Lyft beats on revenue, but shares fall after marketing
Ride-sharing giant Lyft reported stronger-than-expected first-quarter 2022 results after the bell on Tuesday. Lyft’s first-quarter revenue of $875.6 million beat analysts’ consensus estimate of $845.5 million as ride-sharing volumes hit a new COVID-era high. The company’s revenue of $875.6 million in the first quarter of 2022 represents a 44% improvement from the $609 million in the first quarter of 2021.
Despite falling revenue, Lyft stock (NASDAQ: LYFT) fell sharply in the first hours of post-market trading. The stock fell more than 15% after the company announced a lower-than-expected outlook for the next quarter in its earnings call.
Lyft also posted a third consecutive quarter of positive adjusted earnings before interest, taxes, depreciation and amortization, recording adjusted EBITDA of $54.8 million. That’s $127.8 million more than the Q1 2021 figure, and it beats the high end of Lyft’s own projection by about $40 million.
Read: Lyft reports its first-ever adjusted earnings for the full year
Read: Rideshare rebound: Breaking down Uber and Lyft’s big Q3
The company reported about 17.8 million active runners in the last quarter. Although this is a slight drop from the fourth quarter of 2021 – when the company had approximately 18.7 million active passengers – it is still an improvement of almost 32% compared to the first. quarter 2021.
Lyft also made more money from these passengers than a year ago — revenue per active passenger for Q1 2022 was $49.18, compared to $45.13 in Q1 2021.
Active drivers, meanwhile, also saw significant year-over-year growth. The number of drivers who made at least one trip during the first quarter of 2022 was 40% higher than during the same period last year. And new driver activations were up 70% this quarter compared to the same quarter a year earlier.
“The first quarter was better than expected and ridesharing volumes hit a new COVID high,” said co-founder and CEO Logan Green.
Watch: Entering the gig economy
Chief Financial Officer Elaine Paul added, “Our first quarter results significantly exceeded our outlook. This outperformance is explained by the increase in demand and the resilience of engine levels. We will continue to improve service levels to benefit our business in the short term and put us in the best position to meet growing demand over the long term. We also plan to invest strategically in key business initiatives to support our continued growth.
Q1 2022 results are a positive sign for Lyft. Despite a drop in ridership at the start of 2022 due to the COVID outbreaks, volumes recovered in February and March to generate a strong quarter for the company in terms of revenue growth.
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