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Mar 31, 2023
Lemonade Q1 2023 Earnings Report
Lemonade's Q1 2023 performance was strong, with key metrics moving in the right direction, despite persistent inflation and severe weather events.
Key Takeaways
Lemonade had a strong first quarter in 2023 with In Force Premium increasing by 56% year-over-year to $653 million, gross loss ratio decreasing to 87%, and annual dollar retention hitting a new all-time high of 87%. The company's net loss improved by 12% year-over-year to $66 million and adjusted EBITDA improved by 11% to ($51) million.
In Force Premium increased by 56% year-over-year.
Gross loss ratio decreased from 89% in Q4 2022 to 87%.
Annual Dollar Retention hit a new all-time-high of 87%.
Net Loss improved by 12% year-over-year.
Forward Guidance
For Q2 2023, Lemonade anticipates IFP between $665M-$668M, Gross Earned Premium between $156M-$158M, Revenue between $96M-$98M, and Adjusted EBITDA loss between ($58M)-($55M). For the full year 2023, Lemonade anticipates IFP between $700M-$705M, Gross Earned Premium between $645M-$650M, Revenue between $392M-$396M, and Adjusted EBITDA loss between ($205M)-($200M).
Positive Outlook
- In force premium at June 30, 2023 of $665 - $668 million
- Gross earned premium of $156 - $158 million
- Revenue of $96 - $98 million
- In force premium at December 31 of $700 - $705 million
- Gross earned premium of $645 - $650 million
Challenges Ahead
- Adjusted EBITDA loss of ($58) - ($55) million
- Stock-based compensation expense of approximately $15 million
- Capital expenditures of approximately $3 million
- Adjusted EBITDA loss of ($205) - ($200) million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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