Lyft Inc. reported fewer riders than anticipated within the fourth quarter as omicron damped journey, sending the shares down about 7 % in prolonged buying and selling.

However the riders that did hop in a Lyft generated increased income, on account of a scarcity of drivers and journeys that have been longer and had increased fares.

“Now we have nice momentum however nonetheless have tons extra to do with one final flip to navigate with omicron,” co-founder and President John Zimmer mentioned in an interview.

Adjusted earnings earlier than tax and depreciation have been $74.7 million within the quarter. Lyft reported its internet loss narrowed to $258.6 million, or 75 cents a share, from a lack of $458.2 million, or $1.43 a share, a yr earlier. It was nonetheless wider than the $171.2 million loss analysts forecast.

Lyft closed the yr with its first annual revenue on an adjusted EBITDA foundation. For fiscal 2021 that measure was $92.9 million, in contrast with a lack of $755.2 million in fiscal 2020.

Lyft mentioned it noticed a major bounce in income per energetic rider, reaching an all-time excessive of $51.79. The rise stems largely from an enchancment within the mixture of shorter rides and customarily pricier airport journeys, which doubled from final yr, Zimmer mentioned.

The increase in rider income helped push income within the fourth quarter up 70 % from a yr earlier to $969.9 million, the San Francisco-based firm mentioned. That surpassed the $940.4 million analysts have been anticipating, in accordance with knowledge Bloomberg compiled.

“It is onerous to gauge the influence, giant or small, from omicron, and the fourth and first quarter are usually seasonally distinctive due to climate and holidays,” Zimmer mentioned, including that almost all of omicron’s impact on ridership is “being felt within the first quarter.”

The corporate reported 18.7 million energetic riders within the quarter, up 49 % from a yr earlier, although nicely wanting the 22.9 million in 2019.

The ride-hailing big has been buffeted by the results of Covid and has struggled to match drivers with demand. When the pandemic first seized the U.S. and cities have been below lockdowns, demand for rides floor practically to a halt. Then as restrictions eased, riders have been on the lookout for vehicles, however many drivers stayed on the sidelines, forcing Lyft and Uber Applied sciences Inc. to supply pricey incentives.

Whereas Uber has been in a position to pivot into meals supply through the pandemic with Uber Eats, Lyft’s core enterprise is experience sharing. Whilst demand has rebounded, a persistent driver scarcity has loomed over the businesses’ restoration and has left prospects ready longer and paying extra for rides. Zimmer mentioned the variety of drivers elevated 34 % from the earlier yr, with new driver activations leaping 50 % in the identical interval.

“Buyers wish to see steadiness,” mentioned D.A. Davidson analyst Tom White. “You’ll be able to’t elevate costs ceaselessly and never begin to count on rider demand and volumes influence. Extra driver onboarding may also help stem worth will increase.”

The shares are down about 3.6 % thus far this yr, a greater efficiency than Uber (down 8.6 %) or DoorDash Inc. (down 32 %).