Lemonade Inc. experienced a decline in share prices during after-hours trading on Wednesday, despite the mobile-based insurance company’s encouraging results and outlook. This setback follows a successful rally in stock performance throughout the year.
Share Performance
After hours, Lemonade LMND shares fell over 6%, following a 2.4% loss in Wednesday’s regular trading session, which brought the stock’s year-to-date gain to a remarkable 61.3%. In comparison, the S&P 500 index recorded a gain of 17.6% over the same period.
Financial Results
For the second quarter, Lemonade reported a loss of $67.2 million, equivalent to 97 cents per share. This reflects an improvement from the previous year’s loss of $67.9 million, or $1.10 per share. Despite the loss, total revenue saw significant growth, increasing from $50 million in the year-ago quarter to $104.6 million.
These results surpassed the expectations of analysts surveyed by FactSet, who had predicted a loss of $1.03 per share on revenue totaling $97.6 million.
Outlook
Lemonade expects its revenue for the third quarter to range from $102 million to $104 million. For the full year, the company projects revenue between $402 million and $408 million. Analysts, on the other hand, have forecasted lower figures with revenue estimates of $102 million for the third quarter and $397.7 million for the year.
IPO Performance
Remarkably, just over three years since its initial public offering (IPO), Lemonade shares are currently trading approximately 24% below the IPO price of $29. Nevertheless, it’s essential to note that Lemonade’s IPO in 2020 was exceptional, with the stock debuting at an impressive 139% above its initial pricing.
