[Q1 2025 Performance Highlights](index=2&type=section&id=Q1%202025%20Performance%20Highlights) This section provides an overview of Q1 2025 performance highlights [Letter to Shareholders & Executive Summary](index=3&type=section&id=Letter%20to%20Shareholders%20%26%20Executive%20Summary) The first quarter of 2025 demonstrated strong performance, characterized by accelerating growth in **In Force Premium** (**IFP**) and **Revenue**, alongside stable **loss ratios**. Despite a significant impact from the California Wildfires, the company's results were in line with guidance, and it remains on track to achieve positive **Adjusted EBITDA** before the end of 2026 | Metric | Q1 2025 Value | YoY Growth | Note | | :--- | :--- | :--- | :--- | | **In Force Premium** (**IFP**) | **$1,008 million** | **27%** | Sixth consecutive quarter of accelerating growth | | **Revenue** | - | **27%** | - | | **TTM Gross Loss Ratio** | **73%** | Stable | Within target range | | **Q1 Gross Loss Ratio** | **78%** | - | Includes a **16-point** impact from California Wildfires | | **Gross Profit** | **$39 million** | **11%** | Growth achieved despite wildfire impact | | **Adj. Gross Profit** | **$46 million** | **25%** | - | | **Adj. EBITDA Loss** | **($47) million** | - | In line with guidance, includes ~**$22M** wildfire impact | | **Net Loss** | **($62) million** | - | - | - The company surpassed the **$1 billion** **In Force Premium** (**IFP**) milestone in March, eight and a half years after its inception[7](index=7&type=chunk) - The business is projected to reach profitability, with positive **Adjusted EBITDA** expected before the end of 2026, consistent with previous guidance[6](index=6&type=chunk) [Strategic Execution Overview](index=4&type=section&id=Strategic%20Execution%20Overview) The company is successfully executing its strategy, evidenced by six consecutive quarters of accelerating **In Force Premium** (**IFP**) growth, a stable **Trailing Twelve Months (TTM)** **gross loss ratio** within the target range, and controlled **operating expenses** relative to **IFP** growth - **In Force Premium** (**IFP**) YoY growth has accelerated for the sixth consecutive quarter, reaching **27%** in Q1 2025[9](index=9&type=chunk) - The **Trailing Twelve Months (TTM)** **Gross Loss Ratio** has stabilized at **73%** for the last two quarters, remaining within the company's target range[9](index=9&type=chunk) - **Operating expenses** (excluding growth spend) have remained stable, showing a **Compound Annual Growth Rate (CAGR)** of only **1%** since Q3 2022, compared to a **21%** **CAGR** for **IFP** over the same period[9](index=9&type=chunk) [Product and Market Analysis](index=5&type=section&id=Product%20and%20Market%20Analysis) This section provides an overview of product and market analysis [Product Spotlight: Lemonade Car](index=5&type=section&id=Product%20Spotlight%3A%20Lemonade%20Car) **Lemonade Car** is showing signs of inflection, with its sequential **IFP** growth now outpacing other products. The strategy focuses on leveraging proprietary AI for pricing safe, young drivers and cross-selling to the existing customer base. Significant progress has been made in product optimization, geographic expansion, and pricing segmentation - Q1 marked the first quarter where **Car's** sequential **In Force Premium** (**IFP**) growth outpaced the rest of the company's product portfolio[11](index=11&type=chunk) - Strategic initiatives to optimize the cross-selling experience have resulted in a more than **100%** increase in **Car cross-sales** in Q1 2025 compared to Q1 2024[12](index=12&type=chunk) - The company is expanding its geographic footprint, with the recent launch in Colorado bringing coverage to over **40%** of the **U.S. car market** and nearly **60%** of **Lemonade's customer base**[12](index=12&type=chunk) - Pricing sophistication is accelerating, with **24 rate and coverage filings** made in Q1 2025 alone, nearly matching the **29 filings** made in all of 2024. The focus is on segmentation via telematics[12](index=12&type=chunk) [Macro Environment and Catastrophe Impact](index=6&type=section&id=Macro%20Environment%20and%20Catastrophe%20Impact) The company is monitoring **inflation risks** from U.S. tariff policies, which could impact **loss trends**. The financial impact of the Q1 California Wildfires was in line with previous estimates, with a net impact of **($22) million** on **Adjusted EBITDA** and **($29) million** on **Net Loss** | Impact Metric | Q1 2025 Favorable (Unfavorable) Impact | Note | | :--- | :--- | :--- | | **Gross loss & LAE** | **($36) million** | In line with **$45m** gross estimate | | **Net loss & LAE** | **($16) million** | In line with **$20m** net estimate | | **Adj. EBITDA** | **($22) million** | - | | **Net