Q2 Earnings: Is It a Net Positive If Lyft Is Getting Lean From the Pandemic?
Ride-sharing firm Lyft reported a second-quarter net loss of $0.86 per share and $339.3 million in revenue, both better than consensus estimates that called for a net loss of $0.99 per share and $336.77 million in revenue.
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Lyft Inc. (NASDAQ: LYFT | LYFT Price Prediction) released second-quarter financial results after markets closed Wednesday. The ride-share firm said that it had a net loss of $0.86 per share and $339.3 million in revenue, which compared with consensus estimates that called for a net loss of $0.99 per share and $336.77 million in revenue. The same period from last year had a net loss of $2.23 per share and $867.26 million in revenue.
During the quarter, active riders decreased 60% year over year to 8.69 million, down from 21.81 million in the same period last year. Revenue per active rider is down 2% to $39.06, a decrease from $39.77.
Lyft reported $2.78 billion of unrestricted cash, cash equivalents and short-term investments at the end of the second quarter, versus $358.32 million at the end of the previous fiscal year. In May, Lyft issued $747.5 million aggregate principal amount of 1.50% convertible senior notes due 2025. The net proceeds from this offering were roughly $733.2 million.
In April 2020, Lyft announced a restructuring effort to reduce operating expenses and adjust cash flows. The restructuring charges in the second quarter included $32.1 million of severance and related employee benefit costs and $3.1 million of lease terminations and other costs. Lyft also incurred a stock-based compensation benefit primarily related to the reversal of previously recognized stock-based compensation expenses for unvested awards of $49.8 million, resulting in a net restructuring benefit of $14.5 million.
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The company did not offer any guidance for the third quarter. However, consensus estimates are calling for a net loss of $0.61 per share and $610.37 million in revenue for the coming quarter.
Shares of Lyft closed Wednesday at $30.52, with a 52-week range of $14.56 to $57.23. The consensus analyst price target is $42.01. Following the announcement, the stock was up 2.5% to $31.27 in the after-hours session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
