World news – US – Lemonade stocks fell even as results beat expectations

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of shares

Lemonade

It fell after insurtech reported that its losses diminished in the third quarter and the company also announced that it would start offering life insurance.

Stock pullback comes as company lock expires Major shareholders of Lemonade (stock symbol: LMND) have been banned from selling their shares for a period of 180 days after their initial public offering in July The IPO includes lemonade investors

SoftBank Group,

Sequoia Capital, a General Catalyst and a Lemonade spokeswoman said early release is limited to 33% of holdings and said that starting Thursday, insiders can sell their shares while the insiders can exit starting Friday

One of the first pure insurers to go public, Lemonade’s stock has more than doubled on its debut, and shares have remained well above the $ 29 IPO price

Late Tuesday, Lemonade reported a loss of $ 30 9 million or 57 cents a share in the quarter ending September 30, compared to a loss of $ 31 1 million or $ 2 78 share, in the quarter a year earlier revenue fell to $ 17 8 million From $ 19 million a year ago, the company said total customer numbers jumped 67% to 941,313 in the first quarter.

Results beat analysts expectations that the company would report losses of 64 cents per share at $ 14 7 million in revenue, Lemonade, in a letter to shareholders announcing its results, said it expects revenues of between $ 18 million and $ 19 million for the fourth quarter and 91 million. $ 93 million in revenue for the full year.

Matthew J. Carletti, analyst at JMP Securities, said Lemonade’s results were impressive. Repeat the Market Outperform rating for Lemonade stocks and $ 105 target price

“Most importantly, we were encouraged by what we saw in the quarter in terms of what we consider a major“ leap of faith ”that Lemonade investors should take – as today’s acquired tenants will stay with Lemonade as they progress through their lives and secure them,” Carletti said in a note

Launched in 2016, Lemonade provides insurance to tenants and homeowners in the US for stolen or damaged properties as well as personal liability. The startup uses machine learning to better assess risk and artificial intelligence to process claims

In the third quarter, New York began offering pet health insurance. Lemonade says it expects the pet sector to account for roughly 5% of the company’s business book by the end of the year

Now, Lemonade is expanding into the life insurance market, with plans to test a life insurance product sometime in the next 90 days

Regarding the transition to life insurance, “It’s exciting for us to be able to start using everything we’ve built for renters and homeowners and put new products on top of them,” Lemonade CEO Daniel Schreiber said in a profit conference call, according to a transcript. Preliminary « So it is a bet, but it is a modest bet with massive leverage »

Lemonade also plans to expand to France in the fourth quarter. The company is currently offering content and liability insurance in Germany and the Netherlands

Lemonade shares plunged after Insurtech reported narrowing its losses in the third quarter.

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Lemonade, Inc, Stock

World News – United States – Lemonade stocks drop even as results beat expectations



SOURCE: https://www.w24news.com/news/world-news-us-lemonade-stocks-fell-even-as-results-beat-expectations/?remotepost=565830

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