We recently issued an updated report on Lyft, Inc. LYFT.
Lyft’s top-line performance in the first quarter is impressive despite a sharp fall in rides since mid-March due to the coronavirus outbreak. Total revenues in the quarter rose 23% on a year-over-year basis due to 3% rise in Active Riders and 19% rise in Revenue per Active Rider.
Subsequent to easing of coronavirus-led restrictions, Lyft witnessed week-over-week improvement in ride volumes. The company stated that rides increased 26% in May from April. With relaxations on stay-at-home orders, Lyft saw a larger volume of trips in the last three weekends compared with weekdays. Based on the uptrend in ride volumes in May from that in April, the company expects adjusted EBITDA loss for the second quarter to not exceed $325 million.
However, with coronavirus concerns continuing, ride volumes are way below the year-ago levels. Although May rides increased from April, it plunged 70% year over year. In April, Lyft announced the layoff of 982 employees, which constitutes 17% of its total workforce, due to reduction in demand for its services.
Zacks Rank & Key Picks
Lyft currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Zacks Computer and Technology sector are Acacia Communications, Inc. ACIA, ASGN Incorporated ASGN and Benefitfocus, Inc. BNFT. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings (three to five years) growth rate for Acacia Communications, ASGN Incorporated and Benefitfocus is estimated at 30%, 5.6% and 30%, respectively.
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