Lemonade’s Q4 2022 results
Lemonade shared its Q4 2022 results. Here are some highlights:
- The company ended the quarter with 1,807,548 customers, a 27% increase compared to Q4 2021. From Q3 to Q4 of this year, Lemonade grew its customer base by ~32k.
- In-force premium reached $625 million, a 64% increase compared to Q4 2021. Annual growth of IFP absent the impact of the Metromile acquisition would have been approximately 38%.
- Premium per customer stood at $346, an increase of 30% compared to Q4 2021.
- Gross loss ratio was 89% vs 96% in Q4 2021. Net loss ratio stood at 97%.
- Net loss for the quarter was $64 million, compared to $91 million in Q4 2021. For 2022, Lemonade reported a net loss of $297.8 million, compared to $241.3 million in 2021.
- Sales and marketing expense for the quarter was $27.2 million, compared to $37.2 million in Q4 2021. In 2022, Lemonade spent $138.3 million on sales and marketing, compared to $141.6 million in 2021.
- The company’s cash, cash equivalents, and investments totaled approximately $1.04 billion at December 31, 2022 as compared to $1.07 billion as of December 31, 2021, primarily reflecting the $163 million of net cash used in operations since December 31, 2021, offset by $164.8 million of cash, cash equivalents and investments acquired via the Metromile acquisition.
During the earnings call, a question was asked about the increase in negative Glassdoor reviews. Here is the answer provided by co-founder and co-CEO Shai Wininger: “Several years ago, we implemented an anonymous employee feedback system and since then collect extensive feedback from employees constantly and act on it when needed. Within our existing team and through the anonymous system, which we think is the most reliable, we haven’t seen any decrease in satisfaction in the last 6 months. In fact, during that time, we’ve seen an increase in engagement in NPS across our teams as well as by our customer service organization. While we appreciate sites such as Glassdoor and recognize their place in the job market, they fail to serve as a reliable operating data source for us and we prefer to be guided by the more dependable, nuanced and benchmark data sets that our tools provide.”