[Stay on top of transportation news: Get TTNews in your inbox.]
Lyft Projects Strong Q2 as Premium Services Expand
Chauffeur and High-Value Rides Post 35% Growth, CFO Says
Lyft Inc. forecast second-quarter results that beat Wall Street estimates, as the ride-sharing company expands internationally and adds higher-end offerings like chauffeur services.
The company said May 7 that gross bookings for the three months ending June 30 will be $5.3 billion to $5.43 billion, topping estimates of $5.31 billion. Adjusted earnings before interest, taxes, depreciation and amortization will be in a range of $160 million to $180 million, the midpoint of which was in line with the average estimate.
San Francisco-based Lyft anticipates its expansion into higher-value services will lead to gross bookings growth outpacing that of rides. “We’ve been deliberately working on our premium offerings – adding more professional drivers,” the company said in a statement. High-value rides have grown 35%, said Erin Brewer, Lyft’s chief financial officer.
Shares of Lyft rose about 4% in extended trading after the results were released. The stock had been down 27% so far this year through the May 7 close.
The momentum will be key for Lyft, which has been on a buying spree to catch up with much-larger rival Uber Technologies and expand beyond North America. It has been working to integrate the European taxi app Freenow since buying it last year and this week closed its acquisition of U.K. taxi app Gett.
TT Top 100 Logistics Companies
The largest 3PLs in North America continued to face volatile business conditions last year, from compressed margins to tariff-driven supply chain upheaval. Read more
The positive outlook may give investors confidence after a disappointing first quarter where the number of rides fell short of estimates. The company blamed the shortfall on the storms in the northeastern U.S., which impacted more than 3 million rides. It said 236.9 million rides took place versus Wall Street estimates of 241.5 million.
Earnings per share for the first quarter was 4 cents, missing estimates of 5.7 cents, in part due to integration costs related to the acquisitions.
Gross bookings, which include taxes, tolls and fees, were $4.95 billion, slightly ahead of expectations of $4.91 billion.
