Why Lyft Could Be a Smart Way to Play the Recovery
Its a tough time to be a ridesharing company. With air travel decimated, corporate America working from home, and restaurants and bars closed, the use cases for companies like Lyft (NASDAQ: LYFT) have essentially evaporated during the pandemic.
That spoiled what would have been a strong quarter for the #2 ride-hailing operator, as the company finished the first quarter with revenue up 23% to $955.7 million. Lyft also beat its own guidance on Adjusted EBITDA in spite of the headwinds from COVID-19, posting an adjusted EBITDA loss of $85.2 million -- which was better than its own guidance of a $140 million-$145 million loss, and a significant improvement from a loss of $216 million a year ago.
The better-than-expected results and management commentary helped lift the stock in after-hours trading, but the update also laid out the challenges Lyft faces.
Source Fool.com
