Trupanion, Inc. (NASDAQ:TRUP) Q1 2022 Earnings Conference Call April 28, 2022 4:30 PM ET

Company Participants

Laura Bainbridge - Investor Relations

Darryl Rawlings - Chief Executive Officer

Drew Wolff - Chief Financial Officer

Margi Tooth - President

Tricia Plouf - Chief Operating Officer

Conference Call Participants

Shweta Khajuria - Evercore ISI

Maria Ripps - Canaccord Genuity

Elliot Wilbur - Raymond James

Josh Shanker - Bank of America

Jon Block - Stifel

John Barnidge - Piper Sandler

Greg Gibas - Northland Securities

Ryan Tunis - Autonomous Research

Operator

Greetings, and welcome to the Trupanion, Inc. First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation [Operator Instructions]. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Laura Bainbridge, Investor Relations, Trupanion Inc. Please go ahead.

Laura Bainbridge

Good afternoon. And welcome to Trupanion’s first quarter 2022 financial results conference call. Participating on today’s call are Darryl Rawlings, Chief Executive Officer; and Drew Wolff, Chief Financial Officer. Similar to prior earning calls, Margi Tooth, President; and Tricia Plouf, Chief Operating Officer, will be available for the Q&A portion of today’s call. Before we begin, I would like to remind everyone that during today’s conference call, we will make certain forward-looking statements regarding the future operations, opportunities and financial performances of Trupanion within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. These statements involve a high degree of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed. A detailed discussion of these and other risks and uncertainties are included in our earnings release, which can be found on our Investor Relations Web site, as well as the company’s most recent annual report on Forms 10-K and 8-K filed with the Securities and Exchange Commission.

Today’s presentation contains references to non-GAAP financial measures that management uses to evaluate the company’s performance, including without limitation, fixed expenses, variable expenses, adjusted operating income, acquisition costs, internal rate of return, adjusted EBITDA and free cash flow. When we use the term adjusted operating income or margin, it is intended to refer to our non-GAAP operating income or margin before new pet acquisition. Unless otherwise noted, margins and expenses will be presented on a non-GAAP basis, which excludes stock-based compensation expense and depreciation expense. These non-GAAP measures are in addition to, and not a substitute for, measures of financial performance prepared in accordance with the US GAAP. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP results, which can be found in today’s press release or on Trupanion’s Investor Relations Web site under the Quarterly Earnings tab. Lastly, I would like to remind everyone that today’s call is also available via webcast on Trupanion’s Investor Relations Web site. A replay will also be available on the site.