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Dec 31, 2024
Hippo Holdings Q4 2024 Earnings Report
Estimated Revenue:$99.5M
+33.5% YoY
Estimated EPS:$0.0718
+103.5% YoY
Key Takeaways
Hippo reported a strong fourth quarter in 2024 with revenue up 58% year-over-year to $102 million and a positive net income of $44 million, a significant improvement from a net loss in the prior year. The company also saw continued improvement in its HHIP Gross Loss Ratio and improved operating leverage.
Q4 Revenue increased by 58% year-over-year to $102 million.
Net Income attributable to Hippo was positive $44 million, a substantial improvement from a $42 million net loss in Q4 of the previous year, partly due to a $46 million gain on sale of First Connect.
HHIP Q4 gross Loss Ratio improved by 3 percentage points year-over-year to 50%.
Adjusted EBITDA was positive $8.5 million, compared to a loss of $22 million in Q4 of the prior year.
Hippo Holdings
Hippo Holdings
Forward Guidance
The report mentions that complete financial results and full year guidance for 2025 can be found in the company's shareholder letter in the Investor Relations section of Hippo's website.
Positive Outlook
- Continued focus on operational efficiencies to lower fixed expenses.
- Strong growth in the Hippo New Homes Program, which is the company's fastest-growing channel.
- Commitment to proactive home protection and leveraging real-time data for customer safeguarding.
- Strategic investments in technology and development to enhance digital platform capabilities.
- Anticipated continued improvement in financial performance based on current trends.
Challenges Ahead
- Exposure to catastrophe losses, as evidenced by the $42 million pre-tax estimate from Los Angeles wildfires.
- Dependence on reinsurance availability and adequacy, which can be subject to pricing and coverage changes.
- Intense competition within the insurance industry segments where Hippo operates.
- Risks associated with regulatory scrutiny and compliance with state insurance regulations.
- Potential for future events and developments to cause assessments to change, despite current expectations.
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Key Statistics
Market Cap
$846M
P/E Ratio
-6.81
Sector
Finance
Industry
Property Or Casualty Insurance
52-Week High
$36.9
52-Week Low
$16.4
Consolidated Net Loss Ratio
60%
HHIP Non-PCS Loss Ratio
43%
HHIP PCS Loss Ratio
7%
Fixed Expenses Reduction
$8M
Fixed Expenses % of Revenue
35%