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Jun 30, 2023

Hippo Holdings Q2 2023 Earnings Report

Hippo's revenue increased, but was overshadowed by catastrophe losses, decisive actions are being taken to reduce exposure to risks and improve profitability.

Key Takeaways

Hippo's Q2 2023 results showed strong growth in revenue and total generated premium, but were significantly impacted by catastrophe losses, particularly from hail events in Texas and Colorado. Despite these challenges, the company is taking actions to reduce exposure to these risks and remains on track to achieve positive adjusted EBITDA by the end of 2024.

Core gross loss ratio improved, but was overshadowed by catastrophe losses.

Total generated premium and revenue grew significantly year-over-year.

Operating expense as a percentage of revenue declined, showing operating leverage.

Company remains on track to turn adjusted EBITDA positive by the end of 2024.

Total Revenue
$47.7M
Previous year: $28.7M
+66.2%
EPS
-$4.61
Previous year: -$3.25
+41.8%
Gross Loss Ratio
107%
Net Loss Ratio
344%
Gross Profit
$47.7M
Previous year: $28.7M
+66.2%
Cash and Equivalents
$200M
Previous year: $278M
-27.9%
Free Cash Flow
-$38.3M
Previous year: -$30.4M
+26.0%
Total Assets
$1.68B
Previous year: $1.63B
+3.2%

Hippo Holdings

Hippo Holdings

Hippo Holdings Revenue by Segment

Forward Guidance

Hippo is increasing its 2023 guidance for TGP and revenue, but now expects adjusted EBITDA loss to be in the range of $208-$218 million. The company reiterates its expectation of turning adjusted EBITDA positive by the end of 2024.