Revenue growth
Lyft continues to recover from the pandemic, posting quarterly revenue growth of 125% and pre-tax profits. Despite a new increase in illness and concerns about the Delta strain "July was Lyft's best month since March 2020".
Shares in taxi service Lyft (LYFT) rose 0.25% at the premarket on Wednesday after the company released its second-quarter financial results after the close of trading on Tuesday.
Lyft shares have risen 12.7% since the start of 2021 and are up more than 90% in the past 12 months.
Growth rate and earnings
Lyft posted record revenue growth of 125% to $765m in the second quarter ended 30 June, beating Wall Street analysts' average estimate of $696.9m.
The number of monthly active users rose to 17.14 million against an expected 15.45 million. That's an increase of 3.6 million from the first quarter.
Lyft still has a net loss (after taxes), but for the first time reported an adjusted EBITDA margin based on earnings before interest, taxes, depreciation and amortisation. The profit (EBITDA) amounted to $23.8m.
Loss per share fell to $0.05, better than the average forecast of $0.24 per share expected by analysts. Lyft's revenue per customer fell to $44.63 versus expectations of $45.36. The company pointed to lower fares for rides.
Lyft rides are on the rise as people have more freedom of movement after quarantine measures ended in US cities.
Lyft's growth has also been helped by the resolution of much of its driver shortage problems, as the company reported in last quarter's report.
However, CFO Brian Roberts said: "The company is following the news about the COVID-19 Delta strain, but despite the recent rise in COVID cases, July was the best month since March 2020".
The company expects ride-hailing prices to be lower, but Lyft will continue to invest in incentives to attract and retain drivers.
Lyft's third quarter forecast
Lyft said it expects third-quarter revenue growth in the range of $850 million to $860 million.
James Cordwell an analyst at Atlantic Equities, believes that if Lyft made a profit, amid rising COVID-19 cases and uncertainty, and while the number of active customers is still 20% below pre-pandemic levels, indicates that Lyft still has growth potential.
