Insurance company Lemonade, Inc. (NYSE: LMND) reported better-than-expected results for the second quarter ended June 30, 2022. Both revenue and earnings came in better than the consensus estimates. Following the upbeat results, shares of the company rocketed about 14% to close at $28.55 in yesterday’s extended trade.
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Q2 Snapshot and Strong Guidance
Lemonade reported quarterly revenues of $50 million, which signifies an impressive growth of 77.3% from the year-ago quarter. Further, the figure outpaced the consensus estimate of $47.56 million.
However, the company’s losses widened to $1.10 per share from $0.90 per share in the previous year’s quarter. Yet, the figure came in narrower than the consensus estimate of a loss of $1.32 per share.
Meanwhile, the company also reported solid growth in some of the key operating metrics. Lemonade’s In Force Premium (aggregate annualized premium for customers as of the period end date) witnessed a rise of 54% from the previous year to $457.6 million.
Notably, the company’s customer count increased by 31% from the prior year to 1,579,936 while the premium per customer rose by 18% from the year-ago quarter to $290.
Notably, Lemonade provided upbeat revenue guidance for the third quarter and 2022. For the third quarter and 2022, the company expects revenue to hover between $63 million – $65 million and $236 million – $239 million, respectively, above the consensus estimate of $56.98 million and $214.67 million.
Website Traffic Data Predicted the Strong Results
Lemonade’s strong performance shouldn’t have come as a surprise if you have been a TipRanks user who leverages the website traffic screener as its rising website traffic acted as a timely precursor to the company’s solid results for the quarter.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Lemonade’s performance this quarter.
According to the tool, the Lemonade website recorded a 62.84% monthly rise in global visits in June, compared to the same period last year. Moreover, year-to-date, Lemonade website traffic increased by 63.54%, compared to the previous year.
Learn how Website Traffic can help you research your favorite stocks.
Is LMND a Good Investment?
Top investors are optimistic about the company’s prospects and are loading up on the company’s stock.
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on LMND. Further, 23.2% of the top portfolios tracked by TipRanks increased their exposure to LMND stock over the past 30 days.
Overall, the consensus among analysts for Lemonade stock is a Hold based on three Buys, two Holds, and three Sells. The LMND average price target of $24.81 implies a downside potential of 1.2% from current levels. Shares have declined 70.6% over the past year.
Key Takeaways
Lemonade has posted impressive results for the second quarter, with revenues and premiums rising. Also, forecasts for the third quarter and 2022 are encouraging, giving the company a strong footing to grow further.
Although widening losses continue to remain a constant problem for the company, it expects that losses will peak in the third quarter and EBITDA will improve thereafter.
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