NYSE$LMND

Lemonade Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Lemonade's Q3 2024 results demonstrated strong topline growth, expense stability, and positive net cash flow.

Lemonade reported strong Q3 2024 results, featuring accelerating topline growth, stable expenses, and $48 million in net cash flow. In Force Premium grew 24% year-over-year, and the gross loss ratio improved to 73%.

  • Delivered a NCF-positive quarter, generating $48 million NCF.
  • In Force Premium grew 24% YoY reaching $889 million, while revenue grew 19%.
  • Gross loss ratio improved to 73%, a 10 points year on year improvement.
  • Gross Profit increased by 71% year on year to $38 million, with Gross Profit Margin increasing to 27%.

Headline financials

Total Revenue

$137M

Previous: $115M+19.3%
EPS

-$0.95

Previous: -$0.88-8.0%
In-Force Premium

$889M

Previous: $719M+23.7%
Customers

2.3M

Previous: 2.0M+16.6%
Premium per Customer

$384.00

Previous: $362.00+6.1%
Gross Earned Premium

$213M

Previous: $173M+23.0%
Annual Dollar Retention

87.0%

Previous: 85.0%+2.4%
Adjusted Gross Profit

$38.6M

No prior period
Adjusted EBITDA

-$49M

No prior period
Gross Profit Margin

27.0%

No prior period
Adjusted Gross Profit Margin

28.0%

No prior period
Adj GP to GEP Ratio

18.0%

No prior period
Gross Loss Ratio

73.0%

Previous: 83.0%-12.0%
Net Loss Ratio

81.0%

Previous: 88.0%-8.0%
Capital Expenditures

-$6.2M

Previous: -$6.8M+8.8%
Free Cash Flow

-$73.9M

Previous: -$68.3M-8.2%
Net Income

-$67.7M

Previous: -$61.5M-10.1%
Operating Income

$23.7M

Previous: $21.7M+9.2%
Gross Profit

$137M

Previous: $115M+19.3%
Stock-Based Comp

$16.9M

Previous: $15.4M+9.7%

Revenue & EPS history

Lemonade · Revenue · Quarterly

$137M

Q3 2024+19.3%vs Q3 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Lemonade is increasing full year guidance for gross earned premium and revenue, and reaffirming guidance for FY 2024 for all other metrics. Expecting positive net cash flow exiting this year, and Adjusted EBITDA profitability on track during 2026.

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 2024

Historical avgQ3 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

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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