Trupanion Reports Fourth Quarter and Full Year 2015 Results

- Total revenue of $147.0 million in 2015, up 27% year-over-year (31% on a constant currency basis)

- 291,818 total enrolled pets at year-end, up 26% year-over-year

11 Feb, 2016, 16:05 ET from Trupanion, Inc.

SEATTLE, Feb. 11, 2016 /PRNewswire/ -- Trupanion, Inc. (NYSE: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the fourth quarter and full year ended December 31, 2015.

"I'm very pleased with our performance in 2015 – financially, operationally and strategically we achieved the plans we established at the start of the year. Revenue growth for the year was a robust 31% in local currencies, led by strong new pet enrollments and strength in member retention," said Darryl Rawlings, Trupanion's Chief Executive Officer. "Beginning in the second half of the year, we demonstrated leverage in our fixed expenses – a key strategic priority.  We delivered this performance while accelerating the deployment of Trupanion Express.  In 2016, I'm excited about our opportunities to expand our Trupanion Express™ footprint and strengthen the competitive moats around our business."

Full Year 2015 Financial and Business Highlights

  • Total revenue was $147.0 million, an increase of 27% compared to 2014 (31% on a constant currency basis).
  • Total enrolled pets (including pets from our other business segment) at December 31, 2015 was 291,818, up 26% from December 31, 2014.
  • Subscription business revenue was $133.4 million, an increase of 29% compared to 2014 (33% on a constant currency basis).
  • Subscription enrolled pets at December 31, 2015 was 272,636, up 27% from December 31, 2014.
  • Net loss was $(17.2) million, compared to a net loss of $(21.2) million in 2014.
  • Adjusted EBITDA was a loss of $(11.3) million, compared to a loss of $(10.3) million in 2014.
  • Trupanion Express™ was installed in over 500 hospitals as of the end of 2015.  Trupanion Express™ eliminates paperwork and allows Trupanion to pay veterinarians directly, often in less than 5 minutes.

Fourth Quarter 2015 Financial and Business Highlights

  • Total revenue was $40.2 million, an increase of 26% compared to the fourth quarter of 2014 (31% on a constant currency basis).
  • The fourth quarter marked the 33rd quarter of sequential revenue growth since Trupanion entered the U.S. market.  In all 33 quarters, year-over-year growth exceeded 25%.
  • Subscription business revenue was $36.7 million, an increase of 28% compared to the fourth quarter of 2014 (33% on a constant currency basis).
  • Net loss was $(3.0) million, compared to a net loss of $(4.3) million in the fourth quarter of 2014.
  • Adjusted EBITDA was a loss of $(1.6) million, compared to a loss of $(2.9) million in the fourth quarter of 2014.

Revenue by Quarter

Conference Call  Trupanion's management will host a conference call today to review its fourth quarter and full year 2015 results and to discuss its financial outlook for 2016. The call is scheduled to begin at 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion's website at http://investors.trupanion.com and will be archived online for 60 days upon completion of the conference call. Participants can access the conference call by dialing 1-866-311-7654 (United States), 1-855-669-9657 (Canada), or 1-412-902-4113 (International). A telephonic replay of the call will also be available, one hour after the completion of the call, by dialing 1-877-344-7529 (United States), 1-855-669-9658 (Canada), or 1-412-317-0088 (International) and entering the replay pin number: 10079762.

About Trupanion  Trupanion is the leading provider of medical plans for cats and dogs throughout the United States and Canada. For almost two decades, Trupanion's medical plan has given pet owners peace of mind so they can focus on their pet's recovery, not financial stress. Trupanion is committed to providing pet owners with the highest value in pet medical insurance.  Trupanion is listed on the New York Stock Exchange under the symbol "TRUP". Trupanion was founded in 2000 and is headquartered in Seattle, WA.  Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Omega General Insurance Company. For more information please visit Trupanion.com.

Forward-Looking Statements  This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to execute its business plans and financial objectives and its future operating results and expenditures. These forward-looking statements are based upon the current expectations and beliefs of Trupanion's management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements.

