Root, Inc.

Thank you for standing by. My name is Kayla Baker, and I will be your conference operator today. At this time, I would like to welcome everyone to Root, Inc.' 's first quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the numbers one and star. I would now like to turn the call over to Vice President and Corporate Secretary Jody Baker.

Good morning, and thank you for joining us today. Root is hosting this call to discuss its first quarter 2023 earnings results. Participating on today's call are Alex Timm, Co-Founder and Chief Executive Officer, and Megan Binkley, Interim Chief Financial Officer. During the question and answer portion of the call, our presenters will be joined by Matt Benactapour, 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 discussed within that document, for more complete information about our financial performance, we also encourage you to read our Q1 2023 Form 10-Q, which was filed with the Securities and Exchange Commission last evening. 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, please review our Form 10-K for the year ended December 31, 2022 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 and Q1 Form 10-Q released last evening. A replay of this conference call will be available on our website under the Investor Relations section. I would also like to remind you that during the call, we will discuss some non-GAAP measures while talking about Roots performance. You can find reconciliations of those historical measures to the nearest comparable gap measures in our shareholder letter released last evening and our Form 10Q filed with the SEC, which are posted on our website at ir.joinroot.com. I will now turn the call over to Alex Tim, Root's co-founder and CEO.

Thank you, Jodi. In Q1 of 2023, we grew total new writings quarter over quarter 25%. while reducing our accident period loss ratio to 69%. This resulted in improving adjusted EBITDA by 78% on a year-over-year basis, which was driven by the broad work and decisive actions taken in 2022 to reset the foundation of the business. We are now positioned with a loss ratio better than the industry, allowing us to scale new writings on our path to driving profitability. Furthermore, we continue to prove our differentiation in the embedded channel and are excited to announce we finalized a third partnership. I'd like to take this opportunity to discuss the key elements of our differentiation. Having built our company on a flexible technology stack, allowing customers to get a quote without ever touching a keyboard, we are able to create seamless, real-time quote-to-buying experiences in the moments that are most relevant to consumers. This drives adoption rates, as shown by an over 3x increase in our attach rates since launching our fully embedded product. Second, our platform continues to advance through our API developments, allowing us to rapidly scale and add new partnerships while materially reducing the cost and time to deployment for those partners. Putting these three things together, increasing adoption while decreasing costs and increasing speed to market, That's the differentiated value we provide to our partners. Third, make no mistake. Telematics is and has always been a meaningful differentiation for Root. We are actively developing products to incorporate Telematics with each of our embedded partners. We see transformational opportunities to create new Telematics approaches through the embedded channel. Our state-of-the-art Telematics platform allows us to develop unique solutions that work for our partners and their customers. All of this has been made possible by a continued investment in our data science and technology. These systems allow us to create better experiences for our customers while making better decisions for our business. We believe long-term this will create a leading competitive advantage in pricing and automation. We are building an enduring company and are driving the company to profitability with the capital we have. We are excited to continue our new writing trajectory and are grateful to our customers, employees, and investors. And I'll turn the call over to Megan to discuss our operating results in more detail.