Lyft lost more than $1 billion in the first quarter of 2019.
Lyft’s released its first earnings report since going public earlier this year. There was a lot of excitement around Lyft’s March IPO but since then, the company’s shares have fallen more than 24%.
The earnings report showed that Lyft lost $1.14 billion in the first quarter of 2019. In comparison, the company lost $234.3 million a year ago. This increase was largely due to stock compensation and other expenses related to the company’s IPO.
Brian Roberts, Lyft’s CFO, said the company expects these losses to continue for the remainder of 2019. He said this would be “our peak loss year and then we will move steadily towards profitability.”
A closer look at Lyft’s first-quarter earnings
Even excluding the stock compensation, Lyft still lost $221.5 million in the first quarter. However, it wasn’t all bad news for the company.
Lyft did manage to double its revenue. The company’s revenue rose to $776 million and the company’s number of active riders grew 46% over the last years. The company plans to invest heavily in new areas of the business, including its autonomous vehicle development.
Lyft plans to form partnerships with companies that manufacture autonomous vehicles rather than building its own. The company has already partnered with Waymo, which is owned by Google’s parent company Alphabet. Lyft will use 10 of its vehicles to offer rides in the Phoenix area.
In spite of the large losses, investors seemed mostly pleased with the results. Credit Suisse even said the earnings report showed that the company made positive steps toward becoming profitable.
And many investors said they had expected large losses from Lyft and were looking at other key metrics. This includes things like the number of active riders and the total revenue per rider.
Lyft’s stock fell immediately after releasing its earnings report but the stock did eventually rebound. JPM Securities said that Lyft’s mostly flat stock provides an opportunity for investors to buy in while shares are relatively low.