Q2 2024 Lemonade Inc Earnings Call Transcript
Key Points
- Year-on-year top line grew 22%, adjusted EBITDA loss improved by 18%, and gross profit grew by 155%.
- Gross loss ratio improved to 79%, a 15-point improvement year-on-year.
- Q2 was net cash flow positive, with expectations for consistent positive cash flow moving forward.
- Significant efficiency improvements due to technology, with operating expenses remaining stable despite growth.
- Successful launch of homeowners insurance in the UK and France, expanding geographic diversification.
- Elevated CAT losses impacted the quarter, contributing to a gross loss ratio of 79%.
- Non-renewal of certain CAT-exposed homeowners policies expected to remove $20-$25 million of in-force premium (IFP) in the second half of 2024.
- Operating expenses, excluding loss and loss adjustment expense, increased by 13% year-on-year.
- Total sales and marketing expenses increased by 48%, driven by increased gross spend.
- Adjusted EBITDA loss for Q3 is expected to be between $58 million and $56 million, indicating continued financial challenges.
Hello, and welcome, everyone, to the Lemonade Q2 2024 earnings call. My name is Maxine, and I'll be coordinating the call today. (Operator Instructions) I will now hand you over to Yael Wissner-Levy, VP Communications at Lemonade's [begin]. Yael please go ahead, when you are ready.
Good morning and welcome to Lemonade second quarter 2024 earnings call. My name is Yael Wissner-Levy, and I'm the VP Communications at Lemonade. Joining me today to discuss our results are Daniel Schreiber, CEO and Co-Founder; Shai Wininger, our President and Co-Founder; and Tim Bixby, our Chief Financial Officer.
A letter to shareholders covering the company's second quarter 2024 financial results is available on our Investor Relations website, investor.lemonade.com. Before we begin, I would like to remind you that management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Actual results may
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