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Lemonade Crashes As Customer Growth Miss Spooks Wall Street
['Tyler Durden']
ZeroHedge News
Lemonade shares crashed early in the US cash session after the technology-focused insurer reported fewer second-quarter customers than Wall Street expected and announced a transition of its chief financial officer.
The shares are down 30% this year, rapidly reversing a rally that catapulted the stock from about $20 in late 2024 to nearly triple digits.
What traders focused on was that customers in the second quarter increased 23% to 3.31 million, short of the Bloomberg Consensus estimate of 3.33 million.
Revenues in the quarter surged 79% to $294.4 million, beating expectations, while the adjusted EBITDA loss narrowed to $18.7 million from $40.9 million a year earlier.
The gross loss ratio improved to 60%, better than the 64.8% estimate.