Shares of Lyft fell 24% in after-hours trading Thursday after the ride-hailing company issued weaker-than-expected guidance for the current quarter.
The results come as the company faces pressure from investors over whether it can compete against rival Uber, which has taken the lion’s share of the market.
Lyft said it expects first-quarter 2023 revenue of $975 million, compared to the $1.09 billion anticipated by Wall Street. The disappointing outlook outshined what Lyft said was its highest quarterly revenue ever, along with revenue per active rider.
“Reinforcing our competitive position, servicing more demand, and reducing our fixed and variable costs will put us in the best position to deliver strong shareholder returns,” Lyft CEO Logan Green said in the earnings release. CFO Elaine Paul added that the guidance was the result of “seasonality and lower prices.”
For the fourth quarter, Lyft reported revenue of $1.2 billion, which is up 21% from the same quarter a year prior. Investors expected $1.16 billion. Lyft also reported 20.4 million active riders, its highest level in nearly three years. Revenue per active rider, meantime, was up 11% to $57.72.
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