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Lemonade (LMND) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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For the quarter ended September 2024, Lemonade (LMND - Free Report) reported revenue of $136.6 million, up 19.3% over the same period last year. EPS came in at -$0.95, compared to -$0.88 in the year-ago quarter.

The reported revenue represents a surprise of +7.54% over the Zacks Consensus Estimate of $127.02 million. With the consensus EPS estimate being -$1.02, the EPS surprise was +6.86%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Lemonade performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • In force premium (end of period): $889.10 million versus $878.55 million estimated by five analysts on average.
  • Net loss ratio: 81% compared to the 80.7% average estimate based on four analysts.
  • Gross loss ratio: 73% versus the four-analyst average estimate of 81.3%.
  • Premium per Customer (end of period): $384 versus the four-analyst average estimate of $390.92.
  • Customers (end of period): 2,313,113 compared to the 2,249,386 average estimate based on four analysts.
  • Net earned premium: $95.70 million versus $95.10 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.5% change.
  • Commission income: $8 million versus the five-analyst average estimate of $6.02 million. The reported number represents a year-over-year change of +90.5%.
  • Net investment income: $8.90 million versus the five-analyst average estimate of $8.57 million. The reported number represents a year-over-year change of +27.1%.
  • Ceding commission income: $24 million versus $17.55 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +43.7% change.
View all Key Company Metrics for Lemonade here>>>

Shares of Lemonade have returned +11.9% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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