Shares of Lemonade, Inc. (NYSE: LMND) surged 5.84% during intraday trading on Thursday, following the insurance tech company's impressive full-year 2024 earnings report, which beat expectations and showed robust growth across key metrics.

For the fiscal year 2024, Lemonade reported revenue of $526.5 million, up 23% year-over-year, and a narrowed net loss of $202.2 million, or $2.85 per share, compared to a $3.40 loss per share in 2023. The company's earnings per share surpassed analyst estimates by 6.4%, driving investor enthusiasm.

Lemonade's growth momentum was evident in several areas. The company's customer count increased by 20% to 2.4 million, while its enforced premium grew 26% to $944 million in Q4 2024. Additionally, gross profit doubled year-over-year to $167 million, and the company achieved its first positive free cash flow of $48 million for the full year, a year ahead of expectations.

However, Lemonade continues to face challenges on its path to profitability. The company reported a net loss of $30 million in Q4 2024, and its adjusted EBITDA loss for the quarter stood at $24 million. Additionally, annual dollar retention decreased by 1 percentage point year-over-year, and the California wildfires had a significant impact, resulting in an expected $20 million hit to the company's financials.

Despite the ongoing losses, Lemonade's management remains optimistic about the company's growth prospects, particularly in the car insurance segment, which is currently available in only eight states. The company plans to ramp up growth spending by approximately 40% year-over-year, indicating a strong commitment to future growth.