Root Inc (ROOT) 2023 Q1 法說會逐字稿

Thank you for standing by. My name is Kayla Baker, and I will be your conference operator today. At this time, I would like to welcome everyone to Root, Inc.'s First Quarter 2023 Earnings Conference Call. (Operator Instructions)

謝謝你的支持。我叫凱拉·貝克，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Root, Inc. 的 2023 年第一季度收益電話會議。 （操作員說明）

I would now like to turn the call over to Vice President and Corporate Secretary, Jodi Baker.

我現在想將電話轉給副​​總裁兼公司秘書喬迪·貝克 (Jodi Baker)。

Good morning, and thank you for joining us today. Root is hosting this call to discuss its first quarter 2023 earnings results. Participating on today's call are Alex Timm, Co-Founder and Chief Executive Officer; and Megan Binkley, Interim Chief Financial Officer. During the question-and-answer portion of the call, our presenters will be joined by Matt Bonakdarpour, Chief Technology Officer; and Frank Palmer, Chief Insurance Officer.

早上好，感謝您今天加入我們。 Root 主持本次電話會議，討論 2023 年第一季度的盈利結果。聯合創始人兼首席執行官 Alex Timm 參加了今天的電話會議；臨時首席財務官 Megan Binkley。在電話問答部分，首席技術官 Matt Bonakdarpour 將與我們的演講者一起參與；和首席保險官弗蘭克·帕爾默。

Last evening, Root issued a shareholder letter announcing its financial results. While this call will reflect items discussed within that document, for more complete information about our financial performance, we also encourage you to read our Q1 2023 Form 10-Q, which was filed with the Securities and Exchange Commission last evening.

昨晚，Root 發布了一封股東信，宣布其財務業績。雖然本次電話會議將反映該文件中討論的內容，但要了解有關我們財務業績的更完整信息，我們還鼓勵您閱讀我們昨晚向美國證券交易委員會提交的 2023 年第一季度 10-Q 表格。

Before we begin, I want to remind you that matters discussed on today's call will include forward-looking statements related to our operating performance, financial goals and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinions as of the date of this call, and we undertake no obligation to revise this information as a result of new developments that may occur. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause our actual results to differ materially from those expected and described today. In addition, we are subject to a number of risks that may significantly impact our business and financial results. For a more detailed description of our risk factors, please review our Form 10-K for the year ended December 31, 2022, where you will see a discussion of factors that could cause the company's actual results to differ materially from these statements as well as our shareholder letter and Q1 Form 10-Q released last evening. A replay of this conference call will be available on our website under the Investor Relations section.

在開始之前，我想提醒您，今天的電話會議討論的事項將包括與我們的經營業績、財務目標和業務前景相關的前瞻性陳述，這些陳述基於管理層當前的信念和假設。請注意，這些前瞻性陳述反映了我們截至本次電話會議之日的意見，我們不承擔因可能發生的新事態發展而修改此信息的義務。前瞻性陳述受到各種風險、不確定性和其他因素的影響，這些因素可能導致我們的實際結果與今天的預期和描述存在重大差異。此外，我們還面臨許多可能對我們的業務和財務業績產生重大影響的風險。有關我們風險因素的更詳細描述，請查看截至 2022 年 12 月 31 日的年度 10-K 表格，其中您將看到對可能導致公司實際結果與這些陳述存在重大差異的因素的討論，以及我們的股東信和昨晚發布的第一季度 10-Q 表格。本次電話會議的重播將在我們網站的投資者關係部分提供。

I would also like to remind you that during the call, we will discuss some non-GAAP measures while talking about Root's performance. You can find reconciliations of those historical measures to the nearest comparable GAAP measures in our shareholder letter released last evening and our Form 10-Q filed with the SEC, which are posted on our website at ir.joinroot.com.

我還想提醒您，在電話會議中，我們將在談論 Root 業績的同時討論一些非 GAAP 指標。您可以在我們昨晚發布的股東信函以及我們向 SEC 提交的 10-Q 表格中找到這些歷史衡量標準與最接近的可比 GAAP 衡量標準的對賬，這些數據發佈在我們的網站 ir.joinroot.com 上。

I will now turn the call over to Alex Timm, Root's Co-Founder and CEO.

