Lemonade surpasses expectations, but it’s not enough for Wall Street – Global

The Israeli Digital Insurance Company,

Lemonade
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(NYSE: LMND) reports fourth quarter results and full year 2020. Revenues for the quarter totaled $ 20.5 million, a decrease of 14.5% compared to $ 23.6 million in the corresponding quarter last year, and above analysts’ expectations of $ 19.12 million. Revenue in 2020 totaled about $ 94.4 million, while analysts expected $ 93 million. This is a 40% growth in revenue of $ 67.3 million in 2019.

Bottom line, the company reported a loss of about $ 33.9 million in the quarter, while the adjusted loss amounted to about 60 cents. The company surpassed analysts’ expectation of a loss of 64 cents per share. The annual loss was estimated at $ 122.3 million (3.6d per share), which was adjusted to $ 97.9 million, compared to $ 108.5 million (9.7d per share) and $ 106.4 million in 2019, respectively. Analysts’ forecasts were for a deeper loss of 3.8d per share.

Lemonade reached one million active customers right at the end of December. This is a milestone after four years of operation, while the traditional giants of the insurance industry have reached the same goal only after 19 years in their operational history. Lemonade is a fast-growing business with an ambitious goal of disrupting the traditional long-term insurance industry. Insurance premiums in the U.S. industry total $ 1.32 trillion in 2019.

However, the company’s value reflects high growth, and the company will have to maintain a benchmark in 2021 as well. If you look at the growth data, in the third quarter the company reported a total of about 940 users, ie between quarter to quarter the company grew by only 5%, while between the second and third quarters the company grew by about 15%.

Towards the end of 2020, LaMaid launched a tenant insurance service in France. This is the third European country to which the company is expanding its operations, after Germany and the Netherlands. Last January, the company’s share soared to a record price of about $ 183, since then it has fallen by about 28%. A catalyst for the decline of the Lemonade stock was a quote from the Citron Fund on Twitter which is best known for its short investments (for the full article).