loss** | **($29) million** | Includes **CA FAIR Plan assessment** | | **CA FAIR Plan assessment** | **($7) million** | - | - The company is closely monitoring **inflation risk** driven by **U.S. tariff policy**. A hypothetical **25%** tariff on cars or parts could increase the **loss trend** by single-digit percentage points, which would be incorporated into future pricing[14](index=14&type=chunk) [Financial Outlook](index=7&type=section&id=Financial%20Outlook) This section provides an overview of financial outlook [Q2 and Full Year 2025 Guidance](index=7&type=section&id=Q2%20and%20Full%20Year%202025%20Guidance) Lemonade reiterates its full-year 2025 **IFP** growth guidance of **28%** and its **Adjusted EBITDA** guidance. It is raising expectations for **Gross Earned Premium (GEP)** and **Revenue** for the full year. The company also maintains its guidance for positive **Adjusted Free Cash Flow** in 2025 | Metric ($ in millions) | Q2 2025 Guidance (Low - High) | Full Year 2025 Guidance (Low - High) | | :--- | :--- | :--- | | **In force premium** (**IFP**) | **$1,061 - $1,064** | **$1,203 - $1,208** | | **Gross earned premium** (**GEP**) | **$246 - $248** | **$1,028 - $1,031** | | **Revenue** | **$157 - $159** | **$661 - $663** | | **Adjusted EBITDA loss** | **($44) - ($41)** | **($140) - ($135)** | - The company reiterates its guidance for achieving positive **Adjusted Free Cash Flow (Adj. FCF)** in 2025, despite the negative impact from the California Wildfires in Q1[17](index=17&type=chunk) - Full-year **IFP** guidance implies a growth rate of **28%**, sustaining acceleration towards the company's target 'cruising velocity' of **30%** expected in 2026[17](index=17&type=chunk) [Detailed Q1 2025 Financial Results](index=8&type=section&id=Detailed%20Q1%202025%20Financial%20Results) This section provides an overview of detailed Q1 2025 financial results [Key Performance Indicators (KPIs)](index=8&type=section&id=Key%20Performance%20Indicators%20(KPIs)) In Q1 2025, the company saw strong growth in **key metrics**, with **In Force Premium** (**IFP**) up **27%** YoY to over **$1 billion** and **customer count** increasing by **21%**. **Premium per customer** also rose by **4%**, while **Annual Dollar Retention (ADR)** decreased to **84%**, primarily due to the non-renewal of policies not meeting underwriting criteria | **KPI** | Q1 2025 | YoY Change | | :--- | :--- | :--- | | **In Force Premium** (**IFP**) | **$1,007.8 million** | **+27%** | | **Customers** | **2,545,496** | **+21%** | | **Premium per Customer** | **$396** | **+4%** | | **Annual Dollar Retention** (**ADR**) | **84%** | **-4 p.p.** | - The decline in **Annual Dollar Retention (ADR)** is largely attributed to the intentional non-renewal of policies that failed to meet certain underwriting criteria[23](index=23&type=chunk) [Profitability and Expense Analysis](index=9&type=section&id=Profitability%20and%20Expense%20Analysis) **Gross Profit** grew **11%** YoY to **$38.6 million**, while **Adjusted Gross Profit** increased **25%** to **$46.0 million**. The **Net Loss** widened to **($62.4) million** and the **Adjusted EBITDA loss** increased to **($47.0) million**, primarily driven by higher growth spend for customer acquisition and the impact of the California Wildfires | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | **$151.2M** | **$119.1M** | **+27%** | | **Gross Profit** | **$38.6M** | **$34.7M** | **+11%** | | **Adjusted Gross Profit** | **$46.0M** | **$36.7M** | **+25%** | | **Net Loss** | **($62.4M)** | **($47.3M)** | Increased Loss | | **Adjusted EBITDA Loss** | **($47.0M)** | **($33.9M)** | Increased Loss | - **Operating expenses** increased by **29%** YoY, primarily driven by higher growth spend for customer acquisition, which rose to **$38.1 million** from **$19.8 million** in Q1 2024, and a one-time **$6.9 million** **California FAIR Plan assessment**[28](index=28&type=chunk) [Cash Flow and Capital Position](index=10&type=section&id=Cash%20Flow%20and%20Capital%20Position) The company ended Q1 with approximately **$1 billion** in **cash, cash equivalents, and investments**. **Adjusted Free Cash Flow** was **($31.0) million**, a decline from the prior year, attributed to the California Wildfires. Without this event, **Adjusted FCF** would have been positive - As of March 31, 2025, the company's **cash, cash equivalents, and investments** totaled approximately **$1 billion**[31](index=31&type=chunk) - **Adjusted Free Cash Flow** was **($31.0) million** in Q1 2025, compared to **($18.9) million** in Q1 2024. The company states that this metric would have been positive if not for the impact of the California Wildfires and the **FAIR Plan assessment**[32](index=32&type=chunk) [Financial Statements and