Israeli online insurer Lemonade (NYSE: LMND) lost ground after reporting second quarter results and disappointing third quarter guidance - the company's first financial statement since its successful IPO at the end of June.
Second quarter revenue was $29.9 million, up from $16.1 million in the corresponding quarter of 2019 and above the analysts' estimates of $29.3 million. Second quarter net loss narrowed to $21 million ($1.77 per share) from net loss of $2.09 per share in the corresponding quarter of 2019 and beating the analysts' estimate of $36.5 million ($2.09 per share) of a loss of $2.18 per share.
But while the second quarter results were stronger than expected, the company's share price slid after weak third quarter guidance. Lemonade sees third quarter revenue of $14-15 million, below the analysts' expectations of $15.2 million, and 2020 revenue of $86-88 million, below the analysts' expectations of $88.9 million.
Lemonade's share price fell 6.91% on the NYSE yesterday to $62.75, giving a market cap of $3.45 billion, and fell a further 4.81% in aftermarket trading after the financial results were announced to $60.00. Nevertheless, the share price of Lemonade, which was founded by CEO Daniel Schreiber and president Shai Wininger, is still worth over double the $29 at which it held its IPO six weeks ago at a market cap of $1.6 billion, and Lemonade is worth more than Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) and Menorah Mivtachim Holdings Ltd. (TASE: MORA) combined.
Published by Globes, Israel business news - en.globes.co.il - on August 12, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020