In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; fluctuations in the Canadian currency exchange rate; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to increase the number of Territory Partners and active hospitals; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; the ability to protect and enforce Trupanion's intellectual property rights; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion's technology platform and website; and compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion's Annual Report on Form 10-K for the year ended December 31, 2014 and any subsequently filed reports on Forms 10-Q and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system at www.sec.gov or the Investor Relations section of Trupanion's website at http://investors.trupanion.com.

Non-GAAP Financial Measures  Trupanion's stated results may include certain non-GAAP financial measures, including, without limitation, free cash flow, adjusted revenue, acquisition cost, net acquisition cost, cost of goods, variable expenses, fixed expenses and adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that Trupanion defines as net loss excluding stock-based compensation expense, depreciation and amortization expense, interest income, interest expense, change in fair value of warrant liabilities and income tax expense (benefit).

Trupanion's non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion's reported financial results. Further, stock-based compensation expense and other items used in the calculation of adjusted EBITDA have been and will continue to be for the foreseeable future significant recurring expenses in Trupanion's business. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business, which are included below and on Trupanion's Investors Relations website.

Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash expenses, Trupanion believes that providing non-GAAP financial measures such as acquisition cost, net acquisition cost and adjusted EBITDA that exclude stock-based compensation expense and, in the case of adjusted EBITDA the change in fair value of warrant liabilities, allows for more meaningful comparisons between its operating results from period to period. Trupanion excludes sign-up fee revenue from the calculation of adjusted revenue because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion's sales and marketing expenses. For this reason, Trupanion also nets sign-up fees with sales and marketing expenses in its calculation of net acquisition cost. Trupanion excludes changes in deferred revenue from the calculation of adjusted revenue in order to eliminate fluctuations caused by the timing of pet enrollment during the last month of any particular period in which such measures are being presented or utilized. Trupanion excludes the change in fair value of warrant liabilities from its calculation of adjusted EBITDA in order to eliminate fluctuations caused by changes in its stock price. Trupanion believes this allows it to calculate and present adjusted revenue, acquisition cost, net acquisition cost and the related financial measures it derives from them, as well as adjusted EBITDA, in a consistent manner across periods. Trupanion's management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time.

Trupanion has not reconciled adjusted EBITDA guidance to net income (loss) guidance because it does not provide guidance for stock-based compensation expense, depreciation and amortization, interest income, interest expense, change in fair value of warrant liabilities or income tax expense (benefit), which are reconciling items between net income (loss) and adjusted EBITDA.  Accordingly, reconciliation to net income (loss) is not available without unreasonable effort.  For a reconciliation of historical non-GAAP financial measures to the nearest comparable GAAP measures, see the reconciliation tables included in this press release.

Contacts

Investors:   Laura Bainbridge, Addo Communications  310.829.5400  InvestorRelations@trupanion.com

Media:  Britta Gidican, Director, Public Relations  206.607.1930  MediaRelations@trupanion.com

 

In 2015, the prior period financial data and metrics have been recast to reflect the movement of pets from the subscription business segment to the other business segment.

Trupanion, Inc.

Consolidated Statements of Operations

(in thousands, except for share and per share data)

Three Months Ended

Years Ended

 December 31,

 December 31,

2015

2014

2015

2014

(audited)

Revenue:

Subscription business

$

36,722

$

28,617

$

133,406

$

103,502

Other business

3,479

3,251

13,557

12,408

Total revenue

40,201

31,868

146,963

115,910

Cost of revenue:

Subscription business (1)

29,856

23,456

109,428

85,169

Other business

3,075

2,888

12,306

10,867

   Total cost of revenue (2)

32,931

26,344

121,734

96,036

Gross profit

Subscription business

6,866

5,161

23,978

18,333

Other business

404

363

1,251

1,541

Total gross profit

7,270

5,524

25,229

19,874

Operating expenses:

