Trupanion Reports Second Quarter 2015 Results

- Total revenue of $35.6 million, up 27% year-over-year

- 259,948 total enrolled pets at quarter-end, surpassing 250,000 milestone

Aug 04, 2015, 16:05 ET from Trupanion

SEATTLE, Aug. 4, 2015 /PRNewswire/ -- Trupanion, Inc. (NYSE: TRUP), a direct-to-consumer, monthly subscription business that provides medical plans for cats and dogs, today announced financial results for the second quarter of 2015 and for the six months ended June 30, 2015.

"We're encouraged by our performance in the second quarter – our fifth quarter as a public company –which reflects continued and consistent growth in revenue and enrolled pets," said Darryl Rawlings, Trupanion's Chief Executive Officer. "Our performance was strong, with revenue growing 30% year-over-year on a constant currency basis, fueled by 25% growth in total enrolled pets and a continued strong increase in average revenue per pet. Importantly, the health of our core subscription business is evidenced by our 98.67% retention rate in the quarter. Looking ahead, we will continue to make strategic investments in Trupanion Express, our Territory Partners and in corporate partnerships to increase the number of our active hospitals, which we believe will be a key driver to strengthen our leadership position in the medical insurance for pets' category in North America. With our first year as a public company behind us, our platform is increasingly efficient and our team is focused on driving the business to scale long-term."

Second Quarter 2015 Financial Highlights (All comparisons on a year-over-year basis)

  • Total revenue was $35.6 million, an increase of 27%.
  • Revenue for the subscription business was $32.2 million, an increase of 29%.
  • Adjusted EBITDA was $(3.2) million, compared to $(2.5) million.
  • Net loss was $(4.6) million, compared to $(3.5) million.

First Half 2015 Financial Highlights (All comparisons on a year-over-year basis)

  • Total revenue was $68.9 million, an increase of 28%.
  • Revenue for the subscription business was $62.3 million, an increase of 30%.
  • Adjusted EBITDA was $(6.5) million, compared to $(4.5) million.
  • Net loss was $(9.6) million, compared to $(8.4) million.
  • Cash, cash equivalents and short-term investments of $47.7 million and zero debt.

Second Quarter 2015 Operating Metrics (All comparisons on a year-over-year basis)

  • Average monthly adjusted revenue per pet was $45.10, an increase of 3%.  During the second quarter, the Canadian currency exchange rate dropped to an average of 81% compared to an average of 92% in the second quarter of 2014. If the exchange rate had stayed consistent with the average rate in the prior year, monthly adjusted revenue per pet would have increased 6% to 30% consolidated revenue growth year over year.
  • The ratio of lifetime value of a pet (LVP) to average pet acquisition cost (PAC) was 4.3 to 1.
  • Total enrolled pets (including pets from our other business segment) was 259,948 at quarter-end, up 25%.
  • Total subscription pets enrolled was 241,808 at quarter-end, up 26%.
  • During 2015, Trupanion reclassified pets previously included in its monthly subscription business that is not direct to consumer into its other business segment. All prior period amounts have been recast as a result of this change. Financial tables regarding this reclassification can be found at the end of this press release as well as under the financial information section of Trupanion's Investor Relations website.

Outlook

Trupanion currently expects to achieve the following results for the third quarter ending September 30, 2015 and full year ending December 31, 2015:

Third Quarter 2015

  • Total revenue is expected to be in the range of $36.5-$38.5 million.
  • Adjusted EBITDA is expected to be in the range of $(4.5)-$(2.5) million.
  • The company's third quarter 2015 outlook assumes a 77% Canadian currency exchange rate, the approximate rate at the end of July 2015.

Full Year 2015

  • Total revenue is expected to be in the range of $145-$150 million.
  • Adjusted EBITDA is expected to be in the range of $(13)-$(10) million.

Revenue by Quarter

Conference Call Trupanion's management will host a conference call today to review its second quarter 2015 results and to discuss its financial outlook for the third quarter and full year 2015. 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: 10057841.

