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New words:
ACL, adapt, aforementioned, amidst, analogy, cent, chain, committed, Compania, Condensed, consecutive, de, dismissed, Disposition, estate, geopolitical, ineffective, inflationary, inspect, inspection, ITGC, moderated, moot, nearest, NYSE, OCI, proactively, raw, rental, smaller, study, uncollectible, voluntarily
Removed:
Accountant, Acting, Aid, alleviated, amendment, arbitration, assessment, assuming, begun, Boston, breached, bright, capitalization, Cincinnati, communication, commute, complex, consult, contra, corridor, country, create, creation, deficiency, delay, department, detected, devoting, digitized, Division, doubt, dual, effort, EGC, eligible, encountered, enhance, everyday, explicit, extended, extra, finance, forward, fund, funded, growing, Horseshoe, identification, impaired, improvement, individually, insufficient, intent, issuer, Jumpstart, kind, largest, lessee, Lessor, limiting, literature, mandated, misstatement, modified, modify, observation, occurring, offline, online, oversight, partial, Partner, payoff, performed, physical, predictable, prevented, promissory, promptly, proportion, quota, recognition, reducing, reinvent, relief, remediate, rent, requiring, residing, resulted, retaining, revaluation, revised, routine, routinely, situation, SPAC, Structured, suspending, Topsail, transition, treatment, typical, unaffiliated, unamortized
Financial report summary
?Risks
- We have a history of net losses and could continue to incur substantial net losses in the future.
- We may require additional capital to support business growth or to satisfy our regulatory capital and surplus requirements, and this capital might not be available on acceptable terms, if at all.
- Our future growth and profitability depend in part on our ability to successfully operate in an insurance industry that is highly competitive.
- Our expansion within the United States will subject us to additional costs and risks, and our plans may not be successful.
- We may not continue to grow at historical rates or achieve or maintain profitability in the future.
- Severe weather events and other catastrophes, including the effects of climate change, are inherently unpredictable and may have a material adverse effect on our financial results and financial condition.
- Denial of claims or our failure to accurately and timely pay claims could materially and adversely affect our business, financial condition, results of operations, brand and prospects.
- Unexpected increases in the frequency or severity of claims may adversely affect our results of operations and financial condition.
- We may be unable to prevent, monitor or detect fraudulent activity, including policy acquisitions or payments of claims that are fraudulent in nature.
- If our customers were to claim that the policies they purchased failed to provide adequate or appropriate coverage, we could face claims that could harm our business, results of operations and financial condition.
- If we are unable to underwrite risks accurately or charge competitive yet profitable rates to our customers, our business, results of operations and financial condition will be adversely affected.
- Our product development cycles are complex and subject to regulatory approval, and we may incur significant expenses before we generate revenues, if any, from new products.
- Litigation and legal proceedings filed by or against us and our subsidiaries could have a material adverse effect on our business, results of operations and financial condition.
- The utilization of our net operating loss carryforwards may be limited.
- The insurance business, including the market for automobile, renters’ and homeowners’ insurance, is historically cyclical in nature, and we may experience periods with excess underwriting capacity and unfavorable premium rates, which could adversely affect our business.
- Reinsurance may be unavailable at current levels and prices, which may limit our ability to underwrite new policies. Furthermore, reinsurance subjects us to counterparty risk and may not be adequate to protect us against losses, which could have a material effect on our results of operations and financial condition.
- Reinsurance subjects us to risks of reinsurers and may not be adequate to protect it against losses arising from ceded insurance, which could have a material effect on our results of operations and financial condition.
- We are subject to payment processing risk.
- Our success depends upon the insurance industry continuing to move online at its current pace and the continued growth and acceptance of online and mobile app-based products and services as effective alternatives to traditional offline products and services.
- We may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on our financial condition, results of operations and our stock price.
- Our actual incurred losses may be greater than our loss and loss adjustment expense reserves, which could have a material adverse effect on our financial condition and results of operations.
- Performance of our investment portfolio is subject to a variety of investment risks that may adversely affect our financial results.
- Unexpected changes in the interpretation of our coverage or provisions, including loss limitations and exclusions, in our policies could have a material adverse effect on our financial condition and results of operations.
- We have ceased to be an “emerging growth company” and have incurred and will continue to incur significant additional costs and obligations as a public company.
- Failure to maintain adequate financial, information technology and management processes and controls could result in material weaknesses which could result in material misstatements in our financial statements, and adversely affect our business.
- We may be subject to securities litigation, which is expensive and could divert management attention.
