A traveler arriving at Los Angeles International Airport seeks ground transportation during a nationwide day of action to demand that professional companies Uber and Lyft comply with California law and managers ‘basic rights for employees’ in Los Angeles, California, USA , granted on 20 August. , 2020.
Mike Blake | Reuters
Rideshare company Lyft reported fourth-quarter earnings on Tuesday, exceeding Wall Street’s expectations at the top and bottom, but disappointed when it comes to active riders.
The company’s share rose more than 8% after hours, thanks to a decline in revenue and signs that the business is recovering slightly from the pandemic.
Lyft is also still on the verge of becoming EBITDA profitable by the fourth quarter, with a chance it could achieve in the third quarter, CFO Brian Roberts said in the company’s earnings call.
Here are the key numbers:
- Loss per share: 58 cents compared to 72 cents expected in a survey by Refinitiv among analysts
- Income: $ 570 million compared to $ 563 million expected by Refinitiv
- Active riders: 12.55 million compared to 13.2 million expected in a FactSet survey
- Income per active rider: $ 45.40 versus $ 42.20 per FactSet expected
The company’s revenue and management increased from the previous quarter’s results of $ 499.7 million and 12.51 million riders, indicating that the company will continue to recover from the Covid-19 headwind. However, it is still significantly lower than in the same quarter last year. For the full year, Lyft reported revenue of $ 2.4 billion, compared to $ 3.6 billion in the 2019 financial year.
According to the company, demand is also being negatively impacted by the end of the quarter due to the increase in cases of coronavirus and attempts to slow down the spread of the virus.
Roberts says in a statement Lyft expects growth growth to begin in the second quarter, strengthening in the second half of the year. ‘
Lyft reported a net loss of $ 458.2 million for the quarter, compared to a net loss of $ 356 million in the fourth quarter of 2019. The company said the loss in the fourth quarter was $ 138.1 million. compensation on shares and related payroll tax expenses. The company said its net loss margin for this quarter was 80.4% compared to 35% a year ago.
Its adjusted EBITDA loss for the fourth quarter was $ 150 million, an increase of $ 19.3 million from a year ago. This is better than the company’s most recent forecast for an adjusted EBITDA loss of less than $ 185 million. The company said the adjusted EBITDA loss margin for the fourth quarter was 26.3% compared to 12.9% a year ago.
Lyft also reported $ 2.3 billion in unlimited cash, cash equivalents and short-term investments.
The company has failed to expand its additional segments in the same way as its main competitor, Uber, did in the past year. In an effort to replace the revenue lost due to the coronavirus pandemic, Uber has focused on shutting down its food and delivery segment, Uber Eats, and some of its travel-related segments.
Lyft has not yet developed a food delivery business. The company said last quarter it was working on expanding delivery and consulting with restaurants and retailers.
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