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Tag: Lemonade Inc.

  • Q4 2021 Financial Results: Lemonade Inc. (LMND) stock Took a Harsh Hit After Hours

    On February 23, Lemonade Inc. (LMND) declared its Q4 2021 financial results along with guidance for 2022. Resultantly, the stock took a harsh hit in the after-hours session on Wednesday.

    During the regular session, the stock varied between a high of $25.04 and a low of $22.91. At 3.73 million shares, 173% of the average volume, LMND stock closed the session at $22.95. The stock suffered a loss of 6.40% during the regular session. LMND continued to lose in the after-hours when the results were announced. The stock lost a further 19.04% in the after-hours to reach an $18.58 per share value. It was only during the regular trading that the stock had reached a new 52-week low, but it went further down to break the low in the after hours. Hence, currently, LMND has reached down to the latest 52-week low of $18.58.

    The insurance services provider, Lemonade Inc. is a holding company founded in 2015. Currently, its 61.64 million outstanding shares trade at a market capitalization of $1.51 billion. With a year-to-date loss of 45.50%, LMND stock has declined by 26.56% in the past five days alone.

    LMND’s Q4 2021 Financials

    In Q4 2021, the company had revenue of $41.0 million with a 100% increase YOY.

    Moreover, the company incurred a net loss of $70.3 million in Q4 2021, against $33.9 million in the year-ago quarter. Thus, the net loss per share was $1.14 and $0.60 in Q4 of 2021 and 2020, respectively.

    Furthermore, the adjusted EBITDA loss was $51.2 million in Q4 2021 with an increase of $21.5 million from the year-ago quarter.

    LMND ended the quarter with cash, cash equivalents, and investments of $1.1 billion.

    Additionally, the In Force Premium and Gross Premium increased by 78% and 79% YOY, respectively.

    2022 Outlook

    For fiscal 2022, the company expects revenue between $202 and $205 million with an adjusted EBITDA loss of $290-$275 million.

    In addition, for Q1 2022, LMND expects revenue between $41 and $43 million with an adjusted EBITDA loss of $70-$65 million.

    LMND’s Metromile Acquisition

    Previously, in November 2021, the company had announced a definitive agreement for the acquisition of Metromile in an all-stock transaction. Metromile is a data science company with a focus on auto insurance.

    On February 01, Metromile announced that its stockholders have approved the merger agreement with LMND in its Special Meeting of Stockholders.

    Presently, the transaction is expected to close in the second quarter of 2022.

  • How Much Does It Cost To Buy Shares Of Lemonade?

    How Much Does It Cost To Buy Shares Of Lemonade?

    The equilibrium price of the Lemonade Inc. (LMND) is 30 percent cheaper than the present market price

    Online insurer Lemonade, which this year held one of the most profitable IPOs on the US market, ended its listing with a decline of 14%. The company’s shares fell sharply on the NYSE and proceeded to decline on Tuesday, losing even more than 5 percent, following the outcome of the last session on Monday before the end of the lock-up time. The decrease was attributed to the anticipation of high sales from the original placement applicants, who were obligated to retain their role in this stock according to the arrangement with the underwriter until Tuesday 29 December. In total, 44 million shares worth about $4.5 billion were held by Lemonade IPO members.

    The news is noteworthy because, in the middle of a pandemic, Lemonade becomes the first corporation of the year to threaten an IPO. When it went on the stock market in July, the shares exceeded the initial valuation by 300 percent. The stocks cost $16 for the IPO members, increased to $81 each during the first week, fell below $47 by November, but they were granted $135 in December, that is, 8.4 times more than on the placement itself. The current drawdown does not, however, contradict the fact that the IPO has been over-successful.

    The Lemonade scenario does not ensure that the same dynamics will be replicated for all businesses joining the industry after 2020, but this situation can also be called a reference point. If an insurer has a stable client base and years of honed technologies (Lemonade has a smartphone chatbot insurance and artificial intelligence that assesses the risks and costs of the policy), so in contrast to classic firms, the market offers a decent premium and holds that premium for several months.

    This would lead to a boost in sales from the present $300 million a year to $50-100 billion, even though Lemonade will only eat up 5-10 percent of the insurance industry in the United States. The company’s valuation will rise several times in the long run. Around the same time, the stock could also decline in price on the horizon for the next year, including due to a lack of profit. The Lemonade equilibrium price is 30 percent cheaper than the current market price-approximately $75 per share. At a level closer to these values, the stock is worth keeping in your portfolio.