- Lemonade Inc (NYSE: LMND) reported In Force Premium increase of 54% year-over-year to $457.6 million, primarily due to a 31% increase in the number of customers and an 18% increase in premium per customer.
- Annual Dollar Retention was 83% at the end of the quarter, up 1% Y/Y.
- Gross earned premium was $106.8 million (+60% Y/Y), reflecting an increase of in-force premium earned during the quarter.
- Cross-Sells trended up, 23% of sales in Q2 were from cross-sells and upsells.
- Revenue for the quarter totaled $50 million, an increase of 77% Y/Y. Adjusted gross profit was $17.5 million (+37% Y/). The adjusted gross margin was 35%, down from 45% in 2Q21.
- Net loss was $(67.9) million, or $(1.10) per share, compared to $(0.90) per share in 2Q21.
- Adjusted EBITDA loss was $50.3 million, increased by $9.9 million as compared to 2Q21.
- The company’s cash, cash equivalents, and investments totaled approximately $1.0 billion on June 30, 2022.
- The company states that closing the Metromile transaction significantly changes the product mix. Renters now comprise about a third of our book, down from almost a half, while Car jumped from 1% to 20% overnight.
- 3Q22 Outlook: Lemonade expects In force premium of $595 million - $600 million; Gross earned premium of $127 million - $129 million; and Revenue of $63 million- $65 million.
- It expects an Adjusted EBITDA loss of ($74) million - ($69) million.
- FY22 Outlook: LMND forecasts In force premium of $610 million - $615 million; Gross earned premium of $476m million - $480 million; and Revenue of $236 million - $239 million.
- It sees an Adjusted EBITDA loss of ($245) million - ($240) million.
- Price Action: LMND shares are trading higher by 7.53% at $27 during the post-market session on Monday.
Read at Benzinga