Lyft Q3 2020 results

Lyft shares rose 6% on Tuesday as the company reported third-quarter earnings after the bell, following a massive rally on Monday.

Here’s how Lyft performed against comparable Wall Street expectations for the period ending September 30, 2020:

• Loss per share (adjusted): $ 1.46
• Returned: $ 499.7 million, compared to $ 486.6 million expected by Refinitiv.
• Active runners: 12.5 million
• Income per active runner: $ 39.94

The company reported a net loss of $ 460 million for the quarter, almost unchanged from the $ 463 million lost a year ago. However, the company’s revenue and ridership increased significantly from last quarter’s results of $ 339 million and 8.7 million riders, suggesting a noticeable recovery in ridesharing in the quarter, although both figures are still down from a year ago.

Company executives said Lyft expects EBITDA to become profitable by Q4 2021, even though there is a slower-than-expected recovery and with slightly lower transport volume. to the one the company saw at the end of 2019.

Lyft shares climbed about 26% on Monday on positive news about a potential coronavirus vaccine from Pfizer and BioNTech, but lost about 4% of that gain before the close on Tuesday.

Lyft shares also rose thanks to a voting measure passed in California, allowing transportation and delivery apps to continue to treat drivers and delivery people as independent contractors, not full-time employees. Companies such as Lyft, Uber, DoorDash, Instacart and others have spent $ 205 million to get their voting measure, Prop 22, approved by voters.

Lyft has not done as well as its main competitor Uber amid the pandemic in the United States. This is because Lyft has yet to develop the food and grocery delivery business that has helped Uber replace lost revenue due to reduced commute, commute, and leisure time with deliveries. to people who have received the order or have chosen to stay at home.

However, on Tuesday, Lyft executives said the company was working on expanding delivery and consulting with various retailers and restaurants.

Lyft president John Zimmer has slammed Uber Eats for taking about 20% to 30% of restaurant revenues for meals ordered on their platform. Lyft aims to be more of a partner that works at the b2b level with restaurants and retailers. “We’re not going to get between you and your client like other platforms are,” he said on a call to discuss the results.

Lyft executives also touted the growth in their non-emergency medical transportation and vehicle rental businesses, while stressing the need for continued discipline in spending at all levels.

The company implemented a restructuring in the second quarter. Today, he’s hiring slowly, avoiding spending on third-party services and looking for security measures that can help the company lower insurance costs in the long run, Lyft CFO Bryan Roberts and the CEO of Logan Green.