(Lyft) Shares of rideshare firm Lyft fell more than 26% on Wednesday after a disappointing outlook clouded a robust first quarter 2022 earnings.
Lyft said it expects an EBITDA of between $10 million and $20 million in the second quarter of 2022. The projection was significantly lower than estimates of $82.5 million and $54.8 million reported in the first quarter of 2022.
The stock weakness was also fueled by Lyft’s announcement that it would spend more heavily to attract drivers. The move was prompted by a fall in the number of drivers which dwindled during the pandemic to below the pre-Covid levels.
Despite the disappointing outlook, Lyft managed $875.6 million revenue in the first quarter of the year, representing an increase of 44% from the prior year. The revenue fell 10% from the prior quarter.
Lyft’s net loss narrowed to $196.9 million in the quarter, compared to a loss of $427.3 million in the prior year and $283.2 million in the previous quarter. The rideshare firm had an adjusted net income of $24.6 million in the quarter, compared to an adjusted net loss of $114.1 million in the prior year.
LYFT: NASDAQ is down -26.76% on premarket
