Trupanion Inc (TRUP) 2025 Q1 法說會逐字稿

Good day and welcome to the Trupanion first quarter 2025 earnings conference call.

大家好，歡迎參加 Trupanion 2025 年第一季財報電話會議。

(Operator Instructions)

（操作員指示）

I would now like to turn the conference over to Gil Melchior, Director of Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係總監 Gil Melchior。請繼續。

Good afternoon. And welcome to Trupanion's first quarter 2025 financial results conference call. Participating on today's call are Margie Tooth, Chief Executive Officer and President; and Fawwad Qureshi, Chief Financial Officer.

午安.歡迎參加 Trupanion 2025 年第一季財務業績電話會議。參加今天電話會議的有執行長兼總裁 Margie Tooth 和財務長 Fawwad Qureshi。

For ease of reference, we've included a slide presentation to accompany today's discussion, which will be made available on our Investor Relations website on our quarterly earnings tab.

為了方便參考，我們在今天的討論中附上了一份幻燈片演示，該演示將在我們的投資者關係網站的季度收益標籤上提供。

Before we begin, please be advised that remarks today will contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements. These include but are not limited to statements regarding our future operations, key operating metrics, opportunities and financial performance, pricing, and veterinary industry inflation.

在我們開始之前，請注意，今天的評論將包含前瞻性陳述。除歷史事實陳述之外的所有陳述均為前瞻性陳述。這些包括但不限於有關我們未來營運、關鍵營運指標、機會和財務表現、定價和獸醫行業通膨的聲明。

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 today's earnings release, as well as the company's most recent reports, including Form 10-K, 10-Q, and 8-K, filed with the Securities and Exchange Commission.

這些聲明涉及高度已知和未知的風險和不確定性，可能導致實際結果與討論的結果有重大差異。今天的收益報告以及公司向美國證券交易委員會提交的最新報告（包括 10-K、10-Q 和 8-K 表格）中詳細討論了這些風險和其他風險和不確定性。

Today's presentation contains references to non-GAAP financial measures that Mandarin uses to evaluate the company's performance, including without limitation, cost of paying veterinary invoices, variable expenses, fixed expenses, adjusted operating income, acquisition costs, internal rate of return, adjusted EBITDA, and pre-cash flow.

今天的簡報中包含了 Mandarin 用於評估公司業績的非 GAAP 財務指標，包括但不限於支付獸醫發票的成本、變動費用、固定費用、調整後的營業收入、收購成本、內部收益率、調整後的 EBITDA 和預付現金流。

When we use the term adjusted operating income or margin, it is intended to refer to a non-GAAP operating income or margin before new pet acquisition and development expenses.

當我們使用「調整後的營業收入或利潤率」一詞時，它是指新寵物購買和開發費用之前的非 GAAP 營業收入或利潤率。

Unless otherwise noted, all marginals and expenses will be presented on a non-GAAP basis and excluding stock-based compensation expense and depreciation expense. These non-GAAP measures are in addition to another substitute for measures of financial performance prepared in accordance with the US GAAP.

除非另有說明，所有邊際收入和費用均以非公認會計準則為基礎列示，且不包括股票薪酬費用和折舊費用。這些非公認會計準則衡量指標是依照美國公認會計準則編製的財務績效衡量指標的補充和替代。

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.

鼓勵投資者查看這些非 GAAP 財務指標與最直接可比較的 GAAP 結果的對帳情況，可在今天的新聞稿中找到。

Lastly, I would like to remind everyone that today's conference call is also available via webcast on Trupanion's investor relation's website. A replay will also be available on the site.

最後，我想提醒大家，今天的電話會議也可以透過 Trupanion 投資人關係網站上的網路直播觀看。網站上也將提供重播。

I will now hand over the call to Margie.

我現在將電話交給瑪姬。

Good afternoon, everyone. It's a pleasure to be with you today to discuss our first quarter results. The year is off to a strong start. And I'm pleased to report overachievement on both total revenue and total adjusted operating income in the quarter.

大家下午好。我很高興今天能和大家一起討論我們的第一季業績。今年開局強勁。我很高興地報告本季的總收入和總調整後營業收入均超額完成。

Most notable was the increase in our subscription adjusted operating income, which increased 53% year over year to over $30 million. Across the business we executed to, or better than plan with the delivery of steady improvements across key financial metrics and continued advancements in operating efficiencies in critical areas of the business.

最值得注意的是我們的訂閱調整後營業收入年增 53%，達到 3,000 多萬美元。在整個業務中，我們的執行情況達到或超過了計劃，關鍵財務指標穩步改善，關鍵業務領域的營運效率不斷提高。

Within our core subscription business, revenue was $233 million, up 16% year over year. The majority of this growth was driven by increases in average revenue per pet, reflecting the pricing actions we've taken over the past two years, and a modest additional lift from growth in enrolled pets.

我們的核心訂閱業務收入為 2.33 億美元，較去年同期成長 16%。這一增長主要得益於每隻寵物平均收入的增長，這反映了我們過去兩年採取的定價措施，以及註冊寵物數量增長帶來的適度額外提升。

A meaningful step up in subscription adjusted operating income was driven by two key components: an improving loss ratio and efficiencies operationally.

訂閱調整後營業收入的顯著成長得益於兩個關鍵因素：損失率的改善和營運效率的提升。

We made continued progress toward our annual target value proposition with a substantial year over year increase of 350 basis points, ending the quarter at 71.8%. This coupled with efficiencies stemming from our transition to our internal technology platform, [Vision] has enabled some solid operational gains, allowing us to lower invoice processing costs while enhancing the member experience and reducing overall variable expenses.

我們繼續朝著年度目標價值主張邁進，與去年同期相比大幅成長了 350 個基點，本季末達到 71.8%。再加上我們向內部技術平台轉型帶來的效率提升，[Vision] 實現了一些穩健的營運收益，使我們能夠降低發票處理成本，同時增強會員體驗並降低整體變動費用。

Since its rollout, we've brought claims inventory to near-record lows and meaningfully increased both the speed and frequency of invoice payments. As a monthly recurring revenue business, member retention is critical to our long-term, sustainable growth. In Q1, reported monthly average retention improved quarter on quarter for the first time in 12 quarters to 98.28%.

自推出以來，我們已將索賠庫存降至接近歷史最低水平，並顯著提高了發票支付的速度和頻率。作為每月經常性收入的業務，會員保留對於我們的長期可持續成長至關重要。第一季度，報告的月平均留存率 12 個季度以來首次環比提高，達到 98.28%。

The sequential uptick was largely driven by improvements within our core Trupanion product, especially among members who received rate increases greater than 20%. These rate changes were not taken lightly. They reflect a focused response to the rising cost of veterinary care and a commitment to maintaining long-term sustainability.

連續上漲主要是由於我們核心 Trupanion 產品的改進，尤其是那些費率上漲超過 20% 的會員。這些利率變化並不是輕易做出的。它們體現了對不斷上漲的獸醫護理成本的重點應對以及對維持長期可持續性的承諾。

Worth noting, while reported cost trends across the broader animal health industry suggest some pricing moderation, the costs we observe within our own book remain largely in line with our expectations. We continue to monitor trends very closely and partner with others across the industry to stay informed and to react as needed.

值得注意的是，雖然報告的整個動物保健行業的成本趨勢表明價格有所緩和，但我們在自己的帳簿中觀察到的成本基本上符合我們的預期。我們將繼續密切關注趨勢，並與業內其他機構合作，以隨時了解情況並根據需要做出反應。

That said, it's important to highlight that the Trupanion experience is fundamentally different. Our members visit a veterinarian more frequently and are more likely to follow the veterinarian's recommended treatment, which naturally results in a high use of our product.

話雖如此，必須強調的是，Trupanion 的體驗有著根本的不同。我們的會員更頻繁地去看獸醫，並且更有可能遵循獸醫建議的治療方法，這自然會導致我們產品的使用率更高。

Trupanion's cost of care has consistently indexed above the CPI norm for these reasons. Looking ahead with the majority of pet parents transitioning out of our highest rate cohorts and into more stable pricing tiers, we will be placing even more emphasis on the early-stage member experience.

由於這些原因，Trupanion 的照護費用一直高於 CPI 標準。展望未來，隨著大多數寵物主人從我們的最高費率群體轉向更穩定的價格層級，我們將更加重視早期會員的體驗。

With this in mind, we've adjusted our pet acquisition investment to add resources and realigned our marketing structure to better integrate acquisition and retention. We're also expanding the use of our patented vet portal, which supports real-time payments directly to the veterinary hospital, helping members avoid out of pocket costs while pursuing optimal treatment solutions for their pets.

考慮到這一點，我們調整了寵物收購投資以增加資源，並重新調整了行銷結構，以更好地整合收購和保留。我們也正在擴大我們專利獸醫入口網站的使用範圍，該入口網站支援直接向獸醫院進行即時支付，幫助會員避免自付費用，同時為他們的寵物尋求最佳治療方案。

With the average subscription pet staying with us for 58 months, there is a long way to go to return to our historical average retention rate. Yet I am encouraged by our work on this front and its potential impact on member experience over time.

