California’s Lyft sees sustained profit starting in third quarter on steep cost cuts



by   |  VIEW 838

California’s Lyft sees sustained profit starting in third quarter on steep cost cuts

Later last week, Lyft Inc., the San Francisco, California-headquartered smaller ride-hailing rival of Uber Technologies, had flabbergasted Wall St. analysts by reporting a substantially lower than anticipated loss on its fiscal first quarter of the year that ended on March 31, while the ride-sharing start-up which had yet to report a profit thus far, had forecasted that it would be able to deliver dependable profits on an adjusted basis from fiscal third quarter of 2021 citing a cascade of steeper cost-trimming measures.

In point of fact, Lyft Inc.’s quarterly earnings’ report for Q1, 2021, came as a breather after more than a year of pandemic associated plunge in revenues, as ridership and revenues had been pummelled significantly following a stiffer restriction on travels, however, the company had forecasted a strong rebound in US travel on Q3, 2021, when a lion’s share of American adults would be fully vaccinated against the pandemic contagion.

So far, more than a half of entire US population had received at least one shot of pandemic vaccine in latest sign of a growing inequality.

Lyft Inc. expects quarterly profit by Q3, 2021, a quarter earlier-than-forecasted

In tandem, with Lyft Inc forecasting a profitability by third quarter of the year, a quarter earlier than forecasted previously, shares’ prices of the ride-hailing start-up soared more than 5 per cent shortly after releasing the report, but wrapped up the week more than 11 per cent down to $50.07 following a resurgence in pandemic cases across the globe stemming from India’s double or triple mutant pandemic prototype.

Nevertheless, Lyft Inc said on its quarterly earnings’ report later last week that the ride-hailing service provider operating across 644 cities in the United States and 12 in Canada, had witnessed a $73 million in losses on an adjusted basis excluding interest, taxations, depreciation and amortization, substantially lower than Wall Street’s forecasts of a loss of $144 million.