Lyft co-founder and president John Zimmer join ‘Squawk Box’ to discuss its latest earnings where revenue grew 13% quarter-over-quarter to $864.4 million. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
Lyft reported third-quarter earnings on Tuesday after the bell. Shares rose more than 12% in after-hours trading after it beat on revenue and said drivers are coming back, though it missed active riders estimates.
Here are the key numbers:
Earnings per share: 5 cents adjusted vs loss of 3 cents per share expected in a Refinitiv survey of analysts
Revenue: $864.4 million vs $862.7 million expected by Refinitiv
Active riders: 18.9 million vs 19.7 million expected, per StreetAccount
Revenue per active rider: $45.63 vs $43.89 expected, according to StreetAccount
Lyft reported a net loss for the quarter of $71.5 million versus a net loss of $459.5 million in the same period of 2020. The company said its loss includes $203.3 million of stock-based compensation and related payroll tax expenses.
Lyft again posted an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) profit of $67.3 million. It’s a large jump compared to the prior quarter when Lyft posted its first positive adjusted EBITDA of $23.8 million. The company said in August it expected to maintain that milestone, which it met a quarter earlier than expected and before competitor Uber.
Lyft’s revenue grew 13% quarter-over-quarter to $864.4 million. That’s up 73% year-over-year thanks to easy comparables due to the Covid-19 pandemic. It also recorded record revenue per active rider at $45.63, which is up 14% year-over-year. Additionally, the company provided a fourth quarter outlook, telling investors it expects revenue between $930 million and $940 million.
The company missed Wall Street expectations on riders. Lyft reported 18.94 million active riders this quarter, compared to the expected 19.69 million, per StreetAccount.
The company has struggled with driver supply and demand imbalances throughout the pandemic, leading to higher costs or long wait times. Investors have been attuned to the imbalance, especially as the company has invested millions in incentives to bring drivers back to the platform.
Lyft CEO Logan Green said in the company’s earnings release that driver supply materially improved in the third quarter, up nearly 45% year-over-year.
Finance chief Brian Roberts said on a call with investors the company plans to taper its supply investments in the fourth quarter.
“Given our success onboarding new drivers and expected supply tailwinds, we anticipate our service levels will naturally improve in Q4 and lead to lower prices,” Roberts said in the earnings release.
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