Lyft shares grew against the publication of a significantly better third quarter results than in the previous year, and forecast revenue growth between 11% to 15% in the fourth quarter.
Shares Lyft (LYFT), which fell by 16.2% since the beginning of the year, but jumped by 37.4% over the last week, increased by 5.8% in after-hours trading on Tuesday amid investors ‘ reactions to quarterly report of the company.
Lyft, the company reported a loss per share 3rd quarter (ended September 30) at USD 1.46, that the forecasts of the analysts in the$0.91 loss per share. At the same time, this figure is 7% better than the loss of the same quarter of 2019.
The amount of losses for the third quarter decreased slightly to $460 million, compared with $463 million loss a year ago. At the end of quarter available balances of cash and cash equivalents of the company amounted to $2.5 billion.
Total revenue was $499,7 million, better than expected by analysts $486,6 million Is 48% below the previous year’s value, but better than revenues of $339.3 million and a drop of 61% in the previous second quarter. See the quarterly history of revenue and profits Lyft for the last 2 years can link.
The number of active users of the Lyft platform, which in addition to taxi services, includes the recently launched food delivery service, car rental, motorcycles and bicycles, in the third quarter was 12.5 million is a significant increase compared to 8.69 million in the second quarter, but far from 22.3 million customers Lyft in the third quarter of last year.
Co-founder and CEO of Lyft, Logan green said the recovery in financial performance compared to the previous quarter, saying about the expectations of further growth in demand.
In the fourth quarter of Lyft expects revenue growth between 11% to 15% and increase the number of users at 800 thousand – 1 million
CFO Brian Roberts said Lyft “is still focused on achieving profitability (adjusted Ebitda) for the fourth quarter of next year, even with a slower recovery.”
Growth stocks Lyft, as shares of his main big competitor to Uber (UBER), in the last days was based on winning the vote in California in favor of their business and reduce costs on labor, as well as the overall growth of the market against the background of positive expectations the advent of the vaccine COVID-19.
Marketinfo.pro wrote in the article “Shares Uber and Lyft have dramatically increased after the victory in California,” that in the elections of 3 November, Californians voted against the law on retraining of workers of platforms such as Uber and Lyft from contractors to regular employees. This means that the company can continue its practice of hiring and paying, agreeing on additional concessions on social safeguards.
According to analysts, the California market accounts for about 16% of all revenues Lyft.
Last week, Uber also announced its results for Q3, which was the best Lyft both due to wider market coverage (Uber has a business around the world, Lyft – USA only), and through the development of a meal delivery business Uber Eats.
At the same time, Lyft is preparing to make a strong competition to Uber Eats, through the provision of cheaper delivery services restaurants and cafes, while Uber charges high Commission. In October, Lyft announced the partnership with GrubHub, an American platform for ordering and food delivery.
“The company has the infrastructure and technical capabilities to become a powerful player in the field of food delivery, so expect that in the near future they will pose a serious challenge to companies such as Uber Eats,” said the analyst investing.com Haris Anwar.
