Investors gave Lyft’s price a small bump on Tuesday after reports of the results of the American ride-hailing company, which were not quite as bad as the company and Wall Street, were expected. Following the disclosure of its financial performance in the first three months of the year, Uber competitor shares rose 4.5%. Those benefits have been reduced by 2.5% as of the time of writing.
Turning to its results, Lyft’s revenue fell 36% to $ 609 million in the first quarter of 2021, compared to the same period last year before the COVID-19 epidemic boosted the economy, and in particular, the Ride- Hilling Industry. The revenue disparity can be directly linked to less active riders using its app. The company said it had 13.49 million active riders in the first quarter, up 36.4% from the 21.2 million riders on its network in the same period last year.
But when the company’s ride base and revenue declined, the drops were not as extreme as those of the company or its backers. As Lyft trumpeted its quarterly results to the top of the deck, its revenue in that period was $ 59 million more than its guidance midpoint. This investor spoke to monitor the mean, which is clearly an A + in today’s market. Lyft also stuck with its previous forecast that it could achieve adjusted EBITDA profitability in the third quarter.
The company reported an adjusted EBITDA loss of $ 73 million in the first quarter, which was better than anticipated. The company expected a $ 135 million adjusted EBITDA deficit for the period.
In addition to somewhat beating its own Q1 2021 targets, Lyft reported 7% revenue growth in Q4 2020, an expansion that Lyft indicated as indicating the company was on the road to recovery. Lyft said ridership improved by some 8% from the previous quarter.
The company remains deeply unprofitable despite a partial recovery. Lyft reported a net loss of $ 427.3 million in the first quarter, a 7.3% drop from a net loss of $ 398.1 million that was recorded in the same period last year. Those losses included stock-based compensation of $ 180.7 million and related payroll tax expenses and $ 128.0 million related to changes in liabilities for insurance required by regulatory agencies due to historical periods.
Despite the loss, Lyft officials said they were pleased with the strong ridership demand, which has picked up in recent months.
The company also insisted on the sale of its self-driving unit called Level 5, which was announced last week. Lyft sold the autonomous vehicle unit to a subsidiary of Toyota’s Woven Planet Holdings for $ 550 million, the latest in a string of acquisitions driven by costs and long deadlines to commercialize autonomous vehicle technology . Uber also sold its self-driving technology, a feat never seen as a survival of the ride-hailing game.
Lyft’s so-called Level 5 division will be converted to W Planet Planet Holdings when the transaction closes in the third quarter of 2021. Lyft will receive $ 550 million in cash along with $ 200 million. The remaining $ 350 million will be repaid over five years. About 300 people of Lyft Level 5 will be integrated into the Woven Planet. The Level 5 team, which outnumbered more than 400 people in the US, Munich and London in early 2020, will continue to operate out of its office in Palo Alto, California.
Lyft reported $ 2.2 billion of unrestricted cash, cash equivalents and short-term investments at the end of the first quarter of 2021.
Overall, given the company’s quarter, it is easy to make a case for slowdown and growth in terms of its performance. On the recessionary side of things, Lyft is smaller, losing even more money than it did in the pre-year period. And the path to recovery for its operation will prove decisive to discontinue COVID-19, despite rising global vaccination levels.
On the fast side of things, the following chart from the Lyft Earnings deck is probably the best single-image argument that can be made in-depth for Lyft’s recovery:
Yesterday when Uber reported its Q1 2021 performance.