TRUP - Trupanion: After All This Time No Profits
2024-02-02 10:52:47 ET
Summary
- Pet insurance industry has seen significant growth due to the rising trend of millennials and Gen Z preferring pets over having children.
- Trupanion, a pet insurance company, has experienced wild revenue growth but struggles with increasing costs and negative margins.
- The company's balance sheet is not heavily burdened with liabilities, but profitability hinges on stabilizing operating expenses and addressing veterinary price hikes.
Pet Insurance has been a rising industry over the last decade. Back in 2016, Forbes reported on the rising trend of millennials to prefer getting pets to having children. A more recent report indicates that this has continued and that Gen Z is joining in on it. When secular changes like these occur, investors naturally wonder who is poised to make money on that and how they can get into it....
Trupanion: After All This Time, No Profits