我現在將把電話轉給 Root 聯合創始人兼首席執行官 Alex Timm。

Thank you, Jodi. In Q1 of 2023, we grew total new writings quarter-over-quarter 25% while reducing our accident period loss ratio to 69%. This resulted in improving adjusted EBITDA by 78% on a year-over-year basis, which was driven by the broad work and decisive actions taken in 2022 to reset the foundation of the business. We are now positioned with a loss ratio better than the industry, allowing us to scale new writings on our path to driving profitability. Furthermore, we continue to prove our differentiation in the embedded channel and are excited to announce we finalized a third partnership.

謝謝你，喬迪。 2023 年第一季度，我們的新寫作總量環比增長 25%，同時將事故期損失率降低至 69%。這導致調整後 EBITDA 同比提高 78%，這是由於 2022 年為重設業務基礎而開展的廣泛工作和果斷行動所推動的。現在，我們的損失率優於行業，這使我們能夠在推動盈利能力的道路上擴大新的規模。此外，我們繼續證明我們在嵌入式渠道中的差異化，並很高興地宣布我們最終確定了第三個合作夥伴關係。

I'd like to take this opportunity to discuss the key elements of our differentiation. Having built our company on a flexible technology stack, allowing customers to get a quote without ever touching a keyboard, we are able to create seamless, real-time, quote-to-bind experiences in the moments that are most relevant to consumers. This drives adoption rates, as shown by an over 3x increase in our attach rates since launching our fully-embedded product.

我想藉此機會討論一下我們差異化的關鍵要素。我們的公司建立在靈活的技術堆棧上，允許客戶無需觸摸鍵盤即可獲得報價，因此我們能夠在與消費者最相關的時刻創建無縫、實時、報價到綁定的體驗。這推動了採用率，自推出完全嵌入式產品以來，我們的附加率增加了 3 倍以上。

Second, our platform continues to advance through our API developments, allowing us to rapidly scale and add new partnerships while materially reducing the cost and time to deployment for those partners. Putting these 3 things together, increasing adoption while decreasing costs and increasing speed to market, that's the differentiated value we provide to our partners.

其次，我們的平台通過 API 開發不斷進步，使我們能夠快速擴展和增加新的合作夥伴關係，同時大幅降低這些合作夥伴的部署成本和時間。將這三件事放在一起，提高采用率，同時降低成本並加快上市速度，這就是我們為合作夥伴提供的差異化價值。

Third, make no mistake, telematics is and has always been a meaningful differentiation for Root. We are actively developing products to incorporate telematics with each of our embedded partners. We see transformational opportunities to create new telematics approaches through the embedded channel. Our state-of-the-art telematics platform allows us to develop unique solutions that work for our partners and their customers.

第三，毫無疑問，遠程信息處理對於 Root 來說始終是一個有意義的差異化優勢。我們正在積極開發產品，將遠程信息處理與我們的每個嵌入式合作夥伴結合起來。我們看到了通過嵌入式渠道創建新的遠程信息處理方法的轉型機會。我們最先進的遠程信息處理平台使我們能夠開發適合我們的合作夥伴及其客戶的獨特解決方案。

All of this has been made possible by a continued investment in our data science and technology. These systems allow us to create better experiences for our customers while making better decisions for our business. We believe long term, this will create a leading competitive advantage in pricing and automation. We are building an enduring company and are driving the company to profitability with the capital we have. We are excited to continue our new writings trajectory and are grateful to our customers, employees and investors.

所有這一切都是通過我們對數據科學和技術的持續投資而實現的。這些系統使我們能夠為客戶創造更好的體驗，同時為我們的業務做出更好的決策。我們相信，從長遠來看，這將在定價和自動化方面創造領先的競爭優勢。我們正在建立一家持久的公司，並利用我們擁有的資本推動公司盈利。我們很高興繼續我們新的寫作軌跡，並對我們的客戶、員工和投資者表示感謝。

I'll now turn the call over to Megan to discuss our operating results in more detail.

我現在將把電話轉給梅根，更詳細地討論我們的經營業績。

Thanks, Alex. Results for the first quarter of 2023 reflects strengthened underwriting performance, reduced expenses and increased new writings. Our full GAAP financial results are disclosed in the shareholder letter published yesterday evening.

謝謝，亞歷克斯。 2023 年第一季度的業績反映了承保業績的增強、費用的減少和新承保的增加。我們完整的 GAAP 財務業績已在昨天晚上發布的股東信中披露。

Gross written premium for the quarter was $135 million, a 28% decline year-over-year. Gross earned premium was $130 million, a 26% decline. The contraction in premium is expected given our stricter underwriting measures, rate we have taken and our current growth strategy. We anticipate an opportunity to return to measured growth within the next year based on the recent success in our direct channel and the potential of our embedded offerings.

