Lyft shows more signs of pandemic recovery with revenue up 7% over last quarter

Earnings

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Confetti falls as Lyft CEO Logan Green (C) and President John Zimmer (LEFT C) ring the Nasdaq opening bell celebrating the company’s initial public offering (IPO) on March 29, 2019 in Los Angeles, California. The ride hailing app company’s shares were initially priced at $72.
Mario Tama / Getty Images

Ride-hailing company Lyft showed continued signs of pandemic recovery in its first-quarter earnings report Tuesday. The company beat on the top and bottom lines and exceeded Wall Street’s rider expectations for the quarter.

Shares of Lyft were up 2.8% in after-hours trading following the report.

Here are the key numbers Lyft reported:

  • Loss per share: 35 cents vs 53 cents per share expected in a Refinitiv survey of analysts
  • Revenue: $609 million vs $558.7 million expected by Refinitiv
  • Active riders: 13.49 million vs 12.8 million expected in a FactSet survey
  • Revenue per active rider: $45.13 vs $44.50 expected per FactSet

It’s difficult for investors to compare year-over-year numbers from the company, as the Covid-19 pandemic began to take hold a year ago and severely restricted travel. For example, revenue is down 36% year over year, but increased 7% from the fourth quarter.

Transit companies are beginning to rebound from their pandemic lows as Covid vaccines roll out and state restrictions are lifted, pushing people to feel more comfortable returning to work or traveling.

The company said in mid-March that it expected to post positive weekly ride-hailing growth on a year-over-year basis and every subsequent week through the end of the year, barring a significant worsening of coronavirus conditions.

Investors will also be looking for updates on the company’s earnings call around its path to profitability adjusted EBITDA basis, a benchmark it plans to hit by the end of 2021.

Lyft reported a net loss of $427.3 million for the quarter, up from a net loss of $398.1 million in the same quarter a year ago. The company said its net loss includes $180.7 million of stock-based compensation and related payroll tax expenses. Lyft said its net loss margin was 70.2% compared to 41.7% a year ago.

Its adjusted EBITDA loss was $73 million, which was about $62 million better than the company’s most recent outlook. Adjusted EBITDA loss margin for the quarter was 12%, compared to 8.9% in the first quarter of 2020 and 26.3% in the fourth quarter of 2020. EBITDA refers to earnings before interest, taxes, depreciation and amortization.

Lyft also reported $2.2 billion unrestricted cash, cash equivalents and short-term investments, down slightly from the prior quarter.

The company last week sold off its self-driving car unit to Woven Planet, a subsidiary of Toyota, for $550 million in cash, in another way to advance its profitability timeline. The company expects the deal will remove $100 million of annualized non-GAAP operating expenses on a net basis, according to the release.

“With the pending sale of our Level 5 self-driving division, Lyft is set up to win the transition to autonomous through our hybrid network of human drivers and AVs, advanced marketplace tech, and leading fleet management capabilities,” John Zimmer, Lyft co-founder and president, said in the earnings release.

This story is developing. Please refresh for updates.

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