Lyft signals steady demand as second-quarter revenue tops estimates
By Akash Sriram
Lyft’s Financial Performance and Growth Drivers
Aug 6 (Reuters) - Lyft beat Wall Street estimates for second-quarter revenue on Thursday and forecast current-quarter gross bookings slightly above expectations, as demand for higher-value rides, international expansion and partnerships drive growth.
Second-Quarter Revenue and Analyst Expectations
Revenue jumped 16% to $1.84 billion in the three months ended June 30, above analysts' average estimate of $1.81 billion, according to LSEG data.
Business Segment Strength
"We're really seeing strength across our business. So the U.S. rideshare, our bikes and scooters business, our European business, we're seeing strength across all of those areas," CFO Erin Brewer told Reuters.
Impact of Major Events
The FIFA soccer World Cup, held in the U.S., Canada and Mexico, lifted demand during the second quarter, especially for airport rides and in host cities.
Third-Quarter Forecasts and Earnings
For the third quarter, the company forecast gross bookings of $5.5 billion to $5.67 billion, compared with Wall Street expectations of $5.57 billion.
The company's per-share earnings came in at 13 cents in the June quarter, marginally lower than estimates of 14 cents.
Stock Performance
Shares of the ride-hailing firm were about 1% higher in extended trading.
Strategic Initiatives and Expansion
Lyft has sought to improve growth and profitability by steering riders toward higher-value services, including premium rides, airport trips and chauffeur offerings, while also expanding its European operations through FreeNow by Lyft.
European Expansion and Integration
A year after closing its acquisition of European ride-hailing app FreeNow, Lyft said the business is performing better on an organic basis as the company integrates it into the global platform.
Gross Bookings and Profit Growth
Gross bookings, which measure the total value of transactions on its platform, rose 23% to a record $5.50 billion in the second quarter.
Adjusted Core Profit
Adjusted core profit jumped 37% to $177.2 million, exceeding estimates of $171.9 million.
Partnerships and Cost Management
Partnerships have become a bigger source of rider acquisition and engagement. About 30% of North American rideshare rides were linked to a partner in the second quarter, Lyft said, citing relationships including DoorDash and United Airlines.
Insurance Costs and Incentives
Lower insurance costs, helped by California reforms and growth in markets with lower insurance expenses, allowed it to spend more on rider incentives and loyalty programs to drive rides growth, Brewer said.
(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)