Lyft Inc. posted a narrower loss for 2020 even as the coronavirus pandemic hammered its business, signaling that the ride-hailing company is pivoting toward profitable growth despite the unprecedented crisis.
The San Francisco-based company said its annual revenue declined 35% to $2.4 billion, while net loss narrowed to $1.8 billion from $2.6 billion a year earlier. Lyft’s bottom line was buoyed by aggressive cost cuts that included furloughing workers, trimming salaries and other operational changes, resulting in cost savings of $360 million last year, President John Zimmer said in an interview.
“We used an incredibly tough year to set us up for long-term growth,” Mr. Zimmer said Tuesday, reiterating that the money-losing company is on track to post a profitable quarter on an adjusted basis by the end of this year.
Lyft’s stock has more than doubled since Nov. 2, lifted by Covid-19 vaccine distribution and a big regulatory win in its home state in that month
Lyft posted fourth-quarter revenue of $570 million, slightly higher than in the preceding three months, but down 44% from the year-earlier period. The company said a surge in Covid-19 cases in key markets and new lockdowns weighed on rides demand in the latter half of the quarter.
