Earnings Call Transcript - LMND Q4 2025

Operator, Operator

Ladies and gentlemen, thank you for standing by. Today's conference call will begin shortly. Hello, everybody, and welcome to the Lemonade, Inc. Q4 2025 earnings call. My name is Elliot, and I will be coordinating your call today. If you would like to register a question during today's event, please press 1 on your telephone keypad. I would now like to hand over to the London team. Please go ahead. Good morning. Welcome to Lemonade, Inc. Fourth quarter 2025 earnings call.

Executive, Executive

Joining us on our call today, we have Daniel Schreiber, CEO and Co-Founder; Shai Wininger, President and Co-Founder; and Timothy Bixby, Chief Financial Officer. A letter to shareholders covering the company's fourth quarter 2025 financial results is available on our Investor Relations website at lemonade.com/investor. I would like to remind you that management's remarks made on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 most recent Form 10-K filed with the SEC and our more recent filings with the SEC. Any forward-looking statements made on this call represent our views only as of today. We undertake no obligation to update them. We will be referring to certain non-GAAP financial measures on today's call, including adjusted EBITDA, adjusted free cash flow, and adjusted gross profit, which we believe may be important to investors to assess our operating performance. Reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our letter to shareholders. Our letter to shareholders also includes information about our key performance indicators, including the number of customers, in-force premium, premium per customer, annual dollar retention, gross earned premium, gross loss ratio, CAT, trailing twelve-month loss ratio, and net loss ratio, and a definition of each metric, why each is useful to investors, and how we use each to monitor and manage our business. With that, I will turn the call over to Daniel Schreiber for some opening remarks.

Daniel Schreiber, CEO

Good morning, and thank you for joining us to review Lemonade, Inc.'s results for Q4 2025. By any measure, this was our strongest quarter ever, and it capped a year of excellent financial execution and operating performance. In the fourth quarter, in-force premium grew to $1,240,000,000, up 31% year over year, and this extended our streak of accelerating growth to nine consecutive quarters. Revenue grew even faster, up 53%, reflecting both growth and improving economics across the business. Indeed, I am pleased to share that this growth translated directly into profitability metrics. Gross profit increased 73% year over year to a record $111,000,000, and if I zoom out to take in a three-year perspective, our gross profit has been compounding at an annual compounded growth rate in the triple digits. As a result, adjusted EBITDA loss narrowed to just $5,000,000 in the quarter, placing us on the brink of breakeven, and this represented a $19,000,000 improvement year over year. Indeed, we generated $37,000,000 in positive adjusted free cash flow in the fourth quarter, capping a strong year of cash generation. 2025 was our second consecutive year where we saw our cash reserves swell. Somewhat unusually, insurance is a business that tends to turn cash flow positive before GAAP accounting positive. There the one almost inevitably follows the other. This then is as good a spot as any to reiterate a longstanding expectation that we will be EBITDA profitable in Q4 this year and EBITDA positive for the full year of 2027. We continue to be highly focused on growth and accelerating growth because it is a gift that keeps on giving. Faster growth drives better data and further sharpens our segmentation and pricing capabilities. This powers improving underwriting performance and rapid gross profit growth, and we can swiftly redeploy gross profit thus generated into profitable growth investments with compelling unit economics. And so the cycle continues. It is energizing to see the flywheel continue to compound even as we scale. What is particularly encouraging is that all this progress is broad-based. Pet, car, and Europe are all coming into their own as powerful growth drivers, each combining hyper growth with improving underwriting performance. In our shareholder letter, we highlight critical initiatives we are investing in this year to leverage the latest AI technologies to further enhance our go-to-market operations, pricing, and cross-selling capabilities. We believe that these initiatives can drive durable competitive advantage in and unit economics that support our ability to sustain an industry-leading gross profit growth profile for years to come. One last thing, I wanted to take a moment to draw your attention to our upcoming Investor Day. This event is scheduled to take place in November in New York and online. Specifics will follow, and we certainly hope you will be able to join us for significant updates on our vision, AI capabilities, and ambitious plans. I will now turn the call over to Shai Wininger.

