Sticking to declines, Lyft's net loss (a metric which comprises all prices ) was 356.0 million in the quarter, a radically worse outcome than its own $ 248.9 million net loss in Q4 2018.
As two of the biggest ride-hailing companies are Uber and Lyft, we take a look at their business models and how quickly they can earn you money. Lyft has managed to beat expectations regarding growth, user count and health and for adjusted losses. And yet Lyft's shares dropped about 4% in after-hours trading.
According to Lyft, they have seen great momentum since its launch last month and plan to expand as more drivers join the community.
Revenue per active rider was $44.40, also ahead of expectations. The company's "active rider" count rose 23 percent from 18.59 million in last year's quarter to 22.91 million. Lyft provided Q1 2020 revenue guidance between $1.055 billion and $1.060 billion but it did not address its profitability target in its earnings press release.More news: Mysterious Radio Signal From Space Is Repeating Every 16 Days
Lyft shares fell more than 5% after the company reported fourth-quarter earnings and said its revenue growth is expected to slow dramatically this year.
Investors had expected Lyft to report only $985.8 million in revenue and an adjusted EBITDA loss of $163.2 million. Uber reported upbeat fourth-quarter results earlier this month. If we exclude currency fluctuations, Uber's revenues grew 43% year over year. On the other hand, Lyft, previously said it expects to be profitable by the fourth quarter of 2021, on the same basis.
The ride-hailing industry is expected to grow to almost $300 billion in ten years' time, according to Goldman Sachs. But costs remain a concern as intense competition does not allow the company to increase prices. Lyft has also partnered with Valley Driving School to help prospective drivers obtain their Class 4 commercial licence, and is offering incentives to new drivers. So here is one possible reason for a lack of investors' enthusiasm.
The company said it expects an adjusted EBITDA loss of between $450 million and $490 million for all of 2020. This is only a week after Lyft's largest competitor, Uber Technologies, Inc. 40 at the last quarter of this past year.More news: Coronavirus: 'Way too early' to predict end of outbreak, World Health Organization says
Like Uber, Lyft is trying to reel in spending as it pushes toward profitability.
On its own, Uber's travel business generated $ 742 million in adjusted earnings last quarter (without taking into account some operational and administrative expenses), nearly four times more than the same period past year.
CEO Logan Green commented, "With the Lyft transportation network, we are already helping over 22 million consumers get around in a much more simple and economical way".
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