A passenger arrives at Los Angeles International Airport looking for ground transportation during a statewide business day to demand that Uber and Lyft follow California law and grant drivers “basic employee rights” in Los Angeles, California, US, August 20, 2020.
Mike Blake | Reuters
shares Lift It lost more than a quarter of its value in post-closing trading on Tuesday after the company presented the spotlight second quarter guidance He warned investors that they will have to keep spending on driver incentives.
Here are the key numbers:
- Earnings per share: 7 cents vs. 7 cents expected loss in Refinitiv Analyst Poll
- Revenues: $876 million versus the $846 million Refinitiv forecast
- Active riders: 17.8 million vs. 17.9 million expected, per FactSet
- Yield per active passenger: $49.18 versus $47.07 expected, according to StreetAccount
For the second quarter, Lyft said it expects revenue between $950 million and $1 billion. Wall Street was estimating $1.02 billion per StreetAccount.
The stock was down 27% to $22.50 in extended trading. If it opens there on Wednesday, that would be Lyft’s lowest share price since October 2020. The biggest competitor Uberwhich reports quarterly earnings on Wednesday, also pulled back on Lyft’s results, falling more than 9% after markets closed.
Lyft reported a net loss for the quarter of $196.9 million versus a net loss of $427.3 million in the same period in 2021. The company said its loss included $163.2 million in stock-based compensation and related payroll tax expenses.
The ride-hailing carrier reported 17.8 million active riders, which hardly misses estimates. It’s also down from the fourth quarter when Lyft said it had 18.73 million active riders.
Lyft has invested heavily in driver incentives during the Covid pandemic and recovery, which has affected finances. Driver supplies appeared to have stabilized, but with gas prices soaring across the country due to the war in Ukraine earlier this year, some investors feared drivers would leave their rigs and companies would have to increase their incentives.
Lyft said during its analyst call that it will invest more in driver benefits in the next quarter, although it believes that will help “push in a healthier market.” It is unclear how much the company will spend.
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