Lyft beats third-quarter estimates, bookings underperform rival Uber
LYFT reported third-quarter revenue and profit surpassing estimates on Wednesday, but gross bookings growth was lower than larger rival Uber’s ride-hailing business.
Gross bookings, which is a metric Lyft started disclosing in the third quarter measuring total transaction value on its platform, grew 15 per cent from a year earlier, compared with a 31 per cent jump in Uber’s mobility business.
Shares of Lyft fell nearly 4 per cent in extended trading.
While analysts and investors believe Lyft will maintain its position as the second-largest ride-hailing platform, they said it is more susceptible to economic uncertainty.
“Softening macro conditions will likely impact Lyft more than its larger peer, Uber,” said Angelo Zino, senior equity analyst at CFRA Research.
Lyft commands 29 per cent of the ride-hailing market as of September, slightly higher than the 27 per cent market share it had at the start of the year, according to YipitData, after it said it will price its rides competitively rival Uber.
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“While operating from a more efficient cost structure is certainly part of our formula, it is by no means the only part of the margin expansion equation,” chief financial officer Erin Brewer told Reuters.
Brewer added that an improved mix of airport rides, scheduled rides and priority pickups also helped margin expansion.
Lyft forecast current-quarter adjusted core profit, a key profitability metric closely watched by investors, of US$50 million to US$60 million, higher than expectations of US$48.8 million, according to LSEG data.
Adjusted profit in the third quarter stood at 24 cents per share, compared with estimates of 13 cents.
Lower prices helped Lyft serve 22.4 million active riders, which jumped 10 per cent compared with a year earlier.
Lyft said it expects fourth-quarter revenue to grow in mid-single-digits sequentially, compared with market expectation of 4.6 per cent growth, according to Reuters calculations.
Revenue grew 10 per cent to US$1.16 billion in the quarter ended Sept 30, surpassing analysts’ average estimate of US$1.14 billion.
Lyft’s adjusted core earnings of US$92 million in the third quarter topped expectations of US$82.6 million. REUTERS
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