該季度的毛承保保費為 1.35 億美元，同比下降 28%。毛收入保費為 1.3 億美元，下降 26%。鑑於我們更嚴格的承保措施、我們所採取的費率以及我們當前的增長策略，預計保費將出現收縮。基於我們直接渠道最近的成功以及我們嵌入式產品的潛力，我們預計明年有機會恢復可衡量的增長。

The gross accident period loss ratio was 69% for the first quarter, a 13-point improvement versus the first quarter of 2022 as we recognized and responded to loss trends early. We remain committed to lowering the loss ratio and expenses to improve our financial performance and the fiscal foundation of the company.

第一季度事故期總損失率為 69%，比 2022 年第一季度提高了 13 個百分點，因為我們儘早認識到損失趨勢並做出反應。我們仍然致力於降低損失率和費用，以改善我們的財務業績和公司的財務基礎。

During Q1, our operating loss was $30 million, a 59% improvement compared to Q1 2022. Adjusted EBITDA, our approximation of operating cash consumption, improved 78% over the prior year. We ended the first quarter of 2023 with $524 million of unencumbered capital compared with $559 million at the end of the fourth quarter.

第一季度，我們的運營虧損為 3000 萬美元，與 2022 年第一季度相比減少了 59%。調整後的 EBITDA（我們運營現金消耗的近似值）比上一年增加了 78%。截至 2023 年第一季度末，我們的未支配資本為 5.24 億美元，而第四季度末為 5.59 億美元。

Turning to our outlook. On a year-over-year basis, we expect to see continued contraction in top line and policy in-force counts through 2023. We continue to prioritize loss ratio improvements and laying the foundation to return to profitable growth. We are closely monitoring emergent trends and will take rate as needed. We remain focused on improving operating results throughout 2023, and believe we are positioning the company to achieve profitability with the capital we have.

轉向我們的展望。與去年同期相比，我們預計到 2023 年，收入和有效政策數量將持續收縮。我們將繼續優先考慮改善損失率，並為恢復盈利增長奠定基礎。我們正在密切關注新出現的趨勢，並將根據需要採取利率。我們仍然致力於提高 2023 年的經營業績，並相信我們將利用我們擁有的資本使公司實現盈利。

With that, we look forward to your questions.

因此，我們期待您的提問。

(Operator Instructions) Our first question comes from the line of Josh Siegler with Cantor Fitzgerald.

（操作員說明）我們的第一個問題來自喬什·西格勒（Josh Siegler）和坎托·菲茨杰拉德（Cantor Fitzgerald）的對話。

So with the strategic marketing deployment this quarter, I'm curious, what distribution channels you primarily have been targeting? And do you expect to ramp up marketing in 2Q if it still achieves your profitability targets?

因此，通過本季度的戰略營銷部署，我很好奇，您主要針對哪些分銷渠道？如果第二季度仍能實現盈利目標，您是否預計會加大營銷力度？

Yes. Thanks for that . Good to hear from you, Josh. This is Alex. In Q1, we continued to -- and a lot of what you saw in the growth in the direct channel was really us just returning to opening up states and returning to being okay with driving new business, right? When the loss ratio spiked and we said we tightened underwriting and we really pulled back in a lot of state, what really you saw in Q1 was as we saw that loss ratio coming in down really close to our targets in the high 60s, we really began to start to open up more states. And so that allowed us to also, and really a small just handful of our states, begin to deploy some of our marketing dollars, and that was primarily in our search marketing channels and our performance marketing channels.

是的。感謝那 。很高興收到你的來信，喬什。這是亞歷克斯。在第一季度，我們繼續——您在直接渠道的增長中看到的很多內容實際上是我們剛剛回到開放狀態並恢復推動新業務，對吧？當損失率飆升時，我們說我們收緊了承保，並且我們確實在很多情況下有所回落，您在第一季度真正看到的是，我們看到損失率確實下降到非常接近我們在 60 多歲的目標，我們真的開始開放更多的州。因此，這使我們也（實際上是少數幾個州）開始部署一些營銷資金，這主要是在我們的搜索營銷渠道和績效營銷渠道中。

We've also done some R&D into direct mail and seeing some success there. And we anticipate that we're going to continue to see those -- the success that we see currently in Q1 and Q2 as well. Part of this is also driven by a favorable macro environment, where with our loss ratios in just a superior position to many of our competitors, we are really positioned well to actually drive new writings into market in this period of time while many others aren't.

