Shares of Trupanion (NASDAQ: TRUP) plunged 35% on Friday after an accounting controls warning overshadowed better-than-expected preliminary fourth-quarter results from the pet insurance provider.

Trupanion says its preliminary fourth-quarter 2023 revenue grew 20% year over year to $295.9 million, translating to a net loss of $2.2 million, or $0.05 per share (narrowed from a loss of $0.23 per share in the same year-ago period). By comparison, most analysts were modeling a net loss of $0.18 per share on revenue of $291 million.

Within Trupanion's top line, subscription business revenue grew 21% to $191.5 million, fueled by a 14% increase in enrolled pets to 991,426. Trupanion also generated positive free cash flow of $13.5 million during the quarter, compared to negative free cash flow of $4.5 million in last year's Q4.

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Source Fool.com