Hippo Holdings Inc.'s shares increased by over 26 percent in pre-market trading on the NYSE following the home insurance group's disclosure of a reduced net loss in its fourth quarter coupled with a notable increase in revenues. The company anticipates further reductions in EBITDA loss and increased revenues for the fiscal year 2024.
Hippo Holdings recorded a net loss of $42.3 million in the fourth quarter, a decrease from the previous year's loss of $63.1 million. The loss per share was $1.76, less than the loss of $2.74 per share the previous year.
Contrarily to Thomson Reuters compiled predictions, which excluded special items and saw the company reporting a loss of $2.01 per share, the company surpassed these expectations.
The company's revenue also realized an 80 percent increase, from $35.8 million a year ago to $64 million this year. This exceeded the forecasted revenues of $55.25 million for the quarter. Moreover, the Total Generated Premium (TGP) ascended to $268 million from $233.4 million in the previous year.
Looking ahead to fiscal 2024, Hippo expects an EBITDA loss ranging from $41 million to $51 million, a significant reduction from the previous year. It projects 90 percent of this loss will be in the first half, however, it anticipates turning adjusted EBITDA positive during the second half, with the fourth quarter being fully adjusted EBITDA positive.
The company forecasts its revenue will rise to more than $340 million, slightly lower than the market predictions estimating revenues of $370.29 million for the year.
Hippo's President and CEO, Rick McCathron, stated that entering 2024, the company is prepared, with improved operations servicing core customer segments in primary markets, and renewed confidence in generating positive adjusted EBITDA in the fourth quarter.
In pre-market trading on the NYSE, Hippo's shares were approximately 26.1 percent higher, trading at $18.23.
