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Sep 30, 2023
Lemonade Q3 2023 Earnings Report
Lemonade's Q3 2023 performance showed strong growth in in-force premium and gross profit, alongside improvements in gross loss ratio and adjusted EBITDA loss.
Key Takeaways
Lemonade reported strong Q3 2023 results with in-force premium growing by 18%, gross profit increasing by 170%, and gross loss ratio improving by 11 percentage points. The company's adjusted EBITDA loss also improved by 39%, and they anticipate being cash-flow positive in late 2025.
In-force premium grew 18% year-over-year, reaching $719 million.
Gross loss ratio improved by 11 percentage points, landing at 83%.
Gross profit was up 170% year-over-year, totaling $22 million.
Adjusted EBITDA loss improved by 39% year-over-year, amounting to a $40 million loss.
Forward Guidance
For Q4 2023, Lemonade anticipates in force premium between $726 - $729 million, gross earned premium between $174 - $176 million, revenue between $107 - $109 million, and an adjusted EBITDA loss between ($44) - ($42) million.
Positive Outlook
- In force premium at December 31, 2023 of $726 - $729 million
- Gross earned premium of $174 - $176 million
- Revenue of $107 - $109 million
Challenges Ahead
- Adjusted EBITDA loss of ($44) - ($42) million
- Stock-based compensation expense of approximately $16 million
- Capital expenditures of approximately $3 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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