(CercleFinance.com) – Lyft announced better-than-expected quarterly results on Thursday evening but unveiled forecasts deemed disappointing, which led to a sharp drop in its stock on Wall Street on Friday.
The second player in the American market for transport vehicles with driver (VTC), behind Uber, reported yesterday evening a turnover of the first quarter up 14%, to just one billion dollars.
This performance is above analysts’ forecasts, just as its adjusted Ebitda stood at 22.7 million dollars where the group had set itself a target of between five and 15 million dollars.
Its cautious forecast for the second quarter, however, led investors to lighten their positions, which explains why the action fell 17% in early trading.
For the quarter ended at the end of June, the company said it was counting on a turnover of between one and 1.02 billion dollars, while analysts were targeting 1.08 billion.
“Lyft has chosen to position itself more competitively in terms of price, which translates into an acceleration in the number of races but impacts its activity indicators and its profit margins,” explains an analyst.
For the Wedbush Securities teams, the task incumbent on the new managing director, David Risher, is quite simply worthy of an ‘ascent of Everest’.
Lyft’s efforts to cut prices are said by New Street Research to show how the company is struggling as rival Uber thrives, as results released this week illustrate.
Since its IPO in March 2019, Lyft stock has now lost 88% of its value.
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