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Jun 30, 2021
Lemonade Q2 2021 Earnings Report
Lemonade's Q2 2021 results showed positive trends across key metrics, driven by healthy unit economics and growth investments.
Key Takeaways
Lemonade reported strong growth in Q2 2021, with in force premium (IFP) increasing by 91% year-over-year and premium per customer growing by 29%. The company saw a net loss of $55.6 million, impacted by increased operating expenses related to growth investments. Lemonade is focusing on long-term value maximization and prioritizing growth opportunities.
In force premium (IFP) increased by 91% year-over-year to $296.8 million.
Premium per customer grew by 29% year-over-year to $246.
Customer count increased by 48% year-over-year, reaching 1,206,172.
Gross loss ratio returned to the target range at 74% following the impact of the Texas Freeze in Q1 2021.
Forward Guidance
Lemonade provided guidance for Q3 2021 and full year 2021, including expectations for in force premium, gross earned premium, revenue, and adjusted EBITDA loss.
Positive Outlook
- In force premium at September 30 of $336.0 - $339.0 million
- Gross earned premium of $76.5 - $77.5 million
- Revenue of $32.5 - $33.5 million
- In force premium at December 31 of $380 - $384 million
- Gross earned premium of $286 - $288 million
Challenges Ahead
- Adjusted EBITDA loss of ($55.0) - ($52.0) million
- Stock-based compensation expense of approximately $15 million
- Capital expenditures of approximately $3 million
- Adjusted EBITDA loss of ($173) - ($169) million
- Stock-based compensation expense of approximately $50 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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