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11 months ago
Why Lyft (LYFT) Shares Are Getting Obliterated Today
By: Investing | December 29, 2023
What Happened: Shares of ride sharing service Lyft (NASDAQ: NASDAQ:LYFT) fell 5.4% in the morning session after Nomura downgraded the stock from neutral to reduce, stating Lyft’s growth could be limited due to its shrinking market share and low profitability compared to peers. The firm still upped its price target to $13 from $11.70, but the target remains under the current share price. Nomura also downgraded Uber (NYSE:UBER), sending the stock down 2.4%.Zooming out, 2023 has been splendid for the market, with the S&P 500 up nearly 25%. The year began with a surge in technological advancements, propelling the tech sector to new heights. Companies pioneering in artificial intelligence experienced a renaissance, capturing the attention of investors and driving substantial gains. Not all sectors, however, flourished equally. Traditional industries like consumer durables faced headwinds as consumers reeled in large expenditures, prompting a wave of restructuring and strategic realignment.
More recently, the market has surged over the last two months. Inflation has come in below expectations, prompting the Federal Reserve to pivot from a hawkish to a doveish stance--it is now projecting interest rate cuts in 2024, a tailwind for stocks as it lowers the discount rate applied to future cash flows. As a reminder, the driver of a stock's value is the sum of its future cash flows discounted back to today. With lower interest rates, investors can apply higher valuations to their stocks. No wonder so many in the investment community are optimistic about 2024. We at StockStory remain cautious, as following the crowd can lead to adverse outcomes. During times like this, it's best to own high-quality, cash-flowing companies that can weather the ups and downs of the market.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lyft? Find out by reading the original article on StockStory.
What is the market telling us: Lyft's shares are quite volatile and over the last year have had 51 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 8 months ago, when the company dropped 15.5% on the news that the company reported revenue and earnings per share (EPS) in the first quarter that came in ahead of analysts' estimates. Active riders was in-line while revenue per rider beat slightly. However the company still faces cash burn issues. In addition, revenue and adjusted EBITDA guidance for the next quarter missed analysts' expectations. This means the debate continues on long-term growth and margin levels. Overall, the results were poor, especially in light of Uber's strong earnings earlier this week.
Lyft is up 33.9% since the beginning of the year, but at $14.91 per share it is still trading 16.8% below its 52-week high of $17.93 from February 2023. Investors who bought $1,000 worth of Lyft's shares at the IPO in March 2019 would now be looking at an investment worth $190.19.
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11 months ago
Lyft 'competitively disadvantaged' says Wedbush analysts
By: Investing | December 27, 2023
The Lyft (NASDAQ:LYFT) price target was raised by Wedbush to $14 from $12 per share on Wednesday, but the firm maintained a Neutral rating on the stock as it still sees potential headwinds.
Analysts said they see a challenging road ahead for Lyft to regain meaningful share, with Uber (NYSE:UBER) remaining the "dominant force in rideshare."
"Uber continues to leverage its scale as well as the benefits of its delivery business, leading to a stronger value proposition for consumers through its bundled rewards program, Uber One," wrote the analysts.
The firm acknowledged that under new leadership, Lyft is working to regain market share and has adjusted its pricing levels to better align with Uber and the rest of the market. It is also reinvesting a portion of its fixed cost savings to improve service levels.
"Lyft will benefit from secular trends favoring the industry, including rising adoption and frequency of ridesharing services in a market that we expect will remain a long-term duopoly," the analysts added.
However, as a pure-play service, Wedbush believes Lyft is competitively disadvantaged versus its diversified, global peer and "expect the company will be challenged to differentiate its product for both riders and drivers in competing both domestically against scaled players."
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1 year ago
Lyft (LYFT) Stock Choppy on Disappointing Bookings Outlook
By: Schaeffer's Investment Research | November 9, 2023
• Lyft stock is in an interesting position after the ride-sharing app's third-quarter earnings
• A slew of bull notes rolled in for the ridesharing giant
The shares of LYFT Inc (NYSE:LYFT) are up 0.5% to trade at $10.64 at last check. The stock was lower at the open this morning, after the ride-share company's third-quarter gross booking fell short of rival Uber's (UBER) and fourth-quarter bookings guidance came in below Wall Street's estimates. However, Lyft's own third-quarter earnings and revenue beat forecasts, leading to no less than five price-target hikes, the highest coming from Barclays up to $14.
