[ad_1]
Lyft’s business made an adjusted profit in the second quarter, not Uber’s. Lyft sees more profits to come as people become more mobile after receiving a COVID-19 vaccine, Uber’s business outlook is a bit more cloudy given its complexity.
This comparison explains why Lyft (LYFT) is a better game on pandemic recovery than Uber, believes Brian Roberts, longtime Lyft chief financial officer.
“The companies are really two different companies. We really like it. I mean we are competing with this conglomerate and if you want to invest in freight you have a choice. We are this pure game around transport,” he said. Roberts said on Yahoo Finance. Live.
Roberts added: “There are a lot of investors who are excited about this ability to invest only in transport and not worry about all this food competition, many different players, aggressive companies on freight or of all these other things. “
Despite an increase in driver incentives, Lyft was able to achieve EBITDA adjusted profitability (earnings before interest, taxes, depreciation and amortization) for the first time in the second quarter. The company headed for adjusted EBITDA of $ 25 million to $ 35 million in the third quarter.
Meanwhile, Uber lost $ 509 million on a second-quarter adjusted EBITDA basis. Executives told analysts on a earnings conference call that they were “committed” to achieving profitability this year.
Jefferies analyst Brent Thill sees Lyft as an attractive reopening game, in large part because of the outright business model that Roberts benchmarks.
“Lyft is well positioned to benefit over the next few quarters from a pure ride-sharing story in the US. The current valuation of 3.9x CY22 company value / sales remains attractive relative to the median of Market peers 3.8x and the larger comparable group median 5.8x, ”Thill said in a research note to Clients.
Brian Sozzi is an editor and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, Youtube, and reddit
[ad_2]
Source link