Lyft Shares Fall After Unexpected Loss, Downbeat Revenue Outlook
Ride-hailing company had reported highest number of riders in three years in latest quarter
By Kathryn Hardison
Wall Street Journal
Updated Feb. 9, 2023 4:31 pm ET
Lyft shares plunged after the ride-hailing company posted an unexpected loss in the fourth-quarter and said first-quarter revenue would come in below Wall Street expectations.
The ride-hailing company said revenue grew 21% to $1.18 billion in the period that ended Dec. 31. Lyft had 20.4 million active riders during the quarter, marking the highest level in nearly three years though still below the 23 million active riders it had in the quarter before the pandemic struck. Both metrics beat Wall Street views, according to FactSet.
“Ride-share is back,” Lyft co-founder and President John Zimmer said in an interview.
Despite strong ridership numbers, Lyft reported an unexpected loss in the recent quarter on an adjusted basis, missing Wall Street estimates.
Lyft and rival Uber Technologies Inc. had been grappling with a driver shortage until recently, which pushed ride prices to record highs. Lyft said that the number of drivers on its service improved in the quarter and that it earned $57.72 in revenue per active rider.
First-quarter revenue is expected to be roughly $975 million, up from $876 million the year prior.
That represents a sequential decline from the fourth quarter, which Mr. Zimmer attributed to a seasonal trend as more people adopt health-related goals at the start of the year that include going out less and walking more. The ride-share marketplace has also improved with enough drivers to meet consumer demand, which leads to lower prices, he said.
Uber’s revenue also grew last quarter as people spent more on rides and food delivery. “Despite any macroeconomic uncertainty, I’m more confident than ever in our prospects,” Dara Khosrowshahi, chief executive of Uber, said on an earnings call with analysts.
For the latest quarter, Lyft’s net loss widened to $588.1 million, or $1.61 a share, from $283.2 million, or 83 cents a share, in the year prior. Lyft said that adjusted for certain items, it recorded a loss of 74 cents a share, missing analysts’ expectation for a profit of 13 cents.
The company reported $201.3 million of stock-based compensation and related payroll tax expenses, as well as restructuring charges tied to recent layoffs. Lyft also strengthened its insurance reserves and other current liabilities in the quarter.
In November, Lyft said it would lay off 13% of its workforce, or nearly 700 jobs. The ride-hailing company’s executives described the move as a proactive step as they foresee a possible recession.
Write to Kathryn Hardison at kathryn.hardison@wsj.com
Lyft Shares Fall After Unexpected Loss, Downbeat Revenue Outlook - WSJ |