About Trupanion Founded in 2000, Trupanion is an industry-leading, direct-to-consumer, monthly subscription business that provides medical plans for cats and dogs in the United States, Canada and Puerto Rico through its affiliated entities. With over 260,000 total enrolled pets (as of August 4, 2015), Trupanion is one of the largest pet medical insurance companies in North America with the mission to help the pets we all love receive the best veterinary care. Trupanion offers a simple, fair and comprehensive pet medical plan that pays 90% of covered veterinary costs for pets' illness and injury claims. Trupanion's shares are traded on the New York Stock Exchange under the ticker symbol TRUP. The company is headquartered in Seattle, WA and can be found online at 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 in the future; 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 of 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 maintain the requisite amount of risk-based capital; the ability to protect and enforce the 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 with laws and regulations that apply to 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 include certain non-GAAP financial measures, including adjusted revenue, contribution margin, acquisition cost and adjusted EBITDA. Monthly adjusted revenue per pet is calculated in part based on adjusted revenue, a non-GAAP financial measure that Trupanion defines as revenue from our subscription business segment excluding sign-up fee revenue and the change in deferred revenue between periods. Lifetime value of a pet is calculated in part based on contribution margin, a non-GAAP financial measure, that Trupanion defines as gross profit from its subscription business segment for the 12 months prior to the period end date excluding stock-based compensation expense related to cost of revenue from its subscription business segment, sign-up fee revenue and the change in deferred revenue between periods. Average pet acquisition cost is calculated in part based on acquisition cost, a non-GAAP financial measure that Trupanion defines as sales and marketing expenses, excluding stock-based compensation expense, net of sign-up fee revenue. 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.

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 contribution margin, 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 both adjusted revenue and contribution margin 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 acquisition cost. Trupanion excludes changes in deferred revenue from the calculation of both adjusted revenue and contribution margin 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, contribution margin and acquisition cost and the related financial measures it derives from them, as well as adjusted EBITDA, in a consistent manner across periods. Trupanion's non-GAAP financial measures and the related financial measures it derives from them are important tools for financial and operational decision-making and for evaluating its own 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, Kimberly Esterkin, Addo Communications 310.829.5400 InvestorRelations@trupanion.com

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

Trupanion, Inc.

Consolidated Statements of Operations

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

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

(unaudited)

Revenue:

Subscription business

$

32,208

$

24,912

$

62,264

$

47,773

Other business

3,379

3,178

6,633

5,957

Total revenue

35,587

28,090

68,897

53,730

Cost of revenue:

Subscription business (1)

26,661

20,273

51,427

38,661

Other business

3,140

2,667

6,102

5,163

Total cost of revenue

29,801

22,940

57,529

43,824

Gross profit:

Subscription business

5,547

4,639

10,837

9,112

Other business

239

511

531

794

Total gross profit

5,786

5,150

11,368

9,906

Operating expenses:

Sales and marketing (1)

3,533

2,810

7,184

5,456

Technology and development (1)

2,879

2,553

5,677

4,753

General and administrative (1)

3,996

3,292

7,693

6,078

Total operating expenses

10,408

8,655

20,554

16,287

Operating loss

(4,622)

(3,505)

(9,186)

(6,381)

Interest expense

40

726

285

1,462

Other (income) expense, net

(15)

(759)

4

528

Loss before income taxes

(4,647)

(3,472)

(9,475)

(8,371)

Income tax (benefit) expense

(22)

7

86

21

Net loss

$

(4,625)

$

(3,479)

$

(9,561)

$

(8,392)

Net loss per share:

    Basic and diluted

$

(0.17)

$

(2.25)

$

(0.35)

$

(5.47)

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

   Basic and diluted

27,597,721

1,543,134

27,468,231

1,533,668

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

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Cost of revenue

$

58

$

64

$

127

$

145

Sales and marketing 

110

144

240

293

Technology and development

93

98

214

196

General and administrative

636

320

1,019

559

Total stock-based compensation expense

$

897

$

626

$

1,600

$

1,193

 

Trupanion, Inc.

