Lemonade (NYSE: LMND) seeks to be an insurance market disruptor, which isn't an easy task during a time of sticky inflation. Just achieving a profitable financial profile will be a major hurdle for Lemonade to clear in 2023, if it happens at all by then.
Whether Lemonade and its shares can recover in 2023 depends, to some extent, on forces outside of the company's control, like inflation and interest rates. Still, Lemonade needs to overcome these obstacles and keep one particular ratio in check, lest the company widen its earnings loss further in the coming year.
By far, the most impactful company-specific events for Lemonade during the past six months were the deal with Chewy (NYSE: CHWY) and the acquisition of Metromile. With Chewy, Lemonade will provide customized insurance plans for Chewy's customers (or, more accurately, for their dogs and cats). Lemonade is providing its Lemonade Pet plans, while Chewy is bringing its CarePlus financing options to the table, hopefully to the benefit of the customers and shareholders.
Source Fool.com