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The Markets
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Software & services

Lyft shares in reverse as earnings 'beat' fails to impress Wall Street

Lyft Inc (NASDAQ:LYFT) shares fell despite the ride-share company raising its third-quarter outlook above Wall Street estimates and posting an earnings beat for the second quarter after the closing bell on Tuesday.

For 2Q, which ended on June 30, 2023, Lyft's earnings per share topped expectations at $0.16, $0.17 better than the forecast loss per share of $0.01.

Revenue of $1.02 billion was up 3% year-over-year and in line with the consensus analyst expectation per Zacks Consensus Estimate.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $41 million, above the Street forecast of $27.9 million and compared to negative $196.3 million in the same quarter in 2022.

Lyft also narrowed its net loss from $377.2 million in the year-ago quarter to $114.3 million in 2Q.

However, revenue per user fell 5% to $47.51, below estimates of $48.38.

For 3Q, the company forecast revenue between $1.13 billion and $1.15 billion, above the Street estimate of $1.09 billion.

It also guided adjusted EBITDA between $75 million and $85 million, above the expected $49.7 million.

Lyft's largely 2Q positive results, though, did not impress investors. After initially spiking as much as 14% on its results, Lyft shares then fell to trade down 4.3% at $11.06 in after-hours trading on Tuesday evening.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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