Lyft stock skyrockets after company says it will actually be profitable in 2021
Ride-hailing company Lyft will be profitable in the last quarter of 2021, cofounders Logan Green and John Zimmer said Tuesday at the WSJ Tech Live event in Laguna Beach, California.
That's two long years away, but it's still one year before analysts expected. And it's on an EBITDA (earnings before interest, tax, depreciation and amortization) basis, which means discounting non-cash items like stock compensation.
The pair said their company has now passed the stage of quick growth and reaching scale, and moved to a phase of "profitable growth."
Zimmer said that because Lyft is focused only on transportation (cars, bikes, and scooters), it will "out-execute" Uber, which is focused on transportation but also food and other services.
"We haven't integrated with bikes and scooters yet, but that is our ultimate goal," Green said. "We call this transportation as a service."
Lyft's stock has suffered since its public debut earlier this year. After the news today, shares were up more than 8% in early-afternoon trading.
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