Coming into today, analysts were hesitant toward LYFT, with 24 of the 28 brokerages in coverage maintaining "hold" or worse ratings. And with short interest already down 8.8% in the most recent reporting period yet 16% of LYFT's total available float still sold short, a bearish exodus could take place. At the stock's average pace of trading, it would take shorts four trading days to buy back their bearish bets.
On the charts, LYFT remains below a confluence of moving averages, including its 50- 80- and 100-day trendlines. Down 35.4% over of the last nine months, the stock has recently also ceded its year-to-date breakeven mark.
Drilling down to today's options activity, 12,000 calls and 14,000 puts have crossed the tape so far, volume that's six times the average intraday amount. Most popular is the weekly 11/10 9-strike put, followed by the 8.50-strike put in the standard November series, with new positions being bought to open at the latter.
Puts have been growing in popularity, per the stock's 50-day call/put volume ratio of 0.51, which stands in the 93rd annual percentile at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). While the ratio indicates calls still outnumber puts on an absolute basis, the high percentile suggests puts have been picked up at a faster-than-usual clip in the last two months.
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1 year ago
LYFT (LYFT) earnings missed by $0.18, revenue topped estimates
By: Investing | November 8, 2023
LYFT (NASDAQ: LYFT) reported third quarter EPS of $-0.03, $0.18 worse than the analyst estimate of $0.15. Revenue for the quarter came in at $1.16B versus the consensus estimate of $1.14B.
LYFT's stock price closed at $10.72. It is down -5.80% in the last 3 months and up 0.75% in the last 12 months.
LYFT saw 14 positive EPS revisions and 0 negative EPS revisions in the last 90 days. See LYFT's stock price’s past reactions to earnings here.
According to InvestingPro, LYFT's Financial Health score is "fair performance".
Check out LYFT's recent earnings performance, and LYFT's financials here.
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1 year ago
Lyft's (LYFT) gains from price cuts not enough to dent Uber's US lead
By: Investing | November 6, 2023
(Reuters) -Lyft's price cuts may have helped the ride-hailing firm make a small dent in Uber (NYSE:UBER)'s U.S. market share, but not enough to prevent the bigger rival from reporting its second quarterly operating profit.
After the slowest sales increase in the second quarter in two years, Lyft (NASDAQ:LYFT) is expected to post a bigger growth story in the September quarter as it attracted more riders with lower prices.
The average price of a standard Lyft ride as of September-end was more than 4% cheaper than Uber's similar service, according to data analytics firm YipitData, a big change since February, when both the companies were charging nearly the same price.
For Lyft, which under new boss David Risher has signaled a more aggressive pricing strategy, market share wins have been slow. Lyft's share has risen just 200 basis points to 29% since January, when the price war started, YipitData said.
"(Lyft) has the potential to hurt Uber," said Adam Ballantyne, senior analyst at Cambiar Investors that owns Uber shares. "If Uber wants to take more market share quicker from Lyft, it could lower prices. It would not surprise me to see the pricing impact the profit story near term."
Uber, which has a larger presence and a more diversified business that includes food delivery, posted an operating profit in the quarter ended June for the first time in its 14-year history.
For the July-September quarter, it forecast a key profit metric to nearly double to $1.02 billion.
But Uber's growth has slowed. In the quarter ended June, Uber's revenue rose 14.3%, a pace almost half that of the previous three months. Analysts estimate growth in the September quarter to be about the same as the previous quarter.
Lyft will likely post an 8.4% rise in its third-quarter revenue on Wednesday, LSEG data, compared with a roughly 3% increase in the second. Adjusted core earnings - a closely watched metric of profitability - is expected to jump by a quarter to $82.6 million.
"Lyft has narrowed its focus just to ride hailing ... and brought in a new management team that's really focused," said Christopher Vandergrift, analyst at Columbia Threadneedle Investments, an investor in both Lyft and Uber.
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1 year ago
Uber and Lyft settle $328m wage theft case with New York State
By: Investing | November 4, 2023
Ride-hail giants Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) are set to pay a $328 million settlement following a New York State Attorney General's investigation into wage malpractices from 2014 to 2017. The settlement, the largest wage-theft resolution ever secured by the office, requires both companies to compensate over 100,000 drivers who had been unlawfully denied wages.
