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Sep 30, 2022
Lemonade Q3 2022 Earnings Report
Lemonade reported strong Q3 2022 results, with top and bottom lines exceeding expectations, driven by 76% top line growth and in force premium of $609 million.
Key Takeaways
Lemonade reported a strong third quarter with revenue and adjusted EBITDA loss coming in better than expected. The company saw 76% top line growth, driven by an increase in customers and premium per customer. However, the gross loss ratio was negatively impacted by the acquisition of Metromile and Hurricane Ian. The company is reiterating its full-year topline guidance, expecting H2 performance to be as guided, despite a shift in allocation between quarters.
In Force Premium (IFP) increased by 76% to $609.2 million compared to Q3 2021.
Customer count increased by 30% to 1,775,824 compared to Q3 2021.
Premium per customer increased by 35% to $343 compared to Q3 2021.
Revenue increased by 107% to $74.0 million compared to Q3 2021.
Forward Guidance
Lemonade provided guidance for Q4 2022, including the impact of the Metromile acquisition for the full quarter. They expect in force premium to be $612 - $615 million, gross earned premium to be $147 - $150 million, revenue to be $77 - $80 million, and adjusted EBITDA loss to be ($65) - ($62) million.
Positive Outlook
- In force premium at December 31, 2022 of $612 - $615 million
- Gross earned premium of $147 - $150 million
- Revenue of $77 - $80 million
- Adjusted EBITDA loss of ($65) - ($62) million
- Stock-based compensation expense of approximately $16 million
Challenges Ahead
- Adjusted EBITDA loss is expected to be between ($65) - ($62) million
- Stock-based compensation expense of approximately $16 million is expected
- Capital expenditures of approximately $3 million are expected
- Gross loss ratio was negatively impacted by the acquisition of Metromile
Historical Earnings Impact
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Avg. Return Before/After Earnings
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