NYSE$LMND

Lemonade Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Lemonade expanded its product offerings, grew its customer base, and improved its economics.

Lemonade's Q4 2020 results showed significant growth in in force premium, customers, and premium per customer. The company expanded its product offerings and geographic presence, while also improving marketing efficiency. Lemonade concluded the year with over one million customers and a 20% increase in premium per customer.

  • In force premium increased by 87% year-on-year to $213 million.
  • Customer count increased by 56% year-on-year, reaching over one million customers.
  • Premium per customer increased by 20% year-on-year to $213.
  • Gross earned premium increased by 92% year-on-year to $50 million.

Headline financials

Total Revenue

$20.5M

Previous: $23.5M-12.8%
EPS (adj)

-$0.60

Previous: -$9.75+93.8%
In-Force Premium

$213M

Previous: $114M+87.2%
Customers

1.0M

Previous: 643.0K+55.6%
Premium per Customer

$213.00

Previous: $177.00+20.3%
Gross Earned Premium

$50M

Previous: $26M+92.3%
Gross Loss Ratio

73.0%

No prior period
Capital Expenditures

$1.3M

Previous: -$300K+533.3%
Free Cash Flow

-$22M

Previous: -$17.4M-26.4%
Net Income

-$33.9M

Previous: -$32.7M-3.7%
Gross Profit

$7.5M

Previous: $23.5M-68.1%
Cash & Equivalents

$578M

Previous: $270M+114.1%
Total Assets

$829M

Previous: $414M+100.0%
Stock-Based Comp

$3.3M

Previous: $2M+65.0%

Revenue & EPS history

Lemonade · Revenue · Quarterly

$20.5M

Q4 2020-12.8%vs Q4 2019
Beat estimate in 9 of 9 quarters(100%)
ActualEstimate

Forward guidance

For Q1 2021, Lemonade expects in force premium between $241.0 - $246.0 million, gross earned premium between $53.5 - $54.5 million, revenue between $21.5 - $22.5 million, and adjusted EBITDA loss between $(43.0) - $(40.0) million. For the full year 2021, Lemonade expects in force premium between $372 - $378 million, gross earned premium between $270 - $275 million, revenue between $114 - $117 million, and adjusted EBITDA loss between $(173) - $(163) million.

Tailwinds

  • Expected growth in in force premium.
  • Anticipated increase in gross earned premium.
  • Projected revenue growth.
  • Focus on improving operating efficiency.
  • Continued expansion of product offerings.

Headwinds

  • Expected adjusted EBITDA loss.
  • Potential impact from winter storms in Texas.
  • Uncertainty regarding the lasting impacts of COVID-19.
  • Intense competition in the insurance industry.
  • Dependence on reinsurance.

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 Q4 2020

Historical avgQ4 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

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

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