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Sep 30, 2020
Lemonade Q3 2020 Earnings Report
Lemonade experienced strong growth and improved unit economics, in-force premium doubled, gross profit increased 83%, and net loss per dollar of gross earned premium halved.
Key Takeaways
Lemonade's Q3 2020 showed stronger growth than anticipated with sustained improvements in unit economics. In force premium doubled year-on-year, while gross profit increased 83%, adjusted gross profit grew 138%, and net loss per dollar of gross earned premium halved.
In force premium increased by 99% year-over-year to $188.9 million.
Customer count increased by 67% year-over-year to 941,313.
Gross loss ratio improved from 78% to 72% year-over-year.
Launched pet health insurance with compelling cross-sell dynamics.
Forward Guidance
Lemonade provided guidance for Q4 2020 and full year 2020.
Positive Outlook
- In force premium at December 31 of $200 - $205 million
- Gross earned premium of $46 - $48 million
- Revenue of $18 - $19 million
Challenges Ahead
- Adjusted EBITDA loss of ($34) - ($32) million
- Stock-based compensation expense of approximately $3 million
- Capital expenditures of approximately $1 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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