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Mar 31, 2021
Lemonade Q1 2021 Earnings Report
Lemonade's growth accelerated, IFP increased, and the company introduced Lemonade Car.
Key Takeaways
Lemonade announced Lemonade Car and experienced accelerated growth in Q1 2021. In force premium grew 89% year-over-year to $251.7 million, and customer count increased 50% to 1,096,618. The company's gross loss ratio was significantly impacted by the Texas winter storm Uri.
Lemonade announced Lemonade Car, marking their fourth major insurance category.
IFP growth accelerated to 89% year-over-year, reaching $251.7 million.
Premium per customer increased 25% year-over-year to $229.
Annual dollar retention improved to 81%, driven by customer retention and additional policy purchases.
Forward Guidance
Lemonade provided guidance for Q2 2021 and full year 2021. For Q2, they anticipate IFP of $283-$288 million, gross earned premium of $63.5-$65 million, revenue of $26-$27 million, and an adjusted EBITDA loss of $43-$40 million. For the full year, they expect IFP of $376-$382 million, gross earned premium of $279-$283 million, revenue of $117-$120 million, and an adjusted EBITDA loss of $173-$163 million.
Positive Outlook
- In force premium at June 30 of $283.0 - $288.0 million
- Gross earned premium of $63.5 - $65.0 million
- Revenue of $26.0 - $27.0 million
- In force premium at December 31 of $376 - $382 million
- Gross earned premium of $279 - $283 million
Challenges Ahead
- Adjusted EBITDA loss of ($43.0) - ($40.0) million for Q2
- Stock-based compensation expense of approximately $13 million for Q2
- Capital expenditures of approximately $3 million for Q2
Historical Earnings Impact
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Avg. Return Before/After Earnings
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