Lyft Reports Best Rideshare Week Since March 2020

Company forecasts narrower adjusted EBITDA loss for current quarter based on cost controls.
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Lyft , Inc.  (LYFT) - Get Report said it saw its best week in nearly a year in February and forecast a narrower adjusted EBITDA loss for the current quarter than previously projected.

The company made the disclosures in an SEC filing after the bell on Tuesday.

The company said that that February monthly average rideshare rides rose 4% from January.

“Using actual rideshare ride volume for January and February and applying February’s average daily rideshare ride volume to the 31 days in March implies first quarter rideshare ride volume would be down 1.2% quarter-on-quarter,” Lyft said in the filing. “As a point of comparison, on its most recent earnings call the Company noted that just applying January’s average daily rideshare ride volume to the 90 days in the first quarter would imply a 4% decline in rideshare rides quarter-on-quarter,” Lyft said.

The company “now expects it can manage its Adjusted EBITDA loss in the first quarter of 2021 to $135 million, an improvement from the prior outlook of between $145 and $150 million,” according to the filing. Lyft tied the improved outlook to “reduced operating expenses and to Contribution Margin, which is expected to be at the top end of the previously provided range.”

Lyft said that volumes were hurt by severe winter storms in much of the country during February and that rideshare volume excluding the week ended Feb. 21 increased 5.4% over January.

Shares of Lyft rose in after-hours trading. The stock gained $1.94, or 3.4%, to $59 in late trading.

Shares of rival rideshare operator Uber  (UBER) - Get Report also gained. Its stock was up $1.06, or1.9%, to $55.71 in after-hours action.