Lyft Revenue Skyrockets Compared to Last Year

It may come as no surprise that with the nation returning to ordering car rides, ride hailing company Lyft would now report astonishing financial results.

The company reported second-quarter financial results after-the-bell on Tuesday and beat on both the top and bottom lines. Lyft even beat analyst’s active rider expectations.

The company additionally reported its first quarterly adjusted EBITDA profit at $23.8 million. That’s a quarter earlier than the company had targeted. EBITDA refers to earnings before interest, taxes, depreciation and amortization.

For the second quarter, Lyft revealed a loss per share of 5 cents. This was much better than the loss of 24 cents that had been expected by a survey of analysts per Refinitiv.
Revenue at $765 million was also better than the $969.9 million that had been expected by Refintiiv.

Active riders came in at 17.14 million compared to the 15.45 million that was expected, per StreetAccount.

Revenue per active rider was $44.63, coming below the $45.36 that was expected, also per StreetAccount.

“It’s a significant milestone for a business and for our industry,” CEO Logan Green said on the company’s earnings call regarding the EBITDA profit. “Going forward we expect to maintain adjusted EBITDA profitability.”

Green also said, “Since our inception, we’ve worked hard to define the odds with a deep belief in our mission. We’ve consistently innovated and made big bets, from launching and scaling peer-to-peer transportation, to pioneer in shared rides, to becoming the largest North American bike share operator, to navigating regulatory hurdles and more. We’ve built a strong track record.
Today we had achieving adjusted EBITDA profitability to this list. I want to extend a special thanks to each and every member of the Lyft community. Your hard work and dedication made this possible. It’s a significant milestone for our business and for our industry.”

“Ridesharing is now so mainstream that it’s easy to lose sight of how much has changed. Less than 10 years ago, peer-to-peer ridesharing didn’t exist. This launch in 2012 and it took a year to reach a 1 million rides. Now we facilitate hundreds of millions of rides every year. When I think about how far we’ve come and how much the team has accomplished, I’m incredibly proud,” he added.

The company revealed that its revenue for the quarter jumped 125% year-over-year to $765 million. Revenue was up 26% from the prior quarter.

Looking ahead at its third quarter, Lyft said it expects revenue between $850 million and $860 million, barring a material decline in the operating landscape due to the pandemic.

It was in July that the company saw strong demand from riders with 17.14 million active riders. This was during a month with an increase in Covid cases.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.