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%.
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.
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