Reconciliations](index=21&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides an overview of financial statements and reconciliations [Condensed Consolidated Financial Statements](index=21&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited **GAAP** financial statements for Q1 2025 compared to Q1 2024, including the Statements of Operations, Balance Sheets, and Statements of Cash Flows [Statements of Operations](index=21&type=section&id=Statements%20of%20Operations) This section presents statements of operations | ($ in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total revenue** | **$151.2** | **$119.1** | | **Total expense** | **$212.6** | **$164.3** | | **Net loss** | **($62.4)** | **($47.3)** | | **Net loss per share** | **($0.86)** | **($0.67)** | [Balance Sheets](index=22&type=section&id=Balance%20Sheets) This section presents balance sheets | ($ in millions) | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | **Total investments** | **$676.1** | **$634.9** | | **Cash, cash equivalents and restricted cash** | **$319.7** | **$385.7** | | **Total assets** | **$1,856.6** | **$1,849.1** | | **Total liabilities** | **$1,311.1** | **$1,255.7** | | **Total stockholders' equity** | **$545.5** | **$593.4** | [Statements of Cash Flows](index=23&type=section&id=Statements%20of%20Cash%20Flows) This section presents statements of cash flows | ($ in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | **($47.2)** | **($29.8)** | | **Net cash (used in) provided by investing activities** | **($40.3)** | **$30.9** | | **Net cash provided by financing activities** | **$20.0** | **$13.5** | | **Net (decrease) increase in cash** | **($66.0)** | **$13.7** | [Reconciliation of Non-GAAP Measures](index=24&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of **non-GAAP** financial measures, such as **Adjusted Gross Profit**, **Adjusted EBITDA**, and **Adjusted Free Cash Flow**, to their most directly comparable **GAAP** counterparts - Q1 2025 **Gross Profit** of **$38.6 million** reconciles to an **Adjusted Gross Profit** of **$46.0 million** after adjustments for items like net investment income and certain employee-related expenses[68](index=68&type=chunk) - Q1 2025 **Net Loss** of **($62.4) million** reconciles to an **Adjusted EBITDA loss** of **($47.0) million**. Key adjustments include adding back stock-based compensation (**$10.3M**), depreciation & amortization (**$4.5M**), and a **$6.9M** adjustment for the **CA FAIR Plan assessment**, while subtracting net investment income (**$9.5M**)[71](index=71&type=chunk) - Q1 2025 **Cash Flow from Operating Activities** of **($47.2) million** reconciles to an **Adjusted Free Cash Flow** of **($31.0) million** after subtracting capital expenditures (**$2.3M**) and adding net borrowings under a financing agreement (**$18.5M**)[74](index=74&type=chunk) [Supplemental and Historical Data](index=27&type=section&id=Supplemental%20and%20Historical%20Data) This section provides supplemental details on stock-based compensation allocation, a breakdown of written and earned premiums, and a comprehensive table of historical operating metrics for the past nine quarters | Premium ($ in millions) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Gross written premium** | **$254.2** | **$205.6** | **24%** | | **Gross earned premium** | **$233.6** | **$187.9** | **24%** | | **Net written premium** | **$115.4** | **$93.9** | **23%** | | **Net earned premium** | **$104.3** | **$84.4** | **24%** | - Historical data shows a consistent upward trend in key metrics such as **Customers** (from **1.86M** in Q1'23 to **2.55M** in Q1'25) and **In Force Premium** (from **$653.3M** in Q1'23 to **$1,007.8M** in Q1'25)[80](index=80&type=chunk) [Insurance Supplement](index=34&type=section&id=Insurance%20Supplement) This section provides an overview of insurance supplement [Loss Ratio Analysis](index=35&type=section&id=Loss%20Ratio%20Analysis) The **Gross Loss Ratio** for Q1 2025 was **78%**, impacted by **catastrophe events** which contributed **19 percentage points**. Excluding catastrophes, the ratio was **59%**. The **Trailing Twelve Month (TTM)** **gross loss ratio** remained stable at **73%**. The report provides a detailed breakdown of **loss ratios** by catastrophe impact, prior period development, and product type | Loss Ratio | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Gross loss ratio** | **78%** | **63%** | **79%** | | **Gross loss ratio ex-CAT** | **59%** | **62%** | **63%** | | **TTM gross loss ratio** | **73%** | **73%** | **83%** | | **Net loss ratio** | **82%** | **62%** | **78%** | - In Q1 2025, **catastrophe events (CAT)** contributed **19 percentage points** to the **gross loss ratio**, a significant increase from **1%** in the **prior quarter** and **14%** in the **prior year quarter**[98](index=98&type=chunk) [Product Portfolio Performance](index=35&type=section&id=Product%20Portfolio%20Performance) The **In Force Premium** (**IFP**) breakdown shows continued growth across all product lines, with **Pet** and **Europe** showing the highest percentage growth. **Homeowners multi-peril** remains the largest segment at **$513 million**. **Premium per customer** also increased across all product lines, notably in **Car** and **Pet** insurance | **IFP** Breakdown ($ in millions) | Q1 2025 | Q1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | **Homeowners multi-peril** | **$513** | **$449** | **14%** | | **Pet** | **$314** | **$201** | **56%** | | **Car** | **$134** | **$123** | **9%** | | **Europe** | **$33** | **$12** | **175%** | | **Total** | **$1,008** | **$794** | **27%** | | Premium Per Customer | Q1 2025 | Q1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | **Homeowners multi-peril** | **$265** | **$266** | **(0.4%)** | | **Pet** | **$742** | **$664** | **12%** | | **Car** | **$1,853** | **$1,544** | **20%** | | **Total Average** | **$396** | **$379** | **4%** | [Definitions and Disclosures](index=12&type=section&id=Definitions%20and%20Disclosures) This section provides an overview of definitions and disclosures [Definitions of Non-GAAP Measures and KPIs](index=12&type=section&id=Definitions%20of%20Non-GAAP%20Measures%20and%20KPIs) This section provides formal definitions for all **non-GAAP** financial measures (e.g., **Adjusted EBITDA**, **Adjusted Gross Profit**) and **key performance indicators** (e.g., **In Force Premium**, **Annual Dollar Retention**) used throughout the report, explaining their calculation and management's rationale for their use - **Adjusted EBITDA:** Defined as **net loss** excluding items like income tax, depreciation, stock-based compensation, interest, and other unique or non-cash adjustments[36](index=36&type=chunk) - **In Force Premium** (**IFP**): The aggregate annualized premium for all customers as of the period end date. It is not a forecast of future revenues[45](index=45&type=chunk) - **Annual Dollar Retention (ADR)**: The percentage of **IFP** retained over a twelve-month period, inclusive of changes in policy value, number of policies, policy type, and churn[48](index=48&type=chunk) [Forward-Looking Statements and Risk Factors](index=18&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section contains the standard "safe harbor" statement, cautioning that the report includes forward-looking statements subject to various risks and uncertainties. It directs investors to the company's SEC filings, such as the Form 10-K, for a detailed discussion of risk factors - The letter contains forward-looking statements regarding financial guidance, future profitability, growth in the car insurance segment, and the efficacy of AI models[59](index=59&type=chunk) - These statements are not guarantees and involve risks and uncertainties. Key risks mentioned include a history of losses, competition, reinsurance availability, regulatory risks, and the cyclical nature of the insurance industry[60](index=60&type=chunk)[61](index=61&type=chunk) - Investors are directed to the "Risk Factors" section of the company's Form 10-K and other SEC filings for a more comprehensive discussion of potential risks[62](index=62&type=chunk)

Group 1 - Bert Hochfeld has a strong educational background with a degree in economics from the University of Pennsylvania and an MBA from Harvard [1] - Hochfeld has extensive experience in the tech industry, having worked for notable companies such as IBM, Raytheon Data Systems, and BMC Software [1] - He transitioned to a sell-side analyst role in the 1990s and received awards from the Wall Street Journal for his software coverage [1] - In 2001, Hochfeld founded Hochfeld Independent Research Group, providing research services to major institutions like Fidelity and SAC Capital [1] - The Hepplewhite Fund, operated by Hochfeld, was recognized as the best performing small-cap fund for the five years ending in 2011 by Hedge Fund Research [1] - Despite his achievements, Hochfeld was convicted in 2012 for misappropriating funds from his hedge fund [1] - He has published over 500 articles on Seeking Alpha, focusing on information technology companies [1] - Hochfeld ranks in the top 0.1% of Tip Ranks analysts for his successful selection of information technology stocks [1]

Wall Street analysts forecast that Lemonade (LMND) will report quarterly loss of $0.94 per share in its upcoming release, pointing to a year-over-year decline of 40.3%. It is anticipated that revenues will amount to $143.93 million, exhibiting an increase of 20.9% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projecti ...

