Lyft Inc. posted a smaller annual loss even as the coronavirus pandemic hammered his business, indicating that the ride-hailing business is turning to profitability despite the unprecedented crisis.
The San Francisco-based company said its revenue fell 35% to $ 2.4 billion in 2020. The net loss for the year was $ 1.8 billion, compared to $ 2.6 billion a year earlier. Lyft’s bottom line was bolstered by aggressive cost-cutting, including workers on leave, lower salaries and other operational changes, resulting in a $ 360 million cost savings last year, President John Zimmer said in an interview Tuesday.
“We’ve had an incredibly difficult year to gear up for long-term growth,” he said in the interview, reiterating that the money-losing company is on track to achieve a profitable quarter on an adjusted basis by the end of this year. base to book.
Lyft’s stock has more than doubled since early November, thanks to distribution of the Covid-19 vaccine and a major regulatory win in the company’s home state that month. Shares rose more than 10% during off-hours trading Tuesday, boosted by the company’s annual results.
Lyft posted fourth-quarter sales of $ 570 million, slightly higher than the previous three months, but down 44% from a year earlier. The company said an increase in the number of Covid-19 cases in key markets and new lockdowns weighed on demand for rides in the second half of the quarter. The net loss for the period was $ 458.2 million, compared to $ 356 million a year earlier.