NEW YORK (AP) — Lyft is reporting strong revenue growth but substantial losses in its first quarterly earnings report since its rocky stock market debut.
The ride-hailing company posted revenue of $776 million during the first quarter of 2019, nearly doubling the amount it made the same time last year and beating expectations of analysts polled by FactSet, who were expecting $740 million.READ MORE: Bill To Let CA Politicians See Names On Recall Petitions Won't Move Forward
But the San Francisco-based company lost $1.1 billion in its first public quarter, primarily because it paid out $894 million in stock-based compensation and related payroll taxes during its initial public offering.
After adjusting for those one-time costs, Lyft’s losses reached $211.5 million in the first quarter, compared to $228.4 million at the same time last year.
“Our performance was driven by the increased demand for our network and multi-modal platform, as active riders grew 46 percent and revenue grew 95 percent year-over-year,” said Logan Green, Lyft’s co-founder and CEO, in a statement.
Lyft’s stock, however, has fallen dramatically since its April IPO. It closed Tuesday at $59.34, down about 18 percent from its debut at $72. The stock slipped another 3 percent in after-hours trading following the release of the earnings report.READ MORE: Derek Chauvin Trial: San Francisco DA Boudin Says 'A Long Way To Go' On Reform After Guilty Verdicts
The report comes just days before the hotly anticipated IPO of Lyft’s much larger rival, Uber, which plans to begin trading on the New York Stock Exchange on Friday.
Both companies are losing money as they discount rides to gain market share and struggle to prove to investors that they have a path to profitability.
Lyft said it expects revenues of $800 million to $810 million in the second quarter of 2019, higher than the $782 million analysts polled by FactSet expect. It said it anticipates losses between $270 million and $280 million, lower than the $305 million in losses that analysts expect.
For the full 2019 year, Lyft anticipates raking in $3.26 billion to $3.3 billion in revenue, higher than FactSet analysts’ estimate of $3.24 billion, and losing $1.15 billion to $1.18 billion, less than the $1.25 billion analysts expect Lyft to lose.
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