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Lyft Inc. reported its first quarter with more than $1 billion in revenue on Tuesday, but shares slipped in late trading.
Lyft LYFT, +0.41% reported fourth-quarter losses of $356 million, or $1.19 a share, on revenue of $1.02 billion, up from sales of $669.6 million a year ago. After adjusting for stock-based compensation and other effects, Lyft reported losses of $121.4 million, or 41 cents a share. Analysts on average expected adjusted losses of 53 cents a share on sales of $984 million, according to FactSet.
Lyft and rival Uber Technologies Inc. UBER, +3.15% have continued to suffer huge losses after going public last year, hurting their young stocks. Sentiment has been improving in 2020, though, especially after Uber moved up its goal for profitability when announcing its fourth-quarter financial results last week. Lyft shares had increased more than 25% so far in 2020 before Tuesday’s report, easily outpacing the S&P 500 index’s SPX, +0.17% gain of 3.8% in that time. Shares closed Tuesday up 0.4% at $53.94, then fell more than 4% in immediate after-hours action following release of the results.
Lyft reported losses of $2.25 billion in the first three quarters of 2019, but announced layoffs earlier this year as it looks to cut back and aims for profit. Chief Executive Logan Green said last year that Lyft would be profitable by late 2021, if it excluded some costs. Uber had also targeted 2021 for adjusted profitability, but said in its earnings-related conference call that the new goal is for the fourth quarter of this year.
Lyft predicted that it would produce revenue of $1.055 billion to $1.06 billion in the first quarter of this year, and sales of $4.58 billion to $4.65 billion for the full year. Analysts on average were expecting revenue of $1.047 billion in the first quarter and $4.6 billion for the full year, according to FactSet.
