Ride-Hailing Falling: Uber, Lyft Plummet After Reporting Disappointing Q1 2022 Financials

Lyft, Inc. (Nasdaq: LYFT) released on Tuesday its Q1 2022 financials while Uber Technologies, Inc. (NYSE: UBER) published its financials this morning. Despite reporting year-on-year increases in topline revenue, both ride-hailing platforms still recorded net losses.

Uber notched US$6.85 billion in revenue for the quarter compared to Q1 2021’s US$2.90 billion. Lyft posted US$875.6 million in revenue vis-a-vis its last year’s counterpart at US$609.0 million.

However, with both firms recording costs and expenses higher than their revenues, both also recorded net losses for the quarter–Uber at US$5.93 billion and Lyft at US$196.9 million.

Sour: Uber Technologies
Lyft financial highlights
Source: Hypercharts

Following the releases, Lyft’s shares sank 34% while Uber sank 11% as the market opened today.

Nevertheless, Lyft’s topline revenue figure beat its outlook of US$800 – US$850 million. The firm also beat its adjusted EBITDA outlook of US$5 – US$15 million with US$55 million for the quarter, coming from a loss of US$73 million in the year-ago period.

On the other hand, Uber’s significant widened net loss for the quarter includes US$5.6 billion recorded losses relating to Uber’s equity investments. The company’s losses also included US$359 million in stock-based compensation expenses.

Spurce: Uber Technologies

Lyft’s net loss also included a US$163.2 million stock-based compensation and related payroll tax expenses.

For the quarter, Uber’s adjusted EBITDA came in at US$168 million compared to a loss of US$359 million last year.

In Q2 2022, Uber guides the quarter’s adjusted EBITDA between US$240 and US$270 million, meeting the consensus at US$248 million. In sharp contrast, Lyft guides the next quarter with figures lower than that of the consensus.

Due to the quarterly losses, Lyft still generated an operating cash burn at US$152.3 million while Uber recorded an operating cash burn of US$611 million.

Lyft still ended the quarter with US$214.9 million in cash and cash equivalents, putting the balance of the current assets at US$2.94 billion. Uber ended the quarter with US$4.30 billion in cash and cash equivalents, putting the balance of the current assets at US$8.82 billion.

Uber’s current liabilities for the quarter ended at US$9.02 billion while Lyft’s came in at US$2.58 billion.

Uber last traded at US$29.47 on the NYSE while Lyft last traded at US$30.76 on the Nasdaq.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply