Compared to Estimates, Lemonade (LMND) Q3 Earnings: A Look at Key Metrics
For the quarter ended September 2023, Lemonade (LMND) reported revenue of $114.5 million, up 54.7% over the same period last year. EPS came in at -$0.88, compared to -$1.37 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $104.16 million, representing a surprise of +9.93%. The company delivered an EPS surprise of +5.38%, with the consensus EPS estimate being -$0.93.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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): $719 million compared to the $706.09 million average estimate based on five analysts.
Customers (end of period): 1,984,154 compared to the 1,955,470 average estimate based on four analysts.
Net loss ratio: 88% versus the four-analyst average estimate of 89.6%.
Premium per Customer (end of period): $362 versus $361.40 estimated by four analysts on average.
Gross loss ratio: 83% compared to the 89.2% average estimate based on four analysts.
Net investment income: $7 million compared to the $4.94 million average estimate based on five analysts. The reported number represents a change of +169.2% year over year.
Ceding commission income: $16.70 million compared to the $19.80 million average estimate based on five analysts. The reported number represents a change of -1.2% year over year.
Commission income: $4.20 million compared to the $5.11 million average estimate based on five analysts. The reported number represents a change of +7.7% year over year.
Net earned premium: $86.60 million versus the five-analyst average estimate of $74.11 million. The reported number represents a year-over-year change of +71.2%.
View all Key Company Metrics for Lemonade here>>>
Shares of Lemonade have returned -1.1% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Lemonade, Inc. (LMND) : Free Stock Analysis Report
