Shares in Lyft Inc. surged in late trading after the ride-hailing company reported record earnings as riders returned to the service post-COVID-19.
For the quarter ending June 30, Lyft reported an adjusted net income of $46.4 million or 12 cents per share, compared to a net loss of $18 million in the second quarter of last year and net income of $24.6 million in the first quarter. Revenue came in at $909.7 million, up 30 year-over-year and 13% from the previous quarter.
Analysts had expected an EPS loss of four cents on revenue of $989.07 million.
The highlight of Lyft’s figures was the return of riders. In the quarter, active riders came in at 19.86 million, up from 17.14 million in Q2 2021 and 17.8 million in the previous quarter. Revenue per active rider was up 11.8% year-over-year to $49.89. Not only did Lyft have more customers, but they were also spending more.
While revenue and riders increased in the quarter, so to did Lyft’s net loss, coming in at $377.2 million versus $251.9 million in Q2 2021 and $196.9 million in the previous quarter. The net loss figures included $179.1 million of stock-based compensation and related payroll tax expenses.
“We leaned in hard in Q2 and the team did fantastic work to drive strong results,” Logan Green, co-founder and chief executive officer of Lyft, said in a statement. “We generated the highest adjusted EBITDA in our company’s history and saw COVID highs for Active Riders, drivers and rides. It’s clear consumer transportation is a good long-term business with a massive addressable market.”
Looking forward, Lyft said that it expected earnings before interest, taxes, depreciation and amortization of between $55 million and $65 million in the third quarter on revenue of $1.04 billion to $1.06 billion. Analysts had expected EBITDA of $67.4 million on revenue of $1.12 billion.
Despite the miss in outlook and earnings, the better-than-expected EPS and record revenue impressed investors. Shares in Lyft were up 9.02% after the bell to be sitting at $18.99 as of 7:59 p.m. EDT.