Core Insights - Sun Cruiser Iced Tea & Vodka, a brand from The Boston Beer Company, is expanding its product line with the introduction of Sun Cruiser Lemonade & Vodka, featuring four flavors aimed at the growing premium ready-to-drink (RTD) market [1][2][3] Product Overview - The new Sun Cruiser Lemonade & Vodka lineup includes four flavors designed for easy drinking and enjoyment, aligning with consumer demand for flavorful, spirits-based beverages [2][3] - Each 12 oz. serving contains 100 calories, 1g of sugar, and has an alcohol by volume (ABV) of 4.5%, making it a light option for summer activities [3] Market Position - Sun Cruiser has quickly established itself as the 1 new RTD brand family of 2024 and holds the title of the fastest-moving vodka iced tea 8-pack in its Classic Iced Tea style [2][3] - The brand has received recognition, including the Best Alcoholic Beverage award at the Bar & Restaurant Expo in Las Vegas, indicating strong market acceptance [2] Brand Strategy - The Boston Beer Company aims to position Sun Cruiser as a go-to choice for consumers seeking high-quality, spirits-based options for outdoor and social occasions [3][5] - The product is currently available in 45 states and sold in an 8-count variety pack, facilitating consumer sampling of all flavors [3]

Lemonade TodayLMNDLemonade$26.82 -0.08 (-0.28%) 52-Week Range$14.03▼$53.85Price Target$28.00Add to WatchlistAmid the tariff-induced market volatility, some stocks in the finance sector are directly untouchable by tariffs. Artificial intelligence (AI) powered digital insurance fintech Lemonade Inc. NYSE: LMND stands out as one of them with its disruptive model, solid growth metrics and technological edge. The company leverages sophisticated AI models and machine learning (ML) algorithms to analyze oceans of ...

Core Insights - The article emphasizes the importance of identifying "divergent stocks," which are innovative companies with strong fundamentals and significant growth potential but currently undervalued prices [1]. Group 1 - The investment strategy focuses on long-term growth and seeks to find companies that contribute positively to society [1]. - The author highlights the concept of "disruptive companies" that can reshape their respective industries [1]. - The article does not provide specific stock recommendations or investment advice [2].

Company Overview - Lemonade (NYSE: LMND) provides various insurance products including renters, home, auto, pet, and life insurance in the US, and is in the early stages of expanding into Europe [1] - The company is disrupting traditional insurance incumbents such as Allstate, Farmers, Liberty Mutual, State Farm, and Geico through the use of pure AI technology [1] Investment Insights - MMMT Wealth, led by Oliver, focuses on investment strategies and stock analysis, aiming to gather insights from investor calls, presentations, and financial news to form opinions on stocks with a 3-5 year time horizon [1] - Oliver has 5 years of investing experience and 4 years as a CPA, emphasizing the importance of thorough research in identifying high-potential businesses [1]

Lemonade (LMND 7.20%) stock has been disappointing investors for years now, although it's been up and down over that time. It actually made some incredible progress last year, both in its business and its stock price, but it's lost some of those gains and is 81% off of its highs from 2021. Is it finally time to buy Lemonade stock?Turning lemons into LemonadeLemonade is an insurance technology company that's challenging legacy insurers, and customers are signing up for its digital, easy-to-use products at a ...

