Lyft Q4 earnings: Stock sinks after Q1 2023 guidance miss

Lyft (LYFT) reported its Q4 2022 earnings on Feb. 9 after market close.

The San Francisco-based company beat on key metrics, like revenue and its active rider count, but missed analysts’ estimates for Q1 2023 revenue. Lyft shares sank 19% in after-hours trading.

Here’s what the ride-hailing company reported, as compared to estimates compiled by Bloomberg:

Q4 revenue: $1.18 billion actual versus $1.16 billion expected

Q4 active riders: 20.36 million actual versus 20.3 million expected

Q1 revenue guidance: $975 million actual versus $1.09 billion expected

This was widely expected to be a tough earnings cycle for Lyft. Recently, the company was downgraded from Buy to Hold by Gordon Haskett analyst Robert Mollins, who cut his price target for on the stock from $24 to $19, citing concerns about app downloads and increased competition from rival Uber (UBER).

PARK CITY, UTAH – JANUARY 23: General view of Lyft signage during the Sundance Film Festival on January 23, 2023 in Park City, Utah. (Photo by Mat Hayward/Getty Images)

‘We are focused on driving greater growth and profitability’

Still, there were notably positive points in Lyft’s release, particularly if you consider the trajectory. For instance, the company’s Q4 revenue jumped 21% year-over-year, while it’s active ride count is up almost 9% year-over-year.

“In Q4 we achieved the highest revenues in our company’s history and we outperformed guidance on Adjusted EBITDA excluding the action we took to strengthen our insurance reserves,” said Lyft CFO Elaine Paul in a statement. “Our Q1 guidance is the result of seasonality and lower prices… We are focused on driving greater growth and profitability.”

For its part, Uber reported its Q4 earnings on Feb. 8, offering up key beats in both revenue and delivery bookings. The company’s $8.61 billion Q4 revenue beat represented a 49% year-over-year jump. Uber’s shares climbed about 5% throughout yesterday, falling very slightly in after-hours trading.

Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.

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