Lemonade, Inc.

Good morning, everyone, and welcome to the LemonAid first quarter 2024 financial results. My name is Angela, and I'll be coordinating your call today. During the presentation, you can register to ask a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I will now hand you over to your host, Yael Wissaleffi, VP Communications at LemonAid. Please go ahead.

Good morning and welcome to Lemonade's first quarter 2024 earnings call. My name is Yael Wisner-Levy and I'm the VP Communications at Lemonade. Joining me today to discuss our results are Daniel Shriver, CEO and co-founder, Shai Winninger, president and co-founder, and Tim Bixby, our chief financial officer. A letter to shareholders covering the company's first quarter 2024 financial results is available on our investor relations website, investor.lemonade.com. Before we begin, I would like to remind you that management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factors section of our 2023 Form 10-K filed with the SEC on February 28, 2024, and our other filings with the SEC. Any forward-looking statements on this call represent our views only as of today, and we undertake no obligation to update them. We will be referring to certain non-GAAP financial measures on today's call, such as adjusted EBITDA and adjusted gross profit, which we believe may be important to investors to assess their operating performance. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our letter to shareholders. Our letter to shareholders also includes information about our key performance indicators, including customers, enforced premium, premium per customer, annual dollar retention, growth earned premium, growth loss ratio, growth loss ratio XCAT, and net loss ratio, and a definition of each metric, why each is useful to investors, and how we use each to monitor and manage our business. With that, I'll turn the call over to Daniel for some opening remarks. Daniel?

Good morning, and thank you for joining us to discuss Lemonade's Q1 results. I'm happy to report that 2024 got off to a strong start. Year on year our top line grew 22%, our adjusted EBITDA loss improved fully by a third, and our gross profit more than doubled. The quarterly loss ratio came in at 79%, down eight points from this time last year, while our TTM loss ratio, that is the trailing 12 month loss ratio, came in six points lower than the same time last year. These loss ratio improvements indicate that the growing sophistication and diligence in our rate modelings and filings are bearing fruit. In addition, they reflect that our claims accuracy is strong and getting stronger, and this is helping with favorable prior year development. And indeed, that our growing underwriting precision is delivering lower frequency of claims outright. All in all then, a strong quarter. very much keeping us on track, or perhaps better than on track. In fact, we're happy to update that we now project to be net cash flow positive by the end of this year. This acceleration in our cash flow profitability is made possible by a couple of factors, the most notable being how technology in general and AI in particular continue to deliver on the promise at the very core of Lemonade's thesis. This quarter, for example, saw a 22% top line growth, but only a 2% increase in operating expense and an 11% decrease in headcount, all of these metrics year on year. These numbers tell a powerful story. With it in mind, let me hand over to Shai to tell you more about our recent efficiency improvements. Shai, over to you.