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LYFT Shares Plunge Nearly 30% Since Q1 Earnings Release

·4-min read

Lyft LYFT reported better-than-expected first-quarter 2022 results owing to increase in Active Riders (riders who take at least one ride during a quarter on Lyft’s multimodal platform through its app). Despite the outperformance, shares of the company have declined 28.4% since the earnings release on May 3, primarily due to its bleak second-quarter guidance.

LYFT expects second-quarter revenues of $950 million-$1 billion, which indicates a sequential rise of 9-14%. The guided range falls short of the Zacks Consensus Estimate of $1.04 billion. Moreover, due to increased investments in drivers and marketing, the company estimates adjusted EBITDA to be only $10 million-$20 million in the second quarter. Contribution margin is expected to be approximately 56% in the second quarter.

Coming back to Lyft’s first-quarter 2021 results, adjusted earnings of 7 cents per share compared favorably with the Zacks Consensus Estimate of a loss of 7 cents. In the year-ago period, the company had incurred a loss due to significant decline in ride volumes as a result of coronavirus-led woes.

Lyft, Inc. Price, Consensus and EPS Surprise

Lyft, Inc. Price, Consensus and EPS Surprise
Lyft, Inc. Price, Consensus and EPS Surprise

Lyft, Inc. price-consensus-eps-surprise-chart | Lyft, Inc. Quote


Total revenues of $876 million outperformed the Zacks Consensus Estimate of $854 million. The top line jumped 44% year over year owing to 31.9% increase in Active Riders, which totaled 17.80 million in the reported quarter. This San-Francisco-based company’s Revenue per Active Rider increased 9% year over year to $49.18.

Lyft’s first-quarter performance reflects softness on a sequential basis due to Omicron-induced drop in ride trips in January. Total revenues decreased 10% quarter over quarter due to a 5% decline in Active Riders.

Lyft’s adjusted EBITDA in the first quarter was $54.8 million against adjusted EBITDA loss of $73 million in the year-ago period. However, the same declined $19.9 million sequentially. This marks the company’s fourth straight quarter of generating adjusted EBITDA profits. Adjusted EBITDA margin for the first quarter was 6.3% against adjusted EBITDA loss margin of 12% in the year-ago period. In the fourth quarter of 2021, adjusted EBITDA margin was 7.7%.

Total costs and expenses climbed 4.8% year over year to $1.07 billion in the quarter. Contribution improved 49% year over year to $502.5 million. Contribution margin increased to 57.4% from 55.4% in the year-ago period. Lyft, carrying a Zacks Rank #3 (Hold), exited the first quarter with unrestricted cash, cash equivalents and short-term investments of $2.2 billion compared with $2.3 billion at the end of 2021.

Performance of Other Computer & Technology Stocks

Within the broader Computer and Technology sector, Uber Technologies UBER, AMETEK, Inc. AME and T-Mobile US, Inc. TMUS recently reported earnings numbers.

Uber, carrying a Zacks Rank #3, incurred an adjusted loss of 18 cents per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 27 cents. The bottom-line improved year over year.

Uber’s total revenues of $6,854 million also outperformed the Zacks Consensus Estimate of $6,202 million. The top line jumped more than 100% year over year due to strong segmental performances and the November 2021 acquisition of Transplace.

AMETEK, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted earnings of $1.33 per share, which beat the Zacks Consensus Estimate by 4.7%. The bottom line rose 24% on a year-over-year basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMETEK’s net sales of $1.458 billion lagged the Zacks Consensus Estimate of $1.461 billion. However, the top line rose 20% year over year, driven by strong performances of the Electronic Instruments Group and Electromechanical Group segments.

T-Mobile, carrying a Zacks Rank #3, reported first-quarter 2022 earnings of 57 cents per share, which beat the Zacks Consensus Estimate by 16 cents. However, the bottom line declined year over year due to merger-related costs.

T-Mobile’s total revenues inched up 1.8% year over year to $20,120 million, primarily driven by growth in service revenues. The top line, however, lagged the consensus estimate of $20,129 million.


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