Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. OK. Please view the Q3 2020 financial results in the Letter to Shareholders on the company’s investor relations website.. On Wednesday, November 11, 2020, Lemonade will host a conference call at 8:00 a.m. Eastern time (5:00 a.m. Pacific time) to discuss the results. Our next question today comes from Matt Carletti with JMP. [Operator instructions] And today's first question comes from Ismael Dabo with Morgan Stanley. Good morning. So the price is definitely worth going for. Operating expenses, excluding loss and loss adjustment expense, increased just 11% in Q3 as compared to the prior year, with sales and marketing expenses being actually lower by nearly 25% as compared to the prior year due to continued improvement in our marketing efficiency. And it is fast growing, so it's small but fast growing. It's not life instead of car. Yes. And going there and we think from scratch, what pet insurance should look like, what it should cover, what the experience would be, what the response time should be. When people go from being individuals to being families to having responsibilities, that often coincide with buying a home, with having a kid, they're establishing a family. So did you pull back any proactively on sales and marketing because of concerns in the quarter? Interesting. And we'll see you in the quarter. On your marketing question, I think the way you put it is exactly right. Check our prices. Shai Wininger -- Chief Operating Officer and Co-Founder. Mike Zaremski -- Credit Suisse -- Analyst. Good morning. And then we'll think in a very pretty similar way as we launch additional products. NEW YORK-- (BUSINESS WIRE)--Lemonade, Inc. (NYSE: LMND) has released its second quarter 2020 financial results by posting them to its website. We have been cautious in Q2 heading into Q3 about what some of the cyclical changes might be this year, and the reality is we just really haven't seen them. Important to note that we do focus even more so than customers on dollars, so premium growth is paramount. So there were those considerations in addition to the other ones. Jason Helfstein -- Oppenheimer and Company -- Analyst. Matt, it's Daniel. I guess just lastly, can you just tell us who will be underwriting the life insurance policies? Lemonade, Inc. (NYSE: LMND) today announced that it will report its financial results for the third quarter ended September 30, 2020 on Wednesday, November 11, 2020. Contact the source provider Comtex at editorial@comtex.com. The user experience will be very much a Lemonade experience, but the underlying policy will be on somebody else's paper. Investor Relations Aktie. Lemonade Insurance Agency (LIA) is acting as the agent of Lemonade Insurance Company in selling this insurance policy. So if you look over the past two quarters or really three quarters if you include pre-public, where we've seen cost savings or EBITDA improvement, we tended to reinvest, with the exception of kind of April where things were really uncertain. Did you see any signs of Lemonade renters customers in cities moving out to become Lemonade homeowners customers? And then maybe the last thing I'd add is we're becoming quite recognized by others. Stock Chart. I mean, it seems like things are going well, but what surprised you? The National Hurricane Center named storms alphabetically, starting with A, but by mid-September they had literally run out of letters and they had to start over this time with the Greek alphabet. But these are very long lead items for underwriting as well. Yes. And I think you saw it this quarter where it actually appeared that the downloads were somewhat less, but that's an intentional move that we made to kind of optimize how the customer experience works. So for example, term life insurance is a product with very, thankfully very rare claims experience. Registrants will receive confirmation which includes dial-in details. Lemonade, Inc. (NYSE:LMND)Q3 2020 Earnings CallNov 11, 2020, 8:00 a.m. So retention is stable and modestly up is how I would term it. We've announced today that within three months, we will launch life. No brainer prices. Some of those other dynamics and the whole symbiotic story is coming together nicely. How should we think about timeline for the auto insurance policy? The average age for buying a first home in the U.S. is about 33, which is also about the average age when college grads have their first child and also about the average age of Lemonade customers. And unlike other types of coverage, everybody who drives has auto insurance. Annual Report: Annual Proxy: Are you an investor? But the fact that our loss ratio didn't spike even as catastrophes did is a non-event of note. One thing to note when you're looking at the net loss ratio versus the gross loss ratio, there are some nuances because of our reinsurance transition that happened on July 1. Obviously, there's an immense amount of change sort of by hour or by day. Home FAQ Claims Giveback Blog COVID-19 Pet. We promise zero paperwork and instant everything by replacing brokers and bureaucracy with bots and machine learning. And actually to write life policies on your own paper, we would have to stand up another insurance carrier and capitalize it independently. Even in a tougher cat quarter, our gross loss ratio remained highly competitive. So it's really a question of getting leverage of using all the things that were already paid for, for more and more and more products. This significant upsell and cross-sell phenomena continues to gain steam within our homeowners' business too. 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-Q for the three months that ended June 30, 2020, and our other filings with the SEC. We were just talking about this in the context of life, sometimes you do the market research live and you learn the lessons post-launch rather than prelaunch. On the app download question, it's a great question because it can indicate something that's actually not happening. We hope to give them a further boost by adding more products. And then we look at the potential partner structure. OK. And then I guess last one for now and I'll circle back, on your comments on the sales and marketing spend. I guess I just want to specify the wording here on the lifetime piece. That's perfect color. I guess I'm going to start off with the top line and customers. We used everything that we learned from the preceding five years and poured it into the design and the user experience and the customer support and the underwriting. ir@lemonade.com. Follow us. For the full-year 2020, we expect again in-force premium at December 31 of between $200 million and $205 