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Mar 31, 2024

Hippo Holdings Q1 2024 Earnings Report

Hippo demonstrated strong top-line growth and improved loss ratios in Q1 2024.

Key Takeaways

Hippo Holdings reported a strong start to 2024 with revenue up 114% year-over-year to $85 million. The company saw improvements in its HHIP gross loss ratio and a reduction in GAAP sales and marketing, technology and development, and general and administrative expenses. Net loss and Adjusted EBITDA also improved significantly.

Consolidated TGP increased by 20% year-over-year, with Services and IaaS representing 80% of TGP.

Services and IaaS drove TGP growth, increasing by 37% and 25% year-over-year, respectively.

HHIP Q1 gross loss ratio improved by 21 percentage points year-over-year to 80%.

GAAP S&M, T&D, and G&A collectively declined from 135% of revenue to 48% and these expenses declined 24% year-over-year, a reduction of $13 million.

Total Revenue
$85.1M
Previous year: $39.8M
+113.8%
EPS
-$1.47
Previous year: -$3.01
-51.2%
Gross Loss Ratio
59%
Previous year: 76%
-22.4%
Net Loss Ratio
87%
Previous year: 273%
-68.1%
Gross Profit
$32.5M
Previous year: $39.8M
-18.3%
Cash and Equivalents
$223M
Previous year: $189M
+18.3%
Free Cash Flow
$17.6M
Previous year: -$35.7M
-149.3%
Total Assets
$1.5B
Previous year: $1.6B
-6.8%

Hippo Holdings

Hippo Holdings

Hippo Holdings Revenue by Segment

Forward Guidance

Hippo is reiterating its guidance for the full year 2024.

Positive Outlook

  • Expects TGP to grow to more than $1.3 billion
  • Expects revenue to grow to more than $340 million
  • Expects an adjusted EBITDA loss of between $41 and $51 million for the full year, with more than 90% of the losses coming in the first two quarters
  • Expects to be adjusted EBITDA positive in Q4
  • 41% of annual PCS-cat load is estimated to occur in Q2