Lemonade Reports Q4 Results: EPS Beat, Revenue Beat, Guides Below Estimates

Lemonade, Inc. LMND reported its fourth-quarter financial results and issued guidance after the bell Tuesday. Here’s a look at the details.

The Details:

Lemonade reported quarterly losses of 61 cents per share which beat the analyst consensus estimate of losses of 80 cents per share.

Quarterly sales clocked in at $115.5 million which beat the analyst consensus estimate of $111.77 million and is a 30.66% increase over sales of $88.4 million from the same period last year.

Cash and investments rose during the second half of 2023 to $945 million, and the company achieved positive net cash flow for the first time.

“Q4 delivered more topline growth than we had anticipated, and the outperformance of the bottom line was more significant yet. Zooming out, we can say much the same about 2023 writ large: relative to our expectations at the outset of the year, we saw materially higher top line growth (~$50m better), and even more significant improvements in our bottom line (~$70m better),” the company said in a letter to shareholders.

Outlook:

Lemonade sees first-quarter revenue between $111 million and $113 million, below the $119.779 million estimate. The company expects full year 2024 revenue of between $505 million and $510 million, versus the $520.947 million estimate.

Lemonade said it will roughly double its growth budget in 2024, from $55 million in 2023 and expects to see about 50% more IFP in 2024 resulting from the increased spend.

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LMND Price Action: According to Benzinga Pro, Lemonade shares are down 10.4% at $19.47 at the time of publication.

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