Lyft Shares Jump After Strong Earnings Report From Rideshare Company

By Thomas Price Wednesday, February 10, 2021

The economic hardships associated with the travel and transportation business have been felt by nearly every major company in the industry. This includes major rideshare apps such as Uber and Lyft as well. While both companies have had tough years due to the COVID-19 pandemic, limiting the number of rides consumers have been taking, Lyft’s most recent quarterly report suggested strong signs of recovery. In fact, the rideshare company beat out most Wall Street analysts’ expectations despite still taking a loss on the quarter. These better than projected results have helped the rideshare business boost up their stock significantly in after-hours and pre-market trading, as the company continues to recover from a tough economic year.

A Lyft rideshare hub in Las Vegas.

Lyft — Quarterly Report vs. Wall Street Projections

On several important fronts, the rideshare app company proved that their service had seen more business than previously thought. In fact, the company reported $569.9 million in revenue, which, while much less than the same quarter last year, represents a 14% increase from Q3, where the company only earned $499.7 million. The revenue earned by the business also beat out analyst expectations by nearly $7 million, suggesting a strong upward trend than most experts thought.

Furthermore, Lyft also beat out expectations for loss per share as well with the rideshare app company only reporting a loss of $0.58 per share instead of the projected $0.72 predicted by Wall Street. Lyft also had a stronger than predicted revenue per active rider, comfortably reporting $45.40 per rider instead of $42.20. However, Lyft did fall short of certain expectations with the company not reaching active rider milestones that many were hoping to see.

In fact, the company only reported having 12.55 million active riders, already a massive drop from 2019 and an extremely small gain from Q3. This figure was also a disappointment to investors as well who were hoping to see the business reach 13.2 million by this quarter. Despite this shortcoming, the company still saw an incredible jump in their stock after hours on Tuesday due to the many areas where Lyft beat out expectations.

Lyft Stock Jumps After Hours

After the release of the company’s Q4 quarterly report, Lyft stock spiked almost immediately in after-hours trading. In fact, the company saw a boost of over 10%, pushing the value of the stock to nearly $60 per share. This bump is, of course, based on the company beating out expectations in their most recent report, but also on the expected recovery that the rideshare company outlined in the report as well.

When commenting on the outlook for the company in 2021, CFO Brian Roberts said in a statement released with the quarterly report, “Our Q4 results also outperformed our most recent outlook. And, while the first quarter of 2021 continues to be uncertain primarily due to COVID-19 headwinds, based on current recovery expectations, we should experience a growth inflection beginning in the second quarter that strengthens in the second half of the year.”

About the Author

Headshot of Thomas Price

Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

Related Articles