NEW YORK: Lyft Inc posted a jump in revenue in its second-quarter results, allowing the ride-hailing company to lift its forecasts as more riders used the service and price competition with rival Uber eased.
The company boosted its revenue outlook for the year to above Wall Street estimates and estimated third-quarter sales would exceed expectations, sending shares up as high as 11 per cent after hours before they came down to a 1.8 per cent increase. A loss of $2.23 per share in the quarter was worse than the $1.74 per-share loss expected, on average, by analysts, according to IBES data from Refinitiv.
Lyft also said its lock-up period — the time after a public offering in which large shareholders are prohibited from selling shares — would come early, August 19 instead of September 24.
Shares of Uber Technologies Inc rose after Lyft posted results, rising 2.6 per cent in after-hours trade.
Lyft’s 72 per cent jump in revenue was fuelled by more active riders, who spent about a quarter more than they had a year ago.
“Wall Street has been eager for us to demonstrate our path for profitability,” Chief Financial Officer Brian Roberts said, saying strength in Lyft’s core ride-hailing business would “allow us to deliver more operating leverage.”
Roberts said that pricing for rides had become “more rational” in the quarter, meaning that Lyft spends less on promotions to beat rival Uber.
Shares of Lyft are down 25 per cent since their market debut on March 29, erasing about $5 billion from its market capitalisation, as investors continue to question whether the ride-hailing industry can be profitable. — Reuters
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