Lyft share price down 1% despite Q1 results revenue beat
The rideshare company beats revenue estimates and reports major losses in its first earnings report.
Lyft share price is down in volatile US afterhours trading after the rideshare app’s first earnings report since launching its initial public offering( IPO) earlier this year.
Lyft share price down despite Q1 results revenue beating estimates
Lyft’s Q1 earnings per share was -$9.02, far more than Wall Street’s expectations of losses between $0.63 -$4.73. The losses per share totaled $211.5 million, adjusted for stock compensation for employees and other expenses. Lyft’s Q1 revenue was $776 million, exceeding expectations of $739.5 million. Lyft’s IPO has been volatile since its launch in March 2019. Since the IPO launched at $72 a share, Lyft share price has fallen to $13 off its original price.
Lyft’s chief executive officer, (CEO), Logan Green, spoke about the positive results of Lyft’s Q1 revenue.
‘The first quarter was a strong start to an important year, our first as a public company. Our performance was driven by the increased demand for our network and multi-modal platform, as Active Riders grew 46% and revenue grew 95% year-over-year,' said Green.
'Transportation is one of the largest segments of our economy and we are still in the very early stages of an enormous secular shift from personal car ownership to Transportation-as-a-Service,’ added Green.
What could Lyft’s Q1 earnings mean for Uber stock?
Though Lyft’s competition is Uber, Uber's IPO launch won’t reportedly occur until later this week. Lyft’s IPO is likely a caution to Uber about how much rideshare companies can lose before turning a profit. Uber’s share price is projected to be between $44-50 per share. Lyft’s Q1 results could mean that Uber’s IPO will face volatility as well.
What’s next for Lyft’s Q2 earnings?
Lyft’s Q2 earnings per share is expected to be between $800 million and $810 million. The corporation’s Q2 revenue is expected to be $3.275 billion and $3.3 billion. Both those figures are higher than the estimates of financial analysts.
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