Lyft Shares Plunge on Weak Earnings Outlook

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Lyft Shares Plunge on Weak Earnings Outlook
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Lyft said some of its costs to offer incentives to drivers—such as bonus payments for rides given—will be passed on to consumers through higher prices, while other costs will also weigh on the company’s profitability

Lyft said first-quarter revenue rose 44% to $876 million.Updated May 3, 2022 6:48 pm ET

Lyft Inc. said it would invest in the current quarter to ensure adequate driver supply and grow its ride-hailing platform, spooking investors as the spending weighs on operating profit. The ride-hailing company on Tuesday forecast adjusted earnings before interest, taxes, depreciation and amortization, its preferred metric of financial performance, of $10 million to $20 million. The figure represents a second sequential quarterly decline and missed Wall Street expectations by more than $50 million.

 

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