Lemonade Customer Base Now Surpasses 1.2M; Q2 Losses Land Above $55M

August 6, 2021

Lemonade’s customer base continues to climb in the 2021 second quarter, with that number now surpassing 1.2 million.

In contrast, the New York-based digital insurer reported nearly 814,200 customers at the end of its 2020 second quarter.

Additionally, Lemonade notes in its quarterly shareholder letter that it is now generating $246 in premium per customer, nearly 30 percent higher p the $190 figure from a year ago. Lemonade cites that result as stemming from greater product diversification with a focus on premium offerings, and also more Lemonade customers carrying multiple policies.

Still, Lemonade ended Q2 losing $55.6 million, compared to a $21 million loss a year ago. Part of that stems from what Lemonade and many other startups do: scale up rapidly through venture funding and the public markets with the idea that revenues and income will follow. For the first six months of 2021, Lemonade reported a $104.6 million net loss, compared to $57.5 million through the first six months of 2020.

Nonetheless, the InsurTech had many other Q2 gains to report:

Lemonade’s shareholder letter also included guidance for the 2021 third quarter. In-force premium is expected to reach $336 million to $339 million, with gross earned premium of $76.5 million to $77.5 million. Revenue should hit between $32.5 million and $33.5 million, the company said. Lemonade also expects a $52 million to $55 million adjusted EBITDA loss for Q3, the company said.

Source: Lemonade