1/7 Thread: $TRUP 3Q'21 Update
Even though I am not a pet owner, last month's deep dive on Trupanion introduced me to the fascinating business of pet insurance. My notes from today's earnings call.
Even though I am not a pet owner, last month's deep dive on Trupanion introduced me to the fascinating business of pet insurance. My notes from today's earnings call.
2/7 Total revenue +40% YoY
Subscription business +28%; other business +78%
Total enrolled pet +22% YoY; avg monthly retention 98.72% or 78 months (vs 76 months last yr); ARPU +4.5%
Adj operating margin 14.6%, very close to long-term target of 15%
Subscription business +28%; other business +78%
Total enrolled pet +22% YoY; avg monthly retention 98.72% or 78 months (vs 76 months last yr); ARPU +4.5%
Adj operating margin 14.6%, very close to long-term target of 15%
3/7 "In Trutopia, members adding pets or referring friends offsets pets churning off. In the quarter, we narrowed the gap to Trutopia to a mere 0.28%."
4/7 "By the end of 2025, we aim to grow our addressable market by 40%. We intend on doing this by adding 10,000 international hospitals. This will increase our overall market from 25,000 in North
America to 35,000 globally."
America to 35,000 globally."
5/7 Pricing seems to be pretty good. Cost of invoices went up by 4.9% whereas ARPU for full year is expected to increase by 5.3%
Is rising cost a concern? Darryl thinks vets should charge even more. In any case, it doesn't seem to be having much impact on retention.
Is rising cost a concern? Darryl thinks vets should charge even more. In any case, it doesn't seem to be having much impact on retention.
6/7 Outlook: Full yr revenue guidance +39% YoY; subscription biz +28% YoY
As Darryl pointed out in the call, even IF the revenue is flat next yr, TRUP will be in line with 5-yr guidance of 25% CAGR growth which shows how impressive this year has been.
As Darryl pointed out in the call, even IF the revenue is flat next yr, TRUP will be in line with 5-yr guidance of 25% CAGR growth which shows how impressive this year has been.
7/7 Paywalled deep dive on $TRUP: mbi-deepdives.com/trup/
I will cover $SQ and $IAC/ $ANGI this week.
All my twitter threads can be found here: mbi-deepdives.com/twitter-thread…
I will cover $SQ and $IAC/ $ANGI this week.
All my twitter threads can be found here: mbi-deepdives.com/twitter-thread…
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