Trupanion: Growth First, Profitability Second

Company Overview Valuing this stock is tricky because the company reports GAAP net losses and minimal free cash flow, making it look optically overvalued. However, I will be using management's own critical metric of Adjusted Operating Income to show that the company is undervalued and the long-term investments they are making will eventually pay off long-term. For the Q1 earnings, Trupanion reported non-GAAP adjusted operating income of $21.3 million, an increase of around 40% YoY from $15.5 million. If inv ...