Root (ROOT) 28th Annual Needham Growth Conference Virtual summary

Company background and technology vision

• Founded to use mobile technology and data science for fair, behavior-based car insurance pricing.

• Leveraged mobile phones as insurance prediction tools, enabling rapid growth and profitability.

• Focused on building AI and machine learning systems for precise risk assessment.

• Operates as a technology company, continually investing in innovation and automation.

• Plans to accelerate pricing model updates from annual to daily, driving ongoing tech leadership.

Distribution channels and growth strategy

• Direct channel growth is cyclical, driven by advanced bidding algorithms and search channels.

• Embedded partnerships, such as with Carvana and Hyundai, have doubled year-over-year.

• Independent agents now drive the fastest growth, with a streamlined three-minute quote process.

• Less than 1% market share, but rapid expansion across all channels and new geographies.

• Geographic expansion includes recent entry into New Jersey, with national scale as a medium-term goal.

Competitive advantages and technology differentiation

• Modern platform enables real-time data ingestion, rapid pricing adjustments, and regulatory filings.

• AI-native approach allows for frequent model updates, outperforming legacy insurers' slow cycles.

• Closed-loop system and API-driven architecture streamline agent and customer experiences.

• Ability to generate bindable quotes with minimal data, unlike competitors' rigid applications.

• Integration with connected vehicle data and OEMs positions for future risk assessment advances.