ROOT
Root Inc
Q4 2024 Report
Root Inc (ROOT) Q4 2024 Financial Results: A Landmark Year Marked by Profitability and Strategic Growth...
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Executive Summary
In Q4 2023, Root Inc delivered strong financial results, highlighting a shift towards profitability after navigating recent operational challenges. The company reported a remarkable 173.21% rise in revenue year-over-year, reaching $194.8 million, aided by a 31% increase in gross written premiums. Notably, the gross accident period loss ratio improved to 66%, solidifying Root's position as a competitive player in the auto insurance market. Management emphasized the company’s growth trajectory, with a focus on profitability driven by strategic investments in technology and data science. With a robust cash position of $679.7 million, Root is poised to expand its market share while maintaining disciplined expense management.
Key Performance Indicators
Revenue
194.80M
QoQ: 68.95% | YoY:173.21%
Gross Profit
194.80M
1.00% margin
QoQ: 68.95% | YoY:173.21%
Operating Income
-24.00M
QoQ: 47.60% | YoY:-171.01%
Net Income
-24.00M
QoQ: 47.60% | YoY:-126.64%
EPS
-1.64
QoQ: 48.10% | YoY:-125.67%
Revenue Trend
Margin Analysis
Key Insights
- **Q4 2023 Revenue:** $194.8M, a 173.21% YoY increase and a 68.95% QoQ increase.
- **EPS (Diluted):** -$1.64, reflecting continued investment in growth despite operational losses.
- **Gross Profit:** $194.8M, maintaining a gross profit margin of 100%.
- **Operating Loss:** $24M, with an operating loss ratio of -0.123.
- **Net Loss:** $24M, marking a 59% improvement year-over-year.