By Akash Sriram
May 7 (Reuters) – Lyft reported first-quarter ride volumes below Wall Street estimates on Thursday after severe winter storms in the U.S. Northeast disrupted demand, but the ride-hailing firm forecast second-quarter gross bookings and adjusted core profit above expectations.
Shares of the San Francisco-based company fell about 3% in trading after the bell.
The company reported first-quarter rides of 236.9 million, missing Visible Alpha estimates of 242 million after severe winter storms in the U.S. Northeast reduced demand by more than 3 million rides during the quarter.
“The approximate volume impact of winter storms in Q1 was at about 3 million rides,” CFO Erin Brewer told Reuters, adding that just over half of the impact came from Lyft’s bikes and scooters business, with the remainder from rideshare trips.
Larger rival Uber forecast a stronger-than-expected second quarter on Wednesday despite a hit from Middle East tensions, citing resilient ride-hailing demand.
Still, stronger premium offerings, partnerships and international operations helped Lyft post stronger-than-expected bookings and revenue. Gross bookings rose 19% to $4.95 billion in the first quarter, ahead of estimates of $4.92 billion, while revenue climbed 14% to $1.65 billion, topping estimates of $1.63 billion, according to LSEG data.
Brewer said a growing mix of “higher value rides” and contributions from businesses such as European taxi app FreeNow and chauffeur service TBR Global Chauffeuring were driving topline growth even as ride volumes lagged expectations.
Lyft forecast second-quarter gross bookings of $5.30 billion to $5.43 billion, above analysts’ average estimate of $5.32 billion. The company projected adjusted core earnings of $160 million to $180 million, compared with estimates of about $167 million.
It is also pushing deeper into autonomous vehicle operations with partners including Baidu and Waymo. The company said its Flexdrive autonomous vehicle depot in Nashville, Tennessee, will open this fall.
Adjusted earnings before interest, taxes, depreciation and amortization rose 25% to $132.8 million in the quarter, while net income increased to $14.2 million, or 4 cents per share, from $2.6 million, or 1 cent per share, a year earlier.
(Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)
