Lyft Surges on Record Earnings, Analysts Praise Improved Operating Efficiencies

© Reuters. Lyft (LYFT) Surges on Record Earnings, Analysts Praise Improved Operating Efficiencies

By Senad Karaahmetovic

Shares of Lyft (NASDAQ:LYFT) are up more than 10% in premarket trading Friday after the company reported its highest ever earnings and said volumes are on track to surpass pre-COVID levels.

Lyft reported a loss per share of $1.08 in the second quarter. Adjusted net income rose to $46.4 million, significantly above the expected loss of $14 million. Revenue came in at $990.7 million, topping the consensus projection of $986.7 million. Adjusted EBITDA stood at $79.1 million, smashing the consensus estimates of $18.1 million.

The number of active riders stood at 19.86 million in the quarter, above the estimated 19.82 million. Lyft also reported revenue per active rider of $49.89, while analysts were estimating $49.66 per share.

“We generated the highest Adjusted EBITDA in our company’s history and saw COVID highs for Active Riders, drivers and rides,” CEO Logan Green said.

“We are confident in our ability to continue navigating macroeconomic headwinds and deliver strong long-term business results,” CFO Elaine Paul added.

A Raymond James analyst reiterated a Market Perform rating on LYFT despite solid results as he sees “balanced” risk/reward at current levels.

“We remain positive on continued improvement in Lyft fundamentals and potential for 15% long-term growth and 20% long-term EBITDA margins,” the analyst said in a research note.

A Stifel analyst saw “mixed” results. He hiked the price target by $1 to $19 after “moderately adjusting” estimates.

"We believe the company is taking a more disciplined approach in balancing growth / profitability and will continue to scale back investments in a weakening macroeconomic environment, improving profitability,” the analyst wrote in a client note.