A traveler arriving at Los Angeles International Airport searches for ground transportation during a day of statewide action to demand ride-hailing companies Uber and Lyft comply with California law and issue drivers “basic employee rights” in Los Angeles, California, USA, August 20, 2020.
Mike Blake | Reuters
Shares of Lyft lost more than a quarter of their value, falling as much as 26% in overtime trading on Tuesday after the company came to light second quarter guidance and warned investors that they would have to keep spending on driver incentives.
Here are the key numbers:
- Earnings per share: 7 cents adj. compared with an expected loss of 7 cents in a Refinitiv survey of analysts
- Turnover: $876 million versus $846 million expected by Refinitiv
- Active racer: 17.8 million versus 17.9 million expected, according to FactSet
- Revenue per active rider: $49.18 vs $47.07 expected, according to StreetAccount
For the second quarter, Lyft said it expected revenue between $950 million and $1 billion. Wall Street is estimated at $1.02 billion, according to StreetAccount.
Lyft reported a net loss for the quarter of $196.9 million compared with a net loss of $427.3 million for the same period in 2021. The company said its loss included $163.2 million in compensation usually based on stock and associated payroll tax costs.
Lyft reported 17.8 million active riders, missing estimates. It also fell from Q4 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 weighed on finances. Driver supply appears to be stable but as gas prices rose across the country due to the war in Ukraine earlier in the year, some investors feared drivers would leave their respective platforms and companies would have to increase incentives. .
Lyft said on the call with investors that it will invest more in subsidies for drivers next quarter, though it believes that will help “pay in a healthier market.” It is not clear how much the company will spend.
