Shares of ride hailing service Lyft (LYFT) - Get Report were falling despite beating analysts’ top- and bottom-line fourth quarter estimates as investors seek more clarity about the company’s path to profitability amid improvements by its biggest rival, Uber (UBER) - Get Report.
Lyft reported a net loss of $1.19 per share on revenue of $1.02 billion, while analysts were expecting the company to report a net loss of $1.39 per share on revenue of $984.17 million. The company reported 22.9 million active riders, slightly ahead of Wall Street's estimate of 22.8 million active riders.
Lyft also guided full year revenue between $4.575 billion and $4.65 million while first quarter revenue is expected to be between $1.055 billion and $1.06 billion, a 36% to 37% increase. Wall Street expects the company to report revenue of $4.59 billion for the year and $1.05 billion for the first quarter.
Shares were falling 3.7% to $51.93 in after-hours trading Tuesday after rising 0.4% in regular trading.
“Fiscal 2019 was an exceptional year across the board. We significantly improved our path to profitability while simultaneously reaching critical milestones toward our long-term strategy,” said Lyft CEO Logan Green.
More information is likely to be shared on the company's call with analysts.
Earlier this month, rival Uber (UBER) - Get Report got a boost after reporting a narrower than expected loss of 64 cents per share on revenue of $4.1 billion, and also said that it will be EBITDA positive by the fourth quarter of 2020, ahead of its prior target of full year 2021.
“Our progress in 2019 and our 2020 plans give me the confidence to challenge our teams to accelerate our EBITDA profitability target from full-year 2021 to Q4 2020,” Uber CEO Dara Khosrowshahi said.
For the past several months, Uber has sought to trim losses by undertaking cost-cutting measures, including laying off hundreds of workers, downsizing its self-driving car division and selling its Indian Uber Eats business to a local rival, Zomato.