我們還對直郵進行了一些研發，並取得了一些成功。我們預計我們將繼續看到這些——我們目前在第一季度和第二季度看到的成功。這在一定程度上也是由有利的宏觀環境推動的，我們的損失率僅比許多競爭對手處於優勢地位，我們確實處於有利位置，可以在這段時間內將新作品推向市場，而其他許多人則不然。 t。

Understood. That's very helpful color. And then when we're thinking about long-term mix of the company, what percentage of new writings do you expect to generate from embedded versus direct channels over the long term?

明白了。這是非常有用的顏色。然後，當我們考慮公司的長期組合時，您預計從長遠來看，嵌入式渠道與直接渠道產生的新作品百分比是多少？

I think over the long term, we're very bullish on the embedded opportunity. We're really excited by the 2 additional partners that we signed already this year and are looking forward to actually launching those products.

我認為從長遠來看，我們非常看好嵌入式機會。我們對今年已經簽署的另外 2 個合作夥伴感到非常興奮，並期待著實際推出這些產品。

We do believe that over the long term, you're going to continue to see a shift into the embedded channel. We believe that it creates better customer experiences in meeting customers in their moments of need and that, that results in superior and better unit economics and business outcomes. And so over the long term, we do expect to see embedded to become the lion's share of the business. But we also know that the Internet is a big place, it's not going to go away overnight, and we're excited to be able to drive profit in our direct channel as well.

我們確實相信，從長遠來看，您將繼續看到向嵌入式渠道的轉變。我們相信，它可以在滿足客戶需要時創造更好的客戶體驗，從而帶來更卓越的單位經濟效益和業務成果。因此，從長遠來看，我們確實預計嵌入式將成為該業務的最大份額。但我們也知道互聯網是一個很大的地方，它不會在一夜之間消失，我們很高興能夠在我們的直接渠道中增加利潤。

Your next question comes from the line of Tommy McJoynt with KBW.

您的下一個問題來自 KBW 的 Tommy McJoynt。

Looking at the cash flow statement, the operating cash outflow jumped a bit in the first quarter, and it looks like it was mostly driven by working capital changes. Is there anything seasonal in 1Q that we should be on the lookout for? And then looking ahead, how do you expect the cash flows to trend throughout the year?

從現金流量表來看，一季度經營性現金流出略有增加，看起來主要是由營運資金變化推動的。第一季度有什麼季節性因素值得我們關注嗎？然後展望未來，您預計全年現金流趨勢如何？

Thanks, Tommy. This is Megan. I'm really glad you asked that question because it's important for us to have an opportunity to describe our cash burn, and what you're seeing reflected in the GAAP statement of cash flows is primarily a change in the balance sheet. So that's really reflective of the significant change in our liabilities quarter-over-quarter, and that's really been driven primarily by a reduction in our loss reserves.

謝謝，湯米。這是梅根。我真的很高興你問了這個問題，因為對我們來說，有機會描述我們的現金消耗情況很重要，而你在公認會計準則現金流量表中看到的反映主要是資產負債表的變化。因此，這確實反映了我們的負債環比的重大變化，而這實際上主要是由我們的損失準備金的減少推動的。

And I would say to truly understand our cash burn, a more relevant metric that we focus on is our unencumbered cash. And that balance at the end of Q1 was $524 million, which was compared to $559 million in Q4. So it's a change of $35 million quarter-over-quarter and really reflective of what we consider to be the true cash burn. We do expect that the cash burn is going to be significantly lower in 2023 compared to 2022, and that's really consistent with the material improvement that we're expecting in our operating results.

我想說，要真正了解我們的現金消耗情況，我們關注的一個更相關的指標是我們的未支配現金。第一季度末的餘額為 5.24 億美元，而第四季度末的餘額為 5.59 億美元。因此，季度環比變化為 3500 萬美元，真正反映了我們認為的真實現金消耗情況。我們確實預計 2023 年的現金消耗將顯著低於 2022 年，這與我們對經營業績的實質性改善的預期是一致的。

In terms of run rate and trend, I mean you can expect that the quarterly burn for the rest of 2023 is going to be lower than it was in Q1. But again, we feel very confident in terms of our capital position. And yes, we feel good about where we're at today.

