Lyft, Inc. (NASDAQ: LYFT) reported a narrower net loss for the fourth quarter of 2019, aided by an increase in revenues amid strong rider growth. The results also exceeded the market’s prediction.
At the end of the quarter, the company had 22.91 million active riders, up 23% from the year-ago period. Revenue per active rider advanced 23% annually to $44.4. Consequently, total revenues climbed 52% to $1.02 billion and surpassed Wall Street’s prediction.
Loss Narrows
The company reported an adjusted net loss of $121.4million or $0.41 per share, compared to a loss of $238.5 million or $10.82 per share a year earlier. The unadjusted loss was $356 million or $1.19 per share, compared to a loss of $248.9 million or $11.29 per share in the fourth quarter of 2018. The bottom line beat analysts’ forecast.
During the three-month period, the contribution margin increased to 54% from 45.5% last year and topped the Street view.
“Continued strength in core rideshare drove our industry-leading growth, led by product innovation and operational excellence on every facet of our robust transportation platform. With the Lyft transportation network, we are already helping over 22 million consumers get around in a much more simple and economical way,” said CEO Logan Green.
Outlook
For the first quarter of 2020, the management expects revenues to be in the range of $1.055 billion to $1.060 billion, representing a 36-37% year-over-year growth. The estimate for adjusted EBITDA is a loss in the range of $140 million to $145 million.
In the whole of 2020, revenues are expected to increase 27-29% to the range of $4.575 billion to $4.650 billion. Full-year adjusted EBITDA loss is expected to be between $450 million and $490 million.
Stock Performance
Lyft shares entered 2020 on a positive note, after staying subdued most of last year. They lost 31% in the past twelve months. The stock dropped during Tuesday’s after-hours trading session, immediately after the announcement.