Sales and marketing (1)

3,919

3,218

15,231

11,608

Technology and development (1)

2,533

2,614

11,215

9,899

General and administrative (1)

3,798

3,850

15,558

14,312

Total operating expenses

10,250

9,682

42,004

35,819

Operating loss

(2,980)

(4,158)

(16,775)

(15,945)

Interest expense

26

103

325

6,726

Other (income) expense, net

(17)

58

(9)

(1,487)

Loss before income taxes

(2,989)

(4,319)

(17,091)

(21,184)

Income tax expense (benefit)

12

(43)

114

(7)

Net loss

$

(3,001)

$

(4,276)

$

(17,205)

$

(21,177)

Net loss per share:

    Basic and diluted

$

(0.11)

$

(0.16)

$

(0.62)

$

(1.64)

Weighted-average shares used to compute net loss per share:

   Basic and diluted

27,856,450

27,231,651

27,638,443

12,934,477

(1)Includes stock-based compensation expense as follows:

Three Months Ended

Years Ended

 December 31,

 December 31,

2015

2014

2015

2014

Cost of revenue

$

68

$

91

$

263

$

315

Sales and marketing 

104

147

446

553

Technology and development

93

155

404

461

General and administrative

388

497

1,889

2,755

Total stock-based compensation expense

$

653

$

890

$

3,002

$

4,084

(2)The breakout of cost of revenue between claims expense and other cost of revenue is as follows:

Three Months Ended

Years Ended

 December 31,

 December 31,

2015

2014

2015

2014

Claims expense

$

27,883

$

22,094

$

103,324

$

79,913

Other cost of revenue

5,048

4,250

18,410

16,123

     Total cost of revenue

$

32,931

$

26,344

$

121,734

$

96,036

 

Trupanion, Inc.

Consolidated Balance Sheets

(in thousands, except for share data)

Years Ended

  December 31,

2015

2014

(audited)

Assets

Current assets:

Cash and cash equivalents

$ 17,956

$ 53,098

Short-term investments

25,288

22,371

Accounts and other receivables

8,196

7,887

Prepaid expenses and other assets

2,193

1,299

Total current assets

53,633

84,655

Long-term investments, at fair value

2,388

942

Equity method investment

300

-

Property and equipment, net

9,719

7,862

Intangible assets, net

4,854

4,847

Other long term assets

23

-

Total assets

$ 70,917

$ 98,306

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

$   1,289

$   1,962

Accrued liabilities

4,189

4,607

Claims reserve

6,274

5,107

Deferred revenue

11,042

9,345

Other payables

823

1,523

Total current liabilities

23,617

22,544

Long-term debt

-

14,900

Deferred tax liabilities

1,433

1,495

Other liabilities

511

92

Total liabilities

25,561

39,031

Stockholders' equity:

Common stock, $0.00001 par value per share, 200,000,000 shares authorized at December 31, 2015 and December 31, 2014, 29,017,168 and 28,396,189 issued and outstanding at December 31, 2015; 28,451,920 and 27,83,941 shares issued and outstanding at December 31, 2014.

-

-

Preferred stock: $0.00001 par value per share, 10,000,000 authorized at December 31, 2015 and December 31, 2014, and 0 issued and outstanding at December 31, 2015 and December 31, 2014.

-

-

Additional paid-in capital

122,844

119,045

Accumulated other comprehensive (loss) income

(502)

11

Accumulated deficit

(74,385)

(57,180)

Treasury stock, at cost: 620,979 shares at December 31, 2015 and December 31, 2014.

(2,601)

(2,601)

Total stockholders' equity

45,356

59,275

Total liabilities and stockholders' equity

$ 70,917

$ 98,306

 

Trupanion, Inc.

