Trupanion(TRUP) - 2025 Q1 - Quarterly Report

Enrollment and Subscription Growth - Total pets enrolled at the end of March 31, 2025, is 1,667,637, a decrease from 1,677,570 at the end of December 31, 2024[80] - Total subscription pets enrolled reached 1,052,845 as of March 31, 2025, compared to 1,041,212 at the end of December 31, 2024, indicating growth in the subscription segment[80] - Average monthly retention rate for enrolled subscription pets was 98.28% as of March 31, 2025, slightly up from 98.25% in December 2024, showing strong member satisfaction[80] - Subscription revenue as a percentage of total revenue was 71.8% in Q1 2025, compared to 70.0% in Q4 2024, showing a 1.8 percentage point increase[90] - Total pets enrolled at period end decreased by 2% to 1,667,637, while total subscription pets enrolled increased by 5% to 1,052,845[118] Financial Performance - Total revenue increased by $35.9 million, or 12$341.975 million for the three months ended March 31, 2025[118] - Revenue from the subscription business segment increased by $31.9 million, or 16$233.064 million, driven by an 11% increase in monthly average revenue per pet[118] - Monthly average revenue per pet rose to $77.53, an 11$1.483 million, compared to a net loss of $6.852 million for the same period last year[114] - Loss before income taxes improved to$1.444 million from a loss of $6.890 million in the prior year[114] Costs and Expenses - Average pet acquisition cost (PAC) rose to$267 in March 2025, compared to $261 in December 2024, indicating higher costs in acquiring new members[80] - New pet acquisition expense for Q1 2025 was$20,516, compared to $18,354 in Q4 2024, indicating an increase of 11.8$20.978 million, or 7.8%, to $290.872 million[114] - Operating expenses increased by$10.010 million, or 23.7%, to $52.271 million, with significant increases in general and administrative expenses[114] - General and administrative expense for Q1 2025 was$19,892, up from $16,828 in Q4 2024, reflecting an increase of 18.3$15.964 million for the three months ended March 31, 2025, compared to $2.434 million for the same period in 2024[130] - As of March 31, 2025, the company had$321.8 million in cash, cash equivalents, and short-term investments[132] - The Credit Facility provides up to $150.0 million of credit, with$135.0 million issued as term loans as of March 31, 2025[137] Accounting and Compliance - Non-GAAP financial measures are used to evaluate operating performance, excluding non-recurring expenses and stock-based compensation to provide clearer insights into core business results[86] - There have been no material changes to critical accounting policies or estimates compared to the previous fiscal year[148] - Management believes there have been no material changes to market risk disclosures during the three months ended March 31, 2025[150]