Wall Street Journal: Lyft’s Revenue Jumps 70% as Riders’ Spending Increases

Lyft Inc. reported a 70% revenue increase in the latest period, as longer, higher ride revenue offset weaker-than-expected ridership numbers.

The San Francisco-based company reported $969.9 million in revenue for the December quarter, beating the $941 million FactSet consensus.

Lyft reported an adjusted profit before interest, taxes, depreciation, and amortization of $74.7 million in the latest period, roughly in line with expectations, and helping it post its first annual positive adjusted Ebitda.

“We’ve been battle tested,” Lyft President John Zimmer said in an interview, adding that the pandemic had pushed the company to become leaner and more efficient. Lyft dramatically cut costs during the health crisis and shed money-losing bets such as its self-driving unit.

Lyft reported 18.7 million active riders in the quarter, compared with 18.9 million in the previous quarter and 12.6 million in the comparable year-earlier period. It had 22.9 million active riders at the end of 2019.

Lyft said revenue per active rider reached a record $51.79 in the fourth quarter, up $6.16 from the previous quarter, largely driven by longer rides, which tend to be more expensive, according to Mr. Zimmer. Trips to airports more than doubled year-over-year, he said.

Analysts polled by FactSet had expected 20.2 million active riders and for revenue per active rider to be $46.50.

For 2021, Lyft reported a narrowed loss of $1.01 billion and revenue of $3.21 billion, up 36% from 2020.

A continuing driver shortage pushed prices for Lyft rides to record highs during the year. Mr. Zimmer said that the labor crunch has “gotten much better,” and that new driver activations were up 50% year-over-year in the fourth quarter.

For the quarter, the company reported a loss of $258.6 million, narrowing from $458.2 million a year earlier. Analysts expected the loss to narrow to about $174 million.