Core Viewpoint - Lemonade's Q4 2024 earnings report indicates a potential turning point for the company, showcasing significant growth metrics and improvements in profitability, driven by its AI-driven business model [2][17]. Financial Performance - In-force premium (IFP) reached $944 million, a 26% year-over-year growth, marking the fifth consecutive quarter of accelerating IFP growth [2]. - Gross Earned Premium (GEP) was $226 million, a 25% increase compared to the previous year [2]. - Revenue for Q4 was $148.8 million, reflecting a 29% year-over-year increase, surpassing analyst expectations [3]. - The gross loss ratio improved to 63% for Q4 2024, down from 77% in Q4 2023 and 73% in Q3 2024, with a trailing twelve-month gross loss ratio of 73% [4]. - Adjusted gross profit reached $66 million in Q4, an 88% year-over-year increase, and $174.9 million for the full year, a 98% growth compared to the prior year [5]. - Adjusted EBITDA loss was -$23.8 million for Q4, an 18% improvement year-over-year, with the company achieving positive adjusted EBITDA excluding growth-related spending for the first time [6]. - Positive adjusted free cash flow (Adj. FCF) of $26.5 million in Q4 and $48 million for the full year 2024, marking its first full year of positive Adj. FCF [7]. - Q4 earnings per share (EPS) was -$0.42, beating the consensus estimate of -$0.61 [8]. Technology and Operations - Lemonade's AI technology is integral to its operations, enhancing customer acquisition, claims processing, and underwriting [9]. - AI-powered chatbots, such as AI Maya and AI Jim, facilitate customer interactions and claims processing [9]. - The company employs advanced telematics for car insurance, improving pricing and underwriting precision [11]. - Despite growth, Lemonade reduced its total headcount by 2% year-over-year, indicating increased operational efficiency [12]. - Stability in Technology Development expenses amidst revenue growth further underscores operational efficiency [13]. Strategic Initiatives - Lemonade is focusing on car insurance as a significant growth engine, leveraging its telematics technology and customer base for market share expansion [14]. - The company is pursuing a gradual and focused rollout strategy for its car insurance product [14]. Market Challenges - Lemonade faces intense competition in the insurance sector, which may affect customer acquisition and retention [15]. - The company must continue investing in growth, which could strain finances in the short term [15]. - As an insurance provider, Lemonade is vulnerable to external factors like catastrophic events that could impact profitability [16].

Core Insights - Lemonade aims to transform the insurance industry through technology, particularly artificial intelligence, to enhance premium pricing accuracy and customer experience [1] - The stock has increased by 111% over the past year but remains 81% below its peak in 2021, indicating potential for recovery following a strong performance in 2024 [2] Customer Growth - Lemonade serves five insurance markets: renters, homeowners, pet, life, and auto, with over 2.4 million customers as of the end of 2024, a 20% increase year-over-year [3] - There are over 700,000 customers on a waitlist for Lemonade car insurance, indicating strong demand [3] AI-Driven Operations - 97% of policies are sold autonomously via AI chatbots, and quotes can be obtained in under 90 seconds using the Maya virtual assistant [4] - AI processes 55% of claims without human intervention, with payments often made in under three minutes, significantly improving customer experience compared to traditional insurers [4][5] Financial Performance - In-force premium grew by 26% year-over-year in 2024, reaching a record $944 million, up from a 20% increase in 2023 [6] - The gross loss ratio for 2024 was 73%, with a record low of 63% in Q4 2024, indicating improved profitability metrics [7] - Gross profit surged by 98% to $166.9 million in 2024, although the company reported a net loss of $202.2 million [8] Cash Flow and Profitability - Adjusted free cash flow for 2024 was $47.6 million, a significant improvement from a $113.4 million outflow in 2023, marking the first year of positive adjusted free cash flow [9] Future Growth Potential - Lemonade aims to grow its in-force premium tenfold to $10 billion over the next nine years, reflecting rapid scaling potential [12] - The company operates in multiple regions, including the U.S., U.K., and three European countries, with plans for further expansion [11] Valuation Metrics - Lemonade's revenue for 2024 was $526.5 million, with a market capitalization of $2.3 billion, resulting in a price-to-sales (P/S) ratio of 4.5, which is lower than previous years [13]