© Reuters. An empty Lyft pick-up area is shown as rideshare drivers hold a rally as part of a statewide day of action to demand that ride-hailing companies Uber and Lyft follow California law and grant drivers “basic employee rights”, in Los Angeles, California, U.
By Akash Sriram
(Reuters) – Lyft (NASDAQ:) forecast current-quarter bookings below expectations and reported third-quarter revenue slightly higher than estimates on Wednesday, as consumers pulled back on spending due to high interest rates and economic uncertainty.
The company’s shares fell more than 5% in extended trading after it projected fourth-quarter gross bookings between $3.6 billion and $3.7 billion, below estimates $4.09 billion, according to four analysts polled by LSEG.
Lyft said it was introducing gross bookings, which is the total value of transactions on the platform, in the third quarter.
Though Lyft only commands about 29% of the ride-hailing market as of September, its share has increased this year from 27% in January after it said it will price its rides competitively with larger rival Uber (NYSE:).
“While operating from a more efficient cost structure is certainly part of our formula, it is by no means the only part of the margin expansion equation,” Chief Financial Officer Erin Brewer told Reuters.
Brewer added that an improved mix of airport rides, scheduled rides and priority pickups also helped margin expansion.
Lyft forecast current-quarter adjusted core profit, a key profitability metric closely watched by investors, of $50 million-$60 million, higher than expectations of $48.8 million.
Lower prices helped Lyft serve 22.4 million active riders, which jumped 10% compared with a year earlier.
Uber on Tuesday predicted a strong holiday season after a third quarter that was impacted by accounting changes.
Since CEO David Risher took the top job at Lyft, the company has looked to cut costs aggressively. It posted higher core earnings in the second quarter and forecast further profitability improvement.
Lyft said it expects fourth-quarter revenue to grow in mid-single-digits sequentially, compared with market