Lyft has achieved adjusted EBITDA profitability for the second quarter in a row, the ride-hailing company reports for Q3 2021.
For the quarter ending September 30, 2021, adjusted EBITDA was $67.3 million, an improvement of $307 million compared to the third quarter of 2020 and $43.5 million compared to the second quarter of 2021.
Lyft revenue for Q3 2021 was $864.4 million, up 73% year-over-year compared to Q3 2020 revenue of $499.7 million and up 13% quarter-over-quarter compared to $765 million in Q2 2021.
Net loss for the third quarter of 2021 was $71.5 million versus a net loss of $459.5 million in Q3 2020 and a net loss of $251.9 million in Q2 2020.
Adjusted net income for Q3 2021 was $17.8 million versus an adjusted net loss of $280.4 million in Q3 2020 and an adjusted net loss of $18 million in the second quarter of 2021.
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Meanwhile, active riders for the third quarter of 2021 grew to 18.9 million, an increase of 51.4% compared to 12.5 million in Q3 2020.
Revenue per active rider grew 14.2% from $39.94 in Q3 2020 to $45.63 in Q3 2021, an “all-time record,” says Lyft CFO Brian Roberts during a call with analysts.
“In Q3 we achieved record revenue per active rider as ride frequency increased. We also hit a new all-time high contribution margin and posted our second consecutive quarter of adjusted EBITDA profitability, which is a demonstration of the strong leverage in our operating model,” Roberts says.
“Given our success onboarding new drivers and expected supply tailwinds, we anticipate our service levels will naturally improve in Q4 and lead to lower prices.”
In a call with analysts, Lyft co-founder and CEO Logan Green says that while demand remained strong, Lyft saw “material improvement with driver supply” in Q3 2021, up nearly 45% compared to the same period last year.
“We are well positioned for a continued recovery and I’m excited to build on the momentum in our business.”
As a percentage of revenue, sales and marketing expense of 11.5% was roughly flat with Q2 2021 at 11.6%.
The company says that in July, Lyft completed a transaction with Woven Planet Holdings, a subsidiary of Toyota Motor Corporation, for the divestiture of certain assets related to Lyft’s self-driving vehicle division, Level 5.
Lyft will receive, in total, approximately $515 million in cash in connection with the transaction, with $165 million paid upfront and $350 million to be paid over a five-year period.
In July, Lyft announced that it is partnering with Ford and Argo AI to commercialize autonomous ride-hailing vehicles.