What to Expect From Lemonade's Earnings. Beat or Miss?
Lemonade (NYSE: LMND) should be reporting second-quarter earnings at the start of next month. As always, I will recap what happened with Lemonade this quarter. You can find the video below.
In Q1 Lemonade reported the following. In force premium (IFP) growth accelerated to 89% year over year with IFP of $252 million, and about 1.1 million customers. Premium per customer increased 25% year over year to $229. Gross earned premium increased 84% year over year to $56 million. Loss ratio increased 68% to 121% because of the Texas freeze. Yet EBITDA guidance for the year remains substantially in line with analyst consensus prior to the storm.
Reduction in loss ratio will be in the spotlight especially after the 68% increase last quarter, due to the Texas freeze. As management previously noted, it is focusing on increasing IFP and premium per customer to further strengthen the bottom line, so don't be alarmed if customer growth percentage-wise isn't what it used to be.
Source Fool.com