Shai Wininger, President

Thanks, Daniel. A key vector for us is autonomous insurance, and specifically Lemonade autonomous car, which we announced and launched a few weeks ago starting with Tesla. As physical objects such as vehicles increasingly shift from being controlled by humans to being operated by AI, insurance needs to evolve as well. Historically, the industry has priced auto insurance using proxies—credit scores, marital status, education, and other similar features. We have always believed that telematics is a much more precise tool than these blunt proxies, measuring the driving itself rather than something broadly correlated. But when a car is not driven by a human, these proxies lose touch with reality altogether. Lemonade autonomous car is priced based on three modes: when a car is parked, when it is driven by a human, and when it is driven by AI. By integrating directly with the car's onboard computer, we can tell which mode that car is in at any given moment, distinguishing between various kinds of risk and pricing each accordingly. When the car is driving itself, and doing so more safely than a human, the price reflects that. Our system accounts for the vehicle's software version, as well as for the quality and precision of the hardware—sensors and computational unit. As the car becomes better and safer with software updates or hardware upgrades, our pricing will automatically respond and continue to drop. As of this moment, autonomously driven miles using Tesla's FSD are priced at about 50% of the equivalent human-driven mile, and we expect this to get better over time. We believe this represents a fundamental shift for the industry. As autonomous driving becomes safer and more widely adopted, prices should fall transparently, dynamically. With that, I will hand it off to Timothy Bixby who will cover our financial performance. How's that, Tim? Thanks, Shai.

Timothy Bixby, CFO

Let's start with our Q4 scorecard. In-force premium grew 31% year on year to $1,240,000,000, driven by customer growth of 23% and premium per customer growth of about 7%. We added about 550,000 new customers in 2025, 35% more than the prior year. Prior period development, within our reported gross loss ratio of 52%, our favorable of 9% was driven entirely by non-CAT prior period development, primarily from our home and car products. Prior year development, which we report on a net basis, was $11,000,000 favorable in Q4 and about $30,000,000 favorable for the full year. Gross profit increased 73% to $111,000,000 while adjusted gross profit increased 69% to $112,000,000, for a gross margin of 48% and an adjusted gross margin of about 49%. These metrics use revenue as their denominator. As a reminder, adjusted gross profit as compared to gross earned premium was 39% in Q4, up 10 points from 29% in the prior year. Revenue grew 53% to $228,000,000 while our adjusted EBITDA loss improved to a loss of just $5,000,000. Notably, revenue grew more than 20 percentage points faster than IFP, a dynamic we expect to continue. Importantly, adjusted free cash flow was positive for the third consecutive quarter at $37,000,000, has been positive six of the last seven quarters, while operating cash flow was $21,000,000. We ended the quarter with roughly $1,100,000,000 in cash and investments, of which about $250,000,000 is required to be held as regulatory surplus. Annual dollar retention, or ADR, remains stable as we continued our clean-the-book efforts in our home business at 85%, flat versus the prior quarter. Operating expenses excluding loss and loss adjustment expense increased by $30,000,000, or 24%, to $154,000,000 in Q4 as compared to the prior year. Let's break those expense lines down a bit. Our other insurance expense grew by just $1,000,000, or 6%, in Q4 versus the prior year, as compared with a 31% growth rate of our top line IFP. Total sales and marketing expense increased by $17,000,000, or 35%, due primarily to increased growth spend versus the prior year. In Q4, growth spend was $53,000,000, up 48% as compared to the prior year. Importantly, as we continue to ramp growth spend, our marketing efficiency levels remained stable and strong in the fourth quarter, with an LTV-to-CAC ratio above three times in line with the prior year. We expect Q1 growth spend to be at a similar level as Q4 and expect total growth spend to be about $225,000,000 for the year. Technology development expense was up 14% year on year to $25,000,000, while G&A expense increased 29% as compared to the prior year to $43,000,000. The year-on-year increase in G&A expense of roughly $10,000,000 was made up primarily of three items: an increase in non-cash stock compensation expense of about $2,000,000, an increase in interest expense of roughly $1,000,000, and an increase in bad debt expense of approximately $5,000,000. Our headcount increased slightly by about 4% as compared to the prior year to 1,282 in Q4. Our net loss was $22,000,000 in Q4, or a loss of $0.29 per share, as compared with a net loss of $30,000,000 or $0.42 per share in the prior year. Our adjusted EBITDA loss was $5,000,000 in Q4, dramatically improved versus a $24,000,000 EBITDA loss in the prior year. Our detailed guidance for Q1 and the full year of 2026 is included in our shareholder letter and represents 32% Q1 and full year top line growth year on year, roughly 60% full year revenue growth, and, of course, positive full-quarter EBITDA expected in Q4. I will now pass back to Shai Wininger to answer some questions from our retail investors.

