Lyft Q3 2022 Results

A traveler arriving at Los Angeles International Airport seeks ground transportation during a statewide day of action demanding that ride-sharing companies Uber and Lyft obey California law and grant passengers ‘Basic Employee Rights’ drivers in Los Angeles, California, USA on August 20, 2020.

Mike Blake | Reuters

Shares of Lyft closed down 22% on Tuesday, a day after the company reported worse-than-expected third-quarter earnings, and active runners missed analyst estimates.

Here’s how the company did it:

  • Earnings: 10 cents per share, adjusted, from 7 cents per share, according to analysts polled by Refinitiv
  • Revenue: $1.05 billion, down from $1.06 billion, according to analysts polled by Refinitiv

The ride-hailing company saw 20.3 million active riders in the third quarter, below the 21.2 million forecast by Wall Street, according to StreetAccount. The number of people using its service also remains below pre-pandemic levels. Lyft had 22.9 million active passengers in the fourth quarter of 2019, for example.

Revenue of $1.05 billion was also lower than the $1.06 billion expected by analysts. That represented 22% year-over-year growth, marking the slowest revenue growth in more than a year.

Mixed results come next Uber last week beat analysts’ revenue estimates and said passenger numbers were higher than before the pandemic, putting pressure on its ride-hailing rival to prove it can recover from its pandemic crisis.

Lyft recently joined a slew of tech companies in cutting costs amid a deteriorating economic outlook. The company announced last week that it would cut 13% of its workforce, citing expectations of a looming recession next year and rising carpool insurance costs.

Lyft CEO Logan Green said on the company’s earnings call that he saw no concerning macroeconomic trends in the fourth quarter. For the current quarter, Lyft said it expects to report revenue between $1.15 billion and $1.17 billion, which is in line with consensus estimates of $1.16 billion, according to StreetAccount.

LOOK: Lyft beats EPS but lacks revenue and active passengers

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