Lyft (LYFT) Q1 Earnings: What To Expect

Kayode Omotosho /
2022/05/02 7:03 am EDT
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Ride sharing service Lyft (NASDAQ: LYFT) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter Lyft reported revenues of $969.9 million, up 70.1% year on year, beating analyst revenue expectations by 3.08%. While the company traded down on the results, it was still a decent quarter, with an exceptional revenue growth and growing number of users. The company reported 18.7 million paying users, up 49.2% 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 38.8% year on year to $845.5 million, improving on the 36.2% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.78%.

Looking at Lyft's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Snap delivered top-line growth of 38% year on year, missing analyst estimates by 0.57% and Meta reported revenues up 6.63% year on year, missing analyst estimates by 1.11%. Snap traded up 8.2% on the results, Meta was up 12.1%. Read our full analysis of Snap's results here and Meta's results here.

The whole tech sector has been facing a sell-off since late last year and consumer internet stocks have been swept alongside with it, with share price down on average 21.8% over the last month. Lyft is down 15.5% during the same time, and is heading into the earnings with analyst price target of $54.7, compared to share price of $32.9.

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.