Lemonade Inc. stock fell 9% late Wednesday after the insurance company reported that sales declined and losses more than doubled in the most recent quarter.
said it lost $55.6 million, or 90 cents a share, in the second quarter, compared with a loss of $21 million in the second quarter of 2020. Revenue fell to $28.2 million from $29.9 million a year ago.
Analysts polled by FactSet expected a loss of 92 cents a share on sales of $26.8 million for the company.
“As we look ahead, from our vantage point, it’s ‘all systems go’ for a second half,
with similar dynamics,” the company said in a letter to shareholders.
Lemonade was one of the standouts in a crowded field of initial public offerings in 2020, with shares more than doubling in their debut after selling at $29 a share. The stock topped $180 at its peak in January, but closed Wednesday at $89.88 before declining again in the extended session.
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The company guided for third-quarter revenue between $32.5 million and $33.5 million, and capital expenditures of around $3 million. The revenue guidance is within FactSet consensus for the quarter.
For the full year 2021, the company called for revenue between $123 million and $125 million, and capital expenses of about $11 million. The analysts polled by FactSet expect 2021 sales around $119 million.
Lemonade said it ended the quarter with more than 1.2 million customers, compared with 814,160 customers at the end of the second quarter of 2020.
The stock ended the regular trading day up 3.4%. So far this year, Lemonade shares have dropped 27%, contrasting with gains of 17% for the S&P 500 index
Clarification: Due to a FactSet error, a previous version of this article had the incorrect consensus for Lemonade losses. It has been updated.