Lemonade’s Q3 2023 results

Lemonade shared its Q3 2023 results. Here are some highlights:

• The company ended the quarter with 1,984,154 customers, a 12% increase compared to Q3 2022. From Q2 2023, Lemonade added ~78k customers.
• In-force premium reached $719 million, an increase of 18% compared to the same period last year.
• Third quarter revenue of $114.5 million increased by $40.5 million or 55% as compared to the third quarter of 2022, primarily due to the increase of gross earned premium during the quarter, coupled with greater investment income.
• Premium per customer stood at $362, a 6% YoY increase.
• During 2024 Lemonade expects to earn an additional >$100m from increased rates.
• Gross loss ratio was 83% compared to 94% in Q3 2022. Net loss ratio stood at 88%.
• Net loss was $62 million, a 33% improvement compared to the same period last year. For the nine months ended September 30, 2023, Lemonade recorded a net loss of $194.5 million.
• Sales and marketing expense stood at $24.4 million, compared to $35.8 million in Q3 2022. For the nine months ended September 30, 2023, Lemonade spent $77.4 million on sales and marketing.

The company’s cash, cash equivalents, and investments totaled approximately $945 million at September 30, 2023, reflecting primarily the $103 million of net cash used in operations since December 31, 2022.