Business Maverick: Lyft Forecasts Disappoint Investors Seeking Faster Profit

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Business Maverick: Lyft Forecasts Disappoint Investors Seeking Faster Profit By Bloomberg

Lyft didn’t provide updated guidance on turning a profit. Late last year, the company said it would be profitable on an adjusted basis by the fourth quarter of 2021. The stock slipped to as low as $50.82 in extended trading, after closing at $53.94 earlier in New York. Lyft’s rally of more than 25% this year — along with Uber’s recent results — raised the bar for Tuesday’s report.

Lyft said revenue for the three months ending Dec. 31 jumped 52% to $1.02 billion from the same period a year ago. Analysts had expected revenue of $985.8 million. The company narrowed its adjusted net loss, which excludes stock-based compensation, acquisition expenses and other costs, to $121.4 million during the fourth quarter, compared with $238.5 million for the same period a year earlier. Analysts had expected an adjusted loss of $161.9 million, according to data compiled by Bloomberg.

In the fourth quarter, Lyft increased its number of active riders 23% to 22.9 million, slightly outpacing analysts’ estimates of 22.8 million. Revenue from each active rider increased 23% to $44.40, again slightly beating analysts’ estimate of $43.16.

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