由於訂閱寵物的平均停留時間為 58 個月，因此要恢復到歷史平均保留率還有很長的路要走。然而，我們在這方面的工作及其對會員體驗的潛在影響令我感到鼓舞。

Retention is a significant growth catalyst. New pet acquisition is another, and here too, we're quite pleased with our results. Pet acquisition investment, which is fueled by the healthy expansion in our adjusted operating income, increased 18% year over year in this first quarter and held between our guardrails a 31% internal rate of return.

保留是重要的成長催化劑。獲得新寵物是另一回事，在這方面，我們對結果也非常滿意。寵物收購投資受到我們調整後營業收入健康成長的推動，今年第一季年增 18%，內部報酬率維持在 31% 的範圍內。

We saw a sequential increase in gross pet additions for the core Trupanion product, the direct benefit of compounding our investment in pet growth sequentially for the last three quarters. Disciplined acquisition spends, especially within our efficient veterinary channel, remains a priority, ensuring we maximize return on each dollar invested.

我們看到核心 Trupanion 產品的寵物總數連續增加，這是我們過去三個季度對寵物成長的投資連續增加的直接好處。嚴格的收購支出，特別是在我們高效的獸醫管道內，仍然是我們的首要任務，確保我們最大限度地提高每一美元的投資回報。

The average profit per Trupanion pet was up 46% year over year, reflecting improved margins from focused pricing action and cost efficiencies. This growth in profitability combined with stable retention gives us even greater flexibility to reinvest in high-quality growth opportunities in a large and under penetrated addressable market, which is something discussed at length in this year's shareholder letter.

Trupanion 每隻寵物的平均利潤年增 46%，反映出有針對性的定價行動和成本效率提高了利潤率。獲利能力的成長與穩定的保留相結合，使我們能夠更靈活地在龐大且滲透率低的潛在市場中重新投資於高品質的成長機會，這是今年股東信中詳細討論的內容。

When our pack deployment moves in line with our adjusted operating income growth, we see parallel growth curves, and encouraging demonstration of the flywheel of our business. The combination of stronger attention and improved pet ads contributed to our first meaningful sequential increase in net pet addition in two years.

當我們的電池組部署與調整後的營業收入成長保持一致時，我們會看到平行的成長曲線，以及令人鼓舞的業務飛輪展示。更強的關注度和改進的寵物廣告相結合，促成了我們兩年來寵物淨增加量的首次有意義的連續增長。

In summary, Q1 was a strong start to the year. Performance is tracking largely ahead of our expectations. We're growing the dollars available for reinvestment and are beginning to see a return to growth in new pets. We'll continue to focus on the levers we can control, doubling down on member experience, operating efficiency, and disciplined growth.

總而言之，第一季是今年的一個強勁開端。業績表現遠超過我們的預期。我們正在增加可用於再投資的資金，並開始看到新寵物數量的成長。我們將繼續專注於我們能夠控制的槓桿，加倍重視會員體驗、營運效率和有紀律的成長。

As we look to the future, we're mindful of the broader macro environment. It is at times such as these that true planning comes into its own. We are designed to support pet parents during times of uncertainty, and we've proven time and again the resilience of our business model.

展望未來，我們關注更廣泛的宏觀環境。正是在這樣的時候，真正的規劃才得以發揮作用。我們旨在為寵物主人在不確定的時期提供支持，並且我們已經一次又一次地證明了我們商業模式的彈性。

Q1 was an encouraging indication that our strategy is working, and we look forward to building on our progress in the months and quarters ahead.

第一季是一個令人鼓舞的跡象，表明我們的策略正在發揮作用，我們期待在未來幾個月和幾季取得更大進展。

Before handing it over to Fawwad, I'd like to briefly refer you to our recently published shareholder letter, which can be found on our IR website. I've referenced it during this call and for good reason. It includes a comprehensive review of our 2024 performance, key strategic updates, and a deeper dive into some of the more nuanced elements of our business.

在將其交給 Fawwad 之前，我想簡要地向您介紹我們最近發布的股東信，您可以在我們的 IR 網站上找到該信。我在這次通話中提到了這一點，而且理由充分。其中包括對我們 2024 年業績的全面回顧、關鍵策略更新，以及對我們業務中一些更細微元素的深入分析。

With that, I'll hand the call over to Fawwad.

說完這些，我就把電話交給 Fawwad。

Thanks, Margi. And good afternoon, everyone. Today, I will share additional details around our first quarter performance as well as provide our outlook for the second quarter and full year 2025.

謝謝，瑪吉。大家下午好。今天，我將分享我們第一季業績的更多細節，並提供我們對第二季和 2025 年全年的展望。

Total revenue for the quarter was $342 million, up 12% year over year. Within our subscription business, revenue was $233.1 million, up 16% year over year and up 18% on a constant currency basis.

本季總營收為 3.42 億美元，年增 12%。我們的訂閱業務收入為 2.331 億美元，年增 16%，以固定匯率計算成長 18%。

Total monthly average revenue per pet for the quarter was $77.53, up 11% over the prior year period. As expected, ARPO for our [quartz] Trupanion brand expanded faster at 12% year over year and 13% on a constant currency basis.

本季每隻寵物的每月平均總收入為 77.53 美元，比去年同期成長 11%。正如預期的那樣，我們 [石英] Trupanion 品牌的 ARPO 擴張速度更快，年增 12%，以固定匯率計算成長 13%。

Total subscription pets increased 5% year over year to approximately 153,000 pets as of March 31. This includes over 54,000 pets in Europe, a majority of which are currently underwritten through an MGA structure.

截至 3 月 31 日，訂閱寵物總數年增 5%，達到約 153,000 隻。其中包括歐洲的 54,000 多隻寵物，其中大多數目前透過 MGA 結構承保。

Average monthly retention for the trailing 12 months for all subscription pets was 98.28% down versus Q1 last year, which was 98.41%, but up sequentially from Q4, which was 98.25%.

所有訂閱寵物過去 12 個月的平均每月保留率為 98.28%，低於去年第一季的 98.41%，但環比第四季的 98.25% 有所上升。

The subscription business cost of paying veterinary invoices was $167.4 million, resulting in a value proposition of 71.8%, a healthy improvement from 75.3% in the prior year period and particularly impressive given the higher seasonality that our invoice costs generally experienced during the first half of the year.

支付獸醫發票的訂閱業務成本為 1.674 億美元，價值主張為 71.8%，較去年同期的 75.3% 有了健康的改善，尤其令人印象深刻的是，我們的發票成本在上半年通常經歷更高的季節性。

The drivers of this improvement were marginal expansion from our ongoing pricing actions and continued efficiency in our cost of processing invoices. These improvements more than offset adverse development from prior periods in the quarter totaling $1.7 million or approximately 70 basis points of revenue.

這項改善的驅動因素是我們持續的定價行動帶來的邊際擴張以及我們處理發票的成本持續有效率。這些改進足以抵消本季前期總計 170 萬美元或約 70 個基點的不利發展。

Assuming cost of care continues to trend in line with our expectations, we anticipate the pace of year over year margin expansion will moderate as our pricing and claims experience become more closely aligned.

假設護理成本繼續按照我們的預期趨勢發展，我們預計隨著我們的定價和索賠經驗變得更加緊密結合，利潤率同比擴張的速度將會放緩。

As a percentage of subscription revenue, variable expenses were 9.1%, down from 9.6% a year ago. The primary driver of this improvement has been the strong performance of our claims and contact center teams, supported by the technology and operating investments we have made.

佔訂閱收入的百分比為 9.1%，低於一年前的 9.6%。這項改善的主要驅動力是我們的索賠和聯絡中心團隊的強勁表現，這得益於我們在技術和營運方面的投資。

Fixed expenses as a percentage of revenue were 6.2%, up from 5.3% in the prior year period in line with our expectations. The largest driver of this change was an increase in our Canadian underwriting fees that we highlighted last quarter.

固定支出佔收入的百分比為 6.2%，高於去年同期的 5.3%，符合我們的預期。這項變化的最大驅動因素是我們在上個季度強調的加拿大承銷費用的增加。

Our expectation is that we will see expense leverage throughout the year as we transition to our wholly owned underwriting entity for our Canadian business. Our subscription business delivered adjusted operating income of $30 million, an increase of 53% from last year, and contributed over 96% of our total AOI for the quarter.

我們的預期是，隨著我們加拿大業務向全資承保實體過渡，我們將全年看到費用槓桿。我們的訂閱業務實現了 3,000 萬美元的調整後營業收入，比去年增長了 53%，並貢獻了本季總 AOI 的 96% 以上。

Subscription adjusted operating margin was 12.9% of subscription revenue. This is up from 9.7% in the prior year and represents approximately 320 basis points of margin expansion.

訂閱調整後的營業利益率為訂閱收入的 12.9%。這比上年的 9.7% 有所上升，利潤率擴大了約 320 個基點。

Now I'll turn to our other business segment which is comprised of revenue from other products and services that have a lower margin profile than our subscription business.

