February 10, 2023

Lyft sinks 30%+ after hours as weak Q1 guidance disappoints Wall Street (update)

Lyft (NASDAQ:LYFT) sank more than 30% in extended-hours trading on Thursday after it said its first-quarter would be much weaker-than-expected.

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Looking to the first-quarter, Lyft (LYFT) expects revenue to be approximately $975M, well below the $1.1B that analysts anticipate. It expects adjusted EBITDA between $5M and $15M.

Uber (NYSE:UBER), which competes with Lyft (LYFT), fell about 1.6% in extended hours.

During the fourth quarter, Lyft (LYFT) generated $1.2B in revenue, up 23.7% year-over-year, topping estimates by $50M. It had 20.36M active riders, who generated on average $57.72 during the period, up 11.5% year-over-year.

It had an adjusted EBITDA loss of $248.3M and an adjusted net loss of $270.8M.

Lyft (LYFT) also recorded $29.5M in severance-related charges during the period, related to its November-announced job cuts.

It also expects an impairment charge of about $3M in the first-quarter related to the layoffs, along with $9M in lease termination penalties as it consolidates its office space.

Earlier this week, investment firm Gordon Haskett downgraded Lyft (LYFT), citing the stock’s sharp move since the start of the year as well as its preference for Uber Technologies (UBER).

Now read: Why did AppLovin stock soar today? Thank strong Q1 guidance

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