Lemonade Investors Just Got Some Incredible News

Lemonade (NYSE: LMND) stock just hit a 52-week high after third-quarter earnings. In recent months, after-earnings pops have always been followed by a plunge to right back where they started. Will this change? The insurance technology company reported stellar results, so this could stick, and Lemonade stock might finally be on its way up. Let's go through the results and what they mean for Lemonade's future.Lemonade is an insurance company, and it measures its growth and success somewhat differently than other kinds of companies. Revenue and profits are still important measures, but Lemonade's favored top-line metric is in-force premiums (IFP), or the average of current policies in place during the quarter. Because policies are paid for by customers, but not all of it becomes revenue, this is the metric that gives investors a more accurate picture of the story.IFP increased 24% year over year in Q3, an acceleration, and revenue increased 19%. Total customers increased 17% year over year to 2.3 million, and premium per customer increased 6%. Lemonade's strategy is to attract younger customers and grow with them, which leads to more policies and more high-priced policies over time, and it's working.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool