Lyft shares went into reverse in after-hours trading on Thursday after the ride-share company posted an earnings miss while revenue outperformed expectations for the first quarter.
For the quarter ended March 31,2023, Lyft posted a loss per share of $0.50, which was an improvement from the year-ago quarter where it recorded a loss per share of $0.57, but missed Zacks consensus estimate of a loss per share of $0.09.
Revenue for the quarter, however, topped expectations at $1 billion, a 14% jump year-over-year, which Lyft attributed to rideshare strength.
Analysts had called for revenue of $976.9 million, and Lyft had guided for $975 million.
“Our 1Q performance was better than we anticipated as rideshare ride growth accelerated year-over-year for the first time in nearly two years,” said Lyft CFO Elaine Paul in a statement.
“In 2Q we will continue focusing on delivering service levels that riders and drivers expect. We’ve moved decisively to cut our operating costs and will use the savings to pay for continued service level improvements near-term.”
For the second quarter, the company expects revenue between $1 billion and $1.02 billion, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $20 million and $30 million, and an adjusted EBITDA margin of 2% to 3%.
The company's outlook disappointed investors, as Wall Street had been expecting 2Q revenue between $1.05 billion and $1.13 billion, as per Zacks.
Lyft shares fell more than double digits following the release of its first quarter results, trading down 11.1% at US$9.50 just after the closing bell in New York.
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