Fresh off of a large spherical of layoffs, Lyft posted its Q1 outcomes this afternoon. The ride-hailing firm disclosed that it generated earnings of $955.7 million in the first three months of 2020, up 23% from its year-ago Q1 income result of $776 million.
The company’s net loss of $398.1 million was an improvement on its year-ago, IPO-impacted result. On an adjusted basis, Lyft lost $97.4 million, and its adjusted EBITDA result was a barely better -$85.2 million. Lyft lost $1.31/share in the quarter.
The corporate’s preceding steerage of around $1.06 billion in income and negative adjusted EBITDA of as a lot as $145 million now appears to be like considerably rosy in retrospect; investors’ final forecast for the company included revenue of $897.9 million and a per-share loss of $0.64.
Shares of Lyft have been up sharply in after-hours trading following its report. The agency’s income beat appeared to offer buyers hope that maybe COVID-19 was not as impactful on its income as anticipated. Certainly, Lyft reported 3% extra “active riders” in Q1 2020 than it noticed in Q1 2019; income per lively rider rose 19% YoY within the quarter. The mixture of these two outcomes led to its income positive aspects.
Lyft reduced almost 1,000 workers last week, as many unicorns slashed employees ranges in response to the COVID-19 pandemic and ensuing financial disruptions. The agency additionally furloughed lots of extra to manage prices.
After Q1 2020, Lyft remained well-capitalized, with $2.7 billion of unrestricted money, based on its launch, compared to Q1 working money burn of around $207 million. The agency has sufficient money, and it might appear, to climate a COVID downturn of a number of quarters.