Lyft
shares were falling Wednesday despite the company’s narrower losses. New CEO David Risher is still fighting an uphill battle to convince investors the ride-hailing company can take on
Uber Technologies.
Lyft
(ticker: LYFT) shares were down 7.8% in premarket trading after the company reported its second-quarter earnings late on Tuesday. While Lyft’s quarterly losses narrowed, its revenue growth was considerably slower than
Uber
‘s (UBER) as it seeks to compete on price.
Lyft’s net loss narrowed to $114.3 million from $377.2 million in the same period a year earlier as revenue grew 3% to $1.02 billion. Risher has cut hundreds of jobs at the company since joining in April and looked to put the savings into competitive prices.
By comparison,
Uber
reported its first-ever quarterly operating profit and a 14% revenue jump to $9.2 billion in its own second-quarter report last week. Uber shares were flat in premarket trading.
Lyft’s quarterly adjusted earnings before interest, tax, depreciation and amortization came to $41 million and it ended the quarter with 21.49 million active riders, up from 19.86 million in the same period a year earlier.
Analysts at KeyBanc Capital Markets said Lyft’s adjusted earnings were significantly ahead of their expectations but its guidance had multiple moving parts which would create debate.
Executives said on the company’s earnings call that they expect a 20% increase in ride-share volume growth for the third quarter from the previous year but a lower rise in revenue due to competitive pricing.
Lyft said that for the third quarter it expects revenue of approximately $1.13 billion to $1.15 billion, up 7% to 9% from the prior year. It expects adjusted Ebitda between $75 million and $85 million.
Write to Adam Clark at [email protected]
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