Lyft reported earnings on Wednesday.
Lyft reported second-quarter revenue of $339.34 million with a net loss of 86 cents per share. Analysts were expecting the company to report revenue of $336.77 million with a loss of 99 cents per share.
Lyft reported just 8,688,00 active riders in the quarter, a 60% decrease from the nearly 22 million active riders it had during the same time last year due in part to the coronavirus pandemic.
“While rideshare rides in the quarter were down significantly year-over-year, we are encouraged by the recovery trends we are beginning to see,” said CEO Logan Green, who added that rideshare rides in July were up 78% compared to April.
The company paid $32.1 million in severance and other related employee benefit costs as part of its restructuring efforts during the quarter amid the pandemic.
Lyft reported a net loss of $437.1 million in the quarter versus a net loss of $644.2 million in the same period in 2019.
“In Q2, we successfully limited our Adjusted EBITDA loss, outperforming the outlook we shared on our Q1 call by more than 20%. We continued to take aggressive actions to reduce costs and increase our underlying unit economics in the quarter, which has put Lyft on track to achieve $300 million of annualized fixed cost savings by the end of the year,” said CFO Brian Roberts.
Catching Wall Street’s interest, however, is the potential impact of a California ruling that orders Lyft as well as Uber to stop classifying drivers as independent contractors.
Jim Cramer just can’t imagine the companies achieving profitability in such an environment.