Lyft shares fall as lower pricing plan weighs on revenue forecast | – #Lyft #shares #fall #pricing #plan #weighs #revenue #forecast
Feb 9 (Reuters) – Lyft Inc ( LYFT.O ) on Thursday forecast current-quarter revenue below estimates as it plans to reduce price increases to keep pace with larger rival Uber ( UBER.N ), whose global presence has helped it gain leverage. aims. post-pandemic surge in walking.
Lyft shares have lost more than 30% in long-term trading, roughly 2% of the company’s market capitalization billion deleted the dollar. They were also the most traded on the Nasdaq.
of the company USA’s greater presence on the West Coast, analysts say, in a return to pre-Covid demand USAand a lack of rideshare drivers could hurt its recovery compared to Uber.
Lyft, more so thanks to incentives paid earlier driver in surge hours as it registers prices said it plans to take advantage of a recovering market by lowering
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“Given the healthy market, which has not been the case since the pandemic, it’s important for us to take advantage of this opportunity,” Lyft President John Zimmer told Reuters in an interview. “It’s down prices and means spending less time.”
Zimmer noted that the West Coast has not “completely” recovered, but there has been a “material improvement.”
According to Refinitiv data, Lyft made about 975 million in the first quarter dollars income predicted, which is 1.09 of analysts billion fell below the dollar estimates.
“They are clearly struggling here … They need to value their operations here,” said Tejas Dessai, analyst at Global X ETFs.
Lyft forecasts first-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a key measure of profitability that strips out some costs, of $5 million to $15 million.
Chief Financial Officer Elaine Paul said the drop in base rates and prime-time flow directly to the bottom line, partly because of lower demand.
For the fourth quarter, Lyft reported adjusted EBITDA of $126.7 million, excluding the $375 million it took to increase insurance reserves. Analysts 91.01 million dollars they predicted.
“We wanted to make sure that we strengthened our insurance coverage … the purpose of doing that is to ensure that we don’t have this type of volatility in the future,” Zimmer said in an interview.
Active drivers increased 8.7% in the fourth quarter 20.36 million, Lyft, from a FactSet estimate 20said to be above 30 million.
Reporting by Nivedita Balu in Bengaluru; Edited by Anil D’Silva
Our standards: Thomson Reuters Trust Principles.
2023-02-10 03:50:21
Source – reuters
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