Lyft, Inc (Nasdaq: LYFT), established in 2012 and based in San Francisco, California, is a transportation network company which develops, markets, and operates the Lyft mobile app; and offers reliable, affordable and sustainable transportation including car rides, scooters, and a bicycle-sharing system. It operates in around 640 cities in the United States and 9 cities in Canada and has over 30 million riders and 2 million drivers.
The ride-hailing firm’s market capitalisation stands at around $ 15.7 billion. The LYFT stock had a steep fall during the market trading on Wednesday as the LYFT stock price settled the day’s session at $52.91, plunging sharply by 10.84% (~ 11%). However, the LYFT stock managed to close Thursday’s trade up by 4.29% at $55.18.
The sudden drop in stock performance on Wednesday (08 May 2019) can perhaps be attributed to the company’s recent disclosure of quarterly results, first time as a public enterprise, for the three months to 31st March 2019 (Q1 2019).
The revenue for the first quarter Q1 2019 was posted at around $ 776.0 million versus $ 397.2 million in the first quarter of 2018, a 95 % year-on-year increase. Besides, Lyft recorded a net loss of ~ $ 1,138.5 million, up on the adjusted net loss of $ 234.3 million in the prior corresponding period (pcp) Q1 2018. The net loss broadly includes $ 894-million stock-based compensation and associated payroll tax expenses, on account of RSU expense recognition associated with the company’s initial public offering (IPO), which closed on 2nd April 2019.
The IPO was executed at a price of $ 72.00 per share and the company offered ~ 32.5 million shares under its Class A common stock, and up to 4.875 million shares that the underwriters had the choice to purchase. The shares were scheduled to commence trading on the Nasdaq Global Select Market from 29th March 2019 onward.
The Adjusted EBITDA was around $ 216.0 million versus $ 238.7 million in Q1 2018 along with an adjusted EBITDA Margin of 27.8% versus 60.1% in Q1 2018.
As of the end of quarter, the total assets were valued at ~ $ 3,240,907 including net cash and cash equivalents of $ 329,515.
According to certain market participants, the management, on Lyft's conference call on Tuesday evening, was quite optimistic about the competitive landscape that would lead to eventual profitability in the long-term and overlooked the short-term worries around competition.
Further, as the reports suggest, Lyft withdrew from releasing the gross bookings data, which handicaps the investors to comprehend pricing trends. The recent response on the stock market reflects the investors’ scepticism about Lyft’s long-term growth trajectory.
The company’s outlook for the next quarter includes an estimated total revenue in the range $ 800 million to $ 810 million whereas the adjusted EBITDA loss is expected to be around $ 270 million - $ 280 million. Also, for the full year 2019, a total revenue in the range $ 3.275 billion -$ 3.3 billion is estimated along with an accompanying adjusted EBITDA loss of $ 1.15 billion -$ 1.175 billion.
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