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Root, Inc. (ROOT)
:ROOT
Holding ROOT?
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Earnings Data
Report Date
Feb 19, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
-0.52Last Year’s EPS
-1.65Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 25, 2021
|% Change Since: 110.69%
|Next Earnings Date:Dec 01, 2020
Earnings Call Sentiment|Positive
The earnings call reflects a positive sentiment with Root achieving profitability and reporting strong performance metrics, despite some challenges with retention rates following a period of hypergrowth. The company's successful refinancing of its term loan and improvements in underwriting further contribute to its positive outlook.Company Guidance
During the Root Inc. third quarter 2024 earnings call, several key financial metrics were highlighted, reflecting a strong performance. Notably, the company achieved net income profitability with a $23 million net income, marking a $69 million improvement year-over-year. Operating income reached $34 million, while adjusted EBITDA stood at $42 million, demonstrating year-over-year improvements of $68 million and $61 million, respectively. The gross loss ratio was reported as an industry-leading 57%, contributing to a gross combined ratio of 89%, which improved nearly 30 points from the previous year. Additionally, Root Inc. reduced its cost of capital by refinancing its term loan with BlackRock, leading to an expected 50% reduction in interest expenses. The company also observed significant growth in new writings, policies in force, gross written premium, and gross earned premium, further establishing its financial stability and growth trajectory.Achievement of Profitability
Root achieved net income profitability in Q3 2024, with a net income of $23 million, representing a $69 million improvement year-over-year.
Improved Cost of Capital
The company successfully refinanced its term loan with BlackRock, reducing the facility size from $300 million to $200 million and lowering the cost of capital by at least 300 basis points, leading to an expected 50% run rate reduction in interest expense.
Strong Underwriting Performance
Root reported an industry-best 57% gross loss ratio, attributed to its proprietary technology platform and data science algorithms.
Growth in Partnership Channel
The partnerships channel saw new writings more than double from the prior year, with new partnerships launched, including one with Goosehead Insurance.
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ROOT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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ROOT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Oct 30, 2024 | $40.49 | $68.39 | +68.91% |
| Aug 07, 2024 | $53.50 | $42.99 | -19.64% |
| Apr 30, 2024 | $69.65 | $69.91 | +0.37% |
| Feb 21, 2024 | $8.67 | $13.29 | +53.29% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Root, Inc. (ROOT) report earnings?
Root, Inc. (ROOT) is schdueled to report earning on Feb 19, 2025, TBA Not Confirmed.
What is Root, Inc. (ROOT) earnings time?
Root, Inc. (ROOT) earnings time is at Feb 19, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ROOT EPS forecast?
ROOT EPS forecast for the fiscal quarter 2024 (Q4) is -0.52.
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