Lemonade (LMND) Q2 2024 earnings summary

Executive summary

• Revenue grew 17% year-over-year to $122M for Q2 2024, driven by a 24% increase in gross written premium and 14% growth in customers.

• In-force premium (IFP) reached $839M, up 22% year-over-year, and customer count grew to 2.2M.

• Gross profit increased 155% year-over-year, with gross profit margin rising to 25% from 12% a year ago.

• Adjusted EBITDA loss improved 18% to ($43M), and net loss improved 15% to ($57.2M) compared to Q2 2023.

• Q2 was net cash flow positive, with cash and investments totaling $931M at quarter end.

Financial highlights

• Gross written premium rose 24% year-over-year to $226.2M; gross earned premium up 22% to $200M.

• Total revenue reached $122M, up 17% from Q2 2023; gross profit margin improved to 25% from 12% a year ago.

• Premium per customer rose 8% to $387; annual dollar retention reached 88%.

• Net investment income increased 45% to $8.1M, reflecting higher yields and portfolio diversification.

• Cash, cash equivalents, and investments totaled $931M, up $4M sequentially.

Outlook and guidance

• Q3 2024: IFP expected at $875M–$879M, gross earned premium $208M–$210M, revenue $124M–$126M, adjusted EBITDA loss $58M–$56M.

• Full year 2024: IFP $940M–$944M, gross earned premium $818M–$822M, revenue $511M–$515M, adjusted EBITDA loss $155M–$151M.

• Guidance reflects plans to non-renew $20M–$25M of CAT-exposed IFP in H2 2024, with no change to full-year IFP guidance.

• Growth spend for 2024 expected between $100M–$110M, with Q3 as the highest spend quarter.

• Sufficient liquidity is projected for at least the next 12 months, with no material changes to capital expenditure plans.