August 7, 2019 / 8:10 PM / 3 months ago

Lyft adds more riders, quarterly revenue beats estimates

Aug 7 (Reuters) - Ride-hailing company Lyft Inc on Wednesday beat Wall Street estimates for second-quarter revenue and said loss for 2019 would be less than its prior forecast as its promotional activities attracted more riders, with each rider paying more.

The company also raised its forecast for full-year revenue and estimated third-quarter sales above analysts’ expectations.

Lyft, which beat bigger rival Uber Technologies Inc to go public first, has partnered with several companies to offer its services as it vies for a bigger share in a market dominated by Uber.

While it is the official ride share of Disney Parks and Resorts, it also struck a deal with Agero Inc in June to provide rides for consumers whose cars need a tow assistance. It has also partnered with Google’s Waymo to deploy vehicles on Lyft app.

Lyft on an average got $39.77 in revenue from each of its 21.81 million active riders in its second quarter as a public company, a 22% rise in revenue per rider and 41% increase in riders over the same period in 2018.

“As a result of this positive momentum, we anticipate 2019 losses to be better than previously expected,” Chief Executive Officer Logan Green said in a statement.

Lyft had earlier promised that its ride-hailing services would be profitable without giving any timeline. But it had also warned regulators that as a company it might continue posting losses as it invests heavily in self-driving cars, renting scooters and other ventures.

The company forecast third-quarter revenue of $900 million to $915 million, which was above the average analyst estimate of $840.9 million.

It also raised its forecast for full-year revenue to between $3.47 billion and $3.5 billion, up from its prior range of $3.28 billion and $3.3 billion.

Its revenue in the second quarter rose 72% to $867.3 million, above average analyst estimate of $809.3 million, according to IBES data from Refinitiv.

But its net loss widened to $644.2 million from $178.9 million a year earlier as costs more than doubled to $1.54 billion from a year earlier.

On a per share basis, it narrowed to $2.23 per share from $8.48 per share, a year earlier, as the number of outstanding shares rose. (Reporting by Vibhuti Sharma in Bengaluru and Alexandria Sage in San Francisco; Editing by Arun Koyyur)

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