Skip to main content

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.  * Visit Business Insider's homepage for more stories. 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. Join the conversation about this story » NOW WATCH: How waste is dealt with on the world's largest cruise ship
https://bit.ly/3ah9yjU

Popular posts from this blog

'What is the X-Ray feature on Amazon Prime Video?': How to find and view bonus material about TV shows and movies

* X-Ray is an exclusive feature on Amazon Prime Video that displays bonus material about a show or movie, similar to the bonus features on a DVD. * X-Ray can show you information about the actors in a scene, the musical soundtrack, trivia, and more. * To activate X-Ray, you generally only need to click or tap within a video that's currently playing.   * Visit Business Insider's Tech Reference library for more stories. Amazon Prime Video's X-Ray feature is, at least for now, not available on any other video streaming service. X-Ray works like the bonus features you find on a DVD or Blu-ray. With just a few clicks or taps, you can get additional information about many of the TV shows and movies on Prime Video. When you activate X-Ray, Prime displays an overlay on top of your show, offering additional information.  Check out the products mentioned in this article: Amazon Prime Video ($8.99 a month at Amazon) Roku (from $49.99 at Roku) There are several kinds of info...
Read more

Here's an exclusive look at the pitch deck London fintech Lanistar used to raise $19 million at a $190 million valuation

* London-based fintech startup Lanistar has raised a £15 million ($19 million) funding round from Milaya Capital.  * Founded in 2019, Lanistar is building a personal financial management platform that will launch later in 2020.  * "We're expecting a huge amount of growth upon our launch and have already seen strong interest among our sign ups," Gurhan Kiziloz, founder and CEO of Lanistar, told Business Insider. * Visit Business Insider's homepage for more stories.  The coronavirus lockdown in the UK has brought the importance of managing money into sharp relief. A recent study from Money.com shows that 71% of UK households have saved cash during lockdown, and, with uncertainty about jobs and the economy looming, money management is now front of mind for many. Lanistar, a banking platform with a focus on personal finance, is one company offering tools for consumers to better manage their money. It has just raised a £15 million ($19 million) funding round from Mil...
Read more

The 11 most important details we already know about the PlayStation 5, Sony's next-generation video game console set to arrive this year

* The PlayStation 5, Sony's next-generation game console that's deep in production, is scheduled to launch during the 2020 holiday season. * As you might expect, the PlayStation 5 is promised to be more powerful than the existing PlayStation 4 — and we've slowly been learning more about the next-gen console's new features since it was first revealed. * So far, Sony has offered a first glimpse at the new console via its new DualSense gamepad, and a tech demo highlighted the technical prowess of the new machine. * Here's everything we know so far about Sony's next-generation PlayStation console. * Visit Business Insider's homepage for more stories. The PlayStation 5 is almost here. Sony's next-generation PlayStation game console is scheduled to arrive this holiday season, but we already know plenty of details about it right now: how powerful it is, its main features, and we've even gotten a good look at its new gamepad.  Here everything we kno...
Read more