Lyft has never been profitable. like Uber its business model is based on scale and the hope that someday it will turn a corner and be able to offer enough services to be in the black. We don’t know if that day will come, and it certainly isn’t today: Lyft just reported its first-ever earnings report as a publicly traded company, and oh man, it really isn’t profitable.
Lyft reported revenue of $776 million, which was north of analyst expectations of $739.4 million. And yet, its loss per share was a whopping $9.02–compared to expectations of $1.81. The company, it seems, is haemorrhaging money. It reported a net loss of $1.14 billion this past quarter alone. Yep, you read right a net loss of $1.14 BILLION in one quarter…
Lyft said it expects to hit revenue of between $800 million and $810 million, but it will hit some snags early on in the nearer term. For instance Wednesday morning, both Lyft and Uber drivers are going on strike during the morning rush hour, in an attempt to send a message to the companies that they deserve better pay. The timing of the strike is intentional, as Uber plans to make its Wall Street debut on Thursday.
Are investors crazy or hopeful? We’ll wait and see how it plays out.