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Lyft (LYFT) reported fourth-quarter results that beat consensus expectations, topping $1 billion in quarterly revenue for the first time as riders grew more than expected.
However, shares fell in late trading after the company kept its timeline for hitting profitability unchanged, a week after competitor Uber pulled forward its target date for getting in the black by a full year.
Here were the main metrics from Lyft’s report, compared to consensus estimates compiled by Bloomberg and last year’s results:
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Revenue: $1.02 billion vs. $985.8 million expected and $669.5 million Y/Y
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Adjusted EBITDA loss: $130.7 million vs. $163.2 million expected and $251.1 million Y/Y
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Active riders: 22.9 million vs. 22.8 million expected and 18.6 million Y/Y
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Revenue per active rider: $44.40 vs. $43.16 expected and $36.02 Y/Y
For the current quarter, Lyft said it sees revenue of between $1.055 and $1.06 billion, topping consensus expectations for as much as $1.05 billion.
The company sees a first-quarter adjusted EBITDA loss of between $140 million and $145 million, or about in-line with consensus expectations for $143.1 million. During a call with investors Tuesday, Chief Financial Officer Brian Roberts said the first quarter would represent the company’s “peak quarterly loss in 2020,” after which the company would make strides toward profitability.
“Fiscal 2019 was an exceptional year across the board. We significantly improved our path to profitability while simultaneously reaching critical milestones toward out long-term strategy,” co-founder and CEO Logan Green said in a statement. “Continued strength in core rideshare drove our industry-leading growth, led by product innovation and operational excellence on every facet of our robust transportation platform.”
Uber competition
Lyft’s earnings results come on the heels of a strong report from competitor ride-hailing service Uber, which topped adjusted revenue expectations and posted a narrower-than-expected loss in the fourth quarter. Uber also upped the ante by pulling forward its expected date for hitting profitability by a full year, saying it expected to be profitable on an adjusted EBITDA basis by the fourth quarter of 2020.
Lyft’s shares had risen in sympathy after Uber’s better than expected quarterly report and profitability timeline, with Wall Street taking the results as a green-light for the ride-hailing industry as a whole.
“We believe Uber’s earnings should be positive for Lyft as the 4Q20 EBITDA profit target suggests ongoing rationalization in U.S. ride-share,” JPMorgan analyst Doug Anmuth said in a note Friday.