Lyft again reports adjusted profitability as revenue per passenger increases – TechCrunch
Lyft reported its second consecutive quarter of adjusted profitability on Tuesday as passengers returned to the service of the American ride-sharing company.
The ride-sharing service, which competes with Uber in the ride-sharing business, posted revenue of $864.4 million in the third quarter, a 73% increase from $499.7 million in the same period one year ago. Analysts had expected revenue of $862.68, according to Yahoo Finance data. If that third-quarter revenue growth seems high, remember where the world — and the ridesharing companies — were at this time last year. Remember that last year Lyft and Uber were dealing with a business that was heavily impacted by the COVID-19 pandemic. In short, business is back to normal.
Of note, revenue was also up 13% from the $765 million recorded in the previous quarter.
Lyft’s second-quarter results beat analysts’ earnings and revenue expectations, sending shares up 14% in aftermarket trading.
Two elements stand out from the third quarter results: ppositive adjusted EBITDA, a measure of profitability and an increase in average revenue per passenger. Let’s break it down.
Lyft reported a net loss of $71.5 million in the third quarter, a narrowing (i.e. an improvement) from the $459.5 million it reported in the same period. last year.
On an adjusted EBITDA basis, Lyft posted a profit of $67.3 million. Adjusted EBITDA eliminates a number of costs. However, it’s worth noting that this is the second straight quarter of adjusted EBITDA for Lyft, a metric it has long promised to push into positive territory.
The company has shown that it continues to improve this metric. Its EBITDA was positive at $23.8 million in the second quarter. And, for comparison, in the same quarter a year ago, Lyft reported an adjusted EBITDA loss of $239.7 million.
The tl;dr? Lyft’s adjusted EBITDA is improving.
Let’s move on to what generated (ahem) this revenue, let’s move on to the company’s active runners. Lyft reported 18.9 million passengers in the third quarter, a 51% increase over the same period last year and 11% more than the second quarter. This number in the third quarter is actually lower than expected and it is still outside the peak of 22.9 million passengers in the fourth quarter of 2019.
However, average revenue per passenger hit a record high of $45.63, a 14% year-over-year increase. This figure was boosted by a 6% sequential increase in driving frequency and. of cours. the prices for these rides.
Another interesting nugget is that new passenger activations were up 47% year over year.