Lemonade (NYSE: LMND) was one of the hottest initial public offerings of 2020, going public in July and gaining about 145% from its start of trading till the end of the year. But there’s still refreshing news for investors in 2021: The insurance technology company has major potential for growth this year as it continues to disrupt traditional insurance, and shareholders have a lot to gain as well. Look for these three things to happen this year.
COO Shai Wininger announced the company’s 1 millionth customer in December, gaining in about five years what older insurance companies took decades to accomplish: Geico did it in 28 years, and it took State Farm 22 years.
Since Lemonade employs thousands of bits of data and multiple artificial intelligence (AI) bots to offer quick policies, every new customer sharpens Lemonade’s algorithms and makes the model more competitive. So while new customers mean increased potential for growing revenue and positive earnings, but they also mean a higher-quality experience for existing customers.