Q3 2021 Lemonade Inc Earnings Call
Good day and welcome to the eliminated Inc. Third quarter 2021 earnings Conference call. All participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing Star then zero.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on a touchtone phone to withdraw your question. Please press Star then two.
Please note. This event is being recorded I would now like to turn the conference over to Yale Wisner Levy. Please go ahead.
Good morning, and welcome to eliminate third quarter 2021 earnings call.
Name is Oh, let's go Levy and I am the VP communications at Lemonade joining me today to discuss our results are Daniel Schreiber co CEO and cofounder Shai winger co CEO and co founder and Tim Bixby, Chief Financial Officer.
Our letter to shareholders covering the Companys third quarter 2021 financial results is available on our Investor Relations website, Investor don't love any dot 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 form.
10-K filed with the SEC on March six two.
2021, and our other filings with the SEC.
Any forward looking statements made 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 our 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 operating metrics, including 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 who will begin with a few opening remarks Daniel.
Good morning, I'd like to begin with very exciting news about our client product strategy lemonade.
Eliminates call was launched last week and today. He is part of our continued investment in this line, we announced our acquisition of the Tech enabled car insurance company Metro miles.
We believe the deal will be of significant value unlocked for our shareholders and our customers and we expect this transaction to pay dividends and three important currencies.
Firstly by collapsing time.
We are acquiring billions of miles of highly textured driving data.
Advanced telematics technologies beef pricing and underwriting knowledge Metro miles has implemented season to proprietary machine learning models that are informed by real world feedback and iteration that scale.
It was candidly it took us years together this level of insight.
The deal also delivered over $100 million of seasoned enforce premium 49 state licenses and the team steeped in every aspect of digital car insurance, all things that can accelerate the growth trajectory of our own car insurance business.
Secondly, the deal allows us to flatten risk hubs not only does the transaction accelerates our growth trajectory and knowledge base, but importantly, it allows us to build over the riskiest parts of our core ambitions, namely growing eliminates called before a data models season.
Lastly, this transaction delivers increased efficiencies.
Post transaction close our strategy is to build a business that preserves a single culture, a single tech stack single brands unified team and a single product experience. We believe the strategy yields considerable revenue and cost synergies that will enhance eliminates financial profile.
Just days ago, we launched lemonade call.
This was a herculean effort by our team. The result of the car insurance product built from scratch by the largest team who are assigned to a single product ever.
We're incredibly proud of how it works out and believe its only going to get better from here.
I think all of the Metro model Mozo Interlaminate car, we need for our product offering that stands alone in the market.
Together, well have all the people and tools in place to deliver the market's more seamless and customer centric car insurance product that is also the most affordable precise infer.
That at any rate as the plan.
With these significant developments in our core product and strategy. The rest of our book because happy sustained its growth trajectory with helping you and there is economics and robust customer demand over arching theme of 2021 sustained through Q3, we leaned in and sequentially ramped up our investments in growth we.
We saw robust growth in Q3 with ISP, increasing by 84%.