Although still losing money, Lyft exceeded analyst expectations for Q1 earnings
Lyft had a rough time in getting its money right, but now it is even harder as the pandemic measures are enforced for more than one and a half months. Yesterday, the ride-hailing company released its financial report for the first quarter of 2020.
Losses were still high, but compared to the same period last year, their trend is positive. The decline in revenue was $398.1 million in contrast with the previous year's $1.14 billion. The company lost “only” $1.31 per share from last year's $48.53 per share. This year, the expectations were of a loss of 62 cents per share on sales of $882 million. The revenue went up by 23% to $955.7 from $776 million.
The figures came as a surprise after the company leadoff accounted for 17% of the workforce. Besides the 982 layoffs, another 288 employees are in furlough.
Wednesday the stock price went up almost 17% in after-hours trading. It continued to rally Thursday when it added 14% in premarket.
Overall, the ride-hailing industry was walloped by the pandemic, with an 85% drop in demand in most cities, according to a report released by Barclays on April 20. Analysts expect a swift rebound as the containment measures ease, and people will be able to go out.
Lyft’s stock hurtled 51% in the past year, while USA500 lost 1.1%.
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Sources: cnbc.com, marketwatch.com
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