Lemonade(US:LMND)2024-04-30 20:41Financial Performance - In Q1 2024, Lemonade reported an in-force premium (IFP) of $794 million, representing a 22% year-on-year growth, while total revenue increased by 25% to $119.1 million[5][25]. - The gross loss ratio improved by 8 percentage points year-on-year to 79%, and gross profit surged by 110% to $34.7 million, with a gross profit margin of 29%[5][26]. - Adjusted EBITDA loss improved by 33% year-on-year to ($33.9) million, while net loss decreased by 28% to ($47.3) million[5][29][30]. - Total revenue for Q1 2024 was $119.1 million, an increase from $95 million in Q1 2023, representing a growth of approximately 25.5%[70]. - The company reported a net loss of $47.3 million for Q1 2024, an improvement from a net loss of $65 million in Q1 2023[70]. - Adjusted EBITDA for the first quarter of 2024 was $(33.9) million, reflecting a decline from $(20.0) million in Q1 2023[81]. - The net loss for Q1 2024 was $47.3 million, an improvement from a net loss of $65.8 million in Q1 2023[101]. Customer Metrics - Customer count rose by 13% to 2,095,275, and premium per customer increased by 8% to $379[21][22]. - The annual dollar retention rate improved to 88%, up 1 percentage point from the previous year[23]. - The number of customers at the end of Q1 2024 was 2,095,000, a 13% increase from 1,856,000 in Q1 2023[92]. - Premium per customer, calculated as IFP divided by the number of customers, is an important metric indicating the average spending of customers on products[50]. Future Guidance - For Q2 2024, Lemonade anticipates in-force premium of $839 - $841 million and revenue of $118 - $120 million, reflecting approximately 22% and 15% year-on-year growth, respectively[35]. - The company expects to achieve cash flow breakeven by year-end 2024, accelerated from previous expectations of H1 2025, due to strong unit economics and technology impacts[4][17]. - Guidance for Q2 2024 projects revenue between $118 million and $120 million, with a full-year revenue estimate of $511 million[103]. Operational Efficiency - Total operating expenses increased by only 2% year-on-year to $98.4 million, driven by higher growth spending for customer acquisition[28]. - Lemonade's loss adjustment expense (LAE) ratio was 7.6% in Q1 2024, significantly better than the industry benchmark of ~10%[8]. - The gross loss ratio for the company is defined as the ratio of losses and loss adjustment expense to gross earned premium, providing insight into underwriting performance[54]. - The gross loss ratio for Q1 2024 decreased to 77%, down from 87% in Q1 2023, indicating improved loss management[94]. Financial Position - The company's cash, cash equivalents, and investments totaled approximately $927 million as of March 31, 2024[31]. - Total assets as of March 31, 2024, amounted to $1,646.4 million, compared to $1,600.0 million as of December 31, 2023, reflecting an increase of 2.9%[73]. - Cash, cash equivalents, and restricted cash at the end of Q1 2024 were $285.2 million, up from $271.5 million at the beginning of the period[74]. - The company incurred stock-based compensation expenses of $14.9 million in Q1 2024, compared to $0.0 million in Q1 2023[84]. Market Expansion - Lemonade continues to expand its market presence globally, currently operating in the US, UK, Germany, Netherlands, and France[60]. - Gross written premium increased to $205.6 million in Q1 2024, a rise of 25.4% from $164.0 million in Q1 2023[86].