The probe revealed that Uber had incorrectly deducted sales tax and Black Car Fund fees from driver payments, while Lyft had imposed an 11.4% "administrative charges" on drivers' earnings - costs which should have been borne by passengers. As part of the settlement, Uber and Lyft will pay $290 million and $38 million respectively into separate funds for back-paid funds to current and former drivers.
The agreement also necessitates several improvements in driver conditions. Both companies are mandated to implement a minimum earnings floor, ensuring a minimum rate from dispatch to completion of the ride. They are also required to provide paid sick leave, distribute proper hiring and earnings notices, and improve overall working conditions across the state.
Over 100,000 New York drivers, predominantly from immigrant communities, are expected to benefit from these changes. High-ranking officials from both companies hailed the settlements as a victory for drivers.
In related news, Uber has raised the driver minimum age in California due to insurance costs.
InvestingPro Insights
In light of the recent developments, it's important to consider some key insights from InvestingPro. For Uber, despite the significant settlement payment, it's notable that the company has seen a significant return over the last week and year, as per InvestingPro Tips. Furthermore, analysts predict the company will be profitable this year, which is a positive sign for investors.
On the other hand, Lyft holds more cash than debt on its balance sheet, which could provide some financial cushion following the settlement. However, the company's stock price movements are quite volatile, which could be a concern for some investors.
Looking at InvestingPro Data, Uber has a market cap of 97.58B USD and a revenue growth of 37.0% as of Q2 2023. Lyft, on the other hand, has a smaller market cap of 4120M USD, but its revenue growth stands at 14.85% for the same period.
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1 year ago
Lyft faces potential selling pressure amid institutional investors' control
By: Investing | October 30, 2023
Institutional investors, who hold a substantial 74% stake in Lyft (NASDAQ:LYFT), have been significantly influencing the company's stock price. The recent market cap drop of $282 million has compounded a one-year shareholder loss of 37%, which could potentially trigger selling pressure from these institutions, adversely affecting individual investors.
Lyft's stock has been under close watch due to the considerable influence of these institutions. Their analysts' faith in the company is evident through their sizable investment. Nevertheless, a simultaneous selling action by two large institutions could precipitate a sharp price drop.
The board of Lyft is urged to pay close attention to these institutions' preferences, given their control over more than half of the issued stock. FMR LLC stands as the largest shareholder with a 14% stake, while the second and third largest shareholders hold about 8.1% and 7.9% respectively.
Contrastingly, hedge funds hold only a minor share in Lyft, further emphasizing the significant role institutional investors play in shaping the company's stock performance. Today's developments underscore the importance of these large shareholders and their potential impact on the ride-hailing company's future trajectory.
InvestingPro Insights
Looking at real-time data from InvestingPro, Lyft's market cap stands at $3.58 billion. Despite a negative P/E ratio of -2.63, indicating the company is not profitable, analysts predict that the company will turn a profit this year, as per InvestingPro Tips. Moreover, the company holds more cash than debt on its balance sheet, which could provide a buffer against potential financial challenges.
However, the ride-hailing service's stock price movements have been quite volatile, with a significant drop over the last three months. This could be a potential concern for institutional investors who hold a substantial stake in the company.
For more in-depth insights and additional tips, consider exploring the InvestingPro product which includes 13 more valuable tips about Lyft. These tips could provide a more comprehensive understanding of Lyft's financial health and future prospects.
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1 year ago
Lyft, Inc. (LYFT) Position Trimmed by SG Americas Securities LLC
By: MarketBeat | September 29, 2023
• SG Americas Securities LLC decreased its position in Lyft, Inc. (NASDAQ:LYFT) by 56.6% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 49,812 shares of the ride-sharing company's stock after selling 64,905 shares during the quarter. SG Americas Securities LLC's holdings in Lyft were worth $478,000 as of its most recent filing with the SEC...
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1 year ago
Lyft settles $10 million SEC fine over undisclosed pre-IPO share deal
By: Investing.com | September 18, 2023
Ridesharing giant Lyft Inc (NASDAQ:LYFT). has agreed to pay a $10 million fine to the Securities and Exchange Commission (SEC) over allegations it failed to disclose a pre-initial public offering (IPO) stock deal that profited a board member. The settlement, announced on Monday, comes after an investigation by the SEC into a $424 million share sale that took place ahead of Lyft's March 2019 IPO.
