After Uber Technologies Inc. reported strong earnings last week, all eyes will be on smaller rival Lyft Inc.
While Uber UBER has engineered an impressive turnaround of its business that helped it notch GAAP profits in the latest quarter, Lyft LYFT hasn’t enjoyed the same benefits as its larger rival. Both are benefiting from a recovery in rides activity, but Uber is reaping the rewards of company-specific initiatives, such as synergies between its ride-hailing and food-delivery businesses, that aren’t afforded to Lyft.
Revenue: The FactSet consensus was for $1.02 billion in revenue, up from $991 million a year earlier. “The key question for LYFT remains on the company’s ability to ramp profitability,” wrote Evercore ISI analyst Mark Mahaney, who said he expects “additional color” on the bottom line in the quarters to come, after Lyft’s management withdrew earlier targets on the fourth-quarter call.