Consolidated Balance Sheets

(in thousands, except for share data)

June 30, 2015

December 31, 2014

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

26,157

$

53,098

Short-term investments

21,547

22,371

Accounts and other receivables

8,778

7,887

Prepaid expenses and other assets

1,677

1,299

Total current assets

58,159

84,655

Long-term investments, at fair value

2,520

942

Property and equipment, net

9,131

7,862

Intangible assets, net

4,815

4,847

Other long term assets

23

-

Total assets

$

74,648

$

98,306

Liabilities and stockholders' equity 

Current liabilities:

Accounts payable

$

1,218

$

1,962

Accrued liabilities

3,720

4,607

Claims reserve

5,839

5,107

Deferred revenue

10,115

9,345

Other payables

481

1,523

Total current liabilities

21,373

22,544

Long-term debt

-

14,900

Deferred tax liabilities

1,495

1,495

Other liabilities

112

92

Total liabilities

22,980

39,031

Stockholders' equity:

Common stock, $0.00001 par value per share, 200,000,000 shares authorized at June 30, 2015 and December 31, 2014, 28,871,964 and 28,250,985 issued and outstanding at June 30, 2015; 28,451,920 and 27,830,941 shares issued and outstanding at December 31, 2014.

-

-

Preferred stock: $0.00001 par value per share, 10,000,000 authorized at June 30, 2015 and December 31, 2014, and 0 issued and outstanding at June 30, 2015 and December 31, 2014.

-

-

Additional paid-in capital

121,114

119,045

Accumulated other comprehensive (loss) income

(104)

11

Accumulated deficit

(66,741)

(57,180)

Treasury stock, at cost: 620,979 shares at June 30, 2015 and December 31, 2014.

(2,601)

(2,601)

Total stockholders' equity

51,668

59,275

Total liabilities and stockholders' equity

$

74,648

$

98,306

 

Trupanion, Inc.

Consolidated Statements of Cash Flows

(in thousands)

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

(unaudited)

Operating activities

Net loss

$    (4,625)

$  (3,479)

$   (9,561)

$   (8,392)

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

Depreciation and amortization

563

420

1,129

729

Amortization of debt discount and prepaid loan fees

-

243

-

470

Warrant (income) expense

-

(739)

-

480

Stock-based compensation expense

897

626

1,600

1,193

Other, net

3

7

(113)

52

Changes in operating assets and liabilities:

Accounts receivable

(998)

(178)

(923)

(320)

Prepaid expenses and other current assets

(228)

57

(380)

(121)

Accounts payable

(165)

(445)

(552)

75

Accrued liabilities

119

1,126

(617)

(428)

Claims reserve

638

(562)

714

(1,219)

Deferred revenue

420

95

749

303

Other payables

(612)

347

(942)

743

Net cash used in operating activities

(3,988)

(2,482)

(8,896)

(6,435)

Investing activities

Purchases of investment securities

(7,860)

(13,589)

(11,066)

(16,266)

Maturities of investment securities

6,021

14,468

10,266

18,277

Purchases of property and equipment

(1,054)

(1,252)

(2,644)

(2,268)

Net cash used in investing activities

(2,893)

(373)

(3,444)

(257)

Financing activities

Release of restricted cash

-

300

-

300

Advance on term loan

-

2,000

-

2,000

Deferred financing costs

-

(472)

-

(1,091)

Proceeds from exercise of stock options

434

26

801

46

Payment on line of credit

-

(300)

(14,900)

(300)

Tax withholding on restricted stock

-

-

(384)

-

Net cash provided by (used in) financing activities

434

1,554

(14,483)

955

Effect of foreign exchange rates on cash, net

110

(4)

(118)

86

Net change in cash and cash equivalents

(6,337)

(1,305)

(26,941)

(5,651)

Cash and cash equivalents at beginning of period

32,494

10,593

53,098

14,939

Cash and cash equivalents at end of period

$   26,157

$   9,288

$  26,157

$     9,288

 

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

Six Months Ended

June 30,

2015

2014

Total pets enrolled (at period end)

259,948

207,969

Total subscription pets enrolled (at period end)

