Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the retention rates for policies acquired over the past nine months?
A: (Alexander Timm, CEO, Co-Founder, Director) - Retention has improved, primarily driven by early rate increases enabled by our technology, leading to stabilized prices and year-over-year improvements in retention.
Q: How do you anticipate your sales and marketing spend will trend in the coming quarters?
A: (Alexander Timm, CEO, Co-Founder, Director) - Sales and marketing spend is expected to be higher in Q1 due to increased auto insurance shopping, with adjustments made based on competition and profitability targets.
Q: With renewal premium as a percentage of gross premium declining, should we expect an increase in the loss ratio?
A: (Alexander Timm, CEO, Co-Founder, Director) - Yes, there is typically a new business penalty where loss ratios are higher in the first six months. However, this is already reflected in our current results due to our growth and diligent pricing.
Q: Given the competitive environment, how might gross written premium in Q2 compare to Q1?
A: (Alexander Timm, CEO, Co-Founder, Director) - Gross written premium in Q2 is expected to be lower than Q1 due to seasonality and competitive dynamics, although year-over-year growth in earned premium is anticipated.
Q: Can we expect adjusted EBITDA to remain positive or see quarter-over-quarter variability?
A: (Megan Binkley, CFO, Principal Accounting Officer, Treasurer) - While Q1 marked a significant milestone with positive adjusted EBITDA, future quarters may see variability due to factors like seasonality in loss ratios and marketing expenses.
Q: How is the increase in competition affecting your strategy, particularly in the direct channel?
A: (Alexander Timm, CEO, Co-Founder, Director) - Increased competition leads to more cautious spending in the direct channel to ensure profitability, while continued growth in the partnerships channel is expected due to its consistent performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
