Stock Groups

Lyft earnings Q1 2022

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An individual arrives at Los Angeles International Airport and searches for ground transport. This is during the statewide day-of-action to demand that Lyft and Uber follow California law.

Reuters| Reuters

The shares of LyftAfter the company gave light, more than 25% of their value was lost. The stock dropped as high as 26% after-hours trading on Tuesday. second-quarter guidanceInvestors were warned that it would continue to spend on incentives for drivers.

These are the main numbers

  • Earnings per share: 7 cents adj. In comparison to the loss of 7cs anticipated in an analyst survey by Refinitiv
  • Revenue: $876 million vs $846 million expected by Refinitiv
  • Active riders: 17.8 million vs 17.9 million expected, per FactSet
  • Revenue per active rider: $49.18 vs $47.07 expected, according to StreetAccount

Lyft stated that it expected revenue to range between $950m and $1billion for its second quarter. StreetAccount reports that Wall Street had estimated $1.02 Billion.

Lyft suffered a quarter-end loss of $196.9million, as compared with a loss in 2021 of $427.3million. The company said its loss included  $163.2 million of stock-based compensation and related payroll tax expenses.

Lyft had 17.8 million active users, which is close to the estimates. This is also down from 18.73 million active users Lyft reported in the fourth quarter.

Lyft invested heavily in driver incentive programs during and after the Covid pandemic. This has had a negative impact on its financials. Although the supply of drivers seemed stable, investors worried that drivers might leave the platforms they work for and increase the incentives.

Lyft told investors during its conference call, that it plans to invest more in driver subsidy in the fourth quarter. But it also believes this will lead to a “healthier marketplace.” The company has not yet disclosed how much.

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