Trupanion Earnings Beats Estimates, Shares Rise

Trupanion posted better-than-expected quarterly earnings on Friday. The pet insurance provider's shares were over 3% higher.
Author:
Updated:
Original:

Pet insurance provider Trupanion  (TRUP) - Get Report shares rose Friday after the company posted better-than-expected third-quarter earnings.

The shares of the company rose over 3% to $74.69. Trading volume was 57 times the average for this time of day according to Bloomberg.

The Seattle-based company posted a third-quarter net loss of 2.6 million, or a loss of 7 cents a share, compared to earnings of $800,000, or 2 cents per share in the year-earlier period. 

Revenue rose 31% to $130.1 million from $99.2 million in the same period a year ago. The subscription business rose 20% year-on-year to $99.4 million.

Analysts surveyed by FactSet were looking for a GAAP net loss of 4 cents a share on revenue of $126.5 million.

“It was another strong quarter for Trupanion, with high retention rates driving accelerated growth in net subscription pets,” said founder and chief executive Darryl Rawlings in a statement.

Revenue for the provider of medical insurance for cats and dogs, rose 29% to $359.3 million for the first nine months of this year.

Total pets enrolled by Trupanion rose 31% year-over-year to 804,251.

Trupanion generated $383.9 million in total revenue last year, of which $321.2 million came from its subscription business.

According to a report from the North American Pet Health Insurance Association, published this year, there were close to 2.82 million insured pets at the end of 2019.

The pet insurance company was founded in 2000 by Rawlings. Rawlings joined TheStreet way back in 2014 to talk about the first medical insurance company for dogs and cats to go public.