Lyft Inc. (LYFT) stock was down 15.36 percent since the beginning of the year but up 24.73 percent over the past week, rose 1.00 percent on Wednesday after release of the quarterly report of the firm on Tuesday.
The ride-hailing firm also bettered its outlook for revenue growth in the fourth quarter from 11 percent to 15 percent, given the slightly better third-quarter results than in the previous quarter.
For the 3rd quarter (ended September 30), Lyft posted a loss of $1.46 per share, which is worse than analysts’ estimates of $0.91 for the same. This loss is, at the same time, 7% greater than the losses in the same quarter of 2019.
For the third quarter, losses decreased marginally to $460 million, compared to losses of $463 million a year earlier. The company’s balance of available cash and cash equivalents at the end of the quarter was $2.5 billion.
Total revenue was $499.7 million, higher than analysts’ anticipation of $486.6 million. This is 48 percent lower than last year, but better than the previous second quarter’s revenue of $339.3 million and a 61 percent decline.
The number of active users of the Lyft app, which includes, in addition to taxi services, the newly introduced food delivery, car rental, motorcycle and bicycle services, amounted to 12.5 million in the third quarter, a large increase from 8.69 million in the second quarter, but a long cry from the 22.3 million Lyft customers in last year’s third quarter.
In comparison to the previous quarter, Lyft co-founder and Chief Executive Officer Logan Green noted the turnaround in financial results, saying he anticipated more demand growth.
Lyft expects sales growth of 11 percent to 15 percent for the fourth quarter and a rise in the number of users by 800 thousand to 1 million.
In recent days, the stock growth of Lyft, as well as that of its key major competitor Uber (UBER), has been focused on the victory of the vote in California in favor of their company and the reduction of labor costs, as well as the overall growth of the market in light of the strong expectations of the COVID-19 vaccine, which will be released soon.
Uber and Lyft Shares rose sharply after the victory in California that Californians voted against the law on retraining workers from self-employed to full-time employees on platforms such as Uber and Lyft in the November 3 elections. This means that companies will continue their recruiting and salary practices, with only to make additional social security concessions.
The California market is projected by analysts to account for around 16 percent of Lyft’s overall sales.
At the same time, Lyft Inc. (LYFT) is planning to compete strongly with Uber Eats by providing restaurants and cafes with cheaper delivery services, while Uber charges high commissions. In October, Lyft announced collaboration with GrubHub, a website for food ordering and delivery in the United States.