Lyft rallies in premarket after solid Q3 results

Shares of Lyft (LYFT.US), a US ridesharing company, are trading 13% higher in the US premarket. Stock surges following release of Q3 2021 earnings yesterday after close of the session. Revenue during the quarter reached $864 million, up 73% year-over-year. Number of active raiders increased 51% YoY to 18.9 million, below the median estimate of 19.3 million. Revenue per rider reached $45.63 - a record high. Lyft reported a net loss of $71.5 million, up from a loss of $459.5 million. EPS increased from -$1.46 to -$0.21. Company also said that the number of drivers was 45% higher in Q3 2021 compared to Q3 2020, thanks to return to normality. 

• Revenue: $864 million vs $862 million

• Revenue per rider: $45.63 vs $44.43 expected

• Adjusted EBITDA: $67.3 million vs $33 million expected

• Adjusted EPS: -$0.21 vs -$0.03 expected

While the company missed EPS expectations and just slightly beat sales expectations, trend in the company's earnings continues to show improvement. Company is burning less cash and has managed to post a second straight quarter of positive adjusted EBITDA. Net loss was much smaller than in previous quarters and analysts see a strong post-pandemic trend that may allow the company to report a first quarter of positive net result.

Lyft (LYFT.US) finished yesterday's trading at the lower limit of the descending triangle pattern. Current premarket quotes point to an opening above $51.00 per share. Should we see a continuation of the upward move after cash session beings, the $54.50 area should be watched closely as this is where the upper limit of the triangle pattern can be found.

Source: xStation5