Revenue for the quarter increased by $20.8 million, or 89 percent, to $44.3 million, owing primarily to an increase in gross earned premium and ceding commission income from reinsurers.
Gross profit increased by $8.3 million to $10.2 million in the first quarter, owing primarily to an increase in total revenue in the period. The Texas Freeze had a negative impact on gross profit in the first quarter of 2021.
Total operating expense, excluding net loss and loss adjustment expense, increased by 68 percent in Q1 to $92.5 million, compared to $55.1 million in Q1 2021.
The increase, according to Lemonade, was primarily driven by increased investment in advertising and employee-related expenses to support growth, which impacted sales and marketing, technology development, and general and administrative expense lines.
The adjusted EBITDA loss of $57.4 million increased by $16.1 million from the first quarter of 2021, owing primarily to higher operating expenses.
And, as of March 31, 2022, the company's cash, cash equivalents, and investments totaled $1,013 million, up from $1,072 million as of December 31, 2021, primarily reflecting the $39.5 million in net cash used in operations during Q1.
Lemonade anticipates in force premium of $445 million to $450 million, gross earned premium of $103 million to $105 million, and revenue of $46 million to $48 million in the second quarter of 2022.
In force premium is currently estimated to be $535 million to $545 million for the full year, gross earned premium at $426 million to $430 million, and revenue at $205 million to $208 million.
“While the impact of the COVID-19 pandemic, inflationary pressures and geopolitical turmoil, including the war in Ukraine, on market volatility continues to be highly uncertain, we are confident about our business model and expect to continue to provide both quarterly and annual guidance in a consistent manner,” Lemonade commented. “We will provide investors with updated business trends as macro conditions evolve.”