Lyft Inc. recorded a narrower annual loss, even as the coronavirus pandemic hammered its businesses, signaling that the company is turning to profitability despite the unprecedented crisis.
The San Francisco-based company said its 2020 revenue fell 35% to $ 2.4 billion. Its net loss for the year was $ 1.8 billion, compared to $ 2.6 billion the previous year. Lyft’s financial results were driven by aggressive cost cuts that included workers’ leave, reduced wages and other operational changes, resulting in cost savings of $ 360 million last year, President John Zimmer said in an interview Tuesday -market.
“We used an incredibly difficult year to prepare for long-term growth,” he said in the interview, reiterating that the company at a loss is on track to present a profitable quarter on an adjusted basis by the end of this year.
Lyft’s shares have more than doubled since the beginning of November, driven by the distribution of the Covid-19 vaccine and a major regulatory victory in the company’s home state that month. The shares rose more than 10% on Tuesday’s trading session, driven by the company’s full-year results.
Lyft posted fourth quarter revenue of $ 570 million, slightly higher than in the previous three months, but 44% below the previous year. The company said an increase in Covid-19 cases in major markets and new blockages weighed on travel demand in the second half of the quarter. The net loss for the period was $ 458.2 million, compared to $ 356 million the previous year.