Lyft Inc (NASDAQ: LYFT) announced its quarterly earnings after markets closed on Wednesday, its second since making its public debut in March this year. The ride-hailing company reported strong revenue growth in the second quarter, but losses swelled as it ramped up its operations.
The results, nonetheless, surpassed Wall Street forecasts. Lyft also provided a rosy guidance for the full year, sending its shares up 10% in the after-hours trading session.
However, the stock lost the gains after the company revealed in its earnings call that its share lock-up period would end on August 19, 2019 from September 24. Lyft forecasts that nearly 257.6 million shares could become eligible for sale once the lock-up period expires.
LYFT Earnings & Outlook
Lyft had a net loss of $644.2 million, or $2.23 per share in Q2 2019, compared with a net loss of $178.9 million, or $8.48 per share in the same period of 2018. Management said net loss for Q2 2019 included $296.6 million of stock-based compensation and related payroll tax expenses, primarily due to RSU expense recognition in connection with its initial public offering.
Adjusted loss per share came in at $0.68 per share, well above $1.74 per share expected by analysts. The San Francisco-based company generated revenue of $867 million, a 72% increase from the same period last year. Analysts surveyed by Refinitiv expected revenue of around $809 million.
For the full year, the company expects revenue of between $3.47 billion to $3.5 billion, compared with its earlier outlook of $3.275 billion to $3.3 billion. Lyft also views EBITDA losses of $850 million to $875 million, from its previous forecast for EBITDA losses of $1.15 billion to $1.175 billion.
Lyft CEO Comments
“Lyft’s second quarter was marked by strong execution and important advances in our product and platform. This translated to record revenue driven by better than expected Active Rider growth and Revenue per Active Rider monetization,” said Logan Green, co-founder and chief executive officer of Lyft.
“We remain focused on reshaping transportation and we are pleased with the continued improvement in market conditions. This environment along with our execution is translating to strong revenue growth and sales and marketing efficiencies. As a result of this positive momentum, we anticipate 2019 losses to be better than previously expected and we are pleased to have updated our outlook,” Green added.
Lyft Inc Profile
Lyft is the second largest ride-sharing service provider in the U.S., connecting riders and drivers over the Lyft app. Lyft has recently entered the Canadian market, in efforts to expand its market outside of the U.S.
Incorporated in 2013, Lyft offers a variety of rides via private vehicles, including traditional private rides, shared rides, and luxury ones. Besides ride-share, Lyft also has entered the bike- and scooter-share market to bring multi-modal transportation options to users. – Warrior Trading News
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