Lyft (LYFT) - Get Lyft, Inc. Class A Report shares were higher after hour Tuesday after the San Francisco ride-sharing service reported a wider-than-expected net loss and revenue ahead of analysts' estimates.
The third-quarter net loss narrowed to $1.46 a share from $1.57 in the year-earlier quarter.
Revenue of $499.7 million was 48% below the year-earlier $955.6 million. But it also was up 47% from the second quarter, reflecting "the ongoing recovery in ride-sharing and the performance improvements we saw across bikes, scooters and fleet," Co-Founder and Chief Executive Logan Green said in a statement.
Analysts surveyed by FactSet were expecting Lyft to report a GAAP net loss of $1.34 a share, or an adjusted loss of 88 cents, on revenue of $487.4 million.
"We remain confident that demand will continue to return as we progress through the recovery," Green said.
Chief Financial Officer Brian Roberts said Lyft remained "focused on achieving adjusted Ebitda profitability by the fourth quarter of next year, even with a slower recovery."
Lyft shares at last check were 4.4% higher at $37.63. They closed the regular session on Tuesday off 4.4% at $36.05.
At Sept. 30 the company had $2.5 billion of unrestricted cash and cash equivalents.
Lyft shares got a boost a week ago after California voters passed Proposition 22, enabling the company, rival Uber (UBER) - Get Uber Technologies, Inc. Report and other so-called gig-economy companies to classify their drivers as contractors instead of employees who would be entitled to benefits.
California voters passed the ballot initiative, which was the most expensive in the state's history, by a 58% to 42% margin.
“As we look to the future, the win on Proposition 22 in California was a landmark achievement and a major victory for drivers, our industry and the broader Lyft community,” said John Zimmer, co-founder and president of Lyft. “The campaign was successful because it ultimately reflected the desires and priorities of drivers."
Uber earns around 10% of its annual booking revenue from the California market, while MKM Partners analyst Rohit Kulkarni said around 15% of Lyft's pre-covid bookings came from the state.