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LYFT Tops Q2 Earnings & Revenue Estimates on Growth in Rides

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Lyft (LYFT - Free Report) reported second-quarter 2023 earnings (excluding 45 cents from non-recurring items) of 15 cents per share. The Zacks Consensus Estimate was pegged at a loss of 1 cent. In the year-ago period, Lyft reported earnings of 12 cents.

Total revenues of $1,020.9 million beat the Zacks Consensus Estimate of $1017.5 million. The top line rose 3% year over year reflecting growth in the rideshare market.

Active riders increased 8.2% year over year in the reported quarter to 21.45 million. The figure was, however, below our estimate of 22.8 million.

Lyft's revenue per active rider decreased 4.8% year over year $47.51 The decline was due to lower revenue per ride. We projected the metric to be $44.35.

Adjusted EBITDA in the quarter under review totaled $41 million. The figure outshined our estimate of $29 million as well as the first-quarter 2023 actual figure of $22.7 million. Adjusted EBITDA margin of 4% surpassed our estimate of 2.3%. In the previous quarter, the metric was at 2.3%.

Total costs and expenses decreased 13.2% year over year to $1.18 billion. Contributions climbed 35.3% year over year to $426.4 million. The actual figure was above our prediction of $425.3 million.

The contribution margin improved to 41.8% in the reported quarter from 31.8% in the year-ago period. Our model anticipated the metric to be 42%.

Q3 Outlook

For the third quarter of 2023, management expects revenues to be between $1.13 billion and $1.15 billion. The Zacks Consensus Estimate is currently pegged at $1.09 billion.

Adjusted EBITDA is projected in the range of $75-$85 million. Adjusted EBITDA margin is anticipated to be approximately 7%. The contribution margin is anticipated to be approximately 45%.

Currently, Lyft carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Let’s take a look at the Q2 performances of other companies from the same industry.

Uber Technologies (UBER - Free Report) reported second-quarter 2023 earnings of 18 cents per share. The Zacks Consensus Estimate was pegged at a loss of a penny. In second-quarter 2022, Uber incurred a loss of $1.33 per share.

Total revenues of $9,230 million missed the Zacks Consensus Estimate of $9,320.3 million. However, the top line jumped 14.3% year over year.

In the reported quarter, the majority (53%) of the company’s revenues came from Mobility. Revenues from this segment climbed 38% year over year to $4,894 million. 

Shopify (SHOP - Free Report) reported second-quarter 2023 adjusted earnings of 14 cents per share, comfortably beating the Zacks Consensus Estimate of 6 cents. SHOP incurred a loss of 3 cents per share in the year-ago quarter. Total revenues jumped 30.8% year over year to $1.69 billion, which beat the Zacks Consensus Estimate by 4.13%.

Subscription Solutions revenues increased 21.3% year over year to $444 million. The uptick was primarily driven by more merchants joining the platform as well as pricing changes that came into effect for existing merchants in April. Merchant Solutions revenues improved 34.6% year over year to $1.25 billion.


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