Lemonade Inc ( (LMND) ) has released its Q4 earnings. Here is a breakdown of the information Lemonade Inc presented to its investors.
Lemonade Inc, a certified B-Corp, is an innovative insurance company leveraging artificial intelligence to offer renters, homeowners, pet, car, and life insurance across the US, UK, and Europe. In its latest earnings report for Q4 2024, Lemonade Inc. showcased significant financial improvements, marking its best quarter ever with accelerating topline growth and positive adjusted free cash flow. The company reported a 26% year-over-year increase in In Force Premium to $944 million, a 29% revenue growth, and a record gross profit margin of 43%. Lemonade’s strategic focus on technology-driven underwriting excellence and disciplined expense management has resulted in a 63% gross loss ratio, its best to date, and a notable reduction in adjusted EBITDA losses by 18% year-over-year. The company’s pet insurance segment demonstrated robust growth, with a 57% increase in In Force Premium, highlighting the effectiveness of Lemonade’s AI models in optimizing underwriting and customer experience. Looking ahead, Lemonade remains optimistic about its growth trajectory, expecting continued positive adjusted free cash flow and improved EBITDA in 2025, despite challenges such as the California wildfires. The company aims to sustain its growth momentum and achieve profitability by leveraging its advanced technology and strategic investments.