Hippo Posts Narrower Than Expected Q4 Loss, Sees Narrower Loss In FY24; Stock Climbs In Pre-market

(RTTNews) - Shares of Hippo Holdings Inc. (HIPO) were gaining more than 26 percent in pre-market activity on the NYSE after the home insurance group reported Wednesday narrower net loss in its fourth quarter with significantly higher revenues. Looking ahead for fiscal 2024, the company projects narrower EBITDA loss and higher revenues.

For the fourth quarter, net loss attributable to Hippo was $42.3 million, compared to loss of $63.1 million last year. Loss per share was $1.76, narrower than loss of $2.74 per share in the prior year.

Analysts on average expected the company to report loss of $2.01 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Revenue went up 80 percent to $64 million from $35.8 million a year ago. The Street was looking for revenues of $55.25 million for the quarter.

Total generated premium or TGP grew to $268 million from $233.4 million last year.

Looking ahead for fiscal 2024, the company expects EBITDA loss of $41 million to $51 million, significantly narrower than last year, with 90 percent of the loss expected in the first half. The company expects to turn adjusted EBITDA positive during second half, with fourth quarter to be fully adjusted EBITDA positive.

The company expects revenue to grow to more than $340 million. The Street is looking for revenues of $370.29 million for the year.

Hippo President and CEO Rick McCathron said, "We enter 2024 poised to go on offense, with streamlined operations ready to serve our core customer segments in our core markets, and with renewed confidence we will generate positive adjusted EBITDA in Q4."

In pre-market activity on the NYSE, Hippo shares were gaining around 26.1 percent to trade at $18.23.

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