The SEC revealed that former board member Jonathan Christodoro, a former managing director at Icahn Capital LP, arranged a pre-IPO share sale between billionaires Carl Icahn and George Soros. This transaction involved 7.7 million shares, roughly 2.6% stake in the company, which were sold to entities controlled by Soros through a special purpose vehicle managed by Christodoro's firm.
Initially, Lyft's board had rejected an effort by Icahn to sell his stake in the company due to potential insider trading issues. However, Christodoro proposed that the company allow him or an affiliate of his investment firm to buy the shares. The board agreed to this transaction, but Christodoro then arranged for another investor, Soros, to buy the shares at a significant discount to the expected IPO price.
For his role in arranging the transaction, Christodoro was slated to be paid $9.2 million in fees, later negotiated down to a lower seven-digit figure. However, investigators found that Christodoro did not inform Lyft of his compensation agreement as part of the deal. Moreover, Lyft failed to file the required disclosures with the SEC declaring the insider transaction, which was a violation of federal securities regulations.
“The federal securities laws required Lyft to disclose that a director profited from a transaction in which Lyft itself was a participant,” said Sheldon Pollock of the SEC's New York office. “We remain vigilant in ensuring investors are not deprived of critical information about transactions occurring close to a company's initial public offering.”
The settlement does not name Icahn, Soros, or Christodoro as defendants in the case. Representatives of Lyft, Icahn, and Christodoro did not immediately respond to requests for comment, while a representative for Soros declined to comment.
This penalty is the latest development in a challenging period for Lyft, whose shares have plummeted since its IPO and traded at around $10.95 on Monday. As part of the settlement, Lyft agreed to cease and desist from further violations. However, the company has not admitted or denied the SEC's findings.
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1 year ago
Lyft (LYFT) Stock Slides On Pricing Strategy
By: Schaeffer's Investment Research | August 9, 2023
• Lyft is brushing off strong second-quarter results
• Lyft is struggling to keep up with rival Uber
Despite upbeat second-quarter results and a strong current-quarter forecast, Lyft Inc (NASDAQ:LYFT) stock is sliding today as its price war with Uber (UBER) takes the spotlight. Lyft said it will double down on competitive pricing to catch up with its rival, after already lowering fares and cutting costs under new CEO David Risher. The stock is brushing off no fewer than nine price-target hikes as well, with just two analysts cutting their price objectives.
At last glance, LYFT was down 6% at $10.86. The shares are on track to snap a three-week win streak by the end of this week. On the short sell restricted (SSR) list amid the volatility, the stock sinking below its year-to-date breakeven level.
So far today, 64,000 calls and 27,000 puts have traded hands -- four times the intraday average options volume. The weekly 8/11 11-strike call is the most active contract by far, with new positions being opened there.
Options traders were quite bullish ahead of today too. Lyft stock's 50-day call/put volume ratio of 1.53 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 93% of readings from the past year. An unwinding of some of this optimism could create headwinds for the shares as well.
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1 year ago
Lyft shares fall 8% as management comments overshadow earnings beat
By: Investing.com | August 9, 2023
LYFT (NASDAQ:LYFT) shares fell nearly 8% in early Wednesday trade despite the ride-hailing company beating expectations for the second quarter and providing better than forecast guidance.
While shares rose initially, they quickly fell on cautious management commentary.
Adjusted earnings per share of 16 cents beat expectations for a 1 cent per share loss in the quarter. Revenue of $1.02 billion matched the consensus estimate.
Lyft sees third-quarter revenue of $1.13B to $1.15B, which is higher than Wall Street estimates.
CEO David Risher said: “Between summer travel and return-to-office commuting, folks are getting out more every day and loving the Lyft rideshare experience. Standard rides have reached their second-highest level ever.”
The company reported adjusted earnings before interest, taxes, depreciation, and amortization of $41 million, which is higher than its guidance for $20M to $30M.
Active riders rose 8.2% to 21.5M. The company sees third-quarter adjusted Ebitda of between $75M and $85M.
Bernstein analysts said the results show that headwinds facing Lyft's business still persist.
"Those Y/Y headwinds will persist through 2023, and Q4 has added challenges of insurance cost rising that will pressure the run-rate margins of the business. Nonetheless, we appreciate management getting out ahead of the tough Q4 set-up and offering some rough guidance. The attention can now shift to 2024, where revenue growth should re-accelerate towards trip growth (assuming stable pricing and take rate), but the underlying earnings power and FCF generation of the model remain outstanding questions," the analysts said.
