Root Inc. Stock Soars After Strong Q1 Earnings
Root Inc. (ROOT) shares are experiencing a significant surge in Tuesday's after-hours trading session, following the company's release of better-than-expected financial results for the first quarter of 2024.
The company reported a loss of 42 cents per share, exceeding analyst expectations of a $2.48 loss. This positive performance was driven by a remarkable increase in new policies written, which nearly quadrupled compared to the previous year. Additionally, policies-in-force grew by an impressive 101% year-over-year.
Root's financial performance was further bolstered by positive operating income of $5 million, positive EBITDA of $15 million, and a third consecutive quarter of positive operating cash flow.
In a letter to shareholders, Root attributed its success to its strategic focus and dedication throughout 2023. The company highlighted the significant contribution of its Direct channel, which prioritizes delivering targeted returns for each policy while ensuring a positive customer experience.
pricing and automation, differentiated distribution, and building a product that customers love and trust.
At the time of publication on Tuesday, Root shares were trading at $87.10, reflecting a 26.05% increase in after-hours trading, according to Benzinga Pro.