Lyft forecasts strong bookings, winter storms hit first-quarter ride volumes

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Summary

  • Q1 rides misses estimates due to winter storms in the U.S. Northeast
  • Lyft expands internationally via acquisitions, including Gett UK and FreeNow
  • Partnerships drove 27% of North American rides, a record high

(Reuters) – Lyft forecast ‌second-quarter gross bookings and adjusted core profit above Wall Street estimates on Thursday, even as first-quarter ride volumes fell short of expectations due to severe winter storms in the United States.

Shares of the San Francisco-based company fell ​about 3% in after-hours trading. The stock has lost about 27% of its ​value this year.

“Lyft’s share price has been waning for months and there is ⁠little excitement about the stock. Although its current financials are improving, investors are growing more ​concerned about the future,” said Andrew Rocco, stock strategist at Zacks Investment Research.

Lyft reported 236.9 million ​rides in the first quarter, below Visible Alpha estimates of 242 million, after winter storms reduced demand by more than 3 million rides during the quarter.

Lyft's first-quarter rides hit by winter storm in the US
Lyft’s first-quarter rides hit by winter storm in the US
“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 tied to rideshare trips.
Lyft's bookings grows as company focuses on premium rides
Lyft’s bookings grows as company focuses on premium rides

Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid