AI-backed insurer Lemonade jumps after hours on earnings, forecast

Shares of Lemonade Inc. (LMND) rocketed higher after hours on Wednesday after the AI-backed insurance provider forecast better-than-expected full-year revenue and reported first-quarter results that were stronger than anticipated. The company -- which uses a bot to connect customers with homeowner, car, pet and life insurance -- said it expected revenue of $392 million to $396 million for the full year, above FactSet forecasts for $381.2 million. Shares jumped 15% after hours. The company reported a first-quarter net loss of $65.8 million, or 95 cents a share, compared with $74.8 million, or $1.21 a share, in the same quarter last year. Revenue jumped 115% to $95.2 million, compared with $44.3 million in the prior-year quarter. Analysts polled by FactSet expected the company to report a loss of $1.13 a share, on revenue of $88.2 million. "The broad, recent excitement around AI is on point," executives said in a shareholder letter outlining the results. "Our competitors presumably share in this excitement, but unless they built their company for this moment, we expect its impact will be somewhat muted."

-Bill Peters

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05-03-23 1659ET

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