Lyft Inc (NASDAQ:LYFT) shares dropped 3.3% after hours and are set to fall another 1.7% at the New York open, following a quarterly revenue miss that overshadowed an improved gross bookings outlook for the coming quarter.
Turnover for the second quarter reached $1.59 billion, below analyst expectations of $1.61 billion.
Despite this, Lyft posted earnings of 10 cents per share, more than double the consensus forecast, driven by increased use of its higher-margin premium ride-hailing services.
Rides grew 14% to a record 234.8 million but narrowly missed analyst estimates. Lyft's revenue growth of 10.6% lagged behind rival Uber’s 18.8% increase in its core ride-hailing business.
Lyft recently completed its $200 million acquisition of European platform FreeNow and signed a deal with Baidu to introduce robotaxis in Europe.
The company also announced a new partnership with United Airlines, allowing customers to earn rewards on Lyft rides, building on existing collaborations with DoorDash and Chase.
Looking ahead, Lyft expects third-quarter gross bookings between $4.65 billion and $4.80 billion, ahead of analyst forecasts.
Adjusted core earnings rose to $129.4 million, exceeding expectations. Investors remain cautious due to Lyft’s slower growth and smaller market share compared to Uber.