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.
