NYSE$LMND

Lemonade Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Lemonade's Q2 2021 results showed positive trends across key metrics, driven by healthy unit economics and growth investments.

Lemonade reported strong growth in Q2 2021, with in force premium (IFP) increasing by 91% year-over-year and premium per customer growing by 29%. The company saw a net loss of $55.6 million, impacted by increased operating expenses related to growth investments. Lemonade is focusing on long-term value maximization and prioritizing growth opportunities.

  • In force premium (IFP) increased by 91% year-over-year to $296.8 million.
  • Premium per customer grew by 29% year-over-year to $246.
  • Customer count increased by 48% year-over-year, reaching 1,206,172.
  • Gross loss ratio returned to the target range at 74% following the impact of the Texas Freeze in Q1 2021.

Headline financials

Total Revenue

$28.2M

Previous: $29.9M-5.7%
EPS (adj)

-$0.90

Previous: -$1.77+49.2%
In-Force Premium

$297M

Previous: $155M+91.4%
Premium per Customer

$246.00

Previous: $190.00+29.5%
Gross Earned Premium

$66.9M

Previous: $35.3M+89.5%
Annual Dollar Retention

82.0%

No prior period
Gross Loss Ratio

74.0%

No prior period
Net Loss Ratio

80.0%

No prior period
Capital Expenditures

-$4.7M

Previous: -$1.9M-147.4%
Free Cash Flow

-$60.3M

Previous: -$22.9M-163.3%
Net Income

-$55.6M

Previous: -$21M-164.8%
Operating Income

-$38.7M

Previous: $2.2M-1859.1%
Gross Profit

$28.2M

Previous: $29.9M-5.7%
Cash & Equivalents

$1.2B

Previous: $295M+306.2%
Total Assets

$1.49B

Previous: $400M+271.9%
Stock-Based Comp

$11.9M

Previous: $2.4M+395.8%

Revenue & EPS history

Lemonade · Revenue · Quarterly

$28.2M

Q2 2021-5.7%vs Q2 2020
Beat estimate in 9 of 9 quarters(100%)
ActualEstimate

Forward guidance

Lemonade provided guidance for Q3 2021 and full year 2021, including expectations for in force premium, gross earned premium, revenue, and adjusted EBITDA loss.

Tailwinds

  • In force premium at September 30 of $336.0 - $339.0 million
  • Gross earned premium of $76.5 - $77.5 million
  • Revenue of $32.5 - $33.5 million
  • In force premium at December 31 of $380 - $384 million
  • Gross earned premium of $286 - $288 million

Headwinds

  • Adjusted EBITDA loss of ($55.0) - ($52.0) million
  • Stock-based compensation expense of approximately $15 million
  • Capital expenditures of approximately $3 million
  • Adjusted EBITDA loss of ($173) - ($169) million
  • Stock-based compensation expense of approximately $50 million

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 Q2 2021

Historical avgQ2 2021

+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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