現在我將談談我們的其他業務部門，該部門由利潤率低於我們的訂閱業務的其他產品和服務的收入組成。

Our other business revenue was $108.9 million for the quarter, an increase of 4% year over year. We expect growth for the segment to continue to decelerate as we are no longer enrolling new pets in the majority of US states for our largest partner, Pets Best.

本季我們的其他業務收入為 1.089 億美元，年增 4%。我們預計該部門的成長將繼續減速，因為我們不再為我們最大的合作夥伴 Pets Best 在美國大多數州招募新寵物。

Adjusted operating income for this segment was $1.2 million. Adjusted operating margin for this segment was 1.1%, down from 1.6% last year. The lower margin was a result of higher fixed expenses, offset to some extent by higher gross margins.

該部門調整後的營業收入為 120 萬美元。該部門調整後的營業利潤率為 1.1%，低於去年的 1.6%。利潤率較低是由於固定費用較高，但一定程度上被毛利率較高所抵銷。

In total, adjusted operating income was $31.2 million in Q1, up 46% from Q1 last year and above our expectations. We deployed $17.6 million of this AOI to acquire approximately 63,700 new subscription pets.

整體而言，第一季調整後的營業收入為 3,120 萬美元，較去年第一季成長 46%，高於我們的預期。我們動用了其中的 1760 萬美元來購買大約 63,700 隻新的訂閱寵物。

Excluding the pets that are underwritten through an MGA structure, this translated into an average pet acquisition cost of $267 per pet in the quarter, up from $207 in the prior year period. The estimated internal rate of return on the spend was 31% in the quarter.

不包括透過 MGA 結構承保的寵物，這意味著本季每隻寵物的平均購買成本為 267 美元，高於去年同期的 207 美元。本季支出的預期內部報酬率為 31%。

We also invested $1.4 million in the quarter in development costs. Stock-based compensation expense was $9.5 million in the quarter. As a result, net loss for the quarter improved to $1.5 million or $0.03 per basic and diluted share from a net loss of $6.9 million or $0.16 per basic and diluted share in the prior year period.

本季我們也投資了 140 萬美元用於開發成本。本季股票薪酬支出為 950 萬美元。因此，本季淨虧損從去年同期的 690 萬美元淨虧損或每股基本虧損和稀釋虧損 0.16 美元改善至 150 萬美元或每股基本虧損和稀釋虧損 0.03 美元。

In terms of cash flow, operating cash flow was $16 million in the quarter compared to $2.4 million in the prior year period. Capital expenditures totaled $1.9 million, down from $3.1 million in Q1 last year. As a result, free cash flow was $14 million, up from approximately breakeven in the prior year's first quarter. We ended the quarter from a position of financial strength with $321.8 million in cash and short-term investments.

就現金流而言，本季經營現金流為 1,600 萬美元，去年同期為 240 萬美元。資本支出總計 190 萬美元，低於去年第一季的 310 萬美元。因此，自由現金流為 1,400 萬美元，高於去年第一季的損益兩平點。本季結束時，我們的財務狀況保持強勁，擁有 3.218 億美元的現金和短期投資。

Now I'll turn to our outlook. While we cannot predict the future, especially during these uncertain times, the recurring nature of our business model provides us with a higher degree of visibility into our future performance than most.

現在我來談談我們的展望。雖然我們無法預測未來，尤其是在這些不確定的時期，但我們商業模式的循環性使我們比大多數人對未來表現有更高的視覺性。

For the full year of 2025, we are increasing our guidance to account for Q1 overperformance, as well as favorable conversion rate movements. We now expect total revenue in the range of $1.39 billion to $1.425 billion.

對於 2025 年全年，我們將提高預期，以反映第一季的超額表現以及有利的轉換率變動。我們現在預計總收入在 13.9 億美元至 14.25 億美元之間。

We now expect subscription revenue in the range of $966 million to $989 million representing approximately 14% year-over-year growth at the midpoint. We now expect total adjusted operating income to be in the range of $122 million to $142 million or 15% year-over-year growth at the midpoint.

我們現在預計訂閱收入將在 9.66 億美元至 9.89 億美元之間，中間值年增約 14%。我們現在預計調整後的總營業收入將在 1.22 億美元至 1.42 億美元之間，或以中間值計算年增 15%。

For the second quarter of 2025, total revenue is expected to be in the range of $344 million to $350 million. Subscription revenue is expected to be in the range of $238 million to $241 million representing approximately 15% year-over-year growth at the midpoint.

2025 年第二季度，總營收預計在 3.44 億美元至 3.5 億美元之間。預計訂閱收入將在 2.38 億美元至 2.41 億美元之間，相當於年增約 15%。

Total adjusted operating income is expected to be in the range of $27 million to $30 million. This represents approximately 15% growth year over year at the midpoint.

預計調整後總營業收入將在 2,700 萬美元至 3,000 萬美元之間。這意味著年增長率約為 15%。

As a reminder, our revenue projections are subject to conversion rate movements predominantly between the US and Canadian currencies. For our second quarter in full year guidance, we used a 72% conversion rate in our projections.

提醒一下，我們的收入預測主要受美元和加拿大貨幣之間的匯率變動影響。對於我們第二季的全年指引，我們在預測中使用了 72% 的轉換率。

I mean -- I'll pass it back to Martin.

我的意思是——我會把它交還給馬丁。

Thank you, Fawwad. Before we close, I'm pleased to announce that we'll be hosting our Investor Day again this year on September 17 at our headquarters in Seattle, Washington.

謝謝你，Fawwad。在結束之前，我很高興地宣布，今年我們將於 9 月 17 日在華盛頓州西雅圖的總部再次舉辦投資者日。

This annual event is a great deep dive opportunity for investors to hear directly from team members leading the execution of our 16-month plan in an open Q&A forum.

這項年度活動為投資者提供了深入交流的絕佳機會，他們可以在開放的問答論壇上直接聽取領導我們 16 個月計劃執行的團隊成員的意見。

More immediately, in just two days' time on Saturday, May 3, Fawwad and I will be in Omaha for our annual investor Q&A to follow Berkshire Hathaway's annual shareholder meeting. This is an event I personally look forward to every year and one that presents a unique opportunity to meet with many long-term minded investors in a highly informative setting.

更直接的是，兩天後的 5 月 3 日星期六，Fawwad 和我將在奧馬哈參加伯克希爾哈撒韋公司年度股東大會之後的年度投資者問答會。這是我個人每年都期待的活動，它提供了一個獨特的機會，可以在資訊豐富的環境中與許多具有長期思維的投資者會面。

We hope to see many of you there. Information and registration for both events can be found on our investor relations website.

我們希望在那裡見到你們。這兩項活動的資訊和註冊資訊可以在我們的投資者關係網站上找到。

Finally, I'd like to close by reaffirming the solid results in the quarter. We achieved what we set out to do, and we go into the rest of the year with a healthy tailwind of strong adjusted operating income, leveling of member rate increases, improved retention, and an encouraging step up in pet ads.

最後，我想重申本季的穩健業績。我們實現了既定目標，並在今年剩餘時間裡迎來健康的順風，包括強勁的調整後營業收入、平穩的會員費率增長、更高的保留率以及令人鼓舞的寵物廣告增長。

And with, that we'll open it up to questions.

接下來，我們將開始回答問題。

(Operator Instructions)

（操作員指示）

Brandon Vasquez, William Blair.

布蘭登·巴斯克斯、威廉·布萊爾。

Hi, everyone. Congrats on the quarter and thanks for taking the question. I guess I'll start with one near term, first one and a follow up on a bigger picture one. But one thing obviously on everyone's mind now is are you guys seeing any notable changes after Q1, ever since the macro noise that we've seen in April?

大家好。恭喜本季取得佳績，感謝您提出這個問題。我想我會先從近期的一個問題開始，然後再跟進一個更大的問題。但現在顯然每個人都在想的一件事是，自從我們在四月看到宏觀噪音以來，你們在第一季之後是否看到任何顯著的變化？

Talk to us a little bit how the business is may be trending, if you're seeing anything around inflation changes or retention rate changes or conversion trend changes, anything like that you could give us would be helpful?

請與我們簡單談談業務趨勢，如果您發現通貨膨脹、保留率或轉換趨勢有任何變化，您能提供什麼資訊來幫助我們嗎？

Yeah, thank you for the question, Brandon. I would say as we've gone through the course, we've been monitoring things as you can imagine from a cost perspective and also performance overall just to make sure that we're well on track. So far, we are seeing no changes in terms of what we're expecting.

是的，謝謝你的提問，布蘭登。我想說的是，在我們完成整個過程的過程中，我們一直在從成本角度和整體效能的角度監控事情，以確保我們一切順利。到目前為止，我們還沒有看到我們所期望的變化。

We are seeing strongly volume continuing to come through the vet traffic. I think in Q1 there was a tiny bit down in February, which is somewhat consistent with what we've heard in the macro environment from animal health in general.

