Shares of Lemonade, Inc. (LMND) plummeted 12.26% in after-hours trading on Tuesday, following the insurance company's fourth quarter earnings release. While Lemonade beat top-line expectations, reporting revenue of $148.8 million versus the $144.8 million consensus, the company missed significantly on the bottom line.
Lemonade posted an adjusted loss per share of $0.42 for Q4, wider than analysts' expectations of a $0.61 per share loss. The earnings disappointment appears to be the primary driver behind the stock's sharp sell-off in extended trading.
In the shareholder letter, Lemonade touted progress with its new "Synthetic Agents" program launched last year. However, this was overshadowed by the company's failure to meet profitability targets. Investors reacted negatively, sending Lemonade shares tumbling in the after-hours session.
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