Lyft Reports Earnings - One Key to Watch

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Lyft reports earnings Tuesday, days after Uber reported a narrower net loss than expected. Investors are looking for indications that the company can reach profitability sooner rather than later.

Lyft shares are up 6.89% to $53.37 Monday.

On Uber’s earnings call last week, management said it can get to profitability on an EBITDA basis by the end of 2020.

Now comes Lyft’s earnings.

“Analysts are expecting a loss of about 53 cents a share on an adjusted basis on revenues of slightly under $1 billion, but really they’ll be looking for some kind of updated commentary on whether they can be profitable sooner than expected,” said TheStreet’s Tech Editor Nelson Wang. “That was the big thing in Uber’s earnings report. They announced that instead of, for the full 2021 year, they’re going to be profitable by the end of this year. Lyft has said that they’re going to be profitable at the end of 2021. Investors will be looking to see if they can be profitable sooner than that.”

TheStreet’s Tech Reporter Annie Gaus said, “what investors want to see is that Lyft can continue to grow its revenue while also keeping expenses down. One way they can do that is — they announced a restructuring a few days ago. They’re laying off about 2% of their workforce. We may see some more detailed commentary on that. But also one of the concerning line items hat investors have been discussing ever since Lyft went public is things like insurance costs. They pay out significant sums in insurance payouts and some analysts don’t really see a way out of this, given that their business is still reliant on drivers. I think investors would like to see some ideas on ways that they can manage those costs or bring down those costs going forward.”

See: Lyft’s Earnings Are Coming Up: 4 Key Themes to Watch.

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