Hippo Holdings Inc. (HIPO) shares surged 9.83% in pre-market trading on Thursday, following the company's impressive fourth quarter 2024 earnings report. The home insurance provider delivered record quarterly revenue of $102 million, beating consensus estimates, while also achieving a major profitability milestone with $8.5 million in positive adjusted EBITDA.

Hippo's strong Q4 results were driven by 58% year-over-year revenue growth, as well as significant improvements in key insurance metrics. The company's gross loss ratio improved by 28 percentage points for the full year to 73%, reflecting growing operational efficiencies. Additionally, sales, marketing, and administrative expenses declined to just 35% of revenue in Q4, down a remarkable 34 percentage points from the prior year period.

In the earnings report, Hippo President and CEO Rick McCathron expressed confidence in the company's path to sustained profitability, highlighting the nearly 30-point improvement in gross loss ratio for 2024 and success in streamlining operations. With a substantial majority of new business now coming from Hippo's fast-growing new homes insurance program, McCathron sees further opportunities for profitable expansion while minimizing catastrophe exposure.