Lyft's fourth-quarter earnings report revealed a decline in bookings and an outlook for continued pricing pressures. The company's efforts to remain competitive by lowering prices led to a 6% drop in share price. Despite exceeding earnings expectations, Lyft anticipates a slowdown in gross bookings and faces headwinds from intense competition.
Lyft shares plummeted 6% following the release of lackluster fourth-quarter results and subdued bookings projections. The company's decision to reduce prices in order to remain competitive within the market contributed to the disappointing performance. Lyft reported revenues of $1.55 billion, falling short of the $1.56 billion anticipated by analysts surveyed by LSEG. Despite this, revenues demonstrated a 27% increase compared to $1.22 billion in the previous year.
Bookings, a key metric gauging customer charges for rides and services, reached $4.28 billion, trailing the $4.32 billion projected by FactSet. CEO David Risher expressed confidence in the company's future prospects, highlighting the vast market potential and their strong execution. While Lyft exceeded earnings expectations for the fourth quarter, reporting an adjusted 29 cents per share compared to the LSEG estimate of 22 cents per share, the company anticipates a slowdown in gross bookings due to intensified pricing pressures. Lyft projects bookings to fall within a range of $4.05 billion to $4.20 billion, falling short of the $4.24 billion FactSet forecast. CFO Erin Brewer attributed the company's price reductions and discounts implemented at the year's end to maintaining market competitiveness. She warned that persistent pricing headwinds could potentially impact gross bookings by a low single-digit percentage.To counteract these challenges, Lyft announced a $500 million share repurchase plan and outlined its ambitious plans to deploy Mobileye-powered taxis as early as 2026 in Dallas. The company reported a net income of $62.8 million for the quarter, translating to 15 cents per share, a significant improvement compared to the $26.3 million loss incurred in the previous year, which amounted to 7 cents per share. Lyft also recorded 24.7 million active riders during the fourth quarter, surpassing the 24.6 million estimate provided by StreetAccount. This performance underscores the company's continued growth and resilience despite the challenges posed by a competitive market landscape
LYFT Ride-Sharing Earnings Bookings Competition Price Reductions Autonomous Vehicles
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