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Lyft beats earnings estimates

Lyft (LYFT) co-founder and President John Zimmer says his ride-sharing business is fighting like hell to overcome the effects of the COVID-19 pandemic on human mobility.

Video Transcript

SEANA SMITH: All right, we want to get to some breaking news. Lyft is out with its earnings results. Emily McCormick has the numbers for us. Emily.

EMILY MCCORMICK: Well, Seana, we're taking a look at Lyft's third-quarter results coming in better than expected here on both the top and bottom lines, really starting to plug some of the declines that we saw in the second quarter and seeing that some ridership is actually coming back online.

So taking a look at those numbers, we had revenue up $499.7 million, down 48% over last year but still better than the about $495.8 million consensus analysts had expected. Now, that decline of 48% year over year was also an improvement to the 61% year-over-year decline that we saw it in the second quarter.

And then turning to the bottom line, we saw that adjusted EBITDA losses were at $239.7 million. That was also narrower than the loss of $251.1 million that had been anticipated.

Now importantly, Lyft also said that it continues to target reaching profitability in terms of adjusted EBITDA by the fourth quarter of 2021. So even given the setback of the pandemic and the dent to business operations that had happened over the past several months, Lyft still targeting profitability on that basis by the end of next year.

Taking a look at some other key metrics here, we saw active riders come in at 12.5 million. That was down 44% over last year but actually up 44% quarter over quarter when we, again, think about the demand decline that we had earlier on this year, and that's starting to come back.

Now, here is a quote that we had from CEO Logan Green. He said, "We are encouraged by the ongoing recovery in ride sharing and the performance improvements we saw across bikes, scooters, and fleet. We remain confident that demand will continue to return as we progress through the recovery."

Now taking a look at Lyft shares in the after-hours trading, we do see them fluctuating a bit but now just up over 2.4%. Seana and Adam.

SEANA SMITH: Emily, it certainly looks like a step at least in the right direction with that third-quarter revenue up 47% compared to what we saw last quarter. Emily McCormick, thank you so much.