NYSE$LMND
Lemonade Inc. · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Lemonade reported strong Q4 2023 results with significant year-over-year improvements in revenue, loss ratio, and profitability.
Lemonade's Q4 2023 showed strong growth and improved profitability. In-force premium grew by 20% year-over-year, while revenue increased by 31%. The gross loss ratio improved to 77%, and the company saw a 165% increase in gross profit. Adjusted EBITDA loss improved by 44%, and net loss improved by a third. The company expects accelerating top line growth and an improving bottom line in 2024.
- In-force premium grew by 20% year-over-year, reaching $747 million.
- Gross loss ratio improved by 12 points year-over-year, reaching 77%.
- Gross profit increased by 165% year-over-year, with gross profit margin more than doubling to 29%.
- Adjusted EBITDA loss improved by 44% year-over-year, and net loss improved by a third.
Headline financials
Revenue & EPS history
Lemonade · Revenue · Quarterly
$116M
Forward guidance
For Q1 2024, Lemonade anticipates in force premium of $789 - $791 million, gross earned premium of $183 - $185 million, revenue of $111 - $113 million, and an Adjusted EBITDA loss of ($43) - ($41) million. For the full year 2024, the company expects in force premium of $938 - $942 million, gross earned premium of $815 - $820 million, revenue of $505 - $510 million, and an Adjusted EBITDA loss of ($160) - ($155) million.
Tailwinds
- in force premium at March 31, 2024 of $789 - $791 million (~21% growth YoY)
- Gross earned premium of $183 - $185 million (~20% growth YoY)
- Revenue of $111 - $113 million (~19% growth YoY)
- Adjusted EBITDA loss of ($43) - ($41) million (~19% improvement YoY)
- in force premium at December 31, 2024 of $938 - $942 million (~26% growth YoY)
Headwinds
- Adjusted EBITDA loss of ($160) - ($155) million (~10% improvement YoY)
- Stock-based compensation expense of approximately $15 million (Q1 2024) and $60 million (FY 2024)
- Capital expenditures of approximately $2 million (Q1 2024) and $10 million (FY 2024)
- Weighted total common shares outstanding of approximately 70 million shares (Q1 2024) and 71 million shares (FY 2024)
- Revenue of $505 - $510 million (~19% growth YoY)
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 2023
+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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