Root, Inc.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Root Incorporated first quarter 2022 earnings conference call. At this time, all participants are on a listen-only mode. After the presenter's presentation, you will hear a question and answer session. To ask a question during the session, you will need to press star then one on your telephone keypad. At this time, I would like to turn the conference over to Ms. Christine Patrick. Ma'am, you may begin.

Good morning, and thank you for joining us today. Root is hosting this call to discuss its first quarter 2022 earnings results. Participating on today's call are Alex Tim, co-founder and CEO, and Dan Rosenthal, chief operating officer and chief revenue officer. During the question and answer portion of the call, our presenters will be joined by Matt Ben-Octopore, chief technology officer, and Frank Palmer, chief insurance officer. Last evening, Root issued a shareholder letter announcing its financial results. While this call will reflect items within that document, for more complete information about our financial performance, we also encourage you to read our 2021 Form 10-K. Before we begin, I want to remind you that matters discussed on today's call will include forward-looking statements related to our operating performance, financial goals, and business outlook, which are based on management's current beliefs and assumptions. Please note that these forward-looking statements reflect our opinions as of the date of this call, and we undertake no obligation to revise this information as a result of new developments that may occur. Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause our actual results to differ materially from those expected and described today. In addition, we are subject to a number of risks that may significantly impact our business and financial results. For a more detailed description of our risk factors, once again, please review our Form 10-K, where you will see a discussion of factors that could cause the company's actual results to differ materially from these statements. as well as our shareholder letter released last evening. A replay of this conference call will be available on our website under the Investor Relations section. I would like to also remind you that during the call, we are discussing some non-GAAP measures and talking about Root's performance. You can find the reconciliation of those historic measures to the nearest comparable GAAP measures in our shareholder letter released last evening and our filings with the SEC, each of which will be posted on our website at ir.joinroot.com. I will now turn the call over to Alex Tim, Roots founder and CEO.

Thank you, Christine. In the first quarter, we took aggressive actions to position the company to continue to weather one of the most difficult environments we've seen as a young company. Our focus on capital preservation led to dramatically reducing fixed expenses, rapidly changing rates, tamping down growth and marketing spend, and tightening underwriting on the least profitable segments of our business. At the same time, we continued to make progress on what makes us special, building world-class products through the very best technology for our customers. At the end of the first quarter, less than six months after announcing our exclusive partnership, V1 of the embedded product was available to roughly 65% of Carvana customers. In addition, we made further improvements to our product flow, together resulting in 13% of new premium volume coming from this channel. We expect V2 of our embedded product to launch in the second quarter. This version will allow customers to quote and bind Carvana insurance built with Root without leaving Carvana's platform. We've reduced the number of screens before checkout from the initial 24 down to six with this latest version now down to three. This has delivered a more integrated and elevated customer experience. I invite you to experience V2's capabilities through a demonstration of the product, a link to which can be found in this quarter's shareholder letter. We are laying the foundation for a highly defensible growth channel with our fully embedded product. In addition, we are building a complimentary brokerage product to offer the embedded experience to all of Carvana customers. We believe we're at the beginning of a growing trend to transform the insurance purchasing experience to one that occurs at a time that works best for the customer. Our technology allows Root to meet customers in their time of need with a seamless, frictionless, and simple experience. Powering our embedded offering is our industry-leading developer experience. We have a clear vision to make our embedded offering something that any developer can implement in less than an hour. During the quarter, we made further progress on strengthening our underwriting, which has resulted in a 12-point sequential improvement in loss ratio. Dan will give more color on the underwriting actions. We believe these actions will materially improve our results while building defensible growth. With a focus on building industry leading customer products through better technology, we are able to move faster than our competition. Before I turn it over to Dan, I'm very excited to welcome Rob Bateman to our executive team as Chief Financial Officer. Rob's significant experience in the insurance industry and deep financial expertise will be pivotal in driving the company's success. He looks forward to presenting in future quarters. I'm thankful for the tenacity and hard work that our employees demonstrate every day. I appreciate the trust of our customers and investors. And with that, I'll turn the call over to Dan.