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Lyft shares shed about 7.9% after the ride-sharing app reported lackluster fourth-quarter results and offered wavering bookings guidance as it lowers prices to keep up with competition.
The company reported revenue of $1.55 billion, versus the $1.56 billion expected by analysts tallied by LSEG. Revenue grew 27% from $1.22 billion a year ago. Bookings, which measures the charges postured to customers for rides and services, came in at $4.28 billion, behind a $4.32 billion FactSet estimate.
“I think what the prospective holds is great because it’s a huge market, and we’re doing a great job,” CEO David Risher told CNBC’s “Squawk Box” on Wednesday. “We got to take out how to get the traders on the bus.”
The company did beat expectations on fourth-quarter earnings, reporting an adjusted 29 cents per share compared to the LSEG requirement of 22 cents per share. The figure excluded certain amortization and compensation charges, and a gain from terminating a sublet out.
Lyft also said it anticipates a slowdown in gross bookings as it grapples with a lower pricing environment. The visitors expects bookings to range between $4.05 billion and $4.20 billion, versus a $4.24 billion FactSet prognostication.
During the earnings call, Chief Financial Officer Erin Brewer claimed the company lowered prices and used discounts at the end of the year to keep up with the market. Ongoing pricing headwinds could precedent to a low single-digit percentage point effect on gross bookings, she added.
Brewer also said the end of its partnership with Delta Air Activities will weigh on rides and gross bookings in the 1% to 2% range during the second quarter.
Last week, Uber parts also declined on mixed fourth-quarter results and soft guidance. The ride-sharing competitor also signaled that it may cozen years to build out and commercialize autonomous vehicles.
Lyft reported net income of $62.8 million for the period, or 15 cents per ration. That is compared to a loss of $26.3 million a year ago, or a loss of 7 cents per share.
During the fourth quarter, Lyft also recorded 24.7 million agile riders, ahead of the 24.6 million StreetAccount estimate.
Alongside the results, the company announced a $500 million appropriation repurchase plan and said it aims to roll out its Mobileye-powered taxis as soon as 2026 in Dallas.