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Technology Stocks : Uber Technologies and Lyft Inc. IPOs -- Ignore unavailable to you. Want to Upgrade?


To: Glenn Petersen who wrote (224)5/4/2022 7:10:00 AM
From: Glenn Petersen  Respond to of 238
 
Lyft shares plunge on light guidance, continued driver incentives

PUBLISHED TUE, MAY 3 20225:29 PM EDT
UPDATED TUE, MAY 3 20226:46 PM EDT
Jessica Bursztynsky @JBURSZ
CNBC.com

KEY POINTS

-- Lyft reported first-quarter 2022 earnings on Tuesday.

-- Shares plunged on light guidance and continued driver incentives.

Shares of Lyft lost more than a quarter of their value in after-hours trading Tuesday after the company provided light second-quarter guidance and warned investors it will have to keep spending on driver incentives.

Here are the key numbers:

Earnings per share: 7 cents adj. vs loss of 7 cents expected in a Refinitiv survey of analysts


Revenue: $876 million vs $846 million expected by Refinitiv


Active riders: 17.8 million vs 17.9 million expected, per FactSet


Revenue per active rider: $49.18 vs $47.07 expected, according to StreetAccount

For the second quarter, Lyft said it expects revenue between $950 million and $1 billion. Wall Street was estimating $1.02 billion, per StreetAccount.

The stock fell 27% to $22.50 in extended trading. Should it open there on Wednesday, it will be the lowest stock price for Lyft since October 2020. Larger rival Uber, which reports quarterly earnings on Wednesday, also plunged on Lyft’s results, dropping more than 9% after markets closed.

Lyft reported a net loss for the quarter of $196.9 million versus a net loss of $427.3 million in the same period of 2021. The company said its loss included $163.2 million of stock-based compensation and related payroll tax expenses.

The ride-hailing company reported 17.8 million active riders, narrowly missing estimates. It’s also a decline from the fourth quarter when Lyft said it had 18.73 million active riders.

Lyft heavily invested in driver incentives during the Covid pandemic and recovery, which has weighed on financials. The supply of drivers had seemed to stabilize but as gas prices shot up across the nation due to the war in Ukraine earlier this year, some investors feared drivers would leave their respective platforms and companies would have to increase their incentives.

Lyft said during its analyst call it will be investing more in driver subsidies in the coming quarter, though it believes that will help “pay off in a healthier marketplace.” It’s unclear how much the company will spend.

Lyft earnings Q1 2022 (cnbc.com)



To: Glenn Petersen who wrote (224)5/4/2022 7:52:24 AM
From: Glenn Petersen  Respond to of 238
 
Uber reports surging revenue as drivers return, but posts massive loss on investments

PUBLISHED WED, MAY 4 20227:04 AM EDT
UPDATED MOMENTS AGO
Jessica Bursztynsky @JBURSZ
CNBC.com

KEY POINTS

-- Uber on Wednesday reported surging revenue during the first quarter as the rideshare company recovers from its coronavirus lows.

-- Mobility revenues have finally surpassed delivery revenues.

-- The company reported a net loss of $5.9 billion for the first quarter, which it said was primarily due to its equity investments in Grab, Aurora and Didi.

Uber on Wednesday reported surging revenue during the first quarter as the rideshare company said it’s recovering from its coronavirus lows and wouldn’t have to put up “significant” investments to keep drivers on the platform.
The company appears to be on track to surpass pre-pandemic levels as travel accelerates. CEO Dara Khosrowshahi said in a statement that April mobility gross bookings exceeded 2019 levels across all regions and use cases.
Uber also reported a massive loss due to its investments during the period. Shares seesawed in premarket trading after the report.

Here are the key numbers:

Loss per share: $3.04 (GAAP), not comparable to analyst estimates


Revenue: $6.85 billion vs. $6.13 billion estimated, according to a Refinitiv survey of analysts.

For the second quarter, Uber anticipates gross bookings of between $28.5 billion and $29.5 billion. In addition, it expects adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, of between $240 million and $270 million.

Uber said it expects to generate “meaningful positive cash flows” for the full year 2022.

The company reported a net loss of $5.9 billion for the first quarter, which it said was primarily due to its equity investments in Southeast Asian mobility and delivery company Grab, autonomous vehicle start-up Aurora and Chinese ride-hailing giant Didi. Uber CFO Nelson Chai said in prepared remarks the company has the liquidity to maintain its positions and wait for a better time to sell.

Its adjusted EBITDA was $168 million. That’s up $527 million from the same quarter a year ago.

Uber’s revenue was up 136% year over year to $6.9 billion.

Here’s how Uber’s largest business segments performed in the first quarter of 2022:

Mobility (gross bookings): $10.7 billion, up 58% year over year


Delivery (gross bookings): $13.9 billion, up 12% year over year

Uber was reliant on its delivery business, which includes Uber Eats, throughout the pandemic. However, mobility revenues have finally surpassed delivery revenues. Its mobility segment reported $2.52 billion in revenue, compared with delivery’s $2.51 billion. Revenue strips out additional taxes, tolls and fees from gross bookings.

Uber reported 1.71 billion trips on the platform during the quarter, which is up 18% from the same quarter a year ago. Monthly active platform consumers reached 115 million, up 17% year over year. Drivers and couriers earned an aggregate $9 billion in the quarter, which is slightly less than the fourth quarter.

Uber said its driver base is at a post-pandemic high. The company expects that to continue without “significant incremental incentive investments,” Khosrowshahi said in prepared remarks.

Rideshare companies have struggled with supply and demand since the Covid-19 pandemic lead drivers off the road. Companies, including Uber, had to heavily rely on driver incentives to bring drivers back, which ate into its financials.

That seemed to be stabilizing in recent months, but the war in Ukraine caused significant hikes in fuel prices. Analysts feared companies would have to pour millions into keeping drivers around. Uber is likely to add more color on driver incentives during its earnings call that is scheduled for 8 a.m. ET.

Driver incentives, along with light guidance, caused shares of rival Lyft to plunge in extended trading Tuesday. Lyft said during its analyst call it will be investing more in driver subsidies in the coming quarter, though it believes that will help “pay off in a healthier marketplace.”

Read Uber’s earnings release here.

Uber Q1 2022 earnings (cnbc.com)