Trupanion (TRUP), a leading provider of pet medical insurance, saw its stock plummet 16.9% in pre-market trading on Thursday. This sharp decline came after the company reported disappointing fourth-quarter 2024 earnings results, missing analysts' expectations on earnings per share (EPS) despite beating slightly on revenue.

Trupanion reported Q4 EPS of $0.04, missing the consensus estimate of $0.06 by a substantial 33.33%. While revenue of $337.31 million surpassed expectations and grew 14% year-over-year, the earnings miss and weak guidance raised concerns among investors about the company's profitability and growth prospects.

Management acknowledged the challenges in achieving sustainable growth while enhancing customer experience and improving retention rates. These remarks, coupled with the earnings shortfall, have spooked investors and led to the significant pre-market sell-off in Trupanion shares.