我們看到獸醫的流量持續強勁成長。我認為第一季 2 月出現了小幅下降，這與我們在宏觀環境中聽到的動物健康總體情況有些一致。

That picked up again in March, so Q1 ended exactly where we expected in Q2 is continuing in the same vein. So good lead volume, lots of opportunity ahead with conversion. We haven't seen it tank. We haven't seen it dip down. We've seen strength there and we've seen even more strength coming through retention, so we feel good about that too. So nothing as yet and continuing as expected.

3 月這一情況再次回升，因此第一季的結束正如我們預期，而第二季也將延續這一趨勢。如此好的銷售線索量，轉換機會就很多。我們還沒看過它的坦克車。我們還沒有看到它下降。我們已經看到了那裡的力量，我們看到透過保留而產生的更大力量，所以我們對此也感到高興。因此目前還沒有任何進展，一切都如預期進行。

Great. And maybe as a follow up, Margi, in the annual letter you had there were some slides in there or some details around different conversion rates and different territories. So it sounds like you guys have done a lot of analysis there, kind of how you can close the GAAP in the quote, unquote underperforming conversion territories.

偉大的。也許作為後續行動，瑪吉，在您的年度信函中有一些幻燈片或有關不同轉換率和不同地區的詳細資訊。因此聽起來你們已經做了很多分析，例如如何在表現不佳的轉換區域中關閉 GAAP。

So talk to us a little bit now as you're redeploying more packs than how do you kind of get all of these conversion territories to close the GAAP to perform higher? And then just in general, where are these pack spend dollars going to continue to improve ads through the year? Thanks.

那麼，現在請與我們稍微談談，因為您正在重新部署更多的套件，那麼您如何讓所有這些轉換區域關閉 GAAP 以獲得更高的效能？那麼總的來說，這些花費的錢將在全年用於哪些方面繼續改善廣告成效呢？謝謝。

Right, yeah, when we think about conversion, the reason we included that chart is really to help show the dynamic between more mature markets, some that are newer, some that have got different mixes in terms of media spend.

是的，當我們考慮轉換時，我們加入該圖表的原因實際上是為了幫助展示更成熟的市場、一些較新的市場、一些在媒體支出方面具有不同組合的市場之間的動態。

So those particular markets were across the board in North America. We treat every single one of them as an independent territory. They're all led by a territory partner, and we work with a territory partner to understand more about the lead volume coming through the channels. So is it coming from vet? Is it coming from breeder?

因此這些特定市場遍佈北美。我們把每一個地方都視為一個獨立的領土。它們都由一個地區合作夥伴領導，我們與一個地區合作夥伴合作，以便更多地了解透過這些管道獲得的潛在客戶數量。那麼它是從獸醫那裡來的嗎？它是從飼養員那裡來的嗎？

And then we look at dovetailing into that how do you convert that pet parent through? So what we're looking at doing is making sure people understand specifically what is different about Trupanion, and that's the case regardless wherever you are.

然後我們看看如何將寵物主人變成寵物主人？因此，我們要做的是確保人們具體了解 Trupanion 的不同之處，無論你身在何處。

It helps more when you have a higher return, you have a higher referral rate from the vet channel naturally because that's something that people [imminently] endorsement from the white coat. And for us, then it's really a question of understanding, if you're in a rural US area versus a metropolitan Canadian area, you've got very different messaging.

當你獲得更高的回報時，它會更有幫助，你自然會從獸醫管道獲得更高的推薦率，因為這是人們[即將]從白大褂中認可的東西。對我們來說，這實際上是一個理解的問題，如果你在美國農村和加拿大大都市地區，你會得到非常不同的資訊。

So really being very centric to the location, where the lead is coming from, helping to address the needs of that specific pet parent at that moment, and it's different if you have a cat versus a dog or a Labradoodle versus Yorkshire Terrier.

因此，真正以地點為中心，以線索的來源為中心，幫助滿足特定寵物主人當時的需求，如果你養的是貓還是狗，或者養的是拉布拉多犬還是約克夏犬，情況就有所不同。

So it's very granular and hopefully, the letter conveys some of the ways in which we think about it. But each time, regardless of the conversion rate we see, we are always leading into that internal rate of return, which means you can do more in some markets and less than others because the lifetime value will be different.

所以它非常詳細，希望這封信能傳達我們對此的一些看法。但每次，無論我們看到的轉換率是多少，我們總是會考慮內部報酬率，這意味著你可以在某些市場做得更多，而在其他市場做得更少，因為終身價值會有所不同。

And that's the beauty and also the complexity of how we grow the business, but over the course of the next few months, I'm incredibly pleased with the fact that we've seen that adjusted operating income come up. It gives us a lot more fuel to do the testing, to push harder, and to see that growth come through, which we expect to see in the back half of the year.

這就是我們發展業務的美妙之處，也是其複雜性所在，但在接下來的幾個月裡，我非常高興地看到調整後的營業收入上升。它為我們提供了更多的動力來進行測試，更加努力地推動並實現成長，我們預計這將在今年下半年實現。

Jon Block, Stifel.

喬恩·布洛克（Jon Block），斯蒂費爾（Stifel）。

GreatGreat. Thanks, guys. And good afternoon. Margi, maybe the first one, maybe you could just talk about the move away from Accelerant in terms of the underwriter that was in the filing and maybe what that means for the company?

太好了太好了。謝謝大家。午安.Margi，也許是第一個，也許您可以就文件中提到的承銷商而言，談談脫離 Accelerant 的情況，這對公司意味著什麼？

What it means, while this one might be, for both of you guys, what it means from a capital perspective needed to underwrite these pets? And just how we should think about that throughout 2025?

對你們兩個人來說，這可能意味著什麼，從承保這些寵物所需的資本角度來看，這意味著什麼？那麼，2025 年我們該如何看待這個問題呢？

Yeah. I can kick that off, Jon, and hand over to Fawwad. So overall, our strategy in terms of underwriting has always been to try and become vertically integrated. We've had APIC in the United States for a number of years now.

是的。喬恩，我可以開始這份工作，然後交給法瓦德。因此，總體而言，我們在承保方面的策略一直是嘗試實現垂直整合。我們在美國已經擁有 APIC 很多年了。

And Canada was really a matter of time for us to build that muscle to be able to create GPIC, which is our Canadian underwriting entity. Very pleased to have that milestone behind us and to have this entity there and start to transfer the book of business over to our own underwriting unit. It really creates a reduction in frictional costs. That's the sole purpose of doing it, and I'll let forward to speak to the details there.

對我們來說，在加拿大建立實力並成立 GPIC（我們的加拿大承保實體）只是時間問題。非常高興我們已經取得了這一里程碑，並擁有這個實體並開始將業務轉移到我們自己的承保部門。它確實減少了摩擦成本。這就是這樣做的唯一目的，我將詳細說明。

Yeah, hi John. We've been planning for this transition for a while, Margi mentioned in her letter. It has been part of our strategy. And from a capital perspective, there's kind of two components of it. The first is the existing reinsurance agreement that we have. So we have some capital there and then within GPIC, we've already ceded that. So there's existing capital that sits in the entity.

是的，你好，約翰。瑪姬在信中提到，我們已經為這次轉變籌劃了一段時間。這是我們戰略的一部分。從資本角度來看，它有兩個組成部分。首先是我們現有的再保險協議。因此，我們在那裡擁有一些資本，然後在 GPIC 內部，我們已經將其轉讓出去。因此，實體中存在現有資本。

So at this point, just based on the kind of profile of the business, we don't anticipate having to put additional capital in. You'll see, we talked about in the prepared remarks in Q1. You see that step up in the underwriting charge that was planned and that was part of the negotiation, and then, it's obviously part of our guidance as well. So from a capital perspective, we're not anticipating anything different.

因此，目前，僅基於業務狀況，我們預計不需要投入額外資本。您會看到，我們在第一季的準備好的評論中談到了這一點。您會看到承銷費用的增加是計劃中的，也是談判的一部分，而且顯然也是我們指導的一部分。因此，從資本角度來看，我們預期不會發生任何不同的事情。

Got it. Very helpful. Maybe just to shift gears, the NAFIA data that came out not too long ago, seemingly shows another year of share losses for Trupanion. The rate of share loss in '24 actually accelerated versus '23.

知道了。非常有幫助。也許只是為了換個角度，不久前發布的 NAFIA 數據似乎顯示 Trupanion 的市佔率又將出現一年的下滑。24 年的份額流失速度實際上比 23 年有所加快。

And yeah, I think I get some of that, Margi, maybe you sort of argue, look, we pulled back on the pack, span until we right size [EMLR]. And now, we're sort of going down that road.

是的，我想我明白了，瑪吉，也許你會爭辯說，看，我們把背包拉回來，跨度直到我們合適的尺寸[EMLR]。現在，我們正沿著這條路走下去。

So maybe talk to the share losses. Is that sort of what you would lean on? Do you expect to have flattish share in '25, gained some back, and then sorry, just a quick tack on, I don't see the slides up yet?

