Lemonade(US:LMND) ZACKSยท2025-02-26 18:30Core Insights - Lemonade, Inc. reported a narrower operating loss of 42 cents per share for Q4 2024, compared to a loss of 60 cents estimated by Zacks and a loss of 61 cents in the previous year [1][4] Financial Performance - Revenues increased by 28.8% year over year to $148.8 million, surpassing the Zacks Consensus Estimate by 2.7% [3] - Gross earned premiums rose by 25% year over year to $226.4 million, driven by an increase in in-force premiums earned [3] - Net investment income reached $9.4 million, marking a 32.4% year-over-year increase [3] Customer Metrics - In-force premium totaled $943.7 million, a 26% increase, attributed to a 20% rise in the number of customers and a 5% increase in premium per customer [4] Expense and Profitability Metrics - Total operating expenses, excluding net loss and loss adjustment expense, increased by 38% year over year to $123.9 million [4] - Adjusted EBITDA was negative $23.8 million, an improvement from negative $28.9 million in the same quarter last year [4] Loss Ratios - The gross loss ratio improved by 1400 basis points year over year to 63, while the net loss ratio improved by 1600 basis points [5] Cash and Assets - Cash and cash equivalents were $385.7 million as of December 31, 2024, up 42.1% from the end of 2023 [6] - Total assets amounted to $1.8 billion, reflecting a 12.8% increase from the end of 2023 [6] Operational Cash Flow - Cash used in operations was $11.4 million in 2024, significantly lower than the $119.1 million used in 2023 [7] - Adjusted free cash flow in Q4 was $26.5 million, compared to an outflow of $11.3 million in the same quarter last year [7] Guidance and Projections - For Q1 2025, in-force premium is projected between $997 million and $1 billion, with gross earned premium expected in the range of $229-$231 million [8] - For the full year 2025, in-force premiums are projected between $1203 million and $1208 million, with revenues anticipated between $655 million and $657 million [9][10]