million, gross earned premium between $154 million and $157 million, GAAP revenue of $91 million to $93 million, and an adjusted EBITDA loss between $103 million and $100 million. Just last question for me, just in terms of customer acquisition, you've seen a nice improvement. It's just one before the other. Great. We had another strong quarter of growth, driven by additions of new customers as well as a continued increase in premium per customer. Any such forward-looking statements represent management’s estimates as of the date of this press release and the letter to shareholders. Can you maybe talk a little bit about what drove that level of efficiency in customer acquisition? So sometimes the ebb and flow of the customer count can be slightly off-cycle with that, but we're really happy with both the customer count growth and the premium growth. As long as those build to healthy CAC ratios are steady or showing some improvement, we'll continue to do that. No. All right. Kurs Dividende Kapitalstruktur Aktienrückkauf Indizes Kennzahlen Aktionärsstruktur Basisinformationen Anleihen. I was hoping to touch on pet insurance quickly, clearly off to a good start. Investor Relations. So the customer growth came in remarkably as expected, but as expected in a more normal year. For the fourth quarter of 2020, we expect in-force premium at December 31 of between $200 million and $205 million, gross earned premium of $46 million to $48 million, GAAP revenue of between $18 million and $19 million, and an adjusted EBITDA loss of between $34 million and $32 million. And as a reminder, please note that GAAP accounting rules are such that ceded premiums are excluded from GAAP revenue. So we don't -- our practice is not to disclose timing until we disclose timing. As Shai mentioned specifically around life, there's a goodness of fit to other things that we talked about. Appreciate it. Allianz Anleihen Rating Mitteilungen. Our actual cat losses though were some 75% lower than our pro-rata would have predicted, and our loss ratio declined year on year. Lemonade, Inc. (NYSE: LMND) has released its third quarter 2020 financial results by posting them to its website. Market data powered by FactSet and Web Financial Group. Cumulative Growth of a $10,000 Investment in Stock Advisor, Lemonade, Inc. (LMND) Q3 2020 Earnings Call Transcript @themotleyfool #stocks $LMND, Copyright, Trademark and Patent Information. I would now like to turn the conference over to Yael Wissner-Levy. *Stock Advisor returns as of November 20, 2020 As we wrote in our S-1 founders' letter, we prefer to make decisions under conditions of uncertainty and to abandon bad bets as soon as the data reveal them to be so. Follow us. Got you. Premium per customer increased by 19% versus the prior year to $201. So good progress, but those are two different metrics.Yeah. We understand their considerations, but we strive to prioritize product launches based on customer needs rather than regulatory frameworks, which is why in recent months, we established the Lemonade Life Insurance Agency and why we plan to bring the Lemonade experience to the term life market in the coming months. And this really will -- the answer to your question about car insurance, other insurances will really be answered by asking the question, how can we give the consumer the best experience that we want them to have, and that they come to associate with the Lemonade brand? So we do feel like there is a goodness of fit, the right stage in life. So it is a bet, but it is a modest anti with tremendous upside. And so when we see the ability to we spend, and I think when you see a quarter in aggregate, it's hard to see the sort of ebbs and flows of how we manage the growth spending on a day-to-day basis. To the extent that the urban exodus wasn't a negative for the renters business, could it have been a positive for your homeowners' business? This increase was driven by a combination of the increased value of policies over time as well as a mix shift toward higher-value homeowner and now pet policies. The platform ensures transparency in issuing policies and settling disputes. But we saw again really consistent patterns with what we've seen in prior quarters or, sorry, prior years. Please view the Q3 2020 financial results in the Letter to Shareholders on the company’s investor relations website. Our 25% take is safe even without reliance on reinsurance, and there's typically left enough money for giveback. We also continued to hire new Lemonade team members in all areas of the company in support of customer and premium growth and new product launches, and thus saw increases in each of the other expense lines. Sure. So all in all, we feel very, very good about the way pet played out. And you may see that the download numbers shift around a bit, but that was an intentional move. Please view the Q3 2020 financial … Great. I think so I don't have a disclosable number today. With that, I would now like to turn the call back over to the operator, who can perhaps rejoin the call with Q&A instructions. And then if you could talk about what was underlying the really strong, I guess we back out something from the cat, I don't know how much of the 6% was on a net basis. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our letter to shareholders. And then it's going to be customer-centric and cater, in the fullness of time, to all of our customers' needs and grow with them as those needs grow in turn. We have an overall book of business that we're trying to build in a smart way with a solid and predictable loss ratio, so that is something we'll be comfortable with before we enter. And we'll be happy to take your questions. Beyond giving you a heads up about the forthcoming product launch, I'd like to use this announcement to highlight how we think about products and initiatives and their associated risks and returns. Two very different metrics, but on the same topic. Did you see the headwind you expected or offset by something else? Everything really came together beautifully. Helps with better conversion, better ratios of policies to the top of the funnel. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Where did you see that coming from? OK. Last one real quick, I guess, and then I'll jump off. Please go ahead. For another, the same me-to-we events, that trigger of graduation from renting to homeownership are often triggers for buying one's first life insurance policy too. Against this devastating backdrop, we see the significance of the dog that didn't bark. 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. But I couldn't confirm or deny that. 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