NYSE$LMND
Lemonade Inc. · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Lemonade experienced strong growth and improved unit economics, in-force premium doubled, gross profit increased 83%, and net loss per dollar of gross earned premium halved.
Lemonade's Q3 2020 showed stronger growth than anticipated with sustained improvements in unit economics. In force premium doubled year-on-year, while gross profit increased 83%, adjusted gross profit grew 138%, and net loss per dollar of gross earned premium halved.
- In force premium increased by 99% year-over-year to $188.9 million.
- Customer count increased by 67% year-over-year to 941,313.
- Gross loss ratio improved from 78% to 72% year-over-year.
- Launched pet health insurance with compelling cross-sell dynamics.
Headline financials
Revenue & EPS history
Lemonade · Revenue · Quarterly
$17.8M
Forward guidance
Lemonade provided guidance for Q4 2020 and full year 2020.
Tailwinds
- In force premium at December 31 of $200 - $205 million
- Gross earned premium of $46 - $48 million
- Revenue of $18 - $19 million
Headwinds
- Adjusted EBITDA loss of ($34) - ($32) million
- Stock-based compensation expense of approximately $3 million
- Capital expenditures of approximately $1 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 Q3 2020
+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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