Lyft beats Q1 earnings estimates, co-founder says 'recovery is clear'

Brian Sozzi
·Executive Editor
2 min read
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Lyft co-founder and president John Zimmer says the the ride-hailing service is shifting into a new gear with human mobility picking up after people get their COVID-19 vaccines.

"The recovery is clear, it's happening," Zimmer tells Yahoo Finance, pointing to 7% growth in revenue in the first quarter versus the fourth quarter. The number of active riders using the platform increased by about 1 million sequentially.

Zimmer declined to divulge second quarter to-date trends, simply saying demand is improving "rapidly."

"I think it's a matter of time before we get back to pre-pandemic levels, but will be emerging much stronger and actually more profitable per ride than we were going into the pandemic," Zimmer added.

Here is how Lyft performed compared to Wall Street estimates for the first quarter:

  • Net Sales: $609 million, down 36% from a year ago, vs. $558.5 million estimate

  • Adjusted EPS: $0.35 a share loss vs. estimate for loss of $0.53

  • Active Riders: 13.5 million vs. 12.7 million

  • Revenue per Active Rider: $45.13 vs. $43.88

Lyft shares have gained 16% so far in 2021 in the lead up to first quarter earnings as investors bet on the return of riders this summer. Uber shares are only up 3% this year, likely as Lyft has been more aggressive in trying to reach profitability.

To that end, Zimmer reiterated Lyft's goal of being adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] profitable in the third quarter. The profitability goal was originally set to be hit in the fourth quarter of 2021, but was pulled forward following the recent sale of Lyft's autonomous-driving outfit to Toyota for $500 million. The sale will allow Lyft to reduce its expense base and focus on its core ride-hailing and scooter-rental platforms.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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