Lyft was the latest casualty of what’s been a brutal earnings season for tech stocks. Shares were sinking in extended trading after the ride-hailing firm’s outlook disappointed Wall Street.
Lyft reported a net loss of $196.9 million, or 57 cents a share, compared with Wall Street’s consensus estimate for a net loss of 54 cents a share. Revenue of $875.6 million was ahead of estimates for $848.9 million. Non-GAAP net income of $24.6 million, or 7 cents a share, compared with expectations for a net loss of 7 cents a share, according to FactSet. Active riders of 17.8 million jumped 32% year over year while revenue per active rider hit $49.19.
Lyft stock sank 26% in after-hours trading. Shares of its rival Uber Technologies (UBER) dropped 10%.
Lyft shares extended losses during the company’s earnings call as management unveiled its outlook. The company expects second-quarter revenue between $950 million and $1 billion, below consensus estimates for $1.02 billion, according to FactSet. Its guidance for adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, of between $10 million and $20 million was well below analyst expectations at $83.1 million, according to FactSet.
Chief Financial Officer Elaine Paul said the firm planned to invest in driver supply during the second quarter.
“This will set us up for the long term and ensure we’re doing everything we can to take care of drivers and riders with the best possible experience,” Paul said according to a transcript provided by Sentieo. “We also expect to invest in key business initiatives to support the continued growth of our company.”
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