Lemonade (NYSE: LMND) stock tumbled on Aug. 5 after the online insurer posted its second-quarter earnings report. Revenue fell 6% year over year to $28.2 million, but it came in higher than analysts' estimates. The net loss widened from $21.0 million to $55.6 million, or $0.90 per share, which still matched Wall Street's expectations.
The company's growth rates might seem dismal for a stock that trades at nearly 40 times this year's projected sales, but those numbers only tell part of the story, since its year-over-year comparisons were skewed by a big change to its business last year. Let's evaluate that change, review the key metrics investors should focus on, and see if Lemonade stock is worth buying after its 11% post-earnings dip.
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Source Fool.com