241,808

192,338

Monthly adjusted revenue per pet

$     44.73

$     43.34

Lifetime value of a pet (LVP)

$        570

$        602

Average pet acquisition cost (PAC)

$        133

$        113

Average monthly retention

98.67%

98.65%

Adjusted EBITDA (in thousands)

$  (6,498)

$  (4,538)

Three Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sept. 30, 2013

Total pets enrolled (at period end)

259,948

246,106

232,450

221,479

207,969

194,902

182,497

172,184

Total subscription pets enrolled (at period end)

241,808

228,409

215,491

205,194

192,338

179,819

168,405

159,080

Monthly adjusted revenue per pet

$     45.10

$     44.34

$     44.79

$     44.88

$     43.60

$     43.07

$     43.06

$     42.55

Lifetime value of a pet (LVP)

$        570

$        567

$        591

$        580

$        602

$        612

$        613

$        619

Average pet acquisition cost (PAC)

$        133

$        134

$        145

$        115

$        114

$        113

$        106

$          81

Average monthly retention

98.67%

98.66%

98.69%

98.67%

98.65%

98.65%

98.65%

98.64%

Adjusted EBITDA (in thousands)

$  (3,165)

$  (3,333)

$  (2,903)

$  (2,908)

$  (2,459)

$  (2,079)

$  (1,780)

$     (378)

 

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

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

GAAP cost of revenue

$

29,801

$

22,940

$

57,529

$

43,824

Stock-based compensation expense

(58)

(64)

(127)

(145)

Non-GAAP cost of revenue

$

29,743

$

22,876

$

57,402

$

43,679

% of revenue

83.6%

81.4%

83.3%

81.3%

GAAP gross profit

$

5,786

$

5,150

$

11,368

$

9,906

Stock-based compensation expense

58

64

127

146

Non-GAAP gross profit

$

5,844

$

5,214

$

11,495

$

10,052

% of revenue

16.4%

18.6%

16.7%

18.7%

GAAP sales and marketing expense

$

3,533

$

2,810

$

7,184

$

5,456

Stock-based compensation expense

(110)

(144)

(240)

(293)

Non-GAAP sales and marketing expense

$

3,423

$

2,666

$

6,944

$

5,163

% of revenue

9.6%

9.5%

10.1%

9.6%

GAAP technology and development expense

$

2,879

$

2,553

$

5,677

$

4,753

Stock-based compensation expense

(93)

(98)

(214)

(196)

Non-GAAP technology and development expense

$

2,786

$

2,455

$

5,463

$

4,557

% of revenue

7.8%

8.7%

7.9%

8.5%

GAAP general and administrative expense

$

3,996

$

3,292

$

7,693

$

6,078

Stock-based compensation expense

(636)

(320)

(1,019)

(559)

Non-GAAP general and administrative expense

$

3,360

$

2,972

$

6,674

$

5,519

% of revenue

9.4%

10.6%

9.7%

10.3%

GAAP operating loss

$

(4,622)

$

(3,505)

$

(9,186)

$

(6,381)

Stock-based compensation expense

897

626

1,600

1,193

Non-GAAP operating loss

$

(3,725)

$

(2,879)

$

(7,586)

$

(5,188)

% of revenue

10.5%

10.2%

11.0%

9.7%

GAAP subscription business gross profit

$

5,547

$

4,639

$

10,837

$

9,112

Stock-based compensation expense

58

64

127

145

Non-GAAP subscription business gross profit

$

5,605

$

4,703

$

10,964

$

9,257

% of subscription revenue

17.4%

18.9%

17.6%

19.4%

 

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

Six Months Ended

June 30,

2015

2014

Revenue

$ 68,897

$ 53,730

Excluding:

Other business revenue

(6,633)

(5,957)

Change in deferred revenue

649

346

Sign-up fee revenue

(935)

(784)

Adjusted revenue

$ 61,978

$ 47,335

Three Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sept. 30, 2013

Revenue

$ 35,587

$ 33,310

$ 31,868

$ 30,312

$ 28,090

$ 25,640

$ 24,011

$ 22,134

Excluding:

