Trupanion’s Q1 2023 results

Trupanion shared its Q1 2023 results. Here are some highlights:

• The company ended the quarter with 906,369 enrolled pets in its subscription business, a 23% increase compared to Q1 2022.
• Loss ratio for the quarter stood at 77.6%, 6.5 points higher compared to the same quarter last year. The company mentioned current inflationary market and ease of submitting claims as contributors to the higher loss ratio: “as part of our long-term strategy to install more software and pay veterinary hospitals directly, the ease of submitting claims via our patented software has led to increased claims received and short-term pressure on our margin in the current period.”
• Net loss for the quarter was $24.7 million, compared to a loss of $8.85 million in Q1 2022.
• In terms of revenue by geographic region, the US accounted for 85% of Trupanion’s revenue.
• Average pet acquisition cost was $247. This figure, calculated as net acquisition cost ($17.4 million) divided by the total number of new subscription pets enrolled in the period, means that Trupanion enrolled 70,497 new pets (Trupanion said it acquired over 74k pets during the earnings call). However, the company ended the quarter with an additional 36,507 pets compared to December 31, 2022.