By Tina Bellon and Akanksha Rana
(Reuters) – Lyft Inc <LYFT.O> on Tuesday reported report quarterly income of greater than $1 billion, however the ride-hailing firm forecast slower growth in the brand new 12 months as ridership growth stagnated in the second half of 2019, sending shares down.
The firm didn’t change its goal to attain profitability on an adjusted foundation by the tip of 2021 regardless of its bigger rival Uber Technologies Inc <UBER.N> final week shifting ahead by a 12 months its profitability goal.
Lyft shares declined 5% following the earnings launch after market shut.
Lyft reported income of $1.02 billion in the fourth quarter, forward of analysts who anticipated $984 million in quarterly income, in response to IBES information from Refinitiv.
For now, the corporate continues to make losses, reporting an adjusted web lack of $121 million, or a lack of 41 cents per share.
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 world 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%.
The firm mentioned it expects income in the primary quarter of between $1.05 million and $1.06 million.
Uber initially echoed Lyft in saying it will be worthwhile on an adjusted EBITDA foundation by the tip of 2021. But the corporate final week moved that focus on ahead by a 12 months, now promising traders it will 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 gadgets. Share-based funds at Uber in all of 2019 amounted to almost $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 12 months, Lyft in March, Uber in May, with many early workers and traders promoting their shares.
Lyft Chief Financial Officer Brian Roberts in an interview with Reuters on Tuesday mentioned 2020 created the inspiration for “extra sturdy growth” in 2021 and past.
Uber and Lyft, each stylish in San Francisco, are pursuing completely different roads in search of profitability, with Uber pouring cash into aspect companies which have to this point misplaced cash and Lyft remaining centered solely on shifting folks round.
Lyft in January minimize 2% of its workforce in its gross sales and advertising division to attain its profitability goal, however mentioned it plans to rent extra folks this 12 months.
The firm remains 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 clients had been paying full worth, with reductions and promotional incentives lowering.
But Uber Chief Executive Dara Khosrowshahi instructed traders throughout an earnings name on Thursday that Lyft over the previous month or so had been extra aggressive in giving out reductions to draw clients.
(Reporting by Tina Bellon in New York and Akanksha Rana in Bangalore; Editing by Matthew Lewis)