所以也許可以談談股票損失。這就是你所依賴的嗎？您是否預計 25 年的份額會持平，然後再回升一些，然後抱歉，只是快速補充一下，我還沒有看到幻燈片？

I don't know if you're still going to be providing that information or if you're pulling back on that, but any comments to around some of your European initiatives and if those are still moving forward, as was the plan under the 60 months? Thanks, guys.

我不知道您是否仍會提供這些信息，或者您是否會撤回這些信息，但您對一些歐洲舉措有何評論？這些舉措是否仍在推進，就像 60 個月的計畫一樣？謝謝大家。

Yeah, there's a lot in there. Let me, yeah, let me take the first one. So actually, I'll take the second point. I believe the slides are up, so they should hopefully be there for you to view, and we've got that detail there.

是的，裡面有很多東西。是的，讓我先拿一個。實際上，我要說的是第二點。我相信幻燈片已經上傳了，所以希望您可以在那裡查看，並且我們在那裡提供了詳細資訊。

So if we take a step back and think about our strategy, which has been very consistent. So as a business, we've always stressed that we're looking to grow our adjusted operating income in a highly under penetrated market and invest that money to increase our pet count.

因此，如果我們退一步思考我們的策略，就會發現我們的策略一直都非常一致。因此，作為一家企業，我們一直強調，我們希望在滲透率極低的市場中增加調整後的營業收入，並將這筆資金用於增加我們的寵物數量。

We always look to deploy that in the highest lifetime value product, and we've always done it with our internal rates of return, so between that 30% to 40%. Now to your point, we absolutely doubled down on margin expansion in 2023 and '24, so we really weren't pushing hard on growth while we try to get that marginal expansion pack.

我們始終尋求在最高終身價值產品中部署這一點，並且我們始終透過內部報酬率來實現這一點，因此在 30% 到 40% 之間。現在回到你的觀點，我們在 2023 年和 2024 年絕對加倍了利潤率擴張，因此我們在試圖獲得邊際擴張包的同時並沒有真正努力推動成長。

We have, I think, done a fantastic job of doing that. We've come to you in a really healthy position and we're starting to dip our back into the water of growth. It's not surprising to me to see the market share is different this year than it was last year.

我認為我們在這方面做得非常出色。我們以非常健康的狀態來到你們身邊，並開始重新投入增長的懷抱。對我來說，今年的市佔率與去年有所不同並不感到意外。

We haven't been trying to grow. And I would say the other thing for us is what really is driving this business is where do we drive intrinsic value over time and market share is not a driver of our intrinsic value. It's why we don't chase it.

我們並沒有試著成長。我想說的是，對我們來說，真正推動這項業務發展的是，隨著時間的推移，我們如何推動內在價值，而市場份額並不是我們內在價值的驅動因素。這就是我們不追逐它的原因。

Instead, we're committed to maintaining a discipline in our pricing, and discipline in our growth strategy, and we -- as well as the industry pull back in general with growth, so you saw significantly less money being pushed into pet insurance overall, which naturally, it doesn't satisfy the appetite of the pet parent. You're not seeing as many people come through.

相反，我們致力於在定價和成長策略上保持紀律，而且我們以及整個行業在成長方面都出現了回落，因此你會看到投入寵物保險的資金總體上明顯減少，這自然不能滿足寵物主人的胃口。你不會看到那麼多人經過。

I think for us, it's something we're going to continue to focus on the highest value products and as I mentioned before, with Brandon, we've seen a good step up in leads, a good step up in retention and conversion has made some solid improvements. So overall, we will continue to do what we've always done.

我認為對我們來說，我們將繼續專注於最高價值的產品，正如我之前提到的，透過 Brandon，我們看到了潛在客戶的良好提升，保留率的良好提升，並且轉換率取得了一些實質性的改善。所以總的來說，我們將繼續做我們一直在做的事情。

We've seen people come in and grow faster than us time and time again, and they're not there now. So you know that doesn't concern us. In terms of the other products from the 60-month plan, we're really doubling down our focus on the highest lifetime value products we have, and that of course, is the core Trupanion product.

我們一次又一次地看到有人加入並且比我們成長得更快，但現在他們已經不在那裡了。所以你知道這與我們無關。就 60 個月計劃中的其他產品而言，我們確實加倍關注我們擁有的最高終身價值產品，當然，這是核心的 Trupanion 產品。

Doesn't mean that we are not happy with the progress. It really just means we've been prioritizing where we're going to get the best return over the course of the year. I'll expect to see that slightly shift back to have focus on other areas as well. But for now, we're looking at the course planning business and we'll give you more details as and when that changes.

這並不意味著我們對進展不滿意。這實際上意味著我們一直在優先考慮如何在一年內獲得最佳回報。我希望看到這種關注點稍微轉移，從而將重點放在其他領域。但目前，我們正在研究課程規劃業務，一旦情況發生變化，我們將向您提供更多詳細資訊。

JohnBarnidge, Piper Sandler.

約翰·巴尼奇、派珀·桑德勒。

Thank you for the opportunity. Question on the subscription loss ratio in the quarter. Seasonally a more active quarter in the first half of the year, I believe. Was there any favorable reserve development in the quarter at all? And how much was it seasonally elevated, would you say from where ordinarily would be without that seasonality?

感謝您提供的機會。關於本季訂閱流失率的問題。我認為，從季節性來看，上半年是一個更活躍的一個季度。本季儲備方面有任何有利的發展嗎？那麼，季節性因素導致其增加了多少呢？您認為如果沒有季節性因素，其價格通常會上漲多少呢？

Yeah. So from a reserve perspective, the impact was about $1.7 million in Q1, so that's about 70 basis points of impact. In terms of just Q4 to Q1 linearity, it's actually down a little bit versus historical, so pretty much in line with what we expect that's put their rates in in Q1. So we're always going to see that increase.

是的。因此，從儲備角度來看，第一季的影響約為 170 萬美元，即影響約為 70 個基點。僅就第四季度與第一季的線性關係而言，它實際上與歷史數據相比略有下降，因此與我們預期的第一季利率基本一致。因此我們將一直看到這種增長。

I would say it was slightly lower than what we've seen kind of historically, once you take into account the reserve impact.

我想說，一旦考慮到儲備的影響，它就會比我們歷史上看到的水平略低。

Do you think that's reflecting maybe a bit more dynamic pricing that can anticipate more vets with like that annual calendar year change pricing?

您是否認為這反映了一種更具動態性的定價，可以像每年日曆年變化的定價那樣，預期會有更多的獸醫？

Yeah. I think, maybe I understand this two-part question. I think from our poorest standpoint; we had talked about pricing peaking from a year-over-year standpoint in Q4 and it largely played out. So our expectation is entering this year that the rate of increase would start to diminish. I can turn to Margi in terms of anything that we've seen unique this quarter from pricing perspective.

是的。我想，也許我理解這個由兩部分組成的問題。我認為從我們最糟糕的角度來看，我們曾討論過第四季度價格同比達到峰值，而且這種情況基本上已經發生。因此，我們預計今年成長率將開始下降。我可以向 Margi 諮詢本季從定價角度來看我們所看到的任何獨特之處。

May -- I would say overall, it's pretty consistent with our expectations. We've had a big catch up in 2024, as you know from a right perspective, so that's the shortfall that we had in prior periods wasn't there from Q4 to Q1.

五月——我想說總體而言，這與我們的預期相當一致。從正確的角度來看，我們已經在 2024 年實現了大幅追趕，因此，前期出現的缺口在第四季度到第一季並不存在。

So I think you know in terms of the dynamic pricing, vets have been -- there's been very erratic visit patterns. We're seeing wellness visits are down in general for them, but for us that hasn't impacted it.

所以我認為，就動態定價而言，獸醫的就診模式一直非常不穩定。我們發現他們的健康訪問次數總體上有所下降，但對我們來說這並沒有影響。

We haven't seen any changes in pricing. We're constantly looking at that cost of care and moderating it over the various invoice levels. And I mean for us, it's really just a case of making sure we can monitor it and stay in line with it.

我們沒有看到價格有任何變化。我們不斷關注護理成本，並根據不同的發票等級進行調整。我的意思是，對我們來說，這實際上只是確保我們能夠監控它並與之保持一致的案例。

But I mean seasonality is there, but you know we're just continuing to execute in our plan, get the pricing. It's a cost of goods model. It's in line with our, well, it's slightly ahead of our expectations, which is good news, but we'll keep monitoring for Q2 because there's a lot of noise out there in the industry and making sure that we are in a good position to support the veterinary industry and the members that choose us.

但我的意思是季節性是存在的，但你知道我們只是繼續執行我們的計劃，獲得定價。這是一種商品成本模型。這符合我們的預期，嗯，略高於我們的預期，這是好消息，但我們將繼續關注第二季度，因為行業中存在很多噪音，並確保我們處於良好的位置來支持獸醫行業和選擇我們的成員。

Thank you for that. One last one. I may have missed it, but the amount of capital in excess of the minimums, what was that this quarter? I wasn't able to pick that up. Thanks.

