Lyft, Inc. (Nasdaq: LYFT) released on Tuesday its Q3 2022 financials, topbilled by US$1.05 billion in revenue. This is an increase from Q2 2022’s US$990.7 million and Q3 2021’s US$864.4 million.
But the firm still had total operating costs for the quarter exceeding the topline figure–a trend the firm has for the last three quarters. The quarter notched US$1.34 billion in total costs and expenses, a marginal decline from last quarter’s US$1.36 billion but a jump from last year’s US$1.07 billion.
This led the firm to end the three-month period with US$290.4 million in operating loss, an improvement from last quarter’s loss of US$373.2 million but wider than last year’s loss of US$240.1 million.
“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 CEO Logan Green. “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.”
Following the release of the firm’s earnings, shares fell pre-market by as much 19%. Year-to-date, the firm has lost 68% of its valuation.
The net loss for the third quarter was US$422.2 million, down from a loss of US$377.2 million in the previous quarter and a loss of US$99.7 million in the same period in 2021. This translates to US$1.18 loss per share.
Stock-based compensation increased this quarter to US$221.0 million from US$176.6 million last quarter and US$198.4 million last year. Calibrating for this and other financial items, adjusted EBITDA ended at US$66.2 million, down from both last quarter’s US$79.1 million and last year’s US$67.3 million.
The firm ended the quarter with US$143.7 million in cash balance, down from last quarter’s ending balance of US$239.3 million; short-term investments came in at US$1.64 billion, up from last quarter’s ending balance of US$1.57 billion. These put the current assets balance at US$2.47 billion while current liabilities ended at US$2.78 billion.
For Q4 2022, the ride-hailing platform guided quarterly revenue to be between US$1.145 billion and US$1.165 billion, a 9-11% quarter-over-quarter or 18-20% year-over-year increase. Adjusted EBITDA is projected to land US$80 million – US$100 million.
Despite these, the firm saw active riders surge to 20,312 at the end of the quarter compared to last quarter’s 19,860 and last year’s 18,942 riders.
“We also saw a higher number of Active Riders, rides and drivers than we’ve had since COVID began, reflecting strong organic tailwinds,” said CFO Elaine Paul. “We’re focused on accelerating initiatives that will have the biggest impact for drivers, riders and the company.”
Lyft last traded at US$11.16 on the Nasdaq.
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