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Dec 31, 2024

Hippo Holdings Q4 2024 Earnings Report

Expected Revenue:$98.8M
+35.2% YoY
Expected EPS:$0.07
+103.4% YoY

Key Takeaways

Hippo achieved significant revenue growth of 58% YoY, reaching $102 million. The company reported a net income of $44 million, reversing a loss of $42 million from the previous year. Adjusted EBITDA turned positive at $8.5 million. Operational efficiencies helped reduce fixed expenses by $8 million, contributing to improved profitability.

Q4 2024 revenue increased 58% YoY to $102 million.

Net income reached $44 million, up from a $42 million loss in Q4 2023.

Adjusted EBITDA turned positive at $8.5 million.

Fixed expenses reduced by $8 million while revenue grew by $38 million YoY.

Total Revenue
$102M
Previous year: $64.5M
+58.1%
Gross Loss Ratio
50%
Previous year: 53%
-5.7%
Net Loss Ratio
60%
Previous year: 106%
-43.4%

Hippo Holdings

Hippo Holdings

Hippo Holdings Revenue by Segment

Forward Guidance

Hippo aims to achieve sustained profitability, with a focus on revenue growth, operational efficiencies, and continued reduction of loss ratios.

Positive Outlook

  • Continued revenue growth driven by Insurance-as-a-Service segment.
  • Expected further improvement in loss ratios through risk management.
  • Operational efficiencies to drive cost reductions and margin improvements.
  • Strong cash position provides financial flexibility for strategic initiatives.
  • Hippo New Homes Program remains a key growth driver in California.

Challenges Ahead

  • Catastrophe losses from January wildfires estimated at $42 million.
  • Ongoing macroeconomic uncertainties could impact consumer demand.
  • Regulatory challenges in the insurance industry remain a risk factor.
  • Competitive pressures in InsurTech space could impact market share.
  • Profitability goals depend on continued execution of cost optimization plans.