Consolidated Statements of Cash Flows

(in thousands)

Three Months Ended

Years Ended

 December 31,

 December 31,

2015

2014

2015

2014

(audited)

Operating activities

Net loss

$  (3,001)

$  (4,276)

$ (17,205)

$ (21,177)

Adjustments to reconcile net loss to cash used in operating activities:

Depreciation and amortization

741

441

2,542

1,674

Amortization of debt discount and prepaid loan fee

16

-

21

5,033

Warrant income

-

-

-

(1,574)

Stock-based compensation expense

653

890

3,002

4,084

Other

2

2

(89)

57

Changes in operating assets and liabilities:

Accounts receivable

176

703

(328)

(126)

Prepaid expenses and other current assets

(37)

87

(905)

(369)

Accounts payable

(18)

298

(347)

449

Accrued liabilities

(2)

863

51

551

Claims reserve

114

(305)

1,241

(505)

Deferred revenue

470

53

1,779

877

Other payables

228

54

(187)

225

Net cash used in operating activities

(658)

(1,190)

(10,425)

(10,801)

Investing activities

Purchases of investment securities

(8,718)

(8,438)

(24,800)

(34,894)

Maturities of investment securities

6,600

5,362

20,180

28,601

Purchases of property and equipment

(1,077)

(1,533)

(4,894)

(5,633)

Equity method investment

-

-

(300)

-

Other

(109)

-

(109)

-

Net cash used in investing activities

(3,304)

(4,609)

(9,923)

(11,926)

Financing activities

Restricted cash

-

-

-

3,000

Tax withholding on restricted stock

-

-

(643)

-

Proceeds from exercise of stock options

421

50

1,335

211

Repayment of debt financing

-

-

(14,900)

(15,000)

Other financing costs

-

-

-

(103)

Net proceeds from initial public offering

-

(191)

-

72,755

Net cash provided by (used in) financing activities

421

(141)

(14,208)

60,863

Effect of foreign exchange rates on cash, net

(191)

(31)

(586)

23

Net change in cash and cash equivalents

(3,732)

(5,971)

(35,142)

38,159

Cash and cash equivalents at beginning of period

21,688

59,069

53,098

14,939

Cash and cash equivalents at end of period

$ 17,956

$ 53,098

$  17,956

$  53,098

 

The following tables set forth our key financial and operating metrics:

Years Ended

 December 31,

2015

2014

Total pets enrolled (at period end)

291,818

232,450

Total subscription pets enrolled (at period end)

272,636

215,491

Monthly adjusted revenue per pet

$     45.04

$     44.14

Lifetime value of a pet

$        591

$        591

Average pet acquisition cost

$        132

$        121

Average monthly retention

98.64%

98.69%

Adjusted EBITDA (in thousands)

$ (11,297)

$ (10,349)

Three Months Ended

Dec. 31, 2015

Sept. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Total pets enrolled (at period end)

291,818

276,988

259,948

246,106

232,450

221,479

207,969

194,902

Total subscription pets enrolled (at period end)

272,636

258,546

241,808

228,409

215,491

205,194

192,338

179,819

Monthly adjusted revenue per pet

$     45.48

$     45.15

$    45.10

$    44.34

$    44.79

$    44.88

$    43.60

$    43.07

Lifetime value of a pet (LVP)

$        591

$        591

$       570

$       567

$       591

$       580

$       602

$       612

Average pet acquisition cost (PAC)

$        132

$        129

$       133

$       134

$       145

$       115

$       114

$       113

Average monthly retention

98.64%

98.66%

98.67%

98.66%

98.69%

98.67%

98.65%

98.65%

Adjusted EBITDA (in thousands)

$   (1,588)

$   (3,211)

$  (3,165)

$  (3,333)

$  (2,903)

$  (2,908)

$  (2,459)

$  (2,079)

 

The following table reflects the reconciliation of cash used in operating activities to free cash flow (in thousands):

Three Months Ended

Years Ended

December 31,

December 31,

2015

2014

2015

2014

Net cash used in operating activities

$    (658)

$ (1,190)

$ (10,425)

$ (10,801)

Purchases of property and equipment

(1,077)

(1,533)

(4,894)

(5,633)

