Yesterday we discussed Uber’s strongest quarter ever. Today we heard from its competitor Lyft, which did not fare nearly as well…and that’s putting it lightly. 😬
The ridesharing company reported an adjusted loss per share of $0.74. Revenues rose 21% YoY to $1.18 billion and outpaced the $1.16 billion expected.
While those numbers beat expectations, its guidance was where things fell apart. 👎
It now expects $975 million in revenue during its fiscal first quarter, below the $1.09 billion expected. Additionally, its adjusted EBITDA should fall between $5 and $15 million. The company said that guidance reflects seasonality and lower prices, including less “Prime Time.” Prime Time is where demand from passengers exceeds available drivers, which allows it to charge more per ride.
Additionally, ridership has still not recovered to its pre-pandemic highs of 22.9 million active riders. It reported 20.3 million active riders this quarter, reflecting zero growth QoQ. 🔻
Unlike Uber, Lyft has been unable to adequately diversify its business segments to drive growth. Instead, it’s undergoing restructuring to reduce operating costs as the macroeconomic environment remains challenging. ✂️
Given the poor outlook and lack of a turnaround plan, $LYFT shares are down 30% after hours. 📉
