Lyft revenue plummeted 60% in three months

Lyft revenue plummeted 60% in three months

Worse-than-expected Q2 earnings for Lyft

After the pandemic took over the world, the ride-sharing businesses crashed. That dip translated into a weak Q2 earnings report, as it did for Lyft.

It reported a loss of $1.41 per share, totaling $437.1 million. It topped the $339 million, or $1.05/share consensus.

Revenue figures came in at $339.3 million, 60% lower than last year’s $867 million.

The number of active riders decreased by 60% in Q2, from$21.8 million to $8.7 million.

Although it lost on auto vehicle rides, it gained in bike and scooter rentals. The rentals increased 200% in just three months, as people preferred “open-air” transportation. Lyft has a glimmer of hope for its business, as rides increased by 78% in July.

On top of the low figures, Lyft is under scrutiny as it has to classify its drivers as employees and not as contractors. Currently, the company is waiting to see if it wins an appeal for the injunction granted by the San Francisco Superior Court. According to Lyft, in case of losing, it might shut down the California operations. Its rival, Uber, said it would halt its service in the same state through November.

For the rest of the year, Lyft didn’t provide guidance, given the uncertainty surrounding the pandemic-induced crisis.

During today's pre-market session, it lost 0.45%. Since the beginning of the year, the stock lost 29.1%, while USA500 went up 4.4%.

Read about Uber Q2 performance here!

Sources: cnbc.com, finance.yahoo.com, marketwatch.com


The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.