By
Tolu Ajiboye
May 9th, 2023
Lyft expects to realize about $975 million in revenue in fiscal Q1 2023.
Lyft (NASDAQ: LYFT) has issued weak guidance while announcing its earnings report for its fiscal Q4 2022 on Thursday. This caused its shares to drop 30.33% in extended trading. On the financial results, the company’s CEO and co-founder Logan Green said Lyft attained remarkable feats in its fiscal year 2022. Noting that there is room for long-term growth, the executive added that the mobility service provider “must ensure competitive service level.” Green emphasized that Lyft will work further to satisfy its consumers’ demands.
Lyft in Fiscal Q4 2022
According to the fiscal Q4 earnings performance, Lyft saw its revenue grow 21% from $969.9 million in Q4 2021 to $1.2 billion. The quarterly revenue jumped 12% from the Q3 2022 revenue of $1.1 billion. Chief financial officer at Lyft, Elaine Paul, noted that the company attained its highest revenues in fiscal Q4 2022. The CFO added that the company also outshined its guidance on Adjusted EBITDA, apart from the step taken in strengthening its insurance reserves.
Furthermore, Lyft recorded 20.3 million active riders in the last quarter, an 8.7% increase YoY. Revenue per Lyft user also grew 11.5% from $51.79 in fiscal Q4 2021 to $57.72 in fiscal Q4 2022.
Lyft Projects Weak Guidance for Fiscal Q1
Moving on from its fiscal Q4 2022, Lyft expects to realize about $975 million in revenue in fiscal Q1 2023. However, the revenue forecast is lower than analysts’ expectations of $41.09 billion. At the same time, the company looks forward to seeing its adjusted EBITDA for the quarter fall between $5 million and $15 million in Q1. Paul spoke on the weak Q1 guidance, stating:
“Our Q1 guidance is the result of seasonality and lower prices, including less Prime Time. Additionally, our different insurance renewal timing puts differently timed pressure on our P&L. We are not waiting for that to normalize to achieve competitive services levels. We are focused on driving greater growth and profitability.”
In accordance with the newly-issued guidance by the Securities Exchange Commission (SEC), Lyft is reviewing the calculation of its non-GAAP financial measures. The company is including insurance reserve adjustments for past periods, which will impact its EBITDA. It noted that the changes have been made to reflect from Q4 2022, and prior period information has been reviewed to conform with the development. In its supplement earnings document for fiscal Q4 2022, Lyft explained:
“Under our updated non-GAAP circulation, Adjusted EBITDA was a negative $248.3 million versus a negative $47.6 million in the fourth quarter of 2021 and a negative $26.7 million in the third quarter of 2022.”
Data compiled by MarketWatch shows that LYFT has surged more than 47% since the beginning of 2023. The company’s stock has also gained nearly 44% in the last three months and increased 11.48% over the past month.