- We rely on telematics, mobile technology and our digital platform to collect data points that we evaluate in pricing and underwriting our insurance policies, managing claims and customer support, and improving business processes. To the extent regulators prohibit or restrict the collection or use of this data, our business could be harmed.
- We depend on search engines, social media platforms, digital app stores, content-based online advertising and other online sources to attract consumers to our website and mobile app both rapidly and cost-effectively. If these third parties change their listings or increase their pricing, if our relationship with them deteriorates or terminates, or due to other factors beyond our control, we may be unable to attract new customers rapidly and cost-effectively, which would adversely affect our business and results of operations.
- Operating system platforms and application stores controlled by third parties, such as Apple and Google, may change their terms of service or policies in a manner that increases our costs or impacts our ability to distribute our mobile app, collect data through it, and market our products.
- We depend on one third-party technology provider to support our telematics data acquisition and rely on one third-party logistic provider to fulfill telematics hardware requests.
- Security incidents, or real or perceived errors, failures or bugs in our systems, website or app could impair our operations, compromise our confidential information or our customers’ personal information, damage our reputation and brand, and harm our business and operating results.
- We rely on technology and intellectual property from third parties for pricing and underwriting our insurance policies, handling claims and maximizing automation, the unavailability or inaccuracy of which could limit the functionality of our products and disrupt our business.
- New or changing technologies, including those impacting personal transportation, could cause a disruption in our business model, which may materially impact our results of operations and financial condition.
- Regulatory changes may limit our ability to develop or implement our telematics-based pricing model and/or may eliminate or restrict the confidentiality of our proprietary technology.
- New legislation or legal requirements may affect how we communicate with our customers, which could have a material adverse effect on our business model, financial condition, and results of operations.
- Failure to maintain our risk-based capital at the required levels could adversely affect our ability to maintain regulatory authority to conduct our business.
- We are subject to stringent and changing privacy and data security laws, regulations, and standards related to data privacy and security. Our actual or perceived failure to comply with such obligations could harm our reputation, subject us to significant fines and liability, or adversely affect our business.
- We rely on our mobile application to execute our business strategy. Government regulation of the internet and the use of mobile applications in particular is evolving, and unfavorable changes could seriously harm our business.
- We may be subject to compliance obligations arising from medical information privacy regulations.
- We are subject to extensive regulation and potential further restrictive regulation may increase our operating costs and limit our growth.
- A regulatory environment that requires rate increases to be approved and that can dictate underwriting practices and mandate participation in loss sharing arrangements may adversely affect our results of operations and financial condition.
- State insurance regulators impose additional reporting requirements regarding enterprise risk on insurance holding company systems, with which we must comply as an insurance holding company.
- The increasing adoption by states of cybersecurity regulations could impose additional compliance burdens on us and expose us to additional liability.
- Changes in law or regulations, or a failure to comply with any laws and regulations, may adversely affect our business, investments and results of operations.
- Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products, services and brand.
- Some of our products and services contain open source software, which may pose particular risks to our proprietary software, products, and services in a manner that could have a negative effect on our business.
- Claims by others that we infringe or have infringed their proprietary technology or other intellectual property rights could harm our business.
- We may be unable to prevent or address the misappropriation of our data.
- We may become subject to intellectual property disputes or other claims of infringement, which are costly and may subject us to significant liability and increased costs of doing business.
- Our enterprise software business unit has limited operating history, which makes it difficult to forecast operating results from the business unit, and we may not achieve the expected operating results in the future.
- Our enterprise software business has relied on, and is expected to continue to rely on, orders from a relatively small number of customers for a substantial portion of its revenue, and the loss of any of these customers would significantly harm its operating and financial results.
- Our Metromile Enterprise business may cost more to operate than anticipated.
- Our enterprise software products expose us to liability associated with customer contracts and the use of their customers data.
- A significant portion of our future operating profit gains are expected to arise from the growth in the enterprise software revenue, which may not be realized.
- If our performance does not meet market expectations, the price of our securities may decline.
- Our ability to meet expectations and projections in any research or reports published by securities or industry analysts, or a lack of coverage by securities or industry analysts, could result in a depressed market price and limited liquidity for our common stock.
- We expect a number of factors to cause our results of operations to fluctuate on a quarterly and annual basis, which may make it difficult to predict our future performance.
- The trading price of our common stock is volatile, and the market price of our securities may decline.
- Our Certificate of Incorporation provides that the Court of Chancery of the State of Delaware and the federal district courts of the United States of America will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
- A significant portion of our total outstanding shares of our common stock are restricted from immediate resale but may be sold into the market in the near future. This could cause the market price of our common stock to drop significantly, even if our business is doing well.