By Tina Bellon and Akanksha Rana
(Reuters) – Lyft Inc (O:) on Tuesday reported report quarterly income of greater than $1 billion, however the ride-hailing firm forecast slower growth in the brand new yr as ridership growth stagnated in the second half of 2019.
The firm didn’t change its goal to realize profitability on an adjusted foundation by the tip of 2021 regardless of its bigger rival Uber Technologies Inc (N:) final week transferring ahead by a yr its profitability goal.
Lyft reported income of $1.02 billion in the fourth quarter, forward of analysts who anticipated $984 million in quarterly income, based on IBES information from Refinitiv.
For now, the corporate continues to make losses, reporting an adjusted internet lack of $121 million.
Lyft operates solely in the United States and a few Canadian cities. Its lively rider buyer base in the fourth quarter grew to 22.9 million from 22.Three million the earlier quarter. That compares with Uber’s international 111 million lively platform customers in the identical interval.
While Lyft’s ridership grew by greater than 6% in the primary half of 2019, growth in the second half slowed to round 2.5%.
Uber initially echoed Lyft in saying it might be worthwhile on an adjusted EBITDA foundation by the tip of 2021. But the corporate final week moved that concentrate on ahead by a yr, now promising buyers it might be worthwhile on that metric in the fourth quarter of 2020.
The adjusted EBITDA metric at each firms excludes bills for stock-based compensation and different objects. Share-based funds at Uber in all of 2019 amounted to just about $4.6 billion, or roughly a 3rd of income.
Lyft’s stock-based compensation got here in at $1.6 billion for all of 2019, or 44% of full-year income.
Both firms went public final yr, Lyft in March, Uber in May, with many early workers and buyers promoting their shares.
Uber and Lyft, each dependent in San Francisco, are pursuing completely different roads in search of profitability, with Uber pouring cash into facet companies which have to this point misplaced cash and Lyft remaining targeted solely on transferring folks round.
Lyft in January minimize 2% of its workforce in its gross sales and advertising division to realize its profitability goal, however mentioned it plans to rent extra folks this yr.
The firm continues to be spending closely, with complete prices in 2019 rising to $6.3 billion.
Uber and Lyft have traditionally relied on heavy subsidies to draw riders.
Lyft in October mentioned a rising variety of prospects had been paying full value, with reductions and promotional incentives reducing.
But Uber Chief Executive Dara Khosrowshahi informed buyers throughout an earnings name on Thursday that Lyft over the previous month or so had been extra aggressive in giving out reductions to draw prospects.
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