Susquehanna analysts added that the management commentary about second-half of the year led "to another noisy report."
"It appears that LYFT’s competitive pricing initiative will continue to weigh on the unit economics, and the upcoming insurance renewals could add some noise on the cost side later in the year. Given these issues and potential for near-term turbulence, we remain Neutral."
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1 year ago
Lyft (LYFT) shares rising after beating expectations, forecasting higher revenue
By: Investing.com | August 8, 2023
LYFT Inc (NASDAQ:LYFT) shares were rising after the ride-hailing company beat expectations for the second quarter and provided better than forecast guidance.
Adjusted earnings per share of 16 cents beat expectations for a 1 cent per share loss in the quarter. Revenue of $1.02 billion matched the consensus estimate.
Lyft sees third quarter revenue of $1.13B to $1.15B, which is higher than Wall Street estimates.
CEO David Risher said: “Between summer travel and return-to-office commuting, folks are getting out more every day and loving the Lyft rideshare experience. Standard rides have reached their second-highest level ever.”
Shares rose 14% in after-hours trading and are up 5% so far this year.
The company reported adjusted earnings before interest, taxes, depreciation, and amortization of $41 million, which is higher than its guidance for $20M to $30M.
Active riders rose 8.2% to 21.5M. The company sees third quarter adjusted Ebitda of between $75M and $85M.
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1 year ago
Earnings Preview: Lyft Inc. (NASDAQ: LYFT)
By: 24/7 Wall St. | August 7, 2023
• Here is a look at what analysts expect to hear from these five companies due to report quarterly earnings after Tuesday’s closing bell.
Lyft
Ride-hailing operator Lyft Inc. (NASDAQ: LYFT) has suffered a share price decline of more than 37% over the past year. Rival Uber has meanwhile added nearly 42% to its share price, including a share price drop of nearly 15% last week after reporting quarterly results and noting that Lyft had begun competing effectively on pricing. Lyft’s stock took a 5% hit on its competitor’s report. How Lyft will turn profitable is a question investors will want to hear an answer for Tuesday afternoon.
The 43 analysts covering Lyft have cooled to its prospects, with 11 having a Buy or Strong Buy rating and 31 assigning a Hold rating. At a share price of around $11.00, the stock trades right at its median price target. At the high target of $32.00, the upside potential is 191%.
Second-quarter revenue is forecast at $1.02 billion, up 2.2% sequentially and 2.9% higher year over year. The company is expected to report an adjusted loss of $0.01 per share, compared to EPS of $0.07 in the prior quarter and EPS of $0.13 a year ago. For the full 2023 fiscal year, analysts anticipate EPS of $0.19, solidly better than last year’s loss per share of $1.50, on sales of $4.29 billion, up 4.8%.
Lyft stock trades at 55.9 times expected 2023 EPS, 23.0 times estimated 2024 EPS of $0.47 and 13.5 times estimated 2025 earnings of $0.81 per share. Its 52-week range is $7.85 to $21.52. Lyft does not pay a dividend, and total shareholder return for the past 12 months was negative 37.61%.
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1 year ago
Jump Financial LLC Boosts Position in Lyft, Inc. (LYFT)
By: MarketBeat | July 27, 2023
• Jump Financial LLC grew its holdings in shares of Lyft, Inc. (NASDAQ:LYFT) by 182.6% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm owned 739,306 shares of the ride-sharing company's stock after buying an additional 477,696 shares during the period. Jump Financial LLC owned 0.20% of Lyft worth $6,853,000 as of its most recent SEC filing...
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1 year ago
Short Interest in Lyft, Inc. (LYFT) Increases By 5.5%
By: MarketBeat | July 21, 2023
• Lyft, Inc. (NASDAQ:LYFT) saw a large growth in short interest during the month of June. As of June 30th, there was short interest totalling 45,020,000 shares, a growth of 5.5% from the June 15th total of 42,660,000 shares. Based on an average trading volume of 17,820,000 shares, the short-interest ratio is presently 2.5 days. Currently, 14.3% of the company's stock are sold short...
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1 year ago
Lyft, Inc. (LYFT) Shares Sold by ETF Managers Group LLC
By: MarketBeat | June 16, 2023
• ETF Managers Group LLC lowered its stake in Lyft, Inc. (NASDAQ:LYFT) by 6.5% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 521,561 shares of the ride-sharing company's stock after selling 36,063 shares during the quarter. ETF Managers Group LLC owned about 0.14% of Lyft worth $5,748,000 at the end of the most recent quarter...
