Trupanion Q1 revenue beats estimates on subscription growth

Overview

• U.S. pet insurance provider's Q1 revenue rose 12%, beating analyst expectations

• Net income turned positive to $4.9 mln from a loss a year ago

• Subscription business revenue grew 16%

Outlook

• Company did not provide specific guidance for the current qtr or full yr in its press release

Result Drivers

• SUBSCRIPTION GROWTH - Co said 16% subscription revenue growth and 5% increase in subscription pet enrollments supported results

• INVESTMENT IN OFFERINGS - Co said it is investing to broaden its offering and strengthen competitive positioning, per CEO Margi Tooth

Company press release: ID:nGNXdLt6v

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the life & health insurance peer group is "buy"

• Wall Street's median 12-month price target for Trupanion Inc is $39.50, about 57.5% above its April 29 closing price of $25.08

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 75 three months ago

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