Lyft posts adjusted profit ahead of target, but warns of driver shortage, Delta threat

Lyft Inc posted an adjusted quarterly profit three months ahead of target, seizing on a leaner cost structure as rides rebounded, but it warned of ongoing driver shortages and the spread of the Delta coronavirus variant.

The company reported adjusted earnings before interest, taxes, depreciation and amortization for the first time in its nine-year history, and said it would remain profitable on that basis going forward.

Lyft shares initially gained 6% in after-hours trading following the announcement but pared gains when executives said during the company’s earnings call that revenue per ride was expected to decrease on a sequential quarterly basis.

The company said ongoing investments in driver incentives and a decrease in prices for riders would pressure revenue in the third quarter.