Summary of Trupanion Q4 2020 earnings call
A summary of Trupanion’s Q4 2020 earnings conference call (February 10).
- Total revenue grew 31% over the prior year.
- Total enrolled subscription pets increased 17% year-over-year to approximately 578,000 pets as of December 31.
- Average monthly retention was 98.71% compared to 98.58% in the prior-year period.
- A lot of the churn typically happens in that first year.
- The monthly average revenue per pet for the quarter was $62.03.
- The cost of paying veterinary invoices for subscription business was 71% of revenue during the quarter. Variable expenses remained consistent with the prior year at 9% of revenue.
- In a typical year with 180 million pets in North America – expect 12 million pets to pass away and about 12 million new pets to be born but this year, saw the new pet population grow to approximately 13 million, about a 1 million increase.
- Data suggests veterinary revenue and visits were up in 2020.
- Keeping pets longer than before; about 78 months in 2020 compared to 70 months in 2019.
- Completed a strategic acquisition of a software company that was predominantly focused on improving back-end processes and adding talent.
- Deployed $13.8 million of adjusted operating income to acquire over 47,000 new subscription pets.
- It helped Trupanion that people are at home with their pets during COVID and they’re seeing issues with their pets, and they’re taking their pets to the vet more frequently.
- Aflac is now one of its largest shareholders with just under 10% ownership of the company.
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