Financial Data and Key Metrics - Total Generated Premium (TGP) grew 21% YoY to 368millioninQ32024[16]−Revenueincreased6595 million, up from 58millioninQ32023[18]−Netlossimprovedby848.5 million, driven by a 67 percentage point improvement in the HHIP net loss ratio and better operating leverage [27] - Adjusted EBITDA loss improved by 81% YoY to 7.5million[28]−Cashandinvestmentsincreasedby54 million QoQ to 545million,drivenbyhigherreinsurancecollectionsandproceedsfromthesaleofashellinsurancecarrier[29]BusinessLinePerformance−TGPintheHippoHomeInsuranceProgram(HHIP)segmentdeclined1848 million, with potential additional proceeds of up to 12millionbasedonperformancetargets[11][31]−ThetransactionallowsthecompanytofocusonitscorebusinesswhileenablingFirstConnecttoinvestinitsgrowth[12][32]−Thecompanyrepurchasedandretired957,242shares,representing3.895 million to 99millionandadjustedEBITDAof5 million to 6million,despitetheimpactofHurricaneMilton[35]−Managementremainsoptimisticaboutthecompany′spathtoprofitabilityandfuturegrowthopportunities[13][49]OtherImportantInformation−Thecompanyreferredtonon−GAAPfinancialmeasuressuchasTGPandadjustedEBITDA,withreconciliationsprovidedintheshareholderletter[7]−ThesaleofFirstConnectwilllowerQ4TGPby50 million to 60millionandrevenueby1.5 million to $1.8 million, with a negligible impact on net loss and adjusted EBITDA [34] Q&A Session Summary Question: Entry into California, Florida, and Texas homebuilder markets - The company clarified that it is not entering these states but expanding partnerships with additional homebuilders in these regions [36] - The company has access to approximately 200,000 new homes annually and expects an addressable market of 1.5 million new homes in 2025 [37] Question: Retention rates and loss ratios in the homebuilders' channel - Retention rates are high, with policies transitioning from new construction to traditional homeowner policies as homes age [38] - Early data suggests new homes have better loss ratios than older homes, particularly in non-weather losses [39] Question: Impact of First Connect sale on EBITDA - The sale has a small positive impact on adjusted EBITDA, as First Connect was not yet profitable [40] Question: Rationale for selling the shell insurance carrier - The sale involved a dormant asset, Mainsail, which was redundant given the company's other assets [43][44] Question: Growth outlook for HHIP and other segments - The company is focused on remediating the legacy HHIP portfolio while writing new business in areas with favorable loss ratios [45] - Growth in the Insurance-as-a-Service and Services segments is expected to outpace HHIP in the near term [46] Question: Share repurchase strategy - The company repurchased shares opportunistically using proceeds from the First Connect sale and may continue to explore buybacks as it approaches profitability [47]