Analyst Note| Ali Mogharabi |
Lyft posted better-than-expected third-quarter top- and bottom-line results as sequential improvement in ride service demand accelerated. Lyft’s cost control, especially on marketing lowered the operating loss. While higher demand continued through October, we think the latest wave of coronavirus cases across the U.S. will slightly slowdown the recovery in the remainder of 2020. However, with a likely gradual economic recovery in 2021 accompanied by increase in commute and travel, we expect Lyft ridesharing revenue to return to strong double-digit growth next year.