Earnings Results: Lyft stock sinks 14% despite price increases driving record revenue

by | Nov 7, 2022 | Stock Market

Lyft Inc. attracted fewer customers in the third quarter than Wall Street expected, but record-high ride-hailing prices sent the company to its highest quarterly revenue ever anyway, executives said Monday. Lyft
LYFT,
+2.91%
shares fell 14% in after-hours trading, after rising almost 3% in the regular session to close at $14.14. Lyft stock has declined 67% so far this year and is on track for its worst year on record, while the S&P 500 index
SPX,
+0.96%
has fallen about 20% year to date.

The ride-hailing company reported seeing its highest numbers of active riders, rides and drivers since the beginning of the COVID-19 pandemic, though its 20.3 million riders in the third quarter fell short of analysts’ expectation of 21.2 million. Revenue per active rider climbed to a record high of $51.88, up 4% from the previous quarter and an increase of 14% year over year, which the company attributed to an increase in long trips as airport rides continued to recover. That blew past analysts’ expectations of $49.40. “We had a lot of challenging execution that we had to pull off over the last few years,” Lyft co-founder and President John Zimmer told MarketWatch in an interview Monday. “That’s behind us.” The company’s main message is it is intent on combining what it expects will be continued growth and recovery from the pandemic with cutting its way to profita …

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