Wringing more revenue per rider helped drive record third quarter revenues for LYFT Inc, (NASDAQ: LYFT) but the company still recorded nearly double the net loss compared to the same period last year.
The ride-hailing conglomerate, whose fortunes have wobbled since it went public last spring, lost $1.57 per share on a record $955.6 million in revenue, beating analysts' expectations for the third quarter of 2019.
The number of active riders increased 28% during the quarter, from 17,391 during the third quarter of 2018 to 22,314 in 2019. Revenue per rider increased 27% year-over-year.
"Our third quarter results demonstrated the significant progress Lyft has made on our path to profitability," said Logan Green, co-founder and chief executive officer of Lyft, in a statement.
Record revenue, he said, was generated by strong growth in both active riders and revenue per active rider.
Lyft's Q3 revenues represented an increase of 63% year-over-year. The net loss for the third quarter 2019 was $463.5 million compared with a net loss of $249.2 million in the same period of 2018.
Green reiterated a statement he made last week that he expects Lyft to be profitable on an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by the fourth quarter of 2021, which is one year earlier than analysts were expecting.
For the full year, Lyft now expects to report revenue between $3.57 billion and $3.58 billion, an increase from its prior guidance of $3.47 billion to $3.5 billion.
The company also projected revenue between $975 million and $985 million for the fourth quarter, which significantly exceeds analysts' expectations of $943 million in revenue.
The company did take a hit from a regulatory crackdown on ride-hailing and gig economy businesses this year.
Its net loss for the third quarter includes $86.6 million related to changes to the liabilities for insurance required by regulatory agencies.
Net loss margin was -48.5% in the third quarter compared with -42.6% in the third quarter of 2018.
Lyft projected fourth quarter 2019 revenue growth to be between 46% and 47% year-over-year.
This is a breaking news story. Check back for updates.
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