就運行率和趨勢而言，我的意思是，您可以預計 2023 年剩餘時間的季度消耗將低於第一季度。但我們再次對我們的資本狀況充滿信心。是的，我們對今天的處境感覺良好。

And then my second question here, you guys have obviously been taking and getting approval for a lot of rate over the past year or so. Are you guys still actively seeking rate increases in certain geographies? And are those at the same magnitude that you've been incorporating over the past year?

然後是我的第二個問題，在過去一年左右的時間裡，你們顯然已經接受並獲得了很多利率的批准。你們還在積極尋求某些地區的加息嗎？這些與您去年合併的規模相同嗎？

Yes, not in the same magnitude. So we do see -- still see high single-digit trends. So we are consistently seeking rate increases throughout this year, even in states where we are at target because we are expecting that trend. We did disclose, I think we're about at target in about 80% of our premium. And so we do think that there are still some states that do need more than single-digit trends, but those are fewer than they were last year. So we still expect to take rate but not at the same magnitude that we did last year.

是的，不是同一個量級。所以我們確實看到——仍然看到高個位數的趨勢。因此，我們今年一直在尋求加息，即使是在我們達到目標的州，因為我們預計會出現這種趨勢。我們確實透露過，我認為我們已經達到了保費 80% 左右的目標。因此，我們確實認為仍然有一些州確實需要超過個位數的趨勢，但這些趨勢比去年要少。因此，我們仍然預計會加息，但幅度不會達到去年的水平。

Your next question comes from the line of Peter Phipson with Evercore.

你的下一個問題來自 Peter Phipson 和 Evercore 的對話。

My first question is you guys have seen a big benefit from mix helping reduce your frequency, and it looks like renewal as a percentage of new has stabilized now in sort of the high 70s. So I guess, do you have any updated expectation on if you can still see negative frequency as this continues to stabilize?

我的第一個問題是，你們已經看到了混合幫助降低頻率的巨大好處，而且看起來更新的百分比現在已經穩定在 70 多歲左右。所以我想，隨著這種情況繼續穩定，您是否仍然可以看到負頻率，您是否有任何更新的期望？

Yes. I think, first, I'd say we do tenure adjust the frequencies that we report. So that does take into account the new versus renewal mix, and we believe that a lot of that frequency improvement that we're seeing year-over-year is due to the significant improvements we've made in both underwriting and then as well as segmentation.

是的。我認為，首先，我們會根據任期調整我們報告的頻率。因此，這確實考慮到了新的與續訂的組合，我們相信，我們所看到的逐年頻率改善很大程度上是由於我們在承保和之後方面所做的重大改進分割。

So really throughout the last 12 to 18 months, almost all of our rate filings did not just increase base rates. They also were deploying our new segmentation models. And so from those models, we saw a fairly material improvement in our ability to segment risk, which has led to a more preferred profile, particularly with respect to frequency.

因此，實際上在過去 12 到 18 個月中，我們幾乎所有的費率申請都不僅僅是提高了基本費率。他們還部署了我們的新細分模型。因此，從這些模型中，我們看到我們劃分風險的能力有了相當大的改進，這導致了更優選的配置文件，特別是在頻率方面。

Okay. Great. And I might have misheard, but earlier, I think in the commentary said you anticipate an opportunity to potentially return to growth within the year or within a year. Could you just elaborate on that and maybe what you're expecting? Is this something you're expecting in the first half of '24? And maybe sort of talk about the magnitude of how quickly you turn that growth back on.

好的。偉大的。我可能聽錯了，但早些時候，我認為評論中說您預計有機會在一年內或一年內恢復增長。您能否詳細說明一下這一點以及您的期望？這是您在 24 年上半年所期待的事情嗎？也許可以談談你恢復增長的速度有多快。

Yes. Thanks, Peter. I think that's a really good question, given where we are. Growing the writings 25% quarter-over-quarter is something that I think we very happy with, especially while showing such material loss ratio reduction, and we're continuing to see a very favorable environment. And as we have continued to see more of our states and a lot of the work we did last year come through actuals and see that loss ratio has improved in many of these states, we're excited to actually continue to deploy marketing dollars just because of the profitability of those dollars. And so we're excited by the new writings trajectory.

