Trupanion, Inc. announced its financial results for the second quarter ended June 30, 2024, reporting total revenue of $314.8 million, an increase of 16% year-over-year. The subscription business segment was a primary driver of this growth, with revenue increasing by 20% year-over-year to $208.6 million.
The company's subscription pet count reached 1,020,000 pets as of June 30, an 8% increase year-over-year, with average monthly revenue per pet (ARPU) growing by 11.4% to $71.72. The subscription business achieved a value proposition of 74.1%, reflecting a 290 basis point improvement over the prior year period, with a target of 71% by the fourth quarter.
Adjusted operating income for the company grew 48% year-over-year, while the subscription segment's adjusted operating income increased 63%. The subscription-adjusted operating margin expanded by 280 basis points to 11% in the quarter. Trupanion also generated $4 million in free cash flow and noted that recent NAIC updates significantly decreased the capital intensity of its balance sheet by designating pet insurance as its own line of business.
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