Free cash flow

$ (1,735)

$ (2,723)

$ (15,319)

$ (16,434)

 

The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):

Three Months Ended December 31,

Twelve Months Ended December 31,

2015

2014

2015

2014

Claims expense

$

27,883

$

22,094

$

103,324

$

79,913

Stock-based compensation expense

(59)

(67)

(219)

(236)

Cost of goods

$

27,824

$

22,027

$

103,105

$

79,677

% of revenue

69.2%

69.1%

70.2%

68.7%

Other cost of revenue

$

5,048

$

4,250

$

18,410

$

16,123

Stock-based compensation expense

(9)

(24)

(44)

(79)

Variable expenses

$

5,039

$

4,226

$

18,366

$

16,044

% of revenue

12.5%

13.3%

12.5%

13.8%

Subscription business gross profit

$

6,866

$

5,161

$

23,978

$

18,333

Stock-based compensation expense

68

91

263

315

Non-GAAP subscription business gross profit

$

6,934

$

5,252

$

24,241

$

18,648

% of subscription revenue

18.9%

18.4%

18.2%

18.0%

Gross profit

$

7,270

$

5,524

$

25,229

$

19,874

Stock-based compensation expense

68

91

263

315

Non-GAAP gross profit

$

7,338

$

5,615

$

25,492

$

20,189

% of revenue

18.3%

17.6%

17.3%

17.4%

General and administrative expense

$

3,798

$

3,850

$

15,558

$

14,312

Technology and development expense

2,533

2,614

11,215

9,899

Depreciation expense

(741)

(441)

(2,542)

(1,675)

Stock-based compensation expense

(481)

(652)

(2,293)

(3,216)

Fixed expenses

$

5,109

$

5,371

$

21,938

$

19,320

% of revenue

12.7%

16.9%

14.9%

16.7%

Sales and marketing expense

$

3,919

$

3,218

$

15,231

$

11,608

Stock-based compensation expense

(104)

(147)

(446)

(553)

Acquisition cost

$

3,815

$

3,071

$

14,785

$

11,055

% of revenue

9.5%

9.6%

10.1%

9.5%

 

The following tables reflect the reconciliation of adjusted revenue to revenue (in thousands):

Years Ended

 December 31,

2015

2014

Revenue

$ 146,963

$ 115,910

Excluding:

Other business revenue

(13,557)

(12,408)

Change in deferred revenue

1,450

978

Sign-up fee revenue

(1,983)

(1,572)

Adjusted revenue

$ 132,873

$ 102,908

Three Months Ended

Dec. 31, 2015

Sept. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Revenue

$   40,201

$   37,865

$ 35,587

$ 33,310

$ 31,868

$ 30,312

$ 28,090

$ 25,640

Excluding:

Other business revenue

(3,479)

(3,445)

(3,379)

(3,254)

(3,251)

(3,200)

(3,178)

(2,779)

Change in deferred revenue

378

423

321

328

247

385

84

262

Sign-up fee revenue

(506)

(542)

(451)

(484)

(363)

(425)

(407)

(377)

Adjusted revenue

$   36,594

$   34,301

$ 32,078

$ 29,900

$ 28,501

$ 27,072

$ 24,589

$ 22,746

 

The following tables reflect the reconciliation of acquisition cost and net acquisition cost to sales and marketing expense (in thousands):

Years Ended

 December 31,

2015

2014

Sales and marketing expenses

$ 15,231

$ 11,608

Excluding:

Stock-based compensation expense

(446)

(553)

Acquisition cost

14,785

11,055

Net of:

Sign-up fee revenue

(1,983)

(1,572)

Other business segment sales and marketing expense

(80)

(124)

Net acquisition cost

$ 12,722

$   9,359

Three Months Ended

Dec. 31, 2015

Sept. 30,

2015

Jun. 30,

 2015

Mar. 31,

 2015

Dec. 31,

 2014

Sept. 30,

2014

Jun. 30,

 2014

Mar. 31,

2014

Sales and marketing expenses

$   3,919

$   4,128

$ 3,533

$ 3,651

$ 3,218

$  2,934

$ 2,810

$ 2,646

Excluding:

