Shares of Lyft (LYFT) plunged 35% in early trading Friday, after the ride-sharing company issued weak guidance for its ride-hailing revenues and announced an unexpected fourth-quarter loss.
Lyft said it expects to make roughly $975 million in revenue in the fiscal first quarter of 2023, lower than the $1.09 billion expected by analysts. "Our Q1 guidance is the result of seasonality and lower prices, including less in prime time," CFO Elaine Paul said in an earnings release.
The company also reported an unexpected loss for the fourth quarter of $588 million, widening from a loss of $283 million a year ago. Lyft did report having 20.4 million riders in the quarter, the highest level in nearly three years, leading to a 21% increase in revenue to $1.18 billion. Earnings and revenue beat analyst estimates.
The numbers compare to Uber, which also saw its revenue grow last quarter as people spent more on rides and food delivery. "Despite any macroeconomic uncertainty, I’m more confident than ever in our prospects," Uber CEO Dara Khosrowshahi said in an earnings call.
Lyft shares are now flat year-to-date, and down over 70% over the past year. Uber (UBER) shares are up nearly 40% so far this year and down just 7% over the past year.
The greatest daily decline for Lyft shares so far was a 30% tumble on May 4, 2022, after the company’s forecast for earnings and revenue fell short of estimates and Lyft said it would have to spend more heavily to attract drivers.