Lyft After the ride-sharing app reported inadequate fourth-quarter results, the stock fell by more than 9% and provided weak booking guidance as it lowered prices to keep up with competition.
The company reported revenue of $1.55 billion, compared with the $1.56 billion expected by analysts who voted by LSEG. Bookings measure the cost of rides and services paid to customers, with revenue of $4.28 billion, lagging behind the $4.32 billion Factset estimate.
CEO David Risher told CNBC’s CNBC, “I think the future is great because it’s a huge market and we’re doing a great job.”Squawk Box“On Wednesday.” We have to figure out how to get traders on the bus. ”
Lyft also said that total bookings will slow down as it gets stuck with a lower pricing environment. The company expects bookings to range between $4.05 billion and $4.2 billion, compared to the $4.24 billion Factset forecast.
In earnings calls, Chief Financial Officer Erin Brewer said the company lowered prices at the end of the year and used discounts to keep up with the market. She added that ongoing pricing headwinds could lead to the impact of lower percentage points on total bookings.
Brewer also said, Delta gas line The second quarter will focus on 1% to 2% of rides and total bookings.
In the fourth quarter, Lyft also recorded 24.7 million active riders, 24.6 million StreetAccount estimates ahead of schedule.
In addition to the results, the company announced a $500 million share buyback program and said it aims to launch its mobile-powered taxi on Dallas in 2026.
