© Shutterstock Lemonade (LMND) Gains Ater Better Than Feared Results, Analysts Remain Cagey
By Senad Karaahmetovic
Shares of Lemonade (NYSE:) are up more than 10% in premarket trading Tuesday after the company reported better-than-expected Q2 results and issued an upbeat FY revenue forecast.
The insurance provider a Q2 loss per share of $1.10, compared to a loss per share of 90c in the year-ago period, while analysts were expecting a loss per share of $1.32. Lemonade generated $50 million in revenue, up 77% YoY and above the analyst consensus of $47.8 million.
The company reported 1.58 million customers in the quarter, just below the expected 1.6 million. Adjusted EBITDA loss stood at $50.3 million in the period, up 25% YoY and below the expected loss of $66.4 million.
For Q3, LMND expects revenue in the range of $63 million to $65 million, while analysts were looking for $70.7 million. The insurance company expects Q3 adjusted EBITDA loss to range between $69 million to $74 million, compared to analyst estimates of $83.4 million.
For the full fiscal year, Lemonade estimates revenue in the range of $236 million to $239 million, topping the consensus estimates of $213.7 million. Adjusted EBITDA loss for the full year is expected to be between $240 million and $245 million, compared to the expectations of $282.3 million.
In a shareholder letter, the company said it continues to see “strong demand” despite strong macro headwinds.
A Berenberg analyst noted the management commentary provided the “light at the end of the tunnel” for the retail property and casualty insurance business.
An analyst from Bank of America added:
“Given Lemonade’s policy growth despite materially reduced marketing spend suggests underpricing alone can attract new customers. Material downside to our price objective provides the basis for our Underperform recommendation.”