Lemonade reports quarterly and annual financial results

Lemonade, Inc. (NYSE:LMND), a company specializing in fire, marine, and casualty insurance, disclosed its financial outcomes for the final quarter and the entire year of 2024 on Monday. The announcement came in the form of a shareholder letter, part of an 8-K filing with the U.S. Securities and Exchange Commission. The company, which has seen its stock surge nearly 94% over the past year according to InvestingPro data, enters this earnings report with strong revenue growth of 22% and a market capitalization of $2.3 billion.

The company, headquartered in New York, released the letter on February 25, 2025, detailing its performance up to December 31, 2024. In the letter, Lemonade presented its financial figures and operational achievements. InvestingPro analysis indicates the company maintains a fair financial health score of 2.24, though analysts don’t expect profitability this year. For deeper insights into Lemonade’s financial metrics and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Lemonade’s financial statements and shareholder letter, included as Exhibit 99.1 in the SEC filing, are not considered "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor are they subject to the liabilities of that section. Furthermore, they are not to be seen as incorporated by reference in any subsequent SEC filings, unless specifically referenced in such filings.

The details in the report, including the attached exhibits, are provided in compliance with the SEC’s requirements but are not endorsed or evaluated for accuracy by the SEC. Investors and interested parties are encouraged to review the full text of the shareholder letter for a comprehensive understanding of the company’s financial position and performance during the reported period.

Lemonade’s filing reaffirms its commitment to transparency and provides stakeholders with the latest financial information. The company’s shares are publicly traded on the New York Stock Exchange, with common stock listed under the ticker LMND and warrants under LMND.WS. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations, with analyst price targets ranging from $15 to $60 per share. InvestingPro subscribers have access to over 30 additional financial metrics and insights about Lemonade’s performance and valuation.

This news is based on a press release statement and has been reported in accordance with journalistic standards to provide an unbiased summary of the company’s disclosed financial results.

In other recent news, Lemonade, Inc. reported its fourth-quarter financial results, exceeding analyst expectations. The company posted adjusted earnings per share of -$0.42, surpassing the anticipated -$0.61, while revenue increased by 29% year-over-year to $148.8 million, exceeding the forecasted $145.02 million. Despite these positive results, Lemonade’s revenue guidance for the upcoming quarter and full year fell short of analyst estimates, causing some concern among investors. The company projected first-quarter 2025 revenue between $143 million and $145 million, below the expected $151.4 million. Similarly, the full-year 2025 revenue forecast of $655 million to $657 million did not meet the consensus estimate of $667.5 million.

Lemonade highlighted strong growth in its pet insurance segment, with in-force premiums reaching $283 million by the end of 2024, marking a 57% year-over-year increase. Additionally, the company’s gross loss ratio improved to 63% in the fourth quarter, the best result in its history. CEO Daniel Schreiber noted the quarter as their best ever, citing accelerating topline growth and improved financial metrics. Despite these achievements, the market appears more focused on the company’s future growth potential, as indicated by a decline in stock value.

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