NYSE$LMND
Lemonade Inc. · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Lemonade reported strong Q3 2022 results, with top and bottom lines exceeding expectations, driven by 76% top line growth and in force premium of $609 million.
Lemonade reported a strong third quarter with revenue and adjusted EBITDA loss coming in better than expected. The company saw 76% top line growth, driven by an increase in customers and premium per customer. However, the gross loss ratio was negatively impacted by the acquisition of Metromile and Hurricane Ian. The company is reiterating its full-year topline guidance, expecting H2 performance to be as guided, despite a shift in allocation between quarters.
- In Force Premium (IFP) increased by 76% to $609.2 million compared to Q3 2021.
- Customer count increased by 30% to 1,775,824 compared to Q3 2021.
- Premium per customer increased by 35% to $343 compared to Q3 2021.
- Revenue increased by 107% to $74.0 million compared to Q3 2021.
Headline financials
Revenue & EPS history
Lemonade · Revenue · Quarterly
$74M
Forward guidance
Lemonade provided guidance for Q4 2022, including the impact of the Metromile acquisition for the full quarter. They expect in force premium to be $612 - $615 million, gross earned premium to be $147 - $150 million, revenue to be $77 - $80 million, and adjusted EBITDA loss to be ($65) - ($62) million.
Tailwinds
- In force premium at December 31, 2022 of $612 - $615 million
- Gross earned premium of $147 - $150 million
- Revenue of $77 - $80 million
- Adjusted EBITDA loss of ($65) - ($62) million
- Stock-based compensation expense of approximately $16 million
Headwinds
- Adjusted EBITDA loss is expected to be between ($65) - ($62) million
- Stock-based compensation expense of approximately $16 million is expected
- Capital expenditures of approximately $3 million are expected
- Gross loss ratio was negatively impacted by the acquisition of Metromile
- Gross loss ratio was negatively impacted by Hurricane Ian
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 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
| 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 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro