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Lyft (LYFT) 3% higher on Q3 revenue beat, food delivery plans
Lyft Inc. (LYFT) traded 3% higher on Wednesday after the ride-sharing platform beat the Wall Street consensus on its Q3 revenue and outlined plans to expand its food delivery options in the US.
After Tuesday’s close, Lyft posted a $1.46 loss for the three months to 30th September, which was 75 cents worse than the pre-report forecast.
However, group revenues of $499.7m did beat the $486.6m expectations, despite slumping 48% from a year ago.
Lyft also said that its number of active riders declined by 44% to 12.5 million, but that figure and its revenue were still markedly stronger than the previous quarter.
The San Francisco-based company was pummelled by COVID-19-related restrictions and challenges earlier in the year, but it has now recovered almost half of its business.
In a conference call in midweek, Lyft chief executive Logan Green said that he was “confident” that demand would continue to tick higher.
Lyft is also attempting to increase the scale of its food delivery infrastructure after its initial small-scale efforts with ‘essential’ items.
More options are expected to be added to the platform, though it is not expected to rival Uber (UBER) just yet.
Lyft co-founder John Zimmer noted: “We’ve been pleased with our essential deliveries pilot, which we initially launched to connect drivers with incremental opportunities to earn during the pandemic.”
Lyft is now on track to achieve profitability by Q4 2021, according to company executives, with CFO Brian Roberts forecasting a possible 11% quarter-over-quarter growth in revenue in Q4.
The news was warmly received by Wedbush analyst Dan Ives, who added $11 to a new $48 stock price target.
Ives said that the new delivery push should “create revenue and cost synergies”.
After soaring on news of a COVID-19 vaccine this week, LYFT eased a further 3.62% higher to $37.16 on the Nasdaq on Wednesday.
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