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LYFT’s shares have soared in price since the company reported better than expected third-quarter earnings and outlined a path to sustained profitability on the back of drastic cost cuts and a return of riders and drivers. The company reported an 11% increase in active riders for the quarter ended September 30, but ridership remained 35% below peak levels registered before the pandemic. LYFT’s revenues increased 73% year-over-year to $864.4 million in its fiscal third quarter, ended September 30. Its adjusted net income was $17.8 million, representing a 106.3% increase versus the prior-year quarter. Furthermore, the company’s EPS surpassed the Street’s EPS estimate by 266.7%. “We’re seeing the right things happening in the market and will begin to taper incentives in the quarter ahead,” said LYFT President John Zimmer.
However, considering that full-fledged business travel to offices has not yet resumed due to the continuation of remote working, and that many consumers are reluctant to travel with unvaccinated children, it could take a while before the company operates at its pre-pandemic capacity.
