Lyft (LYFT) reported disappointing third-quarter earnings results on Monday after the closing bell, with both earnings and revenue missing analyst estimates.
The ride-sharing company also reported 20.3 million active riders, less than the 21.1 million expected. Revenue per active rider beat estimates, however.
Shares of Lyft have dropped more than 8% in after-hours trading.
Here’s what Lyft reported, as compared to analysts’ estimates compiled by Bloomberg:
Revenue: $1.05 billion actual versus $1.06 billion expected
Adj. Earnings Per Share (EPS): –$1.18 actual versus $0.09 expected
Active Riders: 20.3 million actual versus 21.1 million expected
Revenue Per Active Rider: $51.88 actual versus $49.94 expected
This isn’t ideal for Lyft, which Wall Street has sometimes viewed as Uber’s (UBER) kid sibling. Coming into this earnings cycle, Lyft has also been dealing with trials of its own. Last week, the company announced it was laying off 13% of its staff, joining the wave of tech companies that are laying off employees in droves.
Lyft was also coming into Monday pressured by Uber’s earnings win last week. Though Uber missed on expectations for gross bookings and reported greater losses per share than expected, the company’s revenue rose 72% year-over-year.
“Lyft continues to be the little brother of Uber,” Wedbush Senior Equity Research Analyst Dan Ives said last week on Yahoo Finance Live. “I think that’s been an issue for them … Remember, Uber has the global platform and Lyft continues to be domestic. In theory, this bodes well for Lyft, but that’s one where the can continue to trip over their shoelaces.”
This morning, Lyft’s shares were off more than 69% year-to-date. Meanwhile, the tech-heavy Nasdaq has declined more than 8.5% and Uber’s shares are down about 30% during the same period.
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks.
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Source: https://finance.yahoo.com/news/lyft-earnings-preview-tech-sector-what-to-expect-172600807.html