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2 years ago
Lyft stock sinks as forecast falls short of estimates, while new CEO takes aim at Uber
By: Morningstar | May 4, 2023
First-quarter results beat estimates, but outlook weighs on stock
Lyft Inc. on Thursday reported first-quarter results that beat expectations, but a forecast that fell just shy of analysts' estimates weighed on the company's stock.
Lyft shares (LYFT) fell 15% after hours. They had dropped 1.8% in the regular session to close at $10.69 after a six-day positive streak.
Lyft forecast second-quarter revenue of $1 billion to $1.02 billion, and adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, of $20 million to $30 million. Analysts had expected revenue of $1.08 billion and Ebitda of $51 million.
The new chief executive of Lyft said in an interview with MarketWatch that he is looking ahead -- and "excited" about gaining market share in rides. CEO David Risher cited third-party data showing that Lyft gained some ground against its much larger rival, Uber Technologies Inc. (UBER), in the first quarter.
According to YipitData's numbers, Lyft's U.S. ride-hailing market share rose from 27% in February to 30% in mid-April, while Uber's market share fell from 73% to 70% in the same period.
"Riders are choosing Lyft, and when riders choose Lyft, drivers choose Lyft," Risher said. "In places like Portland and Phoenix, we're neck and neck with Uber."
Risher also talked about how his company is going to continue to try to compete with Uber: by emphasizing that Lyft drivers do just rides and not deliveries, which might make vehicles and therefore passengers smell like food. The company is doubling down on this message by launching a campaign titled "Shoulda Taken a Lyft" featuring TikTok influencer Delaney Rowe.
The company's new CEO, who had been a board member, has been at the helm for three weeks, after Lyft co-founder and CEO Logan Green and co-founder and President John Zimmer were pushed out from running the company in late March. The co-founders both remain on the board, and on Thursday were present for what Green said would be their last earnings call. Green also said "Lyft is our life's work" and said he and Zimmer were looking forward to continuing to serve on the board.
On the call, analysts repeatedly asked Risher about what's next. Risher touted cost cuts, such as the layoffs he announced shortly after he became CEO, as an example of his understanding of the urgency and need for improvement in the business.
Chief Financial Officer Elaine Paul said on the call that the company intends to use those cost savings toward driving more growth.
"Over time, with higher ride volumes, and higher margin opportunities, our economics will improve," Paul said.
Risher said he intends to share more about new products in the future, and expressed optimism about possible increased ridership as more companies call their employees back to the office.
Analysts also asked how Lyft can differentiate itself from Uber. Risher said Lyft would compete on price and on driving brand awareness, and that "we've been quiet for too long."
"When we execute well, share can move fast," he added. "Riders can vote with their app."
See: New Lyft CEO tells MarketWatch: 'I don't think of this as just an Uber battle. It's a battle against staying at home.'
Lyft said it had 19.55 million riders in the first quarter, compared with the 19.6 million analysts expected. Revenue per active rider was $51.17, higher than the $50.40 expected by analysts.
The company reported a first-quarter loss of $187.6 million, or 50 cents a share, lower than its loss of $196.9 million, or 53 cents a share, in the year-ago period. Adjusted for stock-based compensation, payroll taxes and more, net income was $27.7 million, or 7 cents a share. Revenue rose to $1 billion from $875.6 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast an adjusted loss of 10 cents a share on revenue of $981.7 million.
The company also reported Ebitda of $22.7 million, compared with the $14 million analysts expected.
Ebitda is not profit and is already an adjusted number, but some companies use the metric to further exclude additional items and show investors their progress toward profitability.
Lyft shares have fallen about 4% so far this year, while the S&P 500 index has risen about 6% year to date.
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2 years ago
Lyft beats quarterly estimates as price cuts pay off, forecast disappoints
By: Investing.com | May 4, 2023
(Reuters) - Lyft Inc (NASDAQ:LYFT)'s first-quarter revenue and core profit topped estimates on Thursday, benefiting from a strong ride-share demand and its move to cut prices to match larger rival Uber (NYSE:UBER), but it forecast second quarter below expectations.
The results follow job cuts by Lyft, which is trying to turn around its business under new CEO David Risher who took charge last month.
Risher said Lyft should be a "strong second player" in the North American rideshare market by the end of the year and expected to save about $330 million a year from cost cuts.