Shai Wininger, President

Shai? Thanks, Tim. We now turn to our shareholders' questions submitted through the SafePath.

Timothy Bixby, CFO

There were a couple of questions from Paperbag about our loss ratio and recent autonomous car insurance launch. Thanks, Paperbag. As we have explained on a few occasions before, perhaps in more detail during our most recent Investor Day, we do not think of loss ratio as a standalone target, but rather as one metric or lever to optimize our quest for maximizing gross profit. Sometimes, gross profit is achieved by lowering loss ratios, and sometimes by raising them.

Shai Wininger, President

Our pricing strategy is solving for maximum gross profit in absolute dollar terms.

Timothy Bixby, CFO

Turning to our total car product, with our telematics infrastructure, we are able to evaluate and price the risk associated with every driven mile accurately. In the case of Tesla FSD, the data we have shows that miles driven with it are more than 50% safer than when driven by a human. This allows us to drop rates and become more attractive to customers versus peers, which in turn lowers the customer acquisition cost and helps us win and retain more business. Responding to your question about our 30% growth, I would think about this autonomous car insurance launch as a first step of a much broader strategy and direction that will materialize over time.

Shai Wininger, President

Indeed, it could take years before we see a step change in autonomous car ownership, and with that said, we believe it is critical to begin now with building the best product for that future.

Timothy Bixby, CFO

With the best experience, pricing, underwriting, and coverage. In the near term, as we highlighted in our shareholders letter, our growth drivers are increasingly diversified, such as we are not reliant on any one segment or product line to drive growth above 30%. Pet and car are both seeing ISP growth in the fifties, and Europe in the triple digits, for example. In another question, we were asked how soon car will expand to remaining U.S. states. We launch new states as soon as we can from a regulatory perspective.

Shai Wininger, President

But only after we are confident that we can competitively and profitably price risk in each state.

Timothy Bixby, CFO

Our improving car results, both top and bottom line, speak for that discipline. Launching a state requires thoughtful preparation from marketing, pricing, product, tech, legal, and finance perspectives. With our local platform and the agentic automations we are constantly layering into it, we are becoming very effective in this process, collapsing stages that used to take months into days.

Shai Wininger, President

We believe we now have the most advanced regulatory and compliance process in the market, and we are only getting started.

Timothy Bixby, CFO

That said, states we have already launched represent roughly 50% of the U.S. car insurance market, a total addressable market measured in many tens of billions.

Shai Wininger, President

And car is available to about 60% of our existing customers. We have been launching multiple car states since 2025, and expect to continue to launch new states with our autonomous car product throughout 2026. By 2027, I expect the Lemonade car product to be available to the overwhelming majority of the U.S. population.

Timothy Bixby, CFO

In another question, Charwak asked, with AI simplifying the insurance industry, what will keep Lemonade, Inc. in an advantaged position over incumbents who might be willing and ready to modernize their software stack? How does Lemonade, Inc. continue to differentiate and stay ahead? This is a question we get a lot, and I think the answer comes down to structural and cultural differences that are nearly impossible to overcome. Lemonade, Inc. was built as an AI-first organization ten years ago. Every team member was hired into that environment. People who did not thrive in a tech-first, fast-paced culture like ours moved on. Today, we estimate more than 95% of our team operates with an AI-first mindset. Our product and tech organizations are the core of the company, which makes us a product-led, customer-centric tech organization. In many ways, the AI explosion is the moment Lemonade, Inc. was built for.

Shai Wininger, President

We built the data infrastructure from day one. We collect every signal, and we have been doing so for a decade.

Timothy Bixby, CFO

We have a highly rated app that customers love and actively use, which keeps them connected and allows us to continuously optimize pricing for the safest customers. Now compare that to traditional insurers. These are companies built on the foundations of people, not technology. They treat tech as a cost center, not their core. They rely on third-party vendors that are themselves built on legacy systems, which leaves insurers with hundreds of disconnected systems they need to run their business. It is very hard for an organization like that to compete with a full-stack, tech-first company like Lemonade, Inc. In fact, in the history of all tech revolutions, you can probably count on the fingers of one hand, the companies that dominated prior to the tech revolution and still were there in a dominant position when the dust settled.

Shai Wininger, President

It would be naive to expect that incumbents will be in this place forever.