Stock-based compensation expense

(104)

(102)

(110)

(130)

(147)

(115)

(144)

(149)

Acquisition cost

3,815

4,026

3,423

3,521

3,071

2,819

2,666

2,497

Net of:

Sign-up fee revenue

(506)

(542)

(451)

(484)

(363)

(425)

(407)

(377)

Other business segment sales and marketing expense

(8)

(16)

(30)

(26)

(30)

(22)

(28)

(44)

Net acquisition cost

$   3,301

$   3,468

$ 2,942

$ 3,011

$ 2,678

$  2,372

$ 2,231

$ 2,076

 

The following tables reflect the reconciliation of adjusted EBITDA to net loss (in thousands):

Years Ended

 December 31,

2015

2014

Net loss

$ (17,205)

$ (21,177)

Excluding:

Stock-based compensation expense

3,002

4,084

Depreciation and amortization expense

2,542

1,675

Interest income

(75)

(74)

Interest expense

325

6,726

Change in fair value of warrant liabilities

-

(1,575)

Income tax expense

114

(8)

Adjusted EBITDA

$ (11,297)

$ (10,349)

Three Months Ended

Dec. 31, 2015

Sept. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Net loss

$   (3,001)

$   (4,643)

$ (4,625)

$ (4,936)

$ (4,276)

$ (8,509)

$ (3,479)

$ (4,913)

Excluding:

Stock-based compensation expense

653

749

897

703

890

2,001

626

567

Depreciation and amortization expense

741

672

563

566

441

505

419

310

Interest income

(19)

(19)

(18)

(19)

(18)

(20)

(18)

(18)

Interest expense

26

14

40

245

103

5,155

726

742

Change in fair value of warrant liabilities

-

-

-

-

-

(2,054)

(740)

1,219

Income tax expense (benefit)

12

16

(22)

108

(43)

14

7

14

Adjusted EBITDA

$   (1,588)

$   (3,211)

$ (3,165)

$ (3,333)

$ (2,903)

$ (2,908)

$ (2,459)

$ (2,079)

 

The following table reflects 2014 results by quarter after the reclassification of certain pets from the subscription business segment  to the other business segment (in thousands):

Three Months Ended

Dec. 31,

Sept. 30,

Jun. 30,

Mar. 31,

2014

2014

2014

2014

Revenue:

Subscription business

$ 28,617

$ 27,112

$ 24,912

$ 22,861

Other business

3,251

3,200

3,178

2,779

Total revenue

31,868

30,312

28,090

25,640

Cost of revenue:

Subscription business 

23,456

23,051

20,273

18,388

Other business

2,888

2,816

2,667

2,496

Total cost of revenue

26,344

25,867

22,940

20,884

Gross profit:

Subscription business

5,161

4,061

4,639

4,473

Other business

363

384

511

283

Total gross profit

5,524

4,445

5,150

4,756

Operating expenses:

Sales and marketing 

3,218

2,934

2,810

2,646

Technology and development 

2,614

2,532

2,553

2,200

General and administrative 

3,850

4,385

3,292

2,786

Total operating expenses

9,682

9,851

8,655

7,632

Operating loss

(4,158)

(5,406)

(3,505)

(2,876)

Interest expense

103

5,155

726

736

Other expense, net

58

(2,066)

(759)

1,286

Loss before income taxes

(4,319)

(8,495)

(3,472)

(4,898)

Income tax (benefit) expense

(43)

14

7

15

Net loss

$  (4,276)

$  (8,509)

$  (3,479)

$  (4,913)

 

Photo - http://photos.prnewswire.com/prnh/20160210/332126

Logo - http://photos.prnewswire.com/prnh/20141030/155651LOGO

 

SOURCE Trupanion, Inc.



RELATED LINKS

http://www.trupanion.com