Lyft Inc. posted a narrower-than-expected quarterly net loss as the number of riders grew year over year in the second quarter of 2019, the ride-hailing company said Aug. 7.
The results were better than expected for the company's second earnings report since going public in March.
For the three months through June 30, the San Francisco-based Lyft said its adjusted net loss was $197.3 million, versus a net loss of $176.5 million in the year-ago period. Analysts expected the company to post a net loss excluding exceptions of $294.0 million for the quarter, according to S&P Global Market Intelligence.
Lyft's non-GAAP net loss per share was 68 cents, narrower than analysts' estimates of $1.00, according to Market Intelligence.
Lyft CEO and co-founder Logan Green said strong execution and advances in the product and platform drove earnings.
"This translated to record revenue driven by better than expected Active Rider growth and Revenue per Active Rider monetization," Green said.
Second-quarter revenue came in at $867.3 million, up 72% year over year from $504.9 million, beating Street estimates of $809.6 million, according to Market Intelligence. Lyft had expected revenue to be between $800 million and $810 million.
Green said Lyft remains focused on reshaping transportation and is "pleased" with the improvement in market conditions.
"This environment, along with our execution, is translating to strong revenue growth and sales and marketing efficiencies," the CEO said. "As a result of this positive momentum, we anticipate 2019 losses to be better than previously expected and we are pleased to have updated our outlook."
For third quarter 2019, Lyft expects revenue to be between $900 million and $915 million.
The company also raised its full-year 2019 outlook for revenue to between $3.47 billion and $3.5 billion, up from between $3.28 billion and $3.3 billion.
The number of riders using Lyft grew to 21.8 million during the second quarter, up 41% year over year from 15.5 million, as revenue per active rider reached $39.77. This was up 22% from $32.67 per rider in the second quarter of 2018.
The company said its GAAP net loss was $644.2 million, compared with a loss of $178.9 million in the second quarter of 2018. This included $296.6 million of stock-based compensation and related payroll tax expenses, along with $141.1 million related to changes in liabilities for insurance required by regulatory agencies.
Separately, the company said in a regulatory filing that its lockup period would expire Aug. 19 instead of Sept. 24, as previously scheduled.
Under a typical lockup period, insiders including founders and employees cannot sell their shares for a specific period.
Shares of Lyft were up 6.15% to $64.00 in after-market trading.
Rival ride-hailing company Uber Technologies Inc. will report second-quarter earnings Aug. 8.