Timothy Bixby, CFO

Of course, they are already talking about increasing investments in AI and sharing a case study here and there, but by the time they make meaningful progress, we believe we will always be several steps ahead. In the next question, CyberKat asked, how does Lemonade, Inc. think about AI reducing uncertainty while creating new risk categories? I have to say, CyberKat, that a shrinking total addressable market does not keep us up at night.

Shai Wininger, President

Even if AI compresses pockets of TAM, the resulting market opportunity remains essentially limitless relative to our current size. But with that said, I agree with the premise of your question.

Timothy Bixby, CFO

I think it is true that AI will continue to redefine the insurance industry with regards to the types of risks and products that are relevant over time, perhaps in ways that are not immediately obvious today. With that, I will pass it over to the moderator, and we will take some questions from the audience.

Operator, Operator

Thank you. If you would like to ask a question, please press 1. When prepared to ask your question, please ensure your device is unmuted locally. First question comes from Jason Helfstein with Oppenheimer. Your line is open. Please go ahead.

Jason Helfstein, Analyst

Hi, everybody. Thanks for taking the question. So when we look at the numbers, we can clearly see the marketing efficiency. You obviously talk about it. We can see it kind of in the contribution margin. When I think about what that kind of implies to 2026, it looks like the EBITDA guide would be particularly conservative unless you plan to make other OpEx investments or essentially kind of lean into potentially pricing for growth. So maybe talk about how you are thinking about that, i.e., reinvesting marketing efficiency into growth? Or just that it is conservative. And maybe, tie that to the comments you made in the earnings letter that you plan to lean more into cross-selling, automated pricing, and improved pricing accuracy. So maybe just, like, take those three comments, and I do not know if you want to link that back to, like, the first question or, you know, if it is connected. Thank you.

Timothy Bixby, CFO

So I will take a shot at a subset of that, Jason, then maybe my partners will jump in. Daniel has joined me here, and we have also asked Nicholas Stead, our SVP of Finance, to join us to perhaps answer a few questions. If I kind of think, you know, zoom out and think about 2026 generally from a growth perspective, you know, actually, Q4 was a pretty good proxy for how we are thinking about it. So you saw a couple of things happening really coming together in Q4. Certainly, the underwriting or loss ratio side of the business came in very nicely. But from a growth perspective, which is really the core of the focus right now, which is how do we grow effectively? How do we maintain a LTV to CAC that we are comfortable with, number one, and excited about improving over time, number two, and how do we lean into that over time? And so you saw that come together nicely in Q4 where we were able to see free up a little more spending, freeing up a little more capital to invest because we saw nice underwriting results, and we plow that back into additional growth. So you see overperformance on the top line versus our guidance. That is because we deployed a little more growth spend than anticipated, and that is a good thing. So that is a backward-looking view. If you take a forward-looking view into 2026, we are guiding to our very strong track record of being able to maintain a solid LTV to CAC of three or better. We do see here and there in certain pockets in channels and certain products and certain geographies is overperformance, and that is when we are able to lean in. So I think what you see embedded in the guidance is some of that continued goodness, but we have not changed our philosophy of taking everything good happening in the most recent period and extrapolating that forward. So I think you are right. There is probably a similar potential to overperform. We think growing a little bit faster each quarter is important, and we grow at a pace of our own choosing. Guiding to 30% plus, obviously, the market will enable us to do more. It is essentially an endless market. But I think for at this point of the year, we are six weeks in. We like what we are seeing in January and February to date, and so that guidance reflects real optimism about being able to spend more significantly in 2026 and in 2025. That is a continuing trend and to potentially see that growth rate accelerate.

Daniel Schreiber, CEO

Yeah. I agree with everything. Is there anything I would say, Jason, hi. Thank you for your question. There is not designed buffer or conservatism built into the number. We are guiding as best we can as we always do. We do always look for opportunities to surprise ourselves and you and everybody, but our guiding strategy is to go into pretty much what we have line of sight to. What I think may be making the difference that you are kind of pointing to is captured in some of the things you referenced, which is we are investing quite a lot of R&D work this year. So we highlighted three areas of investment. There are others that we did not detail, and even those we just touched on in passing, but we are undergoing very significant investments really that compound one another. We see 2026 as a year of multiple engineering efforts quite aside from the fact that the ground beneath our feet is moving because the models keep getting better and better. Every day we wake up to a more powerful brain at the very core of what we are doing. But beyond that, Shai mentioned the local platform that is going to look very different by the 2026, and we are at the beginning of the year. We spoke about our cross-selling platform, our pricing machine as we are calling it, and our revenue machine. All big initiatives that should collapse time, increase precision, and ultimately lower expenses. But perhaps some of the delta that you are pointing to and that you are assuming is conservative is actually going to be spent on those initiatives.