Other business revenue

(3,379)

(3,254)

(3,251)

(3,200)

(3,178)

(2,779)

(2,736)

(2,256)

Change in deferred revenue

321

328

247

385

84

262

452

314

Sign-up fee revenue

(451)

(484)

(363)

(425)

(407)

(377)

(345)

(386)

Adjusted revenue

$ 32,078

$ 29,900

$ 28,501

$ 27,072

$ 24,589

$ 22,746

$ 21,832

$ 19,806

 

The following table reflects the reconciliation of contribution margin to gross profit (in thousands):

Twelve Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sept. 30, 2013

Gross profit

$ 21,337

$ 20,701

$ 19,874

$ 18,439

$ 18,113

$ 16,792

$ 15,644

$ 14,788

Excluding:

Stock-based compensation expense

296

302

315

309

287

270

230

171

Other business segment gross profit

(1,278)

(1,549)

(1,539)

(1,468)

(1,314)

(967)

(768)

(572)

Change in deferred revenue

1,281

1,044

977

1,183

1,111

1,246

1,107

874

Sign-up fee revenue

(1,723)

(1,679)

(1,572)

(1,554)

(1,514)

(1,464)

(1,418)

(1,356)

Contribution margin

$ 19,913

$ 18,819

$ 18,055

$ 16,909

$ 16,683

$ 15,877

$ 14,795

$ 13,905

 

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

Six Months Ended 

June 30,

2015

2014

Sales and marketing expenses

$   7,184

$   5,456

Excluding:

Stock-based compensation expense

(240)

(293)

Other business segment sales and marketing expense

(56)

(72)

Net of:

Sign-up fee revenue

(935)

(784)

Acquisition cost

$   5,953

$   4,307

Three Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sept. 30, 2013

Sales and marketing expenses

$   3,533

$   3,651

$   3,218

$   2,934

$   2,810

$   2,646

$   2,238

$   2,013

Excluding:

Stock-based compensation expense

(110)

(130)

(147)

(115)

(144)

(149)

(185)

(147)

Other business segment sales and marketing expense

(30)

(26)

(30)

(22)

(28)

(44)

(6)

(3)

Net of:

Sign-up fee revenue

(451)

(484)

(363)

(425)

(407)

(377)

(345)

(386)

Acquisition cost

$   2,942

$   3,011

$   2,678

$   2,372

$   2,231

$   2,076

$   1,702

$   1,477

 

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

Six Months Ended

June 30,

2015

2014

Net loss

$  (9,561)

$  (8,392)

Excluding:

Stock-based compensation expense

1,600

1,193

Depreciation and amortization expense

1,129

729

Interest income

(37)

(36)

Interest expense

285

1,468

Change in fair value of warrant liabilities

479

Income tax expense

86

21

Adjusted EBITDA

$  (6,498)

$  (4,538)

Three Months Ended

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sept. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sept. 30, 2013

Net loss

$  (4,625)

$  (4,936)

$  (4,276)

$  (8,509)

$  (3,479)

$  (4,913)

$  (3,203)

$  (1,222)

Excluding:

Stock-based compensation expense

897

703

890

2,001

626

567

574

478

Depreciation and amortization expense

563

566

441

505

419

310

229

243

Interest income

(18)

(19)

(18)

(20)

(18)

(18)

(13)

(32)

Interest expense

40

245

103

5,155

726

742

225

154

Change in fair value of warrant liabilities

-

-

-

(2,054)

(740)

1,219

414

3

Income tax (benefit) expense

(22)

108

(43)

14

7

14

(6)

(2)

Adjusted EBITDA

$  (3,165)

$  (3,333)

$  (2,903)

$  (2,908)

$  (2,459)

$  (2,079)

$  (1,780)

$     (378)

 

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

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

18,387

Other business

2,888

2,816

2,667

2,497

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 (income), 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)

Logo - http://photos.prnewswire.com/prnh/20141030/155651LOGO Info - http://photos.prnewswire.com/prnh/20150803/254364-INFO

 

SOURCE Trupanion



RELATED LINKS

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