2023-11-03 06:12:00 ET
There is no argument that insurance disruptor Lemonade (NYSE: LMND) has products that resonate with customers. Thanks to its user-friendly application and claims processes, the company has grown its customer base to nearly 2 million people.
However, the problem has always been profitability and sustainability. For much of the past few years, Lemonade has been losing money at an alarming pace. There have been serious doubts about the business' ability to reach profitability before it runs out of money -- and with shares down by 93% from all-time highs and a terrible environment for raising new growth capital, many investors have stayed away.
In its most recent earnings report, Lemonade not only surpassed expectations for the current quarter, but gave investors some positive surprises when it comes to the path to profitability, and the progress Lemonade has made toward achieving positive cash flow. Management has given investors some clear dates by which it expects to achieve two key profitability metrics.
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Down More Than 90% From the Highs, This Ridiculously Cheap Stock Could Be Worth a Closer Look