Ride-hailing company Lyft reported better-than-expected results, beating average Wall Street expectations, indicating signs of recovery that helped send its stock price up by more than 9% in after-hours trading.
Lyft's revenue and profit for its fourth-quarter places it on track to become EBITDA profitable by its fourth quarter this year. Lyft's chief financial officer, Brian Roberts, said that the company could potentially achieve profitability by the third quarter if all things go according to plan.
For its fourth quarter reported late Tuesday in the U.S., Lyft reported total revenue of around $570 million, beating an average analyst expectations of $563 million for the period. Lyft reported a lower-than-expected figure for the active riders on its platform for the quarter of around 12.55 million, lower than the 13.2 million Wall Street had expected.
For the full year, the company reported revenues of around $2.4 billion, significantly lower than the $3.6 billion revenue it reported in 2019. Lyft said that the drop was understandable given the pandemic and the reduced demand for its services during the lockdowns.
Lyft reported a net loss of $458.2 million for the period, higher than the $356 million loss it reported over the same quarter in 2019. Its adjusted EBITDA loss for the period was $150 million, only a $19.3 million increase from the same period a year earlier.
During its earnings call, the company said that it expects a growth inflection by the second quarter and further growth and recovery during the second half of the year.
Analysts said that unlike its main competitor, Uber, Lyft had failed to quickly shift to additional segments to offset its losses during the pandemic. In comparison, Uber managed to focus on its food delivery services and shed some of its less-profitable businesses to shore up its balance sheets.
Lyft previously stated that it plans to also offer food delivery services but the plan has yet to materialize. During its last earnings call, Lyft said that it was still in the process of consulting and negotiating with restaurants and retailers regarding the plan.