是的。謝謝，彼得。考慮到我們目前的處境，我認為這是一個非常好的問題。我認為我們對季度環比增長 25% 的著作量感到非常滿意，尤其是在材料損失率下降的同時，我們繼續看到一個非常有利的環境。隨著我們繼續看到更多的州以及我們去年所做的許多工作都通過實際情況得出，並看到其中許多州的損失率有所改善，我們很高興能夠繼續部署營銷資金，因為這些美元的盈利能力。因此，我們對新的寫作軌跡感到興奮。

We're also equally, if not more excited, by the 2 new embedded partners that we have that we think will provide substantial new writings. Now we want to launch those in the coming months. It will take time to get those products into market, but we have all the faith in the world that those are 2 excellent partners that will provide significant scale for the business.

我們也同樣對我們擁有的兩個新的嵌入式合作夥伴感到興奮，我們認為他們將提供大量的新著作。現在我們希望在未來幾個月內推出這些產品。將這些產品推向市場需要時間，但我們堅信這兩個優秀的合作夥伴將為我們的業務帶來巨大的規模。

In terms of our guidance and what we're expecting, we're reiterating what we said in Q4.

就我們的指導和預期而言，我們重申了我們在第四季度所說的內容。

(Operator Instructions) Your next question comes from the line of Charlie Lederer with Citibank.

（操作員說明）您的下一個問題來自花旗銀行的 Charlie Lederer。

Great. I guess can you expand on the comments you made about the telematics efforts in the embedded channel. Does that add some friction? Or how do you get around that? And does it differ by the 3 different partners?

偉大的。我想您能否詳細闡述您對嵌入式渠道中遠程信息處理工作的評論。這會增加一些摩擦嗎？或者你如何解決這個問題？三個不同的合作夥伴有什麼不同嗎？

Yes. Thanks for that question, Charlie. It's something that we're really excited by. I think the embedded opportunity is incredibly interesting because what it allows us to do, whether it's through being closer to vehicles or whether it's being embedded in different financial applications, it allows us to actually collect telematics data in really unique ways. That could be well before a consumer ever even considers purchasing car insurance.

是的。謝謝你提出這個問題，查理。這是我們非常興奮的事情。我認為嵌入式機會非常有趣，因為它允許我們做的事情，無論是通過更接近車輛還是嵌入到不同的金融應用程序中，它使我們能夠以真正獨特的方式實際收集遠程信息處理數據。這可能早在消費者考慮購買汽車保險之前。

And so this allows us to really seamlessly and more effortlessly build in that telematics collection process, which has always been a very difficult part in product experience for many consumers and many companies, in really unique ways. It also allows us to get other insights and data sources. So for example, pulling vehicle data directly versus using smartphone data. We still like smartphone data, but it provides additional opportunities there.

因此，這使我們能夠真正無縫、更輕鬆地構建遠程信息處理收集流程，這對於許多消費者和許多公司來說一直是產品體驗中非常困難的部分，而且方式非常獨特。它還使我們能夠獲得其他見解和數據源。例如，直接提取車輛數據與使用智能手機數據不同。我們仍然喜歡智能手機數據，但它提供了額外的機會。

And so we don't think it actually increases friction. We think what it does is it allows us to actually reduce friction in the telematics purchase experience because of the nature of where we're embedding. And it is different for each partner because each partner has a different embedded use case and a different customer base. And the important thing there is that you've got to have a very flexible telematics system and platform that you fully control, which we do, which differentiates Root, and that allows us to really create these custom telematics experiences tailored to each of our embedded partners' customers.

所以我們認為它實際上並沒有增加摩擦。我們認為它的作用是讓我們真正減少遠程信息處理購買體驗中的摩擦，因為我們嵌入的位置的性質。每個合作夥伴的情況都是不同的，因為每個合作夥伴都有不同的嵌入式用例和不同的客戶群。重要的是，您必須擁有一個非常靈活的遠程信息處理系統和平台，您可以完全控制，我們就是這樣做的，這使 Root 與眾不同，並且使我們能夠真正創建針對我們每個嵌入式設備量身定制的定制遠程信息處理體驗。合作夥伴的客戶。

Great. That's helpful. Any color on the reserve development in the quarter? Are you able to break that down by channel?

偉大的。這很有幫助。本季度的儲備發展有什麼進展嗎？您能按渠道細分嗎？

Yes. This is Frank. We are not breaking that down by channel. It's mostly in the damage coverages.

是的。這是弗蘭克.我們不會按渠道細分。主要是在損害賠償範圍內。

And there are no further questions at this time. That will conclude today's conference call. You may now disconnect.

目前沒有其他問題。今天的電話會議到此結束。您現在可以斷開連接。