ROOT
Root Inc
Q3 2024 Report
Root Inc (ROOT) Q3 2024 Financial Results: Achieving Profitability Amidst Growth Opportunities...
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Executive Summary
Root Inc (ROOT) announced exceptional fourth quarter results, achieving net income profitability for the second consecutive quarter, a significant milestone in their operational journey. The company reported Q4 2024 revenue of $326.7 million, a substantial increase of 67.71% year-over-year and a 6.87% increase from Q3 2024. The net income of $22 million reflects a remarkable improvement of $46 million year-over-year, demonstrating a committed focus on disciplined underwriting and effective capital management.
In his remarks, CEO Alex Timm emphasized the company's strategic foundation laid in prior years, now leading to strong growth: "2024 was a landmark year for Root." The company showcased a gross loss ratio of 61% and a gross combined ratio of 91%. Additionally, Root expects to further capitalize on its success in 2025, expanding into new markets and channels and optimizing its technology for better customer acquisition.
Key Performance Indicators
Revenue
326.70M
QoQ: 6.87% | YoY:67.71%
Gross Profit
326.70M
1.00% margin
QoQ: 6.87% | YoY:67.71%
Operating Income
34.90M
QoQ: 1.45% | YoY:245.42%
Net Income
20.90M
QoQ: -3.69% | YoY:187.08%
EPS
1.38
QoQ: -9.21% | YoY:184.15%
Revenue Trend
Margin Analysis
Key Insights
**Revenue Performance**: Root achieved a Q4 2024 revenue of $326.7 million, up 67.71% year-over-year and 6.87% from Q3 2024, supported by a gross combined ratio of 91%. **Net Income**: The firm reported a net income of $22 million, translating to an EPS of $1.38, a massive increase from a net loss a year ago (Q4 2023: net loss of $24 million). **Operating Metrics**: Operating income rose to $35 million with an operating margin of 10.6%, affirming management’s continuing efforts in cost con...