Lyft shares shed greater than 9% after the ride-sharing app reported lackluster fourth-quarter outcomes and supplied weak bookings steering because it lowers costs to maintain up with competitors.
The corporate reported revenues of $1.55 billion, versus the $1.56 billion anticipated by analysts polled by LSEG. Bookings, which measures the costs posed to prospects for rides and providers, got here in at $4.28 billion, behind a $4.32 billion FactSet estimate.
“I feel what the long run holds is nice, as a result of it is an enormous market, and we’re doing an excellent job,” CEO David Risher advised CNBC’s “Squawk Field” on Wednesday. “We obtained to determine easy methods to get the merchants on the bus.”
Lyft additionally mentioned it anticipates a slowdown in gross bookings because it grapples with a decrease pricing surroundings. The corporate expects bookings to vary between $4.05 billion and $4.20 billion, versus a $4.24 billion FactSet forecast.
Throughout the earnings name, Chief Monetary Officer Erin Brewer mentioned the corporate lowered costs and used reductions ultimately of the 12 months to maintain up with the market. Ongoing pricing headwinds may result in a low single-digit share level impression on gross bookings, she added.
Brewer additionally mentioned that the top of its partnership with Delta Air Strains will weigh on rides and gross bookings within the 1% to 2% vary throughout the second quarter.
Throughout the fourth quarter, Lyft additionally recorded 24.7 million energetic riders, forward of the 24.6 million StreetAccount estimate.
Alongside the outcomes, the corporate introduced a $500-million share repurchase plan and mentioned it goals to roll out its Mobileye-powered taxis as quickly as 2026 in Dallas.