Lyft revenue climbs 73% as drivers return; stock rises

Lyft reported third-quarter revenue 73 per cent higher than last year, boosted by demand for ride-hailing services amid improving COVID-19 conditions.

Lyft Inc. reported third-quarter revenue 73 per cent higher than last year, boosted by demand for ride-hailing services amid improving COVID-19 conditions. The company also projected that it would turn a profit before tax, depreciation and other expenses for the full year. Lyft’s shares were up more than 12 per cent in extended trading. 

The company reported adjusted earnings of US$67.3 million, beating Wall Street estimates of US$33 million, and marking Lyft’s second quarterly adjusted profit. 

Lyft co-founder and President John Zimmer said airport rides, which were up threefold compared to a year earlier, coupled with a rise in weekend and evening trips, was a positive sign that customers are reverting back to pre-pandemic habits. “We feel great about rider demand,” Zimmer told Bloomberg. “And since the release of booster shots, and children’s vaccinations becoming available, I feel good about the road ahead.”

In an earnings call Tuesday, Lyft executives projected revenue between US$930 and US$940 million for the current quarter. The company also said it plans to pay less in driver incentives during the fourth quarter, and that ridership trends for the current quarter appear positive.

“We expect to exit the pandemic more profitable per ride than we were going in,” said Lyft Chief Financial Officer Brian Roberts.

Revenue hit US$864 million in the three months ended Sept. 30, the San Francisco-based company said in a statement Tuesday. That beat the US$862 million analysts had projected, according to data compiled by Bloomberg.