Lyft lost $ 463.5 million in the third quarter of 2019, which is nearly double the amount the company lost in the same period last year. The ride-hailing company generated nearly a billion dollars in revenue – $ 955.6 million to be precise – which, compared to $ 585 million revenue in the third quarter of 2018, represents an increase of 63 percent on an annual basis.
Lyft and his larger rival Uber are under pressure from investors to stop their huge losses and show how they intend to make a profit. Lyft CEO and co-founder Logan Green told an audience to the WSJ Tech Live conference earlier this month, he expects the company to become profitable at the end of 2021 on an adjusted profit basis, a year earlier than its original projection.
Uber and Lyft, both of which became public this year, have set records for the amount of money lost in the run-up to their respective IPOs. And since the public has gone, both companies have continued to lose money. Last quarter, Lyft reported losing $ 644 million, or $ 197 million after adjusting for so-called EBITDA (profit before interest, tax, depreciation and amortization).
In this quarter, the net loss of Lyft includes $ 246.1 million in share-based compensation and related payroll tax costs, as well as $ 86.6 million in connection with changes in insurance liabilities. This translates into an adjusted net loss of $ 121.6 million, which is an improvement on the adjusted loss of $ 245.3 million in the same period last year.
The company says it expects its adjusted net loss between $ 160 million and $ 170 million in the fourth quarter of the year and between $ 708 million and $ 718 million for the full year. The annual revenue is expected to be between $ 3.57 billion and $ 3.58 billion, the company says.
For comparison, Uber lost $ 5.2. billion in the second quarter of 2019 alone (before correction for share-based compensation and other costs).
The development of …