Lyft (NASDAQ: LYFT) shares fell over 19% Tuesday morning, after reporting mixed third-quarter earnings the previous day. Additionally, active riders also missed analysts’ estimates.
The ride-hailing company reported earnings of USD0.10 per share, compared to the expected USD0.07 a share. Revenue amounted to USD1.05 Billion, below analysts anticipated USD1.06 Billion. Furthermore, the company recorded 20.3 Million active riders within the quarter, despite Wall Street’s projected 21.2 Million, according to Street Account.
“I’m extremely proud of the strong results the team delivered in Q3. We are seeing material progress and organic tailwinds and feel very well positioned for the road ahead,” said Logan Green, co-founder, and chief executive officer of Lyft. “We have taken decisive steps to ensure we can deliver profitable growth, and we are even more confident in our ability to achieve our 2024 financial targets.”
“We had a strong Q3. Adjusted EBITDA came in above the top-end of our outlook and revenues reached an all-time high. We also saw a higher number of Active Riders, rides and drivers than we’ve had since COVID began, reflecting strong organic tailwinds,” said Elaine Paul, chief financial officer of Lyft. “We’re focused on accelerating initiatives that will have the biggest impact for drivers, riders, and the company.”
Lyft as well as various other tech companies are slashing costs amid a declining economic outlook. The company revealed that it would be cutting 13% of its workforce, amid worries of a looming recession within the next year.