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Jun 30, 2024
Lemonade Q2 2024 Earnings Report
Lemonade's Q2 2024 results were marked by strong revenue growth, expense stability, and positive net cash flow.
Key Takeaways
Lemonade reported excellent second-quarter results, featuring robust topline growth, relative stability in expenses, and positive net cash flow. In Force Premium grew 22% YoY, while revenue grew 17%. Gross loss ratio improved to 79%, and gross profit increased by 155% year on year.
Lemonade was net cash flow positive in Q2 2024 and expects to remain so, with the exception of Q4 2024.
In Force Premium grew 22% year-over-year, reaching $839 million, while revenue increased by 17%.
Gross loss ratio improved to 79%, a 15-point improvement year-over-year.
Gross profit increased by 155% year-over-year, and the gross profit margin doubled to 25%.
Revenue by Geographic Location
Forward Guidance
Lemonade is reaffirming guidance for FY 2024 for all metrics. They expect familiar seasonal patterns to repeat in Q3 & Q4, with accelerating growth spend in Q3, expected to be 3x prior year amount, and lower loss ratios in Q4.
Positive Outlook
- In force premium at September 30, 2024 of $875 - $879 million (~22% growth YoY)
- Gross earned premium of $208 - $210 million (~21% growth YoY)
- Revenue of $124 - $126 million (~10% growth YoY)
- Adjusted EBITDA loss of ($58) - ($56) million
- In force premium at December 31, 2024 of $940 - $944 million (~26% growth YoY)
Challenges Ahead
- Adjusted EBITDA loss of ($155) - ($151) million
- Stock-based compensation expense for the third quarter of approximately $17 million
- Capital expenditures for the third quarter of approximately $3 million
- Weighted total common shares outstanding for the third quarter is approximately 71 million shares
Historical Earnings Impact
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Avg. Return Before/After Earnings
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