Expectations of a rebound from the support after the Morning star formation were not met – the ridesharing company's Q2 guidance led LYFT's stock price hard down.
Even though Q1 results exceeded analyst expectations for revenue and EPS, with revenue of $876 million up 44% from Q1 2021 and adjusted net income of $24.6 million reversing a loss of $114 million, LYFT's stock price plummeted 30% this Wednesday.
Compared to the previous period, the results look less positive. LYFT's revenue was down 10% from Q4 2021 and EBITDA fell nearly 27% to $54.8 million. The lower results coincided with a sharp increase in gasoline prices, which impacted drivers' net income and made it harder for LYFT to retain them. That's why its executives have adjusted their Q2 2022 EBITDA guidance and are expecting between $10 million and $20 million. That's well below the Wall Street analysts' expectations, who had estimated that EBITDA would be $83 million.
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