謝謝你。最後一個。我可能錯過了，但本季超過最低限額的資本金額是多少？我沒能意識到這一點。謝謝。

Yeah. So Margi talked about it in the shareholder letter that we ended last year from an [APEC] standpoint at about $140 million over capitalization. That's continued to grow.

是的。因此，瑪姬在去年年底的股東信中從 [APEC] 的角度談到了這一點，資本超支約 1.4 億美元。這一數字還在持續成長。

One of the biggest factors that we talked about last year is the new NAIC risk factors are now in place, so that's expanded even more. So we were more than two hectares of a capitalized versus the required amount.

我們去年討論的最大因素之一是新的 NAIC 風險因素現已到位，因此其範圍進一步擴大。因此，我們的資本化面積超過了所需面積的兩公頃。

If you look at Q1, that continued to increase. We're now close with 3X, a little bit over 3X, overcapitalized. I think we're pivoting the conversation to focus more on how we monetize that surplus.

如果你看一下第一季度，你會發現這個數字還在持續成長。現在，我們的資本已接近 3 倍，略高於 3 倍。我認為我們正在將討論的重點更多地放在如何將盈餘貨幣化上。

So one of those avenues we talked about last year is the ordinary dividends that we've taken. So we've taken twice -- two of those. One was in the latter part, Q4 '23, and then another one in the middle of last year.

因此，我們去年討論的途徑之一就是我們採取的普通股利。所以我們採取了兩次——兩次。一次是在2023年第四季後期，另一次是在去年年中。

So as those conversations progress, of course, once we have something to announce, we will be happy to do so, but we feel like we're in a good position. At the end we want to be responsible and being overcapitalized to the level we are, we view as a positive.

因此，隨著這些對話的進展，當然，一旦我們有消息要宣布，我們就會很高興地這樣做，但我們覺得我們處於有利地位。最後，我們希望承擔起責任，而資本過剩到目前的水平，我們認為是一件正面的事。

Katie Sakys, Autonomous Research.

凱蒂·薩克斯，自主研究。

Yeah^ Yeah, one quick clarification to start off. The 70 bits of year-over-year reserve development that was an adverse impact, correct?

是的^是的，首先要快速澄清一下。70% 的年比儲備成長產生了不利影響，對嗎？

Yeah, that's right. It was an adverse impact.

是的，沒錯。這是一個不利的影響。

Okay, maybe if you can just kind of circle back to that line of questioning and delve a little bit deeper. I mean, it would be helpful to understand, what drove that adverse development and I mean, in commentary earlier in the call, it kind of seems like, Trupanion is assuming last trend in the vet channel, quite similar to what we saw last year.

好的，也許您可以回到這個問題並深入探討。我的意思是，了解導致這種不利發展的原因會很有幫助，我的意思是，在電話會議早些時候的評論中，似乎 Trupanion 正在假設獸醫渠道中的最後趨勢，這與我們去年看到的非常相似。

So I'm just kind of curious, how confident are you that this quarter's, significant improvement to the subscription pet loss ratio, is being picked at the right point and will ultimately result in adverse development in a year's time.

所以我只是有點好奇，你有多大信心，認為本季訂閱寵物損失率的顯著改善是在正確的時機做出的，並最終會在一年後導致不利的發展。

Yeah, I think it's a two-part question. Just in terms of the reserve, I mean there was no change to our process and so there's nothing different in terms of the approach or methodology that led to that, we've seen positive development, adverse development over the course of the last few quarters. That was well within what we would expect in terms of normal range.

是的，我認為這是一個由兩部分組成的問題。就儲備而言，我的意思是我們的流程沒有改變，因此導致這種情況的方法或方法論也沒有什麼不同，在過去幾個季度中，我們看到了積極的發展和不利的發展。這完全符合我們預期的正常範圍。

Yeah, I mean I'll just ask Katie. I think in terms of two forwards point, the ebb and flow, you're going to see some puts and takes of the year in terms of -- do we get that spot on. I think the actual reserving process is such that when you have the software, you have different arrival patterns of invoices.

是的，我的意思是我只會問凱蒂。我認為，就兩個前鋒點而言，即興與衰落，你會看到今年的一些得與失——我們是否能把握住這個機會。我認為實際的預留過程是這樣的，當你有軟體時，你會有不同的發票到達模式。

And also, what you see is as people start to focus on their dollars, they're going to send in those that are being reimbursed, they're going to send in invoices after the fact.

而且，你會看到，當人們開始關注他們的錢時，他們會發送那些正在償還的錢，他們會在事後發送發票。

It's a normal course of business for us. It's something that we're constantly managing to try and get closer and closer to the number, but the reality is in insurance you're always going to have a little bit going there. And obviously, we will continue to improve on that but pleased overall with where our loss ratio ended up. It was definitely ahead of the curve. So all in all, the quarter ended well.

對我們來說，這是正常的業務流程。我們一直在努力嘗試，使之越來越接近這個數字，但現實情況是，在保險業，你總是會遇到一些困難。顯然，我們將繼續改進這一點，但總體而言，我們對我們的損失率最終結果感到滿意。這絕對是領先於時代的。總而言之，本季結束得很好。

Thank you for that. I mean, maybe shifting to the retention figure, I mean, great to see that that's sort of trending in the other direction. This quarter, but obviously, it's a singular data point.

謝謝你。我的意思是，也許轉向保留數字，我的意思是，很高興看到這種趨勢朝著另一個方向發展。本季度，但顯然，這是一個單一的數據點。

Any reason to assume that this isn't a true inflection? You guys have spoken about seasonality on the subscription pet invoice ratio. Can we extrapolate any of that seasonality to expectations for retention? Are there any tailwinds that, you guys, might be expecting to see as the year progresses that could really help support continued retention improvements?

有什麼理由認為這不是真正的詞形變化？你們談到了訂閱寵物發票比率的季節性。我們能否將季節性因素推論為對留存的預期？隨著時間的推移，你們是否預計會看到任何順風，可以真正幫助支持持續的保留改進？

Yeah, it's a great question. It's a big focus for us retention and acquisition this year. We came into the year knowing that having just had such incredibly high increases for our members, the retention was where we'd need to focus, and we were doing so at the back end of this year. And I think what you see is an inflection point.

是的，這是一個很好的問題。這是我們今年關注的重點，包括保留和收購。進入新的一年，我們知道，由於我們的會員數量剛剛大幅增加，因此我們需要專注於保留會員，並且我們在今年年底就採取了這一措施。我認為你看到的是一個轉捩點。

I think it's absolutely the result of the efforts of the team over the last few quarters to make sure that not only you're explaining why costs are going up, but helping to reinforce the value of Trupanion and making sure that our software is ready available, that people are using Direct Pay and all the things that basically go into being a Trupanion member.

我認為這絕對是團隊過去幾季努力的結果，不僅要解釋成本上漲的原因，還要幫助強化 Trupanion 的價值，確保我們的軟體隨時可用，人們正在使用 Direct Pay 以及成為 Trupanion 會員所需的一切。

So we're definitely seeing a focus on results related to that. There is absolutely a tailwind. Having had 20%-plus for several years now. Our members are now normalizing their rate adjustments, and many of them will be below 20%.

因此，我們肯定會關注與此相關的結果。絕對有順風。幾年來一直維持在 20% 以上。我們的會員現在正在使其利率調整正常化，其中許多利率將低於20％。

In the shareholder letter, I refer to the table where you see that cohort massively jumps to over 20%. And that is naturally a pain point for us as a business. And it's one that we're pleased to see some recovery from this year.

在致股東的信中，我參考了表格，從中您可以看到該群體大幅躍升至 20% 以上。這自然是我們企業的痛點。我們很高興看到今年出現了一些復甦。

So, as we go through the year, we'll continue to really focus on this area as well as first-year retention because we expect that cohort to pick up as we add new pets and anticipate we'll start making progress.

因此，隨著這一年的過去，我們將繼續真正關注這一領域以及第一年的保留，因為我們預計隨著我們添加新寵物，這一群體將會回升，並預計我們將開始取得進展。

It will be slow and steady, but we'll make progress toward what is our historical retention rate, which is higher than the [98], [2,8] that we have at the moment. All things being considered though, I think it's a very good result, and pleased to tell those early green shoots of recovery.

這將是一個緩慢而穩定的過程，但我們會朝著歷史留存率的方向前進，這個數字會高於我們目前的 [98]，[2,8]。但綜合考慮所有因素，我認為這是一個非常好的結果，很高興看到復甦的早期跡象。

Thank you for your answers.

感謝您的回答。

Thank you.

謝謝。

Wilma Burdis, Raymond James.

威爾瑪伯迪斯、雷蒙詹姆斯。

Hey, good afternoon. Could you talk a little bit about how you're thinking about getting additional rate throughout 2025? The loss ratio appears better than we would have expected for a 1Q. So do you need a lot more rate this year, or how are you thinking about it? Thanks.

