NYSE$LMND

Lemonade Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Lemonade's first quarter was marked by strong top and bottom-line performance, exceeding expectations despite turbulent market conditions.

Lemonade reported a strong first quarter, with both top and bottom-line results exceeding expectations. In force premium reached $419 million, and the company saw improvements in LTV/CAC and bundle rates. The availability of all Lemonade products in select markets showed promising early data, with higher bundle rates and increased customer spending.

  • In force premium increased by 66% year-over-year to $419.0 million.
  • Customer count rose by 37% year-over-year, reaching 1,504,197 customers.
  • Premium per customer increased by 22% year-over-year to $279.
  • Total revenue increased by 89% year-over-year to $44.3 million.

Headline financials

Total Revenue

$44.3M

Previous: $23.5M+88.5%
EPS (adj)

-$1.21

Previous: -$0.81-49.4%
In-Force Premium

$419M

Previous: $252M+66.5%
Customers

1.5M

Previous: 1.1M+37.2%
Premium per Customer

$279.00

Previous: $229.00+21.8%
Gross Earned Premium

$96M

Previous: $56.2M+70.8%
Annual Dollar Retention

82.0%

Previous: 81.0%+1.2%
Gross Loss Ratio

90.0%

Previous: 121.0%-25.6%
Net Loss Ratio

89.0%

Previous: 120.0%-25.8%
Capital Expenditures

-$2.8M

Previous: -$2M-40.0%
Free Cash Flow

-$77.6M

Previous: -$51M-52.2%
Net Income

-$74.8M

Previous: -$49M-52.7%
Operating Income

-$42.6M

Previous: -$28.6M-49.0%
Gross Profit

$44.3M

Previous: $23.5M+88.5%
Cash & Equivalents

$235M

Previous: $1.17B-80.0%
Total Assets

$1.5B

Previous: $1.48B+1.2%
Stock-Based Comp

$14.1M

Previous: $6.1M+131.1%

Revenue & EPS history

Lemonade · Revenue · Quarterly

$44.3M

Q1 2022+88.5%vs Q1 2021
Beat estimate in 11 of 11 quarters(100%)
ActualEstimate

Forward guidance

Lemonade provided guidance for the second quarter and full year 2022, excluding the expected impact of the Metromile acquisition.

Tailwinds

  • In force premium at June 30 expected to be $445 - $450 million
  • Gross earned premium expected to be $103 - $105 million
  • Revenue expected to be $46 - $48 million
  • Full year IFP is expected to grow more than 70% during 2022.
  • Stock-based compensation expense of approximately $15 million for Q2 2022

Headwinds

  • Adjusted EBITDA loss expected to be ($70) - ($65) million for Q2 2022
  • Capital expenditures of approximately $4 million for Q2 2022
  • In force premium at December 31 expected to be $535 - $545 million
  • Gross earned premium expected to be $426 - $430 million
  • Adjusted EBITDA loss expected to be ($280) - ($265) million for full year 2022

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.8%

Avg return

Earnings day

+3.7%

Avg return

5 days after

+10.5%

Avg return

30 days after

44%

11 / 25 earnings

Positive

+57.5%

Q3 2023

Best reaction

-25.2%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-13.6%-11.5%
Q4 2025-6.1%-20.6%-2.4%
Q3 2025+34.3%+34.5%+34.6%
Q1 2025+0.8%+3.6%+19.2%
Q4 2024+12.6%+18.5%+3.1%
Q3 2024+28.8%+33.6%+176.3%
Q2 2024-23.6%-26.6%-18.1%
Q1 2024+3.0%+4.1%-4.2%
Q4 2023-25.2%-20.6%-24.4%
Q3 2023+57.5%+53.1%+66.4%
Q2 2023-22.4%-26.8%-36.3%
Q1 2023+32.0%+47.8%+64.1%
Q4 2022-2.9%-0.7%-21.1%
Q3 2022+11.2%+13.7%-7.3%
Q2 2022+14.1%+27.5%-3.2%
Q1 2022-6.7%+13.7%+3.5%
Q4 2021+2.3%+5.8%+12.7%
Q3 2021-10.8%-9.3%-34.0%
Q2 2021-10.0%-7.6%-14.0%
Q1 2021-12.4%-1.9%+43.8%
Q1 2020-12.4%-1.9%+43.8%
Q4 2020-22.2%-29.8%-27.8%
Q3 2020-15.0%-1.0%+38.9%
Q2 2020-5.6%-2.0%-20.1%
Q4 2019-5.6%-2.0%-20.1%
Q3 2019
Q2 2019
Q4 2018
Q3 2018
Q2 2018

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