By Dhirendra Tripathi
Investing.com – Lemonade (NYSE:) shares fell more than 13% Wednesday after the online insurer shook confidence with a lighter-than-expected revenue projection for the ongoing quarter on top of a first quarter loss that was worse than forecast.
The company forecast revenue for the ongoing quarter at between $26 million and $27 million and adjusted EBITDA between (-)$43 million and (-)$40 million.
Revenue in the March quarter fell 10.3% to $23.5 million.
Net loss in the March quarter widened to $49 million from $36.5 million loss in the same quarter a year ago.
As operating expenses rose, gross profit margin deteriorated sharply to just 8% from 18% in the March quarter of 2020.
BofA Securities dropped the price target on the stock to $27 from $29 and reiterated a sell-equivalent rating, StreetInsider reported.
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