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 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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.