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Sep 30, 2022
Hippo Holdings Q3 2022 Earnings Report
Hippo demonstrated resilience and growth in Q3 2022, improving underwriting results and expanding customer base despite challenges.
Key Takeaways
Hippo Holdings showcased strong revenue growth and improved underwriting results in Q3 2022, despite facing challenges such as Hurricane Ian. The company's revenue increased by 44% year-over-year, and the gross loss ratio, excluding the impact of Hurricane Ian, improved significantly. Hippo's customer base grew to 332,000, with a focus on attracting 'Generation Better' homeowners. The company is focused on achieving positive Adjusted EBITDA by late 2024.
Adjusted EBITDA loss improved to $54.8 million, despite Hurricane Ian.
Total Generated Premium (TGP) increased by 36% year-over-year.
Revenue grew by 44% year-over-year, driven by commission income and Spinnaker's fronting business.
Gross Loss Ratio (GLR) improved to 58% excluding Hurricane Ian.
Hippo Holdings
Hippo Holdings
Forward Guidance
Hippo anticipates a narrower Adjusted EBITDA loss in Q4 2022, expecting it to be below $50 million, with continued improvement in 2023 and a target to reach positive Adjusted EBITDA by late 2024.
Positive Outlook
- Continued improvement in Adjusted EBITDA results in Q4 2022 and into 2023.
- Focus on achieving positive Adjusted EBITDA by late 2024.
- Expansion of home care services with the launch of 'Book a Pro' feature.
- Continued investment in technology and service capabilities to drive long-term growth.
- Expects TGP growth over 30% for the full year 2022.
Challenges Ahead
- Unusual weather events could impact financial performance.
- Inflationary pressures could dampen underwriting results.
- Slowdown in housing markets could affect builder channel growth.
- Intense competition in the insurance industry.
- Potential risks related to proprietary technology and digital platform.