Earnings Results: Lyft stock sinks nearly 30% after sales outlook falls short of $1 billion

by | Feb 9, 2023 | Stock Market

Lyft Inc. posted record revenue for a second consecutive quarter Thursday, but the company’s worse-than-expected forecast tanked its stock in extended trading. Lyft
expects first-quarter revenue of $975 million, falling shy of the $1.09 billion Wall Street analysts surveyed by FactSet expected. The company also said it expects adjusted earnings before interest, taxes, depreciation, and amortization, known as Ebitda, of between $5 million and $15 million. Analysts expected $81 million and earnings of 41 cents a share.

The company’s shares sank more than 20% in after-hours trading immediately after the release of the report, and to nearly 30% after the executives’ earnings call with analysts began. The stock had declined nearly 3.2% in the regular session to close at $16.22. Lyft stock has been down four of the past five days, and has lost almost 10% in the past two days. In an interview with MarketWatch, Lyft co-founder and President John Zimmer said the company’s first-quarter outlook is affected by seasonality in rides and bikes. “When it snows, there are less bike riders,” Zimmer said. “The seasonality is across the industry.” He also said prices are “dramatically” lower in the first quarter, which he said is good for riders but will impact quarter-over-quarter growth. On the compan …

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