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Dec 31, 2020
Lemonade Q4 2020 Earnings Report
Lemonade expanded its product offerings, grew its customer base, and improved its economics.
Key Takeaways
Lemonade's Q4 2020 results showed significant growth in in force premium, customers, and premium per customer. The company expanded its product offerings and geographic presence, while also improving marketing efficiency. Lemonade concluded the year with over one million customers and a 20% increase in premium per customer.
In force premium increased by 87% year-on-year to $213 million.
Customer count increased by 56% year-on-year, reaching over one million customers.
Premium per customer increased by 20% year-on-year to $213.
Gross earned premium increased by 92% year-on-year to $50 million.
Forward Guidance
For Q1 2021, Lemonade expects in force premium between $241.0 - $246.0 million, gross earned premium between $53.5 - $54.5 million, revenue between $21.5 - $22.5 million, and adjusted EBITDA loss between $(43.0) - $(40.0) million. For the full year 2021, Lemonade expects in force premium between $372 - $378 million, gross earned premium between $270 - $275 million, revenue between $114 - $117 million, and adjusted EBITDA loss between $(173) - $(163) million.
Positive Outlook
- Expected growth in in force premium.
- Anticipated increase in gross earned premium.
- Projected revenue growth.
- Focus on improving operating efficiency.
- Continued expansion of product offerings.
Challenges Ahead
- Expected adjusted EBITDA loss.
- Potential impact from winter storms in Texas.
- Uncertainty regarding the lasting impacts of COVID-19.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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