Root, Inc.

and welcome to Root, Inc. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Matt Lamalva, Head of Investor Relations. Thank you, Mr. Lamalva. You may begin.

Thank you for joining us today. Root is hosting this call to discuss its second quarter 2024 earnings results. Participating on today's call are Alex Tim, Co-Founder and Chief Executive Officer, and Megan Binkley, Chief Financial Officer. Earlier today, 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 second quarter 2024 Form 10Q, which was filed with the Securities and Exchange Commission earlier today. 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 most recent 10-K, 10-Q, and shareholder letter. 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 Root's performance. You can find reconciliations of those historical measures to the nearest comparable GAAP measures in our financial disclosures, all of which are posted on our website at ir.joinroot.com. I will now turn the call over to Alex Timm, Roots co-founder and CEO.

Thanks, Matt. We continue to make strong progress in the quarter. For the second consecutive quarter, we generated operating income and positive adjusted EBITDA, a testament to our powerful data science and technology, our culture of discipline, and the talent and dedication of our team. We continue to advance our near-term target of achieving profitability. From day one, we've committed to providing drivers with car insurance that is transparent, easy to understand, and at a great price. Our technology empowers a delightful customer experience, while our proprietary algorithm allows us to offer lower prices to the best drivers. Our laser-focused mindset on disciplined underwriting and stringent expense management has allowed us to build a strong foundation to significantly grow our business. Importantly, we are growing smartly and profitably. We are not chasing growth for the sake of growth. We're doing it while achieving some of the best loss ratios in the industry. New writings during the quarter primarily came through our direct channel, where we target consumers with a great insurance product at a great price. Our data science machine constantly monitors the competitive environment and, as we've noted before, during the quarter we saw elevated competition. Leveraging our proprietary data science machine, we were able to quickly adapt and deliver new business at our estimated return targets. We expect to remain opportunistic through the back half of 2024 in growing the direct channel. Should we see an opportunity to grow faster while maintaining our unit economics, we will invest more in marketing to drive profitable growth. We believe there are material opportunities to expand our competitive advantage to additional data-rich channels. As we do with everything, we will explore these channels in a disciplined, rigorous manner and quickly grow or jettison these experiments based on results. Additionally, we continue to make excellent progress within our partnership channels. where we meet consumers at contextually relevant times, such as the purchasing of a car. Our technology provides partners a seamless integration into their existing platforms and creates a simple insurance purchasing experience in as little as three clicks. Compared to Q2 last year, we grew new writings in our partnership channel by 120%. With more than a dozen partners in the channel and a robust pipeline of additional opportunities, we believe we are well poised to continue to drive growth in this channel. We are always working to lower prices for the right customers. We believe that through our machine learning and engineering advantages, we can become the best in the world of pricing and automation. Our approach allows us to be flexible, fast, and sophisticated. We delivered another successful quarter, achieving a gross loss ratio of 61.6%. As our data sets grow and we continue to retrain our models, we believe we will continue to improve prices and fuel additional growth, building a sustainable competitive advantage. As we look forward, we are excited to add more partners, expand our footprint nationally, and continue to deliver better products at better prices to our customers. Our team's determination to become the largest and most profitable personal lines carrier in the United States is stronger than ever, and we believe their hard work keeps us squarely on the path to profitability. I'll now turn the call over to Megan to discuss our operating results in more detail.