Lemonade (LMND) Reports Q2 Earnings: What Key Metrics Have to Say

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Lemonade performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• In force premium (end of period): $1.43 billion compared to the $1.43 billion average estimate based on five analysts.
• Customers (end of period): 3,308,666 versus 3,340,447 estimated by four analysts on average.
• Net loss ratio: 61% versus 69.8% estimated by four analysts on average.
• Premium per Customer (end of period): $433.00 compared to the $426.43 average estimate based on four analysts.
• Gross loss ratio: 60% versus 64.3% estimated by four analysts on average.
• Total Revenue- Net investment income: $9.7 million versus the five-analyst average estimate of $9.61 million. The reported number represents a year-over-year change of +3.2%.
• Total Revenue- Ceding commission income: $20.4 million compared to the $26.16 million average estimate based on five analysts. The reported number represents a change of -32.9% year over year.
• Total Revenue- Commission and other income: $12.3 million versus $11.75 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +4.2% change.
• Total Revenue- Net earned premium: $252 million compared to the $241.38 million average estimate based on five analysts. The reported number represents a change of +124% year over year.

View all Key Company Metrics for Lemonade here>>>

Shares of Lemonade have returned -4.5% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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