Lyft to Reach Adjusted Pretax Profitability a Year Ahead of Schedule: Report
Shares of ride-hailing service Lyft ( LYFT) are higher Tuesday company Co-Founders Logan Green and John Zimmer told the Wall Street Journal that the company will be profitable on an adjusted Ebitda basis as early as fourth quarter 2021.
Guggenheim analysts have estimated that the company would not turn a profit until 2021. Previous estimates had placed the company's profitability horizon in 2023.
Lyft shares were rising 9.3% to $44.67 at last check.
The executives made the comments at the Journal's WSJ Tech Live panel Tuesday.
"We've never laid out our path to profitability, and we know that is a question on a lot of investors' minds," Green said.
"We are excited to now go on the record and say that we are gonna be profitable on an adjusted Ebitda basis a year before analysts expect us to."
In tandem with Lyft on the news, shares of rival Uber ( UBER) were rising 7.2% at $33.66.Save 57% during our Halloween Sale. Don't let this market haunt you; join Jim Cramer's Investment Club, Action Alerts PLUS. Click here to sign up!
Lyft shares are trading higher after the company said it expects to reach profitability on an adjusted Ebitda basis by the fourth quarter of 2021, a year ahead of current Wall Street expectations.
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