Lyft revenue plummeted 60% in three months

By: Miguel A. Rodriguez

09:45, 14 September 2020

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!


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.