Nicholas Stead, SVP of Finance

Hey, Jason. It’s Nick. I just wanted to jump in on your question around expenses in 2026. You can think about operating expenses as being broken into two chunks. There is growth spend and then the remainder of operating expenses. Growth spend will continue to increase in 2026, as it has in 2025 and 2024. The remainder of the expense base should generally remain stable or closer to stable, growing in the single digits as compared to the top line, which is growing above 30%.

Operator, Operator

We now turn to John Barnidge with Piper Sandler. Your line is open. Please go ahead.

John Barnidge, Analyst

Thank you very much. I appreciate the opportunity. My question is about adjusted EBITDA profitability in 2027. How do you think about the target for premiums to surplus at that time? And do you think you can operate at greater leverage given some of the operational scale you've begun to achieve? Thank you.

Timothy Bixby, CFO

Yeah. So from an EBITDA—maybe two questions in there, perhaps. From an EBITDA perspective, we do expect Q4 this year, 2026, to be fully positive as well as the full year of 2027, which would be the first full year of EBITDA positivity. While we have not indicated growth rates beyond 2026, we have been in our communication that a 30% plus growth rate is our goal, and an accelerating growth rate quarter is also our goal. And so I would expect that ambition to continue into 2027 and beyond, given the immense size of the market that we are in and the markets that we can potentially be in. From a surplus leverage perspective, we noted that we have about $250,000,000 currently that is held as required for surplus. That is relatively quite capital light. You take advantage of a captive structure, and we have reinsurance in place and other structures that in combination enable us to keep that surplus satisfactory for all regulatory requirements, but also to a minimum, so that we can deploy capital in all the ways we choose to grow the business. We expect that to continue. All of our forecast modeling tells us that we have more than ample surplus to support very ambitious growth rates even beyond our current growth rate, and with ample cushion left over. And I think you can take real confidence. Our forecasted breakeven points for EBITDA have essentially been unchanged for almost four years at this point.

Operator, Operator

Thank you. We now turn to Tommy McJoynt with KBW. Your line is open. Please go ahead.

Tommy McJoynt, Analyst

Hey, guys. Good morning. Thanks for taking our questions. The first one here is, obviously, there has been a lot of headlines around some advancements in ChatGPT and sort of the integration of carriers with that distribution model. Do you guys have any plans to allow tools like ChatGPT to actually bind policies for Lemonade, Inc., or would the preferred route be to use ChatGPT as a search tool that ultimately leads to Lemonade, Inc. where they could bind the policy?

Operator, Operator

I was talking on mute all this time. I am sorry.

Timothy Bixby, CFO

Daniel, please continue. Yes, sir.

Daniel Schreiber, CEO

Let me start over. Can you hear me okay now? I gave you a wonderful answer, but it was all lost because I was on mute. That is right.

Timothy Bixby, CFO

What I was saying was that we use AI in many, many of our marketing. At the moment, it is not on the most front-end aspect of our marketing, but everything other than the skin-deep kind of chat interface, which some players have integrated with—obviously, the skin on it is all AI. When it comes to that outermost layer, we generally love our own AI for that. My bot does and has done a great job chatting with customers, offering them an incredible experience. That is not to say that we would never use something like a ChatGPT interface, but it is not something we have launched yet, and if we decide to do that, you will be the first to know.

Tommy McJoynt, Analyst

Okay. Understood. And then switching gears, as you guys have rolled out this autonomous vehicle insurance product on the car side, that obviously introduces a variable level of premium that is charged to customers on either a six-month basis or a monthly basis. Is it your vision that over the long term, most car insurance will move to a variable level of pricing rather than a fixed six-month term premium?

Daniel Schreiber, CEO

Yes and no. We today have both models. We have models where you can pay for and we have others where it is fixed—it's kind of the customer's choice. We do not have all options in all markets right now, but it is where we see this going, and several states are there already. And this is really a choice, a style choice. You know? If you remember the early days of mobile where you could pay by minute or by plans and family plans and other things where you bought buckets and rolled over the month, there are plenty of ways to do pricing around it. The big difference between what we are doing and everybody else is that we know the cost per mile. We are making predictions. Shai spoke about this in his comments earlier.

