- Lyft (NASDAQ:LYFT) said during its third-quarter earnings call yesterday that it was working on a new service to take a slice of food-delivery market as it works to make up for a 48% drop in quarterly revenue and a slow recovery of ride-hail demand, Reuters reported.
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- The announcement sent the company’s share up 6%. While much of Lyft’s recovery depends on the containment of the novel coronavirus, executives said stringent budgeting and cost cuts meant Lyft would still achieve profitability on an adjusted basis by the end of 2021.
- They said it would hit the profitability goal even if ride bookings remained 5% to 10% below pre-pandemic levels.
- Lyft president John Zimmer said the company was looking to enter what it considered an untapped market by offering delivery services for restaurants without launching a full-fledged consumer-facing platform for food delivery.
- Lyft’s Q3 revenue fell to $499.7 million, but it beat the consensus estimate of $486.5 million, according to Refinitiv data. Lyft said demand for rides continued to increase in the months from July to September, despite varying significantly between U.S cities. Active ridership remained down 44% on a yearly basis.
- Adjusted EBITDA loss for the quarter was $239.7 million, narrower than the consensus estimate of $254.1 million loss. The quarterly adjusted EBITDA loss was $25 million narrower than Lyft’s recent forecast, reflecting progress in reducing costs.
- LYFT stock is one of today’s “4 Top Stock Trades.” InvestorPlace contributor Todd Shriber yesterday wrote that the stock “has been trading incredibly well lately, but the move has been fast and furious.”
