Lyft Inc. showed a smaller annual loss, even as the coronavirus pandemic hammered its business, indicating that the company operating was moving to profitability despite the unprecedented crisis.
The company in San Francisco said its revenue fell by 35% to $ 2.4 billion by 2020. Its net loss for the year was $ 1.8 billion, compared to $ 2.6 billion a year earlier. Lyft’s end was stimulated by aggressive cost cuts that include workers, salaries and other industry changes, resulting in cost savings of $ 360 million last year, President John Zimmer said in an interview on Tuesday.
“We have used an incredibly difficult year to grow in the long term,” he said in the interview, reiterating that the money-losing company is on track to have a profitable quarter on an adjusted basis by the end of this year farm.
Lyft’s inventory has more than doubled since the beginning of November, increased by the distribution of Covid-19 vaccines and a major legal victory in the company’s home state that month. Shares rose more than 10% in after-hours trading on Tuesday, bolstered by the company’s full-year results.
Lyft had revenue of $ 570 million in the fourth quarter, slightly higher than in the previous three months, but 44% lower than a year earlier. The company said an increase in Covid-19 cases in key markets and new closures outweighed demand for rides in the latter half of the quarter. The net loss for the period was $ 458.2 million, compared to $ 356 million a year earlier.