MILE - Here's Why the Market Soured on Lemonade Stock Today
Shares of insurance-technology company Lemonade (NYSE: LMND) sank on Wednesday after the company reported financial results for the third quarter of 2021. Many of its metrics came in higher than expected, but there were some troubling signs that were hard to overlook.
Moreover, it seems the market isn't keen on Lemonade's proposed acquisition of competitor Metromile (NASDAQ: MILE) . As of 10:40 a.m. EST, Lemonade stock was down 12% and Metromile stock was only up 3%.
In Q3, Lemonade's in-force premium -- the total annualized amount of its insurance premiums -- was $347 million, up 84% year over year. This bested the high end of management's guidance of $339 million and was a sharp increase from the $297 million it had at the end of last quarter. Consequently, Lemonade's revenue was up 101% year over year to $35.7 million, which also beat guidance.
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Here's Why the Market Soured on Lemonade Stock Today