NYSE$LMND
Lemonade Inc. · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Lemonade's Q1 2024 results showcased strong growth and improved efficiency, with in-force premium and revenue increasing, gross loss ratio improving, and operating expenses well-managed.
Lemonade reported excellent Q1 2024 results, highlighted by a 25% increase in total revenue and an 8-point improvement in the gross loss ratio. The company has accelerated its timeline for achieving cash flow breakeven to year-end 2024, driven by sustained strength in unit economics and the impact of technology on expense management.
- In-force premium (IFP) grew by 22% year-over-year to $794 million, and total revenue increased by 25%.
- Gross loss ratio improved by 8 percentage points year-over-year, reaching 79%.
- Gross profit climbed by 110% year-over-year, with the gross profit margin improving to 29%.
- The company now expects cash flow breakeven by year-end 2024, an acceleration from previous expectations.
Headline financials
Revenue & EPS history
Lemonade · Revenue · Quarterly
$119M
Forward guidance
Lemonade provided guidance for Q2 2024 and full year 2024, expecting continued growth in in-force premium, gross earned premium, and revenue. The company also anticipates improvements in Adjusted EBITDA loss year-over-year.
Tailwinds
- In force premium at June 30, 2024, is expected to be $839 - $841 million (~22% growth YoY).
- Gross earned premium for Q2 2024 is projected to be $197 - $199 million (~21% growth YoY).
- Revenue for Q2 2024 is anticipated to be $118 - $120 million (~15% growth YoY).
- Adjusted EBITDA loss for Q2 2024 is expected to improve to ($49) - ($47) million (~11% improvement YoY).
- The company expects to achieve positive net cash flow on a consistent basis by Q1 2025.
Headwinds
- Adjusted EBITDA loss for the full year 2024 is expected to be ($155) - ($151) million.
- The company anticipates stock-based compensation expense of approximately $15 million for Q2 2024 and $62 million for the full year 2024.
- Capital expenditures are projected to be approximately $3 million for Q2 2024 and $10 million for the full year 2024.
- Weighted total common shares outstanding are expected to be approximately 70 million shares for Q2 2024 and 71 million shares for the full year 2024.
- A full reconciliation of Adjusted EBITDA guidance to net loss on a forward-looking basis cannot be provided without unreasonable efforts.
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 2024
+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
| Quarter | Report date | Reaction (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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