Lyft, Inc. ($LYFT) Earnings (Q1 FY22)

 Lyft, Inc. ($LYFT) Earnings and Opinion:


Lyft is a company in the Technology sector and operates in the Software-Application industry. The company is a peer-to-peer marketplace for ridesharing in the United States. Lyft was founded in 2007 and is currently headquartered in San Francisco, California. The company was first traded on the stock market in 2019.

Lyft EPS and Revenue (Q1 FY22):

  • EPS of $0.07 beating expectations of -$0.07
  • Revenue of $875.58M beating expectations of $845.91M
Lyft Q1 Financial Highlights:
  • Revenue was up 44% (YOY)
  • Net loss was narrowed by $230M
  • $2.2B in cash on the balance sheet
  • Active riders were up 31.9%
  • Revenue per active rider was up 9%
Opinion:
Lyft is currently down 30% today after reporting earnings yesterday. If you're confused, well so am I. The company seems to have reported some really solid earnings for the quarter. They saw adjusted net income in the positive territory and was able to grow their revenue by 44%. They also beat expectations for both EPS and revenue. On a rider basis, they saw in an increase of 31.9% in active riders. They also saw the revenue per active rider tick up by 9%. Overall, the company seems to be headed in the right direction and should see some solid quarters to come with the travel industry getting back into the swing of normal operations. Why what the stock so far down then? This has to do with the outlook that the company gave out to investors. They obviously didn't report as strong of an outlook as investors wanted to see, therefore the stock tanked. I can see this as there is a little bit uncertainty with the travel industry right now, so the company wanted to make a safe bet and make the outlook at levels they can easily attain. This has thrown the executives of Lyft through a whirlwind and they are begging for investor confidence back into the company. I can see a decent future here in the short-term with the company. I think now may be a good buying opportunity for a short-term gain. Especially with the stock down 30% currently, if you were looking to get into Lyft, it could be a solid time. I am going to sit this one out. I like the industry leader in this category (Uber) a little bit better as it seems Uber is a bit more established. If Lyft can continue with operations through, I could see this upcoming travel spurt as a success for them.

*Information from Lyft, Google, Yahoo Finance

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