Hippo (US:HIPO)2025-05-07 20:03Financial Performance - Total revenue for Q1 2025 was $110.3 million, a 29.6% increase from $85.1 million in Q1 2024[17] - Net earned premium increased to $87.3 million, up 44.3% from $60.5 million year-over-year[17] - Total expenses rose to $155.9 million, compared to $118.0 million in the same quarter last year, reflecting a 32.0% increase[17] - Net loss attributable to Hippo for Q1 2025 was $47.7 million, compared to a net loss of $35.7 million in Q1 2024, representing a 33.5% increase in losses[17] - The company reported a comprehensive loss attributable to Hippo of $45.6 million for Q1 2025, compared to $36.2 million in Q1 2024[17] - The consolidated adjusted operating loss for Q1 2025 was $41.1 million, compared to a loss of $19.8 million in Q1 2024, indicating a widening of losses[101][103] - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $47.7 million, compared to a net loss of $35.7 million in the same period of 2024[91] Cash and Liquidity - Cash and cash equivalents decreased to $140.9 million from $197.6 million as of December 31, 2024[13] - The total cash, cash equivalents, and restricted cash at the end of the period was $180.2 million, down from $263.3 million at the end of March 2024[22] - For the three months ended March 31, 2025, Hippo reported a net cash used in operating activities of $35.6 million, compared to a net cash provided of $17.7 million in the same period of 2024[22] - Total cash, cash equivalents, and restricted cash decreased from $232.8 million as of December 31, 2024, to $180.2 million as of March 31, 2025, representing a decline of approximately 22.5%[43] Assets and Liabilities - Total assets as of March 31, 2025, were $1,540.4 million, slightly down from $1,543.4 million at the end of 2024[13] - Total liabilities rose to $1,214.7 million in Q1 2025, an increase of 3.5% from $1,178.2 million in Q4 2024[13] - Hippo's accumulated deficit increased to $1,322.6 million as of March 31, 2025, from $1,270.1 million as of March 31, 2024[36] - The total accrued expenses and other liabilities rose from $87.4 million as of December 31, 2024, to $90.9 million as of March 31, 2025, an increase of about 4%[57] Investment and Financial Assets - The fair value of total investments, including fixed maturities and short-term investments, was $387.6 million as of March 31, 2025[36] - The company's net investment income for the three months ended March 31, 2025, was $5.8 million, slightly down from $5.9 million in the same period of 2024[41] - The total financial assets measured at fair value on a recurring basis amounted to $567.8 million as of March 31, 2025[48] - The total unrealized losses on investments as of March 31, 2025, amounted to $2.3 million, with $1.6 million in gross unrealized gains[38] Premiums and Underwriting - Gross written premium for the three months ended March 31, 2025, was $210.9 million, an increase from $194.7 million in the same period of 2024, representing an increase of approximately 8.5%[72] - California accounted for 21.8% of the gross written premium in Q1 2025, with an amount of $45.9 million, compared to 20.8% and $40.5 million in Q1 2024[72] - The net earned premium for Hippo Home Insurance was $56.1 million for Q1 2025, up from $48.1 million in Q1 2024, representing a growth of 16.6%[101][103] Expenses and Losses - Loss and loss adjustment expense reserve increased to $400.8 million from $350.0 million, indicating a 14.4% rise[13] - The company incurred losses and LAE of $92.4 million for the three months ended March 31, 2025, compared to $52.6 million for the same period in 2024[60] - The net loss and LAE incurred for the three months ended March 31, 2025, was $100.3 million, compared to $87.3 million for the same period in 2024, reflecting an increase of approximately 14.4%[68] Shareholder Information - The weighted-average shares used in computing net loss per share attributable to Hippo increased to 24,978,901 from 24,225,650 year-over-year[17] - The company has $32.6 million remaining available for share repurchase under the authorized program as of March 31, 2025[86] - The aggregate intrinsic value of options exercised during the three months ended March 31, 2025, was $1.1 million, compared to $0.4 million in the same period of 2024[78] Strategic Initiatives - The company aims to expand its product offerings and enhance customer satisfaction as part of its business strategy[8] - The Company is evaluating the impact of new accounting standards on its disclosures, including ASU No. 2023-09, which requires detailed income tax disclosures effective after December 15, 2024[30] - The Company anticipates adopting ASU No. 2024-03 regarding disaggregation of income statement expenses, effective after December 15, 2026[33]