a net loss of (42.3) million in Q4 2023[75] - Adjusted EBITDA for Q4 2024 was 8.5million,asignificantimprovementfromalossof8.5 million, a significant improvement from a loss of (22.3) million in Q4 2023[71] - The company reported a loss before income taxes of 47.1millionforthethreemonthsendedDecember31,2024,animprovementfromalossof47.1 million for the three months ended December 31, 2024, an improvement from a loss of 39.0 million in the same period of 2023[89] Revenue Growth - Total Generated Premium (TGP) grew by 10% year-over-year to 295million,withInsurance−as−a−Servicesegmentgrowingby22295 million, with Insurance-as-a-Service segment growing by 22%[24] - Total Generated Premium for the year ended December 31, 2024, was 1,336.1 million, up from 1,134.3millionin2023,indicatingastronggrowthtrajectory[71]−TotalsegmentrevenuefortheyearendedDecember31,2024,reached1,134.3 million in 2023, indicating a strong growth trajectory[71] - Total segment revenue for the year ended December 31, 2024, reached 384.1 million, compared to 217.1millionin2023,reflectingagrowthof76.9217.1 million in 2023, reflecting a growth of 76.9%[90] - Revenue surged by 58% to 102.0 million in Q4 2024 compared to 64.5millioninQ42023[92]−HippoHomeInsuranceProgramrevenuemorethandoubled,increasingby10664.5 million in Q4 2023[92] - Hippo Home Insurance Program revenue more than doubled, increasing by 106% to 64.1 million in Q4 2024 from 31.1millioninQ42023[92]LossRatiosandImprovements−HHIPgrosslossratioimprovedby3percentagepointsyear−over−yearto5031.1 million in Q4 2023[92] Loss Ratios and Improvements - HHIP gross loss ratio improved by 3 percentage points year-over-year to 50%, while the net loss ratio improved by 46 percentage points to 60%[5] - The HHIP non-PCS loss ratio improved to 43%, with a target of further improvements expected in 2025[7] - The gross loss ratio for Q4 2024 was reported at 45%, while the net loss ratio was 58%, showing significant improvement from previous years[71] - The Gross Loss Ratio for the year improved to 53% in 2024 from 71% in 2023, indicating better loss management[82] Cash Flow and Investments - Cash and investments increased by 25 million quarter-over-quarter to 571million,drivenbypositivecashflowandproceedsfromthesaleofamajoritystakeinFirstConnect[47]−Cashflowsfromoperatingactivitiesturnedpositivewithanetcashprovidedof571 million, driven by positive cash flow and proceeds from the sale of a majority stake in First Connect[47] - Cash flows from operating activities turned positive with a net cash provided of 47.5 million in 2024, compared to (92.4)millionin2023[78]−Thecompanyachievedanetcashincreaseof(92.4) million in 2023[78] - The company achieved a net cash increase of 37.7 million in 2024, reversing a decrease of (49.4)millionin2023[78]−Cash,cashequivalents,andrestrictedcashattheendoftheperiodincreasedto(49.4) million in 2023[78] - Cash, cash equivalents, and restricted cash at the end of the period increased to 232.8 million in 2024 from 195.1millionin2023[78]FutureOutlook−Thecompanyaimstoachievepositivenetincomebytheendof2025,despiteshort−termimpactsfromrecentwildfires[13]−Thecompanyisontracktoexceeditsrevenuetargetof195.1 million in 2023[78] Future Outlook - The company aims to achieve positive net income by the end of 2025, despite short-term impacts from recent wildfires[13] - The company is on track to exceed its revenue target of 420 to 450millionfor2025,withacurrentannualrun−rateofapproximately450 million for 2025, with a current annual run-rate of approximately 410 million[21] - The company has raised its 2025 revenue guidance to a range of 465million,representinga25465 million, representing a 25% YoY growth rate from 2024 revenue on a GAAP basis[51] - The company expects to achieve positive net income by Q4 2025, driven by improvements in gross and net loss ratios, with a gross loss ratio expected to be less than 60%[52] Expense Management - Fixed expenses decreased by 8 million year-over-year, resulting in a reduction from 69% of revenue in Q4'23 to 35% in Q4'24[39] - Sales and marketing expenses for the year ended December 31, 2024, were 6.0million,adecreasefrom6.0 million, a decrease from 16.9 million in 2023, representing a reduction of 64.6%[90] - Total segment expenses rose by 12% to 87.7millioninQ42024comparedto87.7 million in Q4 2024 compared to 78.0 million in Q4 2023[92] - Services segment expenses decreased by 21% to 12.4millioninQ42024from12.4 million in Q4 2024 from 15.7 million in Q4 2023[92] - Insurance-as-a-service segment expenses increased by 51% to 18.7millioninQ42024from18.7 million in Q4 2024 from 12.4 million in Q4 2023[92] - Hippo Home Insurance Program segment expenses rose by 13% to 56.6millioninQ42024from56.6 million in Q4 2024 from 49.9 million in Q4 2023[92] Market Strategy - The company plans to continue expanding its market presence and investing in technology and development to enhance its service offerings and operational efficiency[88]