| 3:18 PM EST

Lyft Targets Profitability by Q4 2021

Ride-hailing giant Lyft Inc., which hasn’t had a profitable quarter since it launched in 2012, aims to get into the black by the end of 2021—a year earlier than industry projections.

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Ride-hailing giant Lyft Inc., which hasn’t had a profitable quarter since it launched in 2012, aims to get into the black by the end of 2021—a year earlier than industry projections.

 

The company is executing well and has a “clear path” to profitability, according to founders Logan Green and John Zimmer. They tell attendees of a Wall Street Journal conference in California Lyft will post a profit before interest, taxes, depreciation and amortization by the fourth quarter of 2021.

The forecasts buoyed the company’s stock price by 6.5% yesterday. But at less than $44 per share, Lyft is trading about 40% lower than its debut value of $72 in March.

Lyft lost $911 million last year, its first publicly reported financial period, despite doubling revenue to $2.2 billion. Continue growth has prompted the company to raise its full-year outlook for 2019 by 6% to $3.3 billion.

Lyft’s 2021 profitability timeline matches an updated forecast issued in August by Chicago-based Guggenheim Partners. The securities firm applauded Lyft’s growth plans, which focus on its core ride-hailing services in North America. The company’s strategy contrasts with rival Uber Technologies Inc.’s aggressive global expansion and push into more services, such as food delivery.

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