Lyft Q1 2022 Results

A traveler arriving at Los Angeles International Airport seeks ground transportation during a statewide day of action demanding that ride-sharing companies Uber and Lyft obey California law and grant passengers ‘Basic Employee Rights’ drivers in Los Angeles, California, USA on August 20, 2020.

Mike Blake | Reuters

Lyft shares lost more than a quarter of their value in after-hours trading on Tuesday after the company provided weak guidance for the second quarter and warned investors that it will have to keep spending on driver incentives.

Here are the key numbers:

  • Earnings per share: 7 hundred adj. vs 7 cent loss expected in Refinitiv analyst survey
  • Revenue: $876 million vs $846 million expected by Refinitiv
  • Active runners: 17.8 million vs. 17.9 million expected, per FactSet
  • Revenue per active passenger: $49.18 vs $47.07 expected, according to StreetAccount

For the second quarter, Lyft said it expects revenue of between $950 million and $1 billion. Wall Street estimated $1.02 billion per StreetAccount.

The stock fell 27% to $22.50 in extended trading. If it opens there on Wednesday, it will be the lowest share price for Lyft since October 2020. Archrival Uber, which reports quarterly results on Wednesday, also dipped on Lyft’s results, falling more than 9% after market close.

Lyft reported a net loss for the quarter of $196.9 million compared to a net loss of $427.3 million in the same period of 2021. The company said its loss included $163.2 million stock-based compensation and related payroll taxes.

The ride-sharing company reported 17.8 million active riders, narrowly missing estimates. It’s also down from the fourth quarter when Lyft said it had 18.73 million active passengers.

Lyft has invested heavily in driver incentives during the Covid pandemic and recovery, which has strained finances. The supply of drivers had appeared to level off, but as petrol prices soared across the country due to the war in Ukraine earlier this year, some investors feared drivers would leave their respective platforms and that companies are forced to increase their incentives.

Lyft said on its call with analysts that it will invest more in driver subsidies in the next quarter, although it believes it will help “pay in a healthier market.” It is unclear how much the company will spend.

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