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    QONEQT in News

    08-Nov-2022 05:30 AM


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    Lyft shares plunge after dull revenue forecast, slowing rider growth

    Ride-hailing firm Lyft Inc (NASDAQ:LYFT) on Monday forecast current-quarter revenue below Wall Street estimates as user growth on its platform slows, losing out to bigger rival Uber Technologies (NYSE:UBER) Inc and sending its shares down 13%.
    But revenue per active rider increased 13.7% to $51.88, the highest growth compared to the prior two quarters.
    Lyft executives, however, on a post-earnings call told analysts they were not seeing any concerning macro trends going into the fourth quarter, and were betting on cost-cutting efforts - from headcount reduction to closing office spaces - and demand to boost profitability and growth.
    "Historically in a recessionary environment ... transportation is durable because we need to get around, but delivery and takeout is less durable," Lyft President John Zimmer said in an interview.
    For the fourth quarter, the company expects revenue between $1.15 billion and $1.17 billion, while analysts expect $1.17 billion, according to Refinitiv IBES data.
    Source: Investing.com
    #Lyft