嘿，下午好。您能否談談您對在 2025 年獲得額外利率的想法？損失率似乎比我們對第一季的預期要好。那麼今年您是否需要大幅提高利率，或者您對此有何看法？謝謝。

Yeah, we are continuing to work with regulators to get rates. We have around 40% of our book, if not a little bit more, are priced ahead of the curve. So what I mean by that is pet parents have got pricing in place that won't need to be massively adjusted over the next 12 to 18 months.

是的，我們正在繼續與監管機構合作以獲得利率。我們的圖書中大約有 40%（甚至更多）的定價都高於市場平均。所以我的意思是，寵物主人已經確定了價格，並且在未來 12 到 18 個月內不需要進行大規模調整。

There are as usual for us, where we're now starting to refine that rate to continue to build on what's needed as the cost of goods model. We've had good conversations with regulators. We're working with them as we always do on a very regular basis to ensure we can get the vote we need.

對我們來說，一切如常，我們現在開始完善該利率，以繼續建立所需的商品成本模型。我們與監管機構進行了良好的對話。我們一如既往地與他們定期合作，以確保我們能夠獲得所需的選票。

And as such, we haven't had anyone saying we can't. We're still working with them to get rate, and that's really part of the cost of insurance, making sure that we're constantly adjusting, refining it, as you know. And we'll keep doing that.

因此，沒有人說我們不能這樣做。我們仍在與他們合作以獲得費率，這實際上是保險成本的一部分，確保我們不斷調整和完善它，正如你所知。我們將繼續這樣做。

But our rate flow will come down. It won't be at the high -- mid 20s as it has been for the last couple of years. So pleased to be returning to a more normal cadence and that will show up in our loss ratio through the year as we see continued expansion in that over the course of the next couple of quarters.

但我們的費率流量將會下降。它不會像過去幾年那樣達到 20 多歲的高位。很高興能夠恢復到更正常的節奏，這將體現在我們全年的損失率中，因為我們看到在接下來的幾個季度中損失率將繼續擴大。

And the operating cash flow is pretty strong. Just curious, if that's a run rate, if there's something unusual or how it should run throughout the year? Thanks.

而且經營現金流相當強勁。只是好奇，如果這是一個運行率，是否有一些不尋常的事情或它應該如何全年運行？謝謝。

Yeah. We've been really happy with the progress on both operating cash flow and free cash flow. When you break it down, the majority of that progress is driven by AOI. So we've talked in the past, but a lot of companies will try and reduce spending as a way to maximize cash flow.

是的。我們對經營現金流和自由現金流的進展感到非常滿意。分解一下就會發現，大部分的進展都是由 AOI 推動。我們過去也討論過，但很多公司會嘗試減少開支，以最大化現金流。

We have not taken that approach, so more than 2/3 of that is coming directly from increased AOI. Yeah, and over the last I think four quarters, our team has done a great job. We've delivered more than $15 million of free cash flow.

我們沒有採取這種方法，因此其中超過 2/3 直接來自於增加 AOI。是的，我認為在過去的四個季度裡，我們的團隊做得非常出色。我們已經實現了超過1500萬美元的自由現金流。

I think it's $53 million. If you compare that to the previous four quarters, it was about $12 million, of course, this quarter going from was effectively break even to $14 million positive.

我認為是 5300 萬美元。如果與前四個季度相比，這個數字約為 1200 萬美元，當然，本季從實際收支平衡增長至 1400 萬美元。

We talk about it all the time. That this gives us the capacity to be able to make investments and that's a good position for us to be in. We still have our guard rail and our focus on free cash as a percent of revenue for the full year being at 2.5%, and we feel good about the start of the year.

我們一直在談論它。這使我們有能力進行投資，這對我們來說是一個有利的地位。我們仍然有自己的防護欄，並將重點放在全年自由現金佔收入的 2.5% 上，我們對今年的開始感到滿意。

Okay, thank you.

好的，謝謝。

Josh Shanker, Bank of America.

美國銀行的喬希·尚克（Josh Shanker）。

Yeah, thank you. A few questions. So, looking at the shareholder letter, I noticed that the cohort of customers who received a 20% or greater increase went from 33% in 2023 to 46% of the portfolio in 2024.

是的，謝謝。幾個問題。因此，在查看股東信時，我注意到獲得 20% 或更高成長的客戶群從 2023 年的 33% 增加到了 2024 年的 46%。

Is there any timing on that when that happened, or is that number coming down now? I was actually surprised to see it up so significantly year over year.

這件事發生的具體時間是什麼時候？還是現在這個數字正在下降？我實際上很驚訝地發現它比去年同期有如此顯著的增長。

I know, and it's testament to the team to have been able to retain those members at that level. It's coming down. It's coming down now. It comes down every week, every month as we start to put new rates through and normalize that for the consistent rate adjustments we've seen.

我知道，這證明了球隊能夠留住那些等級的成員。它正在下降。現在正在下降。隨著我們開始實施新的利率，並根據我們所看到的持續利率調整將其正常化，利率每週、每月都會下降。

So as pricing has been at a level of 15%, we fully expect that now to be a somewhat average increase for our members because that's now sort of a normalized rate for us. It built over the course of '24 where we started to see an incredible number of people moving into that that book is more of that rate flow through and we have the approvals.

因此，由於定價一直處於 15% 的水平，我們完全預計這對我們的會員來說將是一個相當平均的增長，因為這對我們來說現在是一種正常化的費率。它是在 24 年的時間裡建立的，我們開始看到大量人湧入，這本書的流通速度更快，而且我們已經獲得了批准。

So now it's really a case of returning to what is normal for our members and for us, and I fully expect by the end of this year, you're going to see a big shift back towards that under 20%. It doesn't mean people won't be getting rate increases in the high 10s.

因此，現在對於我們的會員和我們來說，這確實是一個恢復正常狀態的情況，我完全預計，到今年年底，您將看到一個大的轉變，回到 20% 以下的水平。這並不意味著人們不會獲得高達 10% 的利率成長。

They absolutely will, but we'll be normalizing that. And we know that that's a far more effective retention cohort for us. So pleased to be getting that tailwind and that benefit through the rest of the year.

他們絕對會的，但我們會讓其正常化。我們知道這對我們來說是一個更有效的保留群體。我很高興能夠在今年餘下的時間裡獲得這樣的順風和好處。

And then on the first-year customers, retention went down dramatically for first year customers who didn't see any rate change at all. I know for many reasons. They're historically the hardest customers to retain and maybe you don't even want them, that they're leaving for a reason. But the retention dropped fairly sizeably in that cohort, what's going on there?

對於第一年的客戶，由於利率沒有任何變化，第一年的客戶的保留率急劇下降。我知道有很多原因。從歷史上看，他們是最難留住的客戶，也許你甚至不想要他們，他們離開是有原因的。但該群體的保留率大幅下降，這是怎麼回事？

Yeah, it's purely a matter of execution. When we think about attention, there are only so many things that the teams can focus on at any given point in time. And as you can see, there was such a shift into the over 20% group that cohort.

是的，這純粹是執行的問題。當我們考慮注意力時，團隊在任何特定時間點能夠專注的事情是有限的。如您所見，該群體已轉向超過 20% 的群體。

We were incredibly focused on making sure that we were paying attention to people who were getting those increases, helping them realize the value, understand the value proposition, understand what's happening in the industry that we really took our eye off the first year.

我們非常注重確保我們專注於那些獲得加薪的人，幫助他們實現價值，理解價值主張，了解產業正在發生的事情，我們真的把注意力從第一年移開了。

A, because we weren't growing particularly quickly and we didn't have such a great, such a large number, but also for us our greater good was looking at the majority of pet parents who were already with Trupanion.

答，因為我們的成長速度不是特別快，而且我們的客戶數量也不是那麼龐大，但對我們來說，我們更大的利益在於關注已經加入 Trupanion 的大多數寵物父母。

So there's been a shift since the last [viewing] -- beginning of Q4 last year where we realigned some of our marketing structures to make sure the conversion and retention teams work hand in hand.

因此，自上次[查看]以來發生了轉變——去年第四季度初，我們重新調整了一些行銷結構，以確保轉換和保留團隊攜手合作。

So the messaging that someone hears when they sign up is aligned to what they hear as a member and also, just really making sure we have resources to a better educate the new pet parent, help getting them at times where there's typically buyers’ remorse and putting in tactics that will help to improve that.

因此，人們在註冊時聽到的信息與他們作為會員聽到的信息是一致的，而且，我們確實確保我們有資源來更好地教育新的寵物主人，在買家通常會後悔的時候幫助他們，並​​採取有助於改善這種情況的策略。

We're already seeing improvement in that space, so I feel very good about the tactics we've started to deploy and expect that to improve as we continue to use more of our pack dollars in that first-year bucket to see that move back into levels that was historically.

我們已經看到該領域的進步，因此我對我們已開始部署的策略感到非常滿意，並期望隨著我們繼續在第一年使用更多的資金來恢復歷史水平，該領域的進步將會繼續。

And Margi, you included a graph in your letter about trying to show the relationship between pack spend and increasing conversion for web versus phone-based customers. And I looked at that chart and I wasn't sure that I could see the correlation.

