Lyft shares tumble on disappointing outlook
Lyft says earnings and revenue for the current quarter are forecasted to miss Wall Street expectations
Lyft reported better-than-expected quarterly results, but an outlook that missed the mark has shares taking a big hit.
The ride-hailing service's shares plunged more than 15% in extended trading.
Lyft's second quarter forecast fell short of expectations as the company cuts prices to compete with its bigger rival Uber.
The company said it expected revenue of $1 billion to $1.02 billion, missing estimates of $1.08 billion and core earnings of $20 million to $30 million, behind expectations of $49.3 million.
LYFT TO CUT ABOUT A QUARTER OF WORKFORCE IN LATEST ROUND OF LAYOFFS
A Lyft ride-hailing vehicle is parked near Empower Field at Mile High in Denver. ( (AP Photo/David Zalubowski, File) / AP Newsroom)
Lyft narrowed its net loss to $187.6 million from $196.9 million in the same period a year earlier, coming in better than estimated.
Revenue for the period rose 14%, coming in slightly above analysts' projections at $1 billion.
The price cuts led Lyft to add 10% more riders to its platform in the first three months of the year.
Lyft's second quarter forecast fell short of expectations as the company cuts prices to compete with its bigger rival Uber. (Al Seib / Los Angeles Times / Getty Images)
NEW LYFT CEO SAYS RIDER, DRIVER EXPERIENCE TOP PRIORITY AS IT COMPETES WITH UBER
Lyft is cutting costs as it lowers prices to catch up with Uber.
New CEO David Risher cut 1,100 jobs last week. The company also slashed 700 jobs late last year.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LYFT | LYFT INC. | 17.17 | -0.19 | -1.09% |
| UBER | UBER TECHNOLOGIES INC. | 73.07 | +1.11 | +1.54% |
In a call with analysts, Risher said that cost savings would be passed on to riders as "competitive prices" and drivers as earnings.
Lyft shares are down 50% in the past year.
Reuters contributed to this report.