Trupanion (NASDAQ:TRUP) reported third-quarter revenue growth of 11% and record free cash flow, as the pet insurer added customers while reducing its acquisition cost per pet.
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Revenue rose to $405.6 million, while net income increased to $9.3 million, or $0.21 per diluted share, from $5.9 million, or $0.13 per diluted share, a year earlier. The company recorded its sixth consecutive quarter of positive net income.
Adjusted operating income, a non-GAAP measure, rose 15% to $47 million, and free cash flow reached $28.5 million, up from $23.9 million. Chief Executive Officer and President Margi Tooth said both measures reached quarterly highs for the company.
Pet Growth and Retention Improve
Subscription revenue increased 14% to $287.9 million. Trupanion ended September with 1.145 million subscription pets, up 6% from a year earlier, including approximately 66,000 in Europe. Monthly average revenue per pet increased 8% to $88.95.
The company added more than 20,500 net new pets during the quarter, an increase of more than 28% year over year. It spent $23.3 million to acquire approximately 77,500 new subscription pets. Excluding pets underwritten through a managing general a...