NYSE$LMND
Lemonade Inc. · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Lemonade's Q2 2024 results were marked by strong revenue growth, expense stability, and positive net cash flow.
Lemonade reported excellent second-quarter results, featuring robust topline growth, relative stability in expenses, and positive net cash flow. In Force Premium grew 22% YoY, while revenue grew 17%. Gross loss ratio improved to 79%, and gross profit increased by 155% year on year.
- Lemonade was net cash flow positive in Q2 2024 and expects to remain so, with the exception of Q4 2024.
- In Force Premium grew 22% year-over-year, reaching $839 million, while revenue increased by 17%.
- Gross loss ratio improved to 79%, a 15-point improvement year-over-year.
- Gross profit increased by 155% year-over-year, and the gross profit margin doubled to 25%.
Headline financials
Revenue & EPS history
Lemonade · Revenue · Quarterly
$122M
Forward guidance
Lemonade is reaffirming guidance for FY 2024 for all metrics. They expect familiar seasonal patterns to repeat in Q3 & Q4, with accelerating growth spend in Q3, expected to be 3x prior year amount, and lower loss ratios in Q4.
Tailwinds
- In force premium at September 30, 2024 of $875 - $879 million (~22% growth YoY)
- Gross earned premium of $208 - $210 million (~21% growth YoY)
- Revenue of $124 - $126 million (~10% growth YoY)
- Adjusted EBITDA loss of ($58) - ($56) million
- In force premium at December 31, 2024 of $940 - $944 million (~26% growth YoY)
Headwinds
- Adjusted EBITDA loss of ($155) - ($151) million
- Stock-based compensation expense for the third quarter of approximately $17 million
- Capital expenditures for the third quarter of approximately $3 million
- Weighted total common shares outstanding for the third quarter is approximately 71 million shares
- Seasonal cash flow patterns are expected to dip cash and investments balance by approximately 1-2% before consistently climbing
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 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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