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Lyft reports weaker guidance after surprise loss in Q4; Shares sink

Published 2023-02-09, 04:52 p/m
© Reuters.
LYFT
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By Yasin Ebrahim

Investing.com --  Lyft reported Thursday a surprise fourth-quarter loss and guidance that fell short of Wall Street estimates as margins were pressured by rising costs. 

LYFT (NASDAQ:LYFT) fell more than 23% in aftermarket hours.

Lyft reported a loss of $0.74, missing estimates for earnings of $0.15 a share, but revenue of $1.18 billion just topped consensus estimates of $1.16B.

Active riders on its platform jumped 8.7% to 20.4 million in the fourth quarter from the same period last year, while revenue per active rider increased 11.5% to $57.72 year-over-year.

The contribution margin fell to 35.3% from 47.1% in the quarter.

For Q1, the ride-hailing company guided revenue of $975M, but that was lower than Wall Street estimates for $1.10B.

"Our Q1 guidance is the result of seasonality and lower prices, including less Prime Time," the company said.

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