LMND drops 20% after disappointing outlook, Q4 earnings fall short of consensus


Lemonade (NYSE:LMND) stock tumbled 20% in afterhours trading Wednesday after poor Q1 and full-year guidance, as well as missing Q4 earnings consensus estimate.

Sees Q1 revenue of $41M-$43M vs. consensus of $44.0M; in-force premium at March 31 of $405M-$410M vs. $380.1M at Dec. 31, 2021.

Sees Q4 gross earned premium of $92M-$94M vs. $89.3M in Q4.

Q4 GAAP EPS of -$1.14 vs. consensus estimate of -$1.12 and -$1.08 in Q3.

Q4 premium per customers of $266 vs. $254 in Q3.

Q4 adjusted EBITDA loss of $51.2M vs. loss of $51.3M in Q3

Q4 total revenue of $41.0M exceeded consensus of $39.4M; compares with $35.7M in Q3.

In-force premium, on an annualized basis, increased by 78% Y/Y to $380.1M; customer count rose by 43% to 1.42M and premium per customer of $266 increased by 25%.

Q4 sales and marketing expense fell to $37.2M from $42.2M in Q3 and $22.9M in Q4 2020; technology development expense increased to $16.4M from $14.3M in Q3.

Net loss ratio of 98% vs. 81% in Q3.


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