Earnings To Watch: Lyft (LYFT) Reports Q1 Results Tomorrow

Jabin Bastian /
2023/05/03 3:33 am EDT

Ride sharing service Lyft (NASDAQ: LYFT) will be reporting earnings tomorrow afternoon. Here's what to look for.

Last quarter Lyft reported revenues of $1.17 billion, up 21.1% year on year, beating analyst revenue expectations by 1.77%. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter. The company reported 20.4 million paying users, up 8.7% year on year.

Is Lyft buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Lyft's revenue to grow 12.2% year on year to $982 million, slowing down from the 43.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

Lyft Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and two downward revisions over the last thirty days.The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 3.35%.

Looking at Lyft's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Roku reported revenues up 0.99% year on year, exceeding estimates by 4.72%. Shutterstock traded flat on the results, Roku was up 6.18%. Read our full analysis of Shutterstock's results here and Roku's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 6.67% over the last month. Lyft is up 11.5% during the same time, and is heading into the earnings with analyst price target of $14.1, compared to share price of $10.65.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.