Margi，您在信中附上了一張圖表，試圖展示套餐消費和網路客戶與電話客戶轉換率提高之間的關係。我看了那張圖表，但不確定我是否能看出其中的相關性。

I mean obviously the text was on that chart, but it was spoken about like a rhetorically, I noticed two things. One is that even if there is a boost, it's hard to boost it for more than a month. It seems to pop and then fall. Can you go into a little bit about how that tax spending works to increase the conversion and what that chart should be telling us?

我的意思是，很明顯，圖表上有文字，但它被說成是修辭，我注意到了兩件事。一是即使有提升，也很難提升超過一個月。它似乎爆裂然後掉落。您能否稍微解釋一下稅收支出如何提高轉換率以及圖表應該告訴我們什麼？

Yeah. Well, you hit the nail on the head. I mean, the main thing is really the consistency of spend and when you have reduced acquisition dollars and we really weren't spending a lot in the conversion space, we were turning it on and off, and there's a couple of things at play here.

是的。嗯，你說得太對了。我的意思是，最重要的事情實際上是支出的一致性，當你減少了收購費用並且我們確實沒有在轉換領域花費太多時，我們就會打開和關閉它，這裡有幾件事在起作用。

One is when you deploy it, it's easier or say, is probably the wrong word. It's more natural for phones or people on the phone to be able to listen to the response of a pet parent and help to learn and lean into how do you convert that member. So they tend to get the retention rate, the conversion rate up higher quicker.

一是當你部署它時，它會更容易，或者說，可能是錯誤的單字。透過電話或電話中的人能夠聽到寵物主人的回應並幫助了解和了解如何轉變該成員，這是更自然的做法。因此他們往往能夠更快地提高保留率和轉換率。

But from a web-based perspective, while you have a volume there, there's a lot of trial and error. There's a lot of testing. And if we don't keep consistency of our investment, you don't get to build on the things that you're learning.

但從基於網路的角度來看，雖然那裡有大量的數據，但仍需要進行大量的嘗試和錯誤。有很多測試。如果我們不保持投資的一致性，您就無法在所學的基礎上取得進一步的發展。

And so really, the key for that chart is helping people understand that if we turn on spend and it off until the next month, we'll turn it on and turn it off the next quarter. It has a small blip in terms of an improvement, but it doesn't stay there.

因此，該圖表的關鍵實際上是幫助人們理解，如果我們在下個月之前開啟支出然後又關閉支出，那麼在下個季度我們也會開啟支出然後又關閉支出。雖然在改進方面有一點小進步，但不會就此止步。

We have to maintain the level of investment, which is what we were doing for 10 years prior to reducing our acquisition spend. And we kept learning and kept building and kept increasing our conversion. So it's really a lesson of let's make sure we're being consistent.

我們必須保持投資水平，這也是我們在減少收購支出之前的十年所做的。我們不斷學習、不斷建造、不斷提高我們的轉換率。所以這確實是一個教訓，讓我們確保自己保持一致。

Let's make sure that our compounding AOI dollars are being deployed in the right ways, in the right format, and doing it in a manner that allows us to learn. If we keep being erratic with it, we're not going to get that learning. So that's essentially what that chart is trying to demonstrate.

讓我們確保我們的複合 AOI 資金以正確的方式、正確的格式部署，並以一種允許我們學習的方式進行。如果我們繼續反覆無常，我們就無法獲得這種學習。這就是該圖表想要展示的本質。

Katie Sakys, Autonomous Research.

凱蒂·薩克斯，自主研究。

Yeah, thank you for the follow up. Just a quick one from me. Reading through the series shareholder letter, you guys circle back on the subject of digital advertising and really make the point that a lot of online customer acquisition is frequently structured in a pay-to-play manner for the current pet insurance industry.

是的，感謝您的跟進。我只想簡單說一下。透過閱讀這一系列股東信，你們重新討論了數位廣告這個主題，並真正指出，對於當前的寵物保險行業來說，許多線上客戶獲取通常都是以付費方式建構的。

In years past, that's been something that you've specifically issued and said that you would not be participating in. Is there any reason to think, as you realign your marketing strategy going forward that online acquisition will continue to be something that you avoid?

過去幾年，您曾明確表示您不會參與其中。當您重新調整未來的行銷策略時，是否有理由認為您會繼續避免線上收購？

Or would there be a point at which Trupanion starts to invest more into DTC marketing and really competing for space in online search results?

或者 Trupanion 是否會在某個時候開始對 DTC 行銷投入更多資金並真正爭奪在線搜尋結果的空間？

Yeah, we do. There's a lot to unpack here, actually. I think one thing that we are on, we do advertise online. We do have direct consumer marketing, but it really, as I mentioned, the shell letter is very much more a conversion tool so it helps to sort of find people where they are, helps to educate them, pull them through the funnel.

是的，我們知道。事實上，這裡有很多東西要解開。我認為我們正在做的一件事就是在網路上做廣告。我們確實有直接消費者行銷，但正如我所提到的，信函實際上更多的是一種轉換工具，因此它有助於找到人們所在的地方，幫助教育他們，將他們拉過管道。

I think in terms of the way that competitors spend, my point there was we are adhering to internal rates of return, which means we have to be very disciplined with acquisition costs. And a lot of those sites or vehicles tend to be incredibly expensive on a CBC basis or a cost-per-click basis or cost-per-acquisition basis.

我認為，就競爭對手的支出方式而言，我的觀點是，我們堅持內部報酬率，這意味著我們必須非常嚴格地控制收購成本。許多這樣的網站或工具在 CBC 或每次點擊費用或每次獲取費用方面往往非常昂貴。

So if we layer that on with our lead costs as well, it tends to fall outside of our guardrails. So we will do it. We'll test and refine it. As a brand, as a company, we've been quite deliberate in our choice of the platforms and the vehicles that we operate with.

因此，如果我們將其與我們的領先成本結合起來，它往往會超出我們的範圍。所以我們會這麼做。我們將對其進行測試和改進。作為一個品牌、一家公司，我們在選擇營運平台和載體時非常謹慎。

In a fledgling market, it's incredibly important to make sure that we're being clear and transparent with how brands and products show up. And personally, I think sometimes that hasn't been clear. And we choose to operate with vehicles that actually are more clear in the way that they're displaying results.

在新興市場中，確保品牌和產品的展示方式清晰透明非常重要。就我個人而言，我認為有時候這一點並不清楚。我們選擇使用能夠更清晰顯示結果的工具。

The last thing that we would want to happen in this industry is have it commoditized before it's a commodity. And I think, sometimes people see things and they believe them to be true.

在這個行業中，我們最不希望發生的事情就是它在成為商品之前就被商品化。我認為，有時人們看到某些事物並相信它們是真實的。

So if you see rankings, what they don't necessarily understand is that someone has paid a significant amount of money to be number one. Now that's fine, but for Trupanion, we have to always adhere to the IRR.

因此，如果你看到排名，他們不一定明白有人花了一大筆錢才成為第一名。現在這很好，但對於 Trupanion，我們必須始終堅持 IRR。

So that's why you don't see it across every vehicle everywhere. As the market picks up, I expect we'll start to test a little bit more in some of these spaces to make sure the brand can be relevant and present, but it always has to fit within the IRR. So that tends to be a factor for us as we think about our strategy there.

這就是為什麼你不會在任何地方的每輛車上都看到它。隨著市場的回暖，我預計我們將開始在其中一些領域進行更多測試，以確保品牌具有相關性和存在感，但它必須始終符合 IRR。因此，當我們考慮我們的策略時，這往往是我們考慮的因素。

Thank you. This concludes our question-and-answer session.

謝謝。我們的問答環節到此結束。

I would now like to turn the conference back over to Margie Tooth for closing remarks.

現在我想將會議交還給 Margie Tooth 做結束語。

Thank you, [Saga]. We don't usually have closing remarks, but I did want to just reiterate to everybody what a strong start we had for the year and just recognize our subscription margins expanded. We saw retentions for the core Trupanion product improve, which demonstrates our pricing power.

謝謝你，[佐賀]。我們通常不會發表結束語，但我確實想向大家重申一下，我們今年有一個多麼強勁的開端，並且我們的訂閱利潤率有所擴大。我們看到核心 Trupanion 產品的保留率有所提高，這證明了我們的定價能力。

We've had an inflection point, I think, in net pet growth, which is incredibly positive for us. And it leads us to the rest of the year from a position of strength with compounding adjusted operating income that we will reinvest in growth. We look forward very much to updating you on our progress in up and coming quartersand.

我認為，我們的寵物淨成長已經到達一個轉折點，這對我們來說非常有利。這將使我們在今年剩餘時間內保持強勁勢頭，透過複合調整後的營業收入，我們將重新投資於成長。我們非常期待在未來幾季向您通報我們的進展。

As a reminder, Fawwad and I will be in Omaha, and we hope to see many of you there.

提醒一下，Fawwad 和我將會在奧馬哈，我們希望在那裡見到你們。