Lyft posts USD2.6B 2019 loss, keeps Q4 2021 profit forecast

  • Lyft posts USD2.6B 2019 loss, keeps Q4 2021 profit forecast

Lyft posts USD2.6B 2019 loss, keeps Q4 2021 profit forecast

Net loss margin for Q4 was 35.0 percent and 37.2 percent in the fourth quarter of 2018.

This day we are digging into Lyft's earnings results, interrupting the corporation's performance, the economy's expectations and why stocks in the American ride-hailing giant are away from after-hours trading. So, Lyft conquer expectations concerning expansion, consumer count and wellness and for losses that are adjusted.

Lyft shared dropped 5.7% in after-hours trading, to $50.86 a share. And Lyft did a great job. Sales were 52% higher than the same quarter a year ago.

Revenue per active rider was $44.40, also ahead of expectations. In their own call with investors on Tuesday night, Lyft executives adhered to a prediction made previous year: that it would reach profitability on an EBITDA basis by the end of 2021. Lyft provided Q1 2020 revenue guidance between $1.055 billion and $1.060 billion but it did not address its profitability target in its earnings press release.

The rideshare company reported revenue of more than US$1 billion - a record figure for the Bay Area firm - but it is forecasting slower revenue growth in the new year.

Investors had expected Lyft to report only $985.8 million in revenue and an adjusted EBITDA loss of $163.2 million.

So far, Uber reported losses of at least $1 billion every quarter. If we exclude currency fluctuations, Uber's revenues grew 43% year over year.

In the third and fourth quarters, Lyft cut incentives below the industry average, but it hit the business, Green said.

Shares of Lyft had traded below their IPO price of $72 per share, but the stock is up almost 20% over the most recent three months - and up nearly 25% year-to-date.

The ride-hailing industry is expected to grow to almost $300 billion in ten years' time, according to Goldman Sachs. Insurance costs have also affected Lyft's bottom line. Past year the company lost USD678.9 million before taxes. So here is one possible reason for a lack of investors' enthusiasm.

Lyft said it expects to generate $4.6 billion to $4.7 billion in revenue in 2020.

An adjusted EBITDA loss is expected to fall in the range of $490 million to $450 million as opposed to the $503 million analysts were expecting. Moreover, Uber's management moved the key profitability goal from Q1 next year to the fourth-quarter of this year.

Uber, meanwhile, had over four times that in the same period - over 100 million users around the globe. Or will the more focused Lyft, which has adhered to the United States and Canada and remained focused on transportation, become the most stable business? On the other hand, Uber is trying to move simultaneously in different markets, despite the fact that only the ride-sharing business is profitable. In fact, Uber and Lyft seem to have changed perspectives in Silicon Valley, Wall Street and around the world.