On Wednesday, Lyft disclosed robust second-quarter performance, with a significant surge in its GAAP profitability, but its stock declined.
Despite the Uber-like company’s success, its stock closed the session by plummeting -17.23% to $9.08 apiece.
However, its earnings per share (EPS) reached $0.01, better than analysts’ $-0.03 consensus and previous $-0.08 data.
Furthermore, Lyft’s revenue surged to $1.44 billion, higher than the $1.39 billion forecast and last quarter’s $1.30 billion.
Meanwhile, the firm also revealed a net income of $5.00 million on a Generally Accepted Accounting Principles (GAAP) basis, underscoring a solid rise in driver and rider engagement.
According to reports, Lyft’s active riders have reached 23.7 million, and the firm has also experienced a boost in ride frequency and conversion.
The firm’s media sector has also seen significant revenue growth, rising to over 70.00% compared to last year’s report.
Furthermore, Lyft anticipates gross bookings of $4.00 billion and $4.10 billion for Q3. It also adjusted its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) from $90.00 million to $95.00 million.
Moreover, new features such as Price Lock and upgraded driver incentives aim to boost user experience and driver supply.
Disney and Lyft’s Strategic Partnership Favors its Q2 Data
According to reports, the recent strategic collaboration between Lyft and Disney has increased the company’s growth.
Furthermore, its advertising business has been boosted amid its vast audience and first-party data. Reports also show that brand partnerships like Disney, Delta Airlines, Chase, and Hilton have benefited Lyft’s growth outlook.
In addition, its geographical extension in Canada, especially in Toronto, has revealed better outcomes.
CEO David Risher said the company seeks innovative partnerships to reduce rider costs while maintaining sustainability. Lyft CFO Erin Brewer emphasized the need to stay competitive while ensuring a robust marketplace.
Both executives thanked investors and the company team for achieving GAAP profitability and expressed excitement about future growth opportunities.
