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Sep 30, 2024

Hippo Holdings Q3 2024 Earnings Report

Hippo achieved strong top-line growth, substantial loss ratio improvements, and operating leverage gains.

Key Takeaways

Hippo Holdings reported a revenue increase of 65% year-over-year to $95 million in Q3 2024, driven by higher premium retention and volume increases in the IaaS and Services segments. The company's net loss improved by 84% year-over-year to $8.5 million, and adjusted EBITDA loss improved by 81% to $7.5 million. Loss results improved substantially with HHIP accident period loss ratio improving 22pp YoY to 70%.

Revenue increased by 65% year-over-year to $95 million.

HHIP accident period loss ratio improved 22 percentage points year-over-year to 70%.

Net loss attributable to Hippo improved by 84% year-over-year to $8.5 million.

Adjusted EBITDA loss improved by 81% year-over-year to $7.5 million.

Total Revenue
$95.5M
Previous year: $57.7M
+65.5%
EPS
-$0.34
Previous year: -$2.24
-84.8%
Gross Loss Ratio
50%
Previous year: 59%
-15.3%
Net Loss Ratio
73%
Previous year: 111%
-34.2%
Gross Profit
$95.5M
Previous year: $57.7M
+65.5%
Cash and Equivalents
$191M
Previous year: $228M
-16.3%
Free Cash Flow
$46.8M
Previous year: $900K
+5100.0%
Total Assets
$1.55B
Previous year: $974M
+58.6%

Hippo Holdings

Hippo Holdings

Hippo Holdings Revenue by Segment

Forward Guidance

Hippo expects Q4 revenue of $95 to $99 million and adjusted EBITDA of positive $5 to $6 million.

Positive Outlook

  • Reiterating previous Q4 revenue guidance of $95 to $99 million.
  • Reiterating previous Q4 adjusted EBITDA guidance of positive $5 to $6 million.

Challenges Ahead

  • Removal of First Connect from Hippo’s financials from the beginning of November will lower expected Q4 TGP by approximately $50 to $60 million.
  • Removal of First Connect from Hippo’s financials from the beginning of November will lower expected Q4 revenue by approximately $1.5 to $1.8 million.
  • Expected impact of Hurricane Milton in Q4.