: Lyft rides price increases to record revenue, but stock still sinks

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 more than 8% in after-hours trading immediately following the release of the results, after rising almost 3% in the regular session to close at $14.14.

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. 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 announced last week that it was laying off 13% of its workforce, or almost 700 people, which Zimmer said was a “proactive move to make sure 2023 is a year we could focus on execution.” Lyft did not change its forecasts and is guiding for fourth-quarter results that are in line with analyst expectations. Lyft’s third-quarter revenue rose to $1.05 billion from $864 million in the year-ago quarter, though it reported a net loss of $422 million, or $1.18 a share, compared with a loss of $99 million, or 30 cents a share, in the year-ago period. Adjusted net income was $36.7 million, or 10 cents a share. The company attributed much of its loss to $224.1 million in …

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