Lyft says it will make EBITDA profitable by the fourth quarter of fiscal 2021.
The Ride-Hailing company reports revenues of £376.45 million in the third quarter.
Lyft’s adjusted loss per share for the third quarter was 67.05 pence.
Lyft Inc (NASDAQ: LYFT) released a better than expected third quarter fiscal quarter earnings report on Tuesday, which resulted in a 6% share gain in post-trading.
Including the price action, Lyft is now trading at £28.67 per share, representing a stock market gain of over 10% to date. However, the Company’s shares have recovered significantly from their low of £12.09 per share in March, when COVID-19 restrictions peaked.
Lyft’s financial results for the 3rd quarter compared to analysts’ estimates
According to FactSet, experts had predicted that the company would print £365.15 million of revenue in the third quarter. For the loss per share they had estimated 70.06 pence. In its Tuesday report, Lyft exceeded both estimates with higher revenues of £376.45 million and an adjusted loss per share of 67.05 pence in the third quarter.
At £346.55 million, the equestrian company’s net loss for the final quarter was almost as high as in the same quarter last year (£348.81 million). In the previous quarter (Q2) Lyft had reported a net loss of £335.38 million, according to the report released in August.
Lyft also said in its financial report on Tuesday that it had 12.5 million active riders in the third quarter of the fiscal year, a 44% increase over the second quarter. The San Francisco based company reported revenues of £30.05 per active rider.
On average, analysts had predicted 11.9 million active riders for Lyft in the last quarter. Year on year, revenue per active driver still fell by approximately 44% in the third quarter. Lyft announced earlier this week that it has secured immunity from California’s employment reform.
Tuesday’s comments from CFO Brian Roberts
Lyft now expects EBITDA to be profitable by Q4 of fiscal 2021. CFO Brian Roberts commented on the financial results on Tuesday and said
“Our third-quarter revenue grew 47% quarter over quarter, driven by a strong recovery in Active Riders, and we successfully limited our Adjusted EBITDA loss and exceeded our most recent guidance by $25 million. These results reflect the ongoing recovery and our progress in reducing costs and improving our underlying profitability of the units.
Lyft debuted on the Nasdaq in March 2019 at £59 per share, but closed the year at a significantly lower price of £34.53 per share. At the time of writing this article, the U.S. Ride-Hailing Company has a market capitalization of £8.48 billion.