Israeli online insurer Lemonade (NYSE: LMND) was down 9% in after-hours trading on Wall Street last night after publishing disappointing second quarter results.
Revenue in the second quarter of 2021 was $28.2 million, higher than the analysts' forecasts but 5.7% lower than the corresponding quarter of 2020. In the first half of 2021, revenue was $51.7 million, down 7.8% from the corresponding period of 2020. Net loss in the second quarter of was $55.6 million, widening 165% from the net loss in the corresponding quarter of 2020. Net loss in the first half of 2021 was $105 million, widening from $57.5 million in the first half of 2020.
Lemonade reported that at the end of the second quarter it had over 1.2 million customers, a gain of 110,000 customers during the quarter and up 48% from the corresponding quarter of 2020. There was also a rise in customer retention and premium per customer.
Management wrote that "there were positive trends and metrics across the board," and "for the fourth consecutive quarter, we saw accelerating growth in premium per customer," which reached "an all-time record of $246." Lemonade said that in the long term, the mix of products would be more diverse. (Lemonade recently entered the vehicle insurance sector).
Lemonade sees revenue of $32.5-$33.5 million in the third quarter and adjusted negative EBITDA of $52-55 million. For 2021, Lemonade sees revenue growing to $123-125 million up from $94.4 million in 2020 but the EBITDA loss widening to $169-173 million compared with negative adjusted EBITDA of $97.9 million in 2020.
Lemonade was founded by CEO Daniel Schreiber and president and COO Shai Wininger. The company held its IPO in July 2020 at $29 per share, which rose to a peak of $183 before falling back to $90 at close of trade last night, giving a market cap of $5.52 billion, before falling 9% in after-hours trading.
Published by Globes, Israel business news - en.globes.co.il - on August 5, 2021
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