Lyft Earnings: What To Look For From LYFT

Radek Strnad /
2022/11/07 2:05 am EST

Ride sharing service Lyft (NASDAQ: LYFT) will be reporting earnings today after market hours. Here's what to expect.

Last quarter Lyft reported revenues of $990.7 million, up 29.5% year on year, in line with analyst expectations. It was a solid quarter for the company, with strong top line growth and growing number of users. The company reported 19.8 million paying users, up 15.8% 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 22.8% year on year to $1.06 billion, slowing down from the 72.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

Lyft Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.72%.

Looking at Lyft's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Uber delivered top-line growth of 72.1% year on year, beating analyst estimates by 2.72% and Etsy reported revenues up 11.6% year on year, exceeding estimates by 5.36%. Uber traded up 8.31% on the results, Etsy was up 8.29%. Read our full analysis of Uber's results here and Etsy's results here.

There has been a stampede out of high valuation technology stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4.95% over the last month. Lyft is up 9.05% during the same time, and is heading into the earnings with analyst price target of $29.20, compared to share price of $13.97.

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.