Timothy Bixby, CFO

We are making predictions based on a plethora of data that comes to us in real time at very high granularity from really high-fidelity machinery. This allows us to know that when you are driving where you drive, how much you drive, how you drive, if it is you driving with a car. All of that means that we can price per mile with tremendous precision. If you then prefer to buy a bulk and have a fixed price, that is fine. We can use all of that information to price it for you as a fixed price, which will adjust episodically, and other people prefer to pay per mile, and we offer that as well. Both of them are fueled by the same AI engine and dataset.

Operator, Operator

Thank you. As another reminder, if you would like to ask a question, please press 1 on your telephone. You now turn to Jack Matten with BMO. Your line is open. Please go ahead.

Jason Helfstein, Analyst

Hey.

Tommy McJoynt, Analyst

Good morning. Just a follow-up on the strategic initiatives in the letter, including the enhanced cross-sell platform. Just wondering if you could unpack that a little bit more. I know it references cross-sell car and home. And over the past year or so, I think you have deemphasized home insurance growth a little bit. So just wondering how you view that line of business as part of Lemonade, Inc.'s overall mix longer term?

Timothy Bixby, CFO

Sure. So that was a good tidbit that we put in the shareholder letter to give a feel for the kinds of things that not in a year when we are really continuing to focus on growth, on autonomous car, on really nice financial results, we are also continuing to invest in farther-reaching capabilities that we think over time will continue to not only help us maintain our advantages, whether AI-enabled or otherwise, but actually to expand those advantages versus incumbents. And those three areas we noted are really the core of what is a lot of interesting activity going on in terms of investment in future stuff. Cross-selling continues to be important. More than 5% of our customers have multiple policies at this point. That is a really important metric. Almost 20% of our in-force premium, however, is coming from customers with multiple policies. So cross-sell, our ability to cross-sell, which is a really efficient way to increase IFP and accelerate growth without quite as much of a growth spend investment, is important. And then the other two pieces—really pillars—of the are underwriting capability, which is pricing; constantly focusing on being able to de-average price and pricing, price on a car driver's behavior and not under credit score; and also to optimize how we allocate growth spend. So those are really three of the real key areas we are continuing to invest both with current resources, and actually, we will grow those resources to some extent over 2026. All of that is embedded in the guidance. All of that, we expect to deliver significant future ROI. Yet when you peel it all apart, our overhead expense, even with those incremental investments, is growing very modestly in the low single digits. An operating expense standpoint, almost our entire growth expense is to acquire new customers. That is a theme you have seen now for several years running, and that will continue, we expect, well into 2026, 2027, and beyond.

Jason Helfstein, Analyst

Got it. Thanks. Then, I just wanted the Tesla FSD initiative, and I appreciate the color you gave earlier on this. But just wondering if you could unpack the opportunity you see for Lemonade, Inc. and how much you think it could eventually contribute to the share of your business. And then just given Tesla also has its own insurance offering, can you just talk about how Lemonade, Inc.'s positioning, you know, is offering from a competitive standpoint?

Timothy Bixby, CFO

We love talking about Lemonade, Inc., but we will shy away a bit from talking about Tesla and their plans and their goals. They are a terrific partner and setting a standard in so many ways, but we will let them speak for their goals and aspirations. From our view, we want to be where our customers are and where our customers are going. We have got a pay-per-mile product in place for years. It is not right for every customer, but it enables us to do what we are best at, which is take deep levels of granular data and use that to price a customer most effectively, and often that is to give the customer a better price. An autonomous vehicle, autonomous driving is called an electronic or without question. The risk is still there, and we are best placed in the market to be a—I think, we think—to be a partner to Tesla, but also to kind of lay the groundwork as this part of the car market evolves. We think it helps us accelerate things that change more quickly, play to our best strength, which is agility and a data-driven platform. And so we are really optimistic about it. It is a little premature for us to say what the impact on the financial forecast model is. And as Daniel said, when it is the right time, we will certainly do that. You will be the first to know.

Operator, Operator

Thank you. Ladies and gentlemen, we have no further questions. So this concludes our Q&A and today's conference call. We would love to thank you for your participation. You may now disconnect your lines.