The company attributed the improvement in net loss to operating expense efficiencies, which offset the reduction in revenue driven by its transition to a quota share reinsurance structure.
Adjusted loss before interest, taxes, depreciation and amortization for the period was $27.6 million, compared with a loss of $30.4 million in the third quarter of 2019.
The S&P Capital IQ consensus normalized loss per share estimate for the quarter was 58 cents, with five analysts reporting.
The company logged a third-quarter gross profit of $7.3 million, up 83% from $4.0 million in the prior-year period. Adjusted gross profit for the period also rose 138% year over year to $9.3 million from $3.9 million.
Gross earned premium for the period was $42.9 million, a 104% increase from $21.0 million in the third quarter of 2019. Total revenue, on the other hand, declined year over year to $17.8 million from $19.0 million.
Lemonade expects to report an adjusted loss before interest, taxes, depreciation and amortization between $32 million and $34 million in the fourth quarter as well as a full-year adjusted loss in the range of $100 million to $103 million.