For the quarter ended Sept. 30, 2020, Lemonade reported a net loss of $30.9 million, or $0.57 a share, compared with a net loss of $31.1 million, or $2.78 a share, for the same quarter in 2019.
Adjusted EBITDA for the 2020 quarter was a loss of $27.6 million, compared with a loss of $30.4 million for the year-ago period.
Revenue for the insurance provider slipped to $17.8 million, down from $19 million a year ago. The company reported $597.4 million in cash on hand, helped by the company’s initial public offering in July that soared far above its initial pricing.
Lemonade attributed the lower revenue in part to an accounting change and the ongoing pandemic, although its technological focus has helped the company adapt to the rapidly shifting digital requirements of businesses and consumers alike.
However, the firm’s selling point is that it is not totally digital: “We’re focused on and built around bots and algorithms and AI and technology — but as humans, we’re there for people in their time of need,” Tim Bixby, CFO of Lemonade, said in an interview with PYMNTS in July.
Analysts had estimated, on average, that Lemonade would post a loss of $0.64 a share, on revenue of $14.7 million, according to Yahoo Finance.
Looking forward, Lemonade said it sees fourth-quarter 2020 revenue coming in between $18 million and $19 million, with an adjusted EBITDA loss of $34 million to $32 million. For full-year 2020, Lemonade is expecting revenue of $91 million to $93 million, with an adjusted EBITDA loss of $103 million to $100 million.
Analysts polled have estimated Lemonade will post a fourth-quarter loss of $0.67 a share, on revenue of $16.7 million. For 2020, the analysts see Lemonade reporting a loss of $4.01 a share, with revenue of $87.8 million, according to Yahoo Finance.
The insurer said it plans to expand its presence in Europe during the fourth quarter by offering insurance services in France, and it also plans to test a life insurance product within the next 90 days. Lemonade launched health insurance for cats and dogs this past July.