Israeli online insurer Lemonade (NYSE: LMND) lost ground after reporting second quarter results and disappointing third quarter guidance – the company’s first financial statement since its successful IPO at the end of June.
Second quarter revenue was $29.9 million, up from $16.1 million in the corresponding quarter of 2019 and above the analysts’ estimates of $29.3 million. Second quarter net loss narrowed to $21 million ($1.77 per share) from net loss of $2.09 per share in the corresponding quarter of 2019 and beating the analysts’ estimate of $36.5 million ($2.09 per share) of a loss of $2.18 per share.
Lossmaking Lemonade defies the skeptics
But while the second quarter results were stronger than expected, the company’s share price slid after weak third quarter guidance. Lemonade sees third quarter revenue of $14-15 million, below the analysts’ expectations of $15.2 million, and 2020 revenue of $86-88 million, below the analysts’ expectations of $88.9 million.
Lemonade’s share price fell 6.91% on the NYSE yesterday to $62.75, giving a market cap of $3.45 billion, and fell a further 4.81% in aftermarket trading after the financial results were announced to $60.00. Nevertheless, the share price of Lemonade, which was founded by CEO Daniel Schreiber and president Shai Wininger, is still worth over double the $29 at which it held its IPO six weeks ago at a market cap of $1.6 billion, and Lemonade is worth more than Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) and Menorah Mivtachim Holdings Ltd. (TASE: MORA) combined.
Published by Globes, Israel business news – en.globes.co.il – on August 12, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020