On April 30, 2024, Lemonade, Inc., a tech-driven insurance company, reported its financial results for the first quarter ended March 31, 2024. The company announced a 22% year-over-year growth in in-force premium (IFP) to $794 million, while total revenue increased by 25%. The gross loss ratio improved by 8 points to 79%, and the gross profit surged by 110% with a gross profit margin of 29%. Operating expenses saw a modest increase of 2%. The adjusted EBITDA loss improved by 33% year-over-year, and the net loss improved by 28%. Lemonade's use of AI and technology has led to operational efficiencies, as evidenced by a 7.6% loss adjustment expense ratio, which is notably better than the industry benchmark. The company also highlighted its pet insurance business as an example...Show More

On April 30, 2024, Lemonade, Inc., a tech-driven insurance company, reported its financial results for the first quarter ended March 31, 2024. The company announced a 22% year-over-year growth in in-force premium (IFP) to $794 million, while total revenue increased by 25%. The gross loss ratio improved by 8 points to 79%, and the gross profit surged by 110% with a gross profit margin of 29%. Operating expenses saw a modest increase of 2%. The adjusted EBITDA loss improved by 33% year-over-year, and the net loss improved by 28%. Lemonade's use of AI and technology has led to operational efficiencies, as evidenced by a 7.6% loss adjustment expense ratio, which is notably better than the industry benchmark. The company also highlighted its pet insurance business as an example of efficiency gains. Lemonade now expects to reach cash flow breakeven by the end of 2024, a milestone that was previously anticipated for the first half of 2025. The company's cash, cash equivalents, and investments totaled approximately $927 million as of March 31, 2024. Looking ahead, Lemonade provided guidance for the second quarter and full year of 2024, expecting continued growth in IFP, gross earned premium, and revenue, with an improved adjusted EBITDA loss.