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Lyft Reports 61% Decline in Q2 Revenues, Lyft Stock Slightly Down in Pre-Market

San Francisco-based ridesharing company Lyft Inc (NASDAQ: LYFT) has announced its Q2 revenues. The company has underperformed some expectations because of challenging conditions in which Lyft had to perform but managed to beat on earnings thanks to cost-cutting efforts.

In the quarter that ended on June 30, Lyft generated $339.3 million in revenue compared to $867.3 million in Q2 2019. In other words, revenue fell 61% in the quarter. Meanwhile, Refinitiv Consensus analysts were predicting $337 million. Further, Lyft reported a $265.8 million adjusted net loss for Q2 2020. In contrast, a net loss in the second quarter of 2019 was $197.3 million. Lyft’s earnings per share were negative $1.41, adjusted loss per share accounted for 86 cents versus an expected 99 cents.

Despite not the best Q2 performance, Lyft has pointed out that by the end of July, the company had managed to recover. According to Lyft, its monthly rides increased by 78% in July, as compared to April.

Lyft co-founder and CEO Logan Green said:

“While rideshare rides in the quarter were down significantly year-over-year, we are encouraged by the recovery trends we are beginning to see, with monthly rideshare rides in July up 78% compared to April. Lyft’s second-quarter results reflect an operating environment that was not only challenging for our core ridesharing business, but also for our valued riders and drivers and the communities we serve. Our performance reinforces our belief that Lyft is taking on the critical work necessary to emerge from the crisis as a stronger company.”

Besides, Lyft has boasted a significant growth in the number of active riders. In the second quarter of this year, active riders accounted for $8.7 million people. Revenue per active rider totaled $39.06.

Following the Q2 2020 earnings report, Lyft stock fell. On August 12, it closed 0.42% down, at $30.52 per share. In the pre-market trade today, it slightly declined. Lyft market cap is $9.4 billion, Lyft stock is 29.06% down year-to-date.

Founded in 2012, Lyft is one of the largest transportation networks in the US and Canada. It offers ride-hailing, scooter- and bike-sharing, and vehicle renting.

At present, Lyft is facing multiple lawsuits in the US over alleged misclassification of drivers and wage theft. Previously, the company considered drivers strictly as independent contractors. Like others in the “gig economy,” including Doordash and Instacart, Lyft has argued that workers want freedom and flexibility that they cannot get if they are classified as employees. However, California authorities are insisting on providing Lyft drivers with employment benefits. In response, Lyft is considering suspending its ride-hailing operations in California starting on August 21.

Lyft Reports 61% Decline in Q2 Revenues, Lyft Stock Slightly Down in Pre-Market

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