In a bid to shake up the narrative surrounding itself and its various comps, Lyft announced yesterday that it expects to generate adjusted profit in two years’ time.
The news, coming on the heels of sagging share prices from Lyft and its domestic ride-hailing rival Uber, pumped life into their public valuations.
After noting that Lyft had “never laid out [its] path to profitability,” the company’s CEO Logan Green said that he was “excited to now go on the record” by announcing that Lyft will be “profitable on an adjusted EBITDA basis a year before analysts expect us to.”
Uber reported an expected adjusted EBITDA margin of 25 percent, and Lyft a similar metric [of] 20 percent[.]
The Lyft announcement is both good and bad news for ride-hailing and other on-demand companies.
The company posted an adjusted EBITDA loss of $204.1 million in its most recent quarter.
Lyft put a flag in the ground, saying that on-demand companies can, at some point, break even post adjusted profit.