Ondo Insurtech shares fell in early trade on Monday as the insurance technology company failed to inspire investors with tepid revenue growth in their recent half-year period.
The UK-based provider of property claim prevention technology, announced revenue of £1.2 million for the six-month period ended 30th September 2023, a 24% increase compared to £0.9 million in the same period last year. Recurring revenue from software and services grew 50% to £0.7 million.
Ondo shares were down 13% to 26p at the time of writing on Monday.
The company reported an operating loss of £1.6 million and an adjusted loss before tax of £1.9 million.
Ondo shipped 18,927 LeakBot units during the period, a 61% increase versus 11,752 units last year. Total registered customers grew 77% to 84,000.
The company signed new US deals with Mutual of Enumclaw and Pure Insurance to roll out in Washington and New York states. It also agreed to a 5-year rollout with Sweden’s largest home insurer Länsförsäkringar.
After the reporting period, Ondo signed with Nationwide, a top 10 US home insurer, to make LeakBot part of their Smart Home program. Addressable households under contract increased 394% to 2.5 million, and rises further to 5 million with the Nationwide deal.
The increase in addressable households was largely priced in last week after the announcement of the Nationwide deal, and today’s numbers serve as a reminder the company is trading at relatively punchy sales and earnings multiples.