Lyft sees uptick in Q2 revenue amid layoffs

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Lyft Inc. saw an earnings record and increased revenue in the second quarter amid news that the ride-hailing company laid off approximately 60 employees because of the discontinuation of its first party rental service.

The San Francisco-based company said in its second-quarter earnings report Thursday that revenue rose 30 percent to $990.7 million, but income plunged to a loss of $377.2 million. Lyft said the loss included $179.1 million of stock-based compensation and payroll tax expenses.

Adjusted net income soared by 358 percent to $46.4 million. Adjusted earnings before interest, taxes, depreciation and amortization surged by over 43 percent to $79.1 million, the highest in the company’s history.

“In mid-Q2 we revised our operating plan, we pulled back on discretionary spending and significantly slowed hiring, we re-prioritized R&D initiatives and reorganized teams to ensure laser focus on driving profitable growth,” CEO Logan Green said in a Thursday afternoon phone call to investors. “Our Q2 performance demonstrates our continued ability to navigate uncertain operating environments and deliver strong results.”

Green said the company anticipates ride-hailing volumes will meet or exceed pre-pandemic levels over the medium term.

Uber Technologies Inc., Lyft’s primary competitor, saw revenue more than double and net income swing to a loss in its second-quarter earnings report released Tuesday. Similarly to Lyft, $1.7 billion of Uber’s second-quarter loss was related to Uber’s equity investments.

Shares of Lyft were up 4.1 percent to $17.39 when the market closed Thursday.

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