Lyft's stock experienced a significant decline of approximately 15% during after-hours trading on Thursday, 4th May following the release of a second-quarter forecast that was lower than expected.
Analysts surveyed by Refinitiv provided the following performance summary for the first quarter:
– Adjusted loss per share: 7 cents, slightly higher than the expected loss of 6 cents.
– Revenue: $1 billion, surpassing the expected revenue of $981 million.
Lyft disclosed a net loss of $187.6 million, which includes stock-based compensation costs and associated payroll expenses amounting to $186.6 million. In comparison, during the same period in the previous year, the company reported a loss of $196.9 million.
Lyft anticipates second-quarter sales to range between approximately $1.0 billion and $1.02 billion, falling short of analysts' projections of $1.08 billion according to Refinitiv.
Regarding adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), the company stated it would be in the range of $20 million to $30 million. On average, analysts surveyed by Refinitiv were expecting an EBITDA of $49.3 million.
In the first quarter, revenue experienced a 14% increase compared to the previous year, rising from $875.6 million.
“We’re improving our rideshare service and are thrilled with the early results, Riders are taking more rides and drivers have the power to earn more.” Lyft CEO David Risher said in a statement.
Before the decline in after-hours trading, Lyft shares had experienced a 50% decrease in value over the past year.
