Shares of Lemonade, Inc. (LMND) plummeted around 14% in pre-market trading on Wednesday, following the release of the insurance technology company's fourth quarter 2024 earnings report on Tuesday after the closing bell.
Lemonade reported a better-than-expected revenue of $148.8 million for the quarter, topping Wall Street's consensus estimate of $144.8 million. However, the company missed significantly on the bottom line, reporting an adjusted loss per share of $0.42, wider than analysts' expectations of a $0.61 loss.
The earnings disappointment seems to be the primary driver behind Lemonade's stock sell-off in extended trading. Despite touting progress with its new "Synthetic Agents" program, the company's failure to meet profitability targets overshadowed the revenue beat, prompting a sharp negative reaction from investors.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.