It was all looking so great…
Lyft reported better-than-expected revenues and losses for Q2, and boosted its forecast for the year, sending LYFT shares soaring, squeezing over 10% higher.
The ride-hailing company now projects at least $3.47 billion in sales for the year, compared with an average analyst estimate of $3.32 billion, according to data compiled by Bloomberg.
“Lyft’s second quarter was marked by strong execution and important advances in our product and platform. This translated to record revenue driven by better than expected Active Rider growth and Revenue per Active Rider monetization,” said Logan Green, co-founder and chief executive officer of Lyft.
“We remain focused on reshaping transportation and we are pleased with the continued improvement in market conditions. This environment along with our execution is translating to strong revenue growth and sales and marketing efficiencies. As a result of this positive momentum, we anticipate 2019 losses to be better than previously expected and we are pleased to have updated our outlook.”
There was some silver-lining for the bears, as Bloomberg reports, when accounting for stock-based compensation, insurance costs and other expenses, Lyft’s net loss in the second quarter plummeted to $644.2 million, from $178.9 million a year earlier. Lyft reported a $1.14 billion net loss in the first quarter, which was largely due to costs associated with the initial public offering in March.
But then, the ride-hailing company dropped the bigger news that it would end its lock-up period early (to August 19th), allowing insiders to sell their shares earlier than expected.
Lyft’s lockup period was originally scheduled to end on September 24, the company said in a regulatory filing, but that date falls during the legally mandated quiet period ahead of its next earnings report.
“Therefore, in accordance with the lock-up agreements with the underwriters, the lock-up period will end at the open of trading on August 19, 2019, which is ten trading days prior to the commencement of the Company’s quarterly blackout period,” the filing says.
And the stock puked all its after-hours gains…
Beyond Lyft anyone?
via ZeroHedge News https://ift.tt/2MI10Zw Tyler Durden