Lyft couldn't pivot to food delivery or overseas markets as the coronavirus decimated ride-hail in the US. Here's what to expect from its earnings report. (LYFT)
* Lyft will reveal its second-quarter financial results on Wednesday afternoon.
* Unlike Uber, which reported last week, Lyft didn't have a delivery arm to lean on as the coronavirus decimated rides requests.
* Analysts expect the company to report its lowest revenues in more than three years.
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Lyft will report its second-quarter results on Wednesday afternoon, providing the first comprehensive look at just how badly the coronavirus pandemic hurt the ride-hailing company's business from April through June.
Analysts polled by Bloomberg expect the company to post its lowest revenue in more than three years. Here are the numbers:
* Revenue: $334 million, a 65% decrease from the first quarter.
* Net income: $301 million, a 10% decrease from the first quarter.
* EPS: $-0.99, a 10% decrease from the first quarter.
The smaller cash burn is likely thanks in part to massive cost cutting efforts by Lyft this spring, including a 17% trim to its workforce resulting in about 1,000 layoffs.
"We expect Lyft to execute well on the cost discipline side," Doug Anmuth, an analyst at JPMorgan, said in a note to clients.
Lyft doesn't have a food-delivery arm to lean on, unlike Uber, which for the first time reported revenues for its Eats business that topped its core ride-hailing unit last week. Plus, Lyft only operates in North America, so the continued spread of COVID-19 in the United States has an outsized effect on its business.
Lyft said in June — its most recent update — that some US markets were beginning to show meaningful increases after bottoming-out in March. Austin, for example, was up 73% in May over April. But the US' pandemic hasn't slowed much since that update, and data from Chase credit card suggests that the initial uptick seen by Lyft was short lived.
"We believe that after weeks of rideshare volume improvements into early June, recovery has slowed, stalled, or reversed in some cities," JPMorgan analysts wrote earlier in August.
And like Uber, Lyft faces significant headwinds in California where the two companies are sparring with state regulators and labor activists about their drivers' classification as contractors versus employees.
Shares of Lyft are down nearly 30% since the beginning of 2020.
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