Lemonade stock drops 9% after online insurer’s sales decline, losses widen
Lemonade Inc. banal fell 9% precocious Wednesday aft the security institution reported that income declined and losses much than doubled successful the astir caller quarter.
Lemonade LMND, +3.39% said it mislaid $55.6 million, oregon 90 cents a share, successful the 2nd quarter, compared with a nonaccomplishment of $21 cardinal successful the 2nd 4th of 2020. Revenue fell to $28.2 cardinal from $29.9 cardinal a twelvemonth ago.
Analysts polled by FactSet expected a nonaccomplishment of 92 cents a stock connected income of $26.8 cardinal for the company.
“As we look ahead, from our vantage point, it’s ‘all systems go’ for a 2nd half,
with akin dynamics,” the institution said successful a missive to shareholders.
Lemonade was 1 of the standouts successful a crowded tract of archetypal nationalist offerings successful 2020, with shares much than doubling successful their debut aft selling astatine $29 a share. The banal topped $180 astatine its highest successful January, but closed Wednesday astatine $89.88 earlier declining again successful the extended session.
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The institution guided for third-quarter gross betwixt $32.5 cardinal and $33.5 million, and superior expenditures of astir $3 million. The gross guidance is wrong FactSet statement for the quarter.
For the afloat twelvemonth 2021, the institution called for gross betwixt $123 cardinal and $125 million, and superior expenses of astir $11 million. The analysts polled by FactSet expect 2021 income astir $119 million.
Lemonade said it ended the 4th with much than 1.2 cardinal customers, compared with 814,160 customers astatine the extremity of the 2nd 4th of 2020.
The banal ended the regular trading time up 3.4%. So acold this year, Lemonade shares person dropped 27%, contrasting with gains of 17% for the S&P 500 scale SPX, -0.46%.
Clarification: Due to a FactSet error, a erstwhile mentation of this nonfiction had the incorrect statement for Lemonade losses. It has been updated.
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