3 Reasons Lemonade Will Keep Crushing Sales
Insurance technology company Lemonade (NYSE: LMND) announced fourth-quarter earnings this week that were better than expected. Gross earned premium increased 92%, in-force premium (a measure of the aggregate annualized premium, and what the company sees as its top indicator of growth) rose 87%, and adjusted gross profit increased 86%. The company delivered a small beat on revenue, but management noted that some restructuring of its reinsurance program made direct comparisons misleading.
Wall Street wasn't thrilled with the report, and the stock price sank. But there are many reasons for investors to be confident about Lemonade's future. Here are three of them.
One of the more important metrics to note from the report was premium per customer, which increased 20%. Several factors led to that rise, among them growth in the number of policies purchased per customer, as well as more expensive policies being purchased.
Source Fool.com