"We've seen really nice growth, our share is now north of 30% and earlier this year it was sort of in the mid-to-high 20s," he said in an interview to Reuters.
Lyft added 10% more riders to its platform in the first three months of 2023 as its strategy to cut prices paid off.
Revenue rose 14% to $1 billion and beat estimates of $981.4 million, but lagged the 72% surge posted by Uber's ride-sharing business.
As a dominant player in key global markets, Uber has been making the most of this year's rebound in travel demand from pandemic-induced lull.
Lyft's adjusted core earnings of $22.7 million also exceeded expectations of $12 million, according to Refinitiv data, despite a 13.2% rise in costs to $1.22 billion from a year ago.
But its revenue as well as core earnings forecast for the current quarter was below market expectations.
The company said it expected revenue of $1 billion to $1.02 billion, below estimates of $1.08 billion and core earnings of $20 million to $30 million, way behind expectations of $49.3 million.
On whether Lyft was being conservative with the outlook, Risher said, "when I say something I really want to have conviction that we're going to deliver."
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2 years ago
Lyft confirms 'significant' job cuts, maintains Q1 guidance
By: Investing.com | April 21, 2023
Lyft (NASDAQ:LYFT) maintained its first-quarter guidance in an announcement on Friday but revealed it will "significantly reduce the size of the team" as part of a restructuring.
In an email to employees, Lyft CEO David Risher said the restructuring will take place to focus on better meeting the needs of riders and drivers. The announcement follows a report by the WSJ earlier in the day that said the company plans to cut 1,200 or more jobs in a new round of layoffs.
Lyft anticipates Q1 revenue to be around $975 million, with adjusted EBITDA expected to be between $5M and $15M. The company's shares are up just under 1% on Friday, trading around the $9.93 mark at the time of writing. However, in 2023 it has declined by over 13% and fallen more than 73% in the last 12 months as it struggles to keep up with rival Uber (NYSE:UBER).
Lyft is reducing its workforce in order to cut costs and become a "faster, flatter" company. The ride-sharing firm said it will use the savings to invest in competitive pricing, faster pick-up times, and better driver earnings.
Risher, who formally started as Lyft CEO on April 17, said in his email that employees will be sent an email with their employment status next Thursday, and all offices will be closed on the day.
"I know this creates uncertainty between now and then, but given how many of you know or suspect this is coming, we wanted you to be prepared," the email states.
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2 years ago
Lyft's stock hits intraday low, on track to close at lowest price ever
By: Morningstar | March 2, 2023
Shares of the ride-hailing company have declined five out of the past six days
Lyft Inc.'s stock, which has declined five out of the past six days, hit its lowest intraday trading level Thursday and is on track to close at a record low.
Less than a month ago, Lyft (LYFT)reported fourth-quarter results and an outlook that fell short of Wall Street expectations, causing its shares to tank 36%. Since then, the ride-hailing company's stock has closed lower in regular trading more times than it has closed higher.
Lyft shares are down 2% to $9.70 in midday trading Thursday. They traded as low as $9.52 Thursday, an all-time low. Their previous record low, reached on Dec. 27, 2022, was $9.87.
Though the company last month reported record fourth-quarter revenue for the second quarter in a row, its first-quarter revenue forecast fell below the $1 billion analysts expected, and its executives signaled they would need to increase spending to remain competitive with the company's bigger rival, Uber Technologies Inc. (UBER).
Several analysts downgraded Lyft's stock and cut their price targets after the company's earnings call, with Wedbush analyst Daniel Ives calling it a "top 3 worst call we have ever heard."
This week, Bernstein analysts wrote: "Uber continues to take market share, with healthy incremental margins; investors worried about price competition from Lyft but for now we think risk is low, and view Lyft's actions as more of an effort to close the gap to Uber."
Lyft's stock is down 12% year to date and is off 75.9% from its 52-week closing high of $40.16 on March 29, 2022. Uber's stock is up about 34% so far this year.
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DiscoverGold
2 years ago
33,997 Shares in Lyft, Inc. (LYFT) Bought by Victory Capital Management Inc.
By: MarketBeat | February 10, 2023
• Victory Capital Management Inc. acquired a new position in shares of Lyft, Inc. (NASDAQ:LYFT) in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 33,997 shares of the ride-sharing company's stock, valued at approximately $448,000...
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