Shares in Lyft Inc (NASDAQ:LYFT) tanked 14% premarket after it provided lower-than-expected guidance for the current quarter and despite a maiden quarterly profit from the ride-hailing giant.
In the three months ended June 30 (Q2), gross bookings grew by 17% to $4 billion, leading to a 41% rise in revenue to $1.4 billion.
This resulted in a net income of $5 million, a significant improvement from the $114 million loss recorded the previous year, surpassing analyst expectations of another loss.
CEO David Risher credited the profitable growth to a strong focus on customer satisfaction.
However, for the third quarter, Lyft projected gross bookings between $4 billion and $4.1 billion, and adjusted EBITDA of $90 million to $95 million, falling short of the $4.15 billion and $103 million consensus forecasts.
Ahead of the bell, the stock was off $1.50 at $9.47, valuing the business at $4.6 billion, a fraction of the $140 billion market cap of rival Uber.