Trupanion (TRUP), a leading provider of medical insurance for cats and dogs, witnessed a 6.48% decline in its stock price during the after-hours trading session on Wednesday, following the release of its fourth-quarter 2024 financial results.
The company reported mixed results, with earnings per share (EPS) of $0.04 missing analysts' expectations of $0.08 by a significant 50%. However, total revenue came in at $337.3 million, exceeding the forecast of $335 million by a narrow margin and reflecting a robust 14% year-over-year increase.
The key factors contributing to Trupanion's after-hours plunge appear to be the disappointing earnings miss and guidance for the upcoming quarters. Despite the revenue beat, investors were likely concerned about the company's profitability and growth prospects. Trupanion's management acknowledged the challenges in achieving sustainable growth while enhancing customer experience and improving retention rates.
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