In its first financial report since going public, Lyft Inc exceeded analysts’ sales expectations and assured investors that its hefty losses will decrease next year.
The San Francisco-based company projected second-quarter revenue of $800 million to $810 million. Analysts were expecting $782 million, according to data compiled by Bloomberg. Sales grew 95 percent to $776 million in the first quarter, beating estimates by $38 million.
Lyft, the second-largest ride-hailing service in North America, also reported an eye- popping net loss of $1.14 billion in the quarter, which was larger than the company’s loss for the entire year of 2018. Most of the costs were attributed to stock-based compensation and expenses tied to the initial public offering, but the numbers still unnerved some investors.
Shares are down 18 percent from the March IPO price. On a conference call after the report, Chief Financial Officer Brian Roberts said 2019 would be the peak year for losses, reiterating what executives said during the IPO roadshow.
The report suggests intense competition with Uber Technologies Inc. in the ride-hailing market will continue, at least through the end of the year. Lyft projected a loss before interest, taxes and other expenses of as much as $1.18 billion for 2019. It anticipates sales of $3.28 billion to $3.3 billion for the year, which is above estimates. Uber had estimated about $3 billion in revenue in the first quarter, up 19 percent from a year before.