Lyft’s fourth quarter performance showed a 21% increase from the previous year
Despite the impressive Q4 2022, weak Q1 2023 guidance, with a projected decline in revenue, affects Lyft’s shareholder confidence
Lyft’s fourth-quarter revenue surpassed expectations, but this achievement failed to appease investors as the company projected a weak outlook for Q1 2023. The ride-hailing firm forecasted revenue of $975 million, a decrease of $200 million, compared to the expected $1.09 billion. This guidance resulted in a 25% drop, taking shares to $12.13.
CEO and co-founder Logan Green attributed the reduced Q1 guidance to the decrease in ride-hail, bike, and scooter usage to colder weather. He also pointed out that the increased driver supply would lead to a reduction in prime time, but this could benefit the company in the long run by maintaining competitive service levels and promoting better growth. Furthermore, Green mentioned that the company slightly reduced its base pricing to remain competitive within the industry.
Lyft announced its fourth-quarter revenue of $1.2 billion, representing a growth of 21% from the previous year’s $969.9 million. The firm ended the year with a total revenue of $4.1 billion, a 28% increase from 2021’s $3.2 billion.
The company’s revenue, active rider count, and revenue per active rider exceeded analysts’ predictions, finishing the year with 20.36 million active riders and an increase of 8.7% and 11.5% in revenue per active rider, respectively, compared to the previous year.
However, shareholders were more concerned with the company’s guidance for the first quarter, which had a greater impact.
