Root, Inc. (ROOT) is a tech-based company transforming individual insurance with a pricing model based on advanced client experience. It is the parent company of Root Insurance Company. The company’s mobile-first client experience is developed to make the insurance procedure simple.
The price of ROOT stock during regular trading on February 23, 2022, was $1.45 with a drop of 5.84%. At last check in the aftermarket, the stock rebounded by 8.97%.
ROOT: Key Financials
On February 23, 2022, ROOT released its unaudited financial statement for the quarter ended December 31, 2021. Some of the important points are discussed below.
Revenue
Total revenue in Q4 2021 was $93.2 million against $50.9 million in the same quarter of 2020. The company observed a gain of approximately $42.3 million in total revenue over the yearly period. The company topped the estimated revenue target by $31.4 million.
EPS
Basic and diluted net loss in Q4 2021 was $109.9 million or $0.44 per share versus $133.3 million or $0.72 per share in the same quarter of 2020. The company’s EPS increased over the yearly period and it topped the analysts’ estimated EPS of -$0.50.
ROOT: Events and Happenings
On January 26, 2022, ROOT updated the successful closure of its new term loan facility with BlackRock Financial Management Inc. The term of the facility is five years and valued at $300 million, will have an interest rate of term SOFR + 9%. In relation to the loan, the company issued the warrants equivalent to 2% of all the shares at an exercise price of $9.00 per share.
On December 13, 2021, ROOT reported the launch of its services in Kansas. It is the 32nd state where the company’s auto insurance is available. On December 06, 2021, ROOT announced its Executive management’s participation at the KBW Innovation in Finance Conference on December 7, 2021.
On November 16, 2021, ROOT informed its philosophy of “work where it works best” and the futuristic approach of the company’s work plan. The company had launched an innovative way of working that empowers its workforce to regulate what works best at an individual level along with providing futuristic clarity.
Conclusion
ROOT stock downplayed by approximately 90% in the past year associated with the uncertain economic conditions related to COVID-19. The company’s stock is gradually bouncing back in the current aftermarket session as it announced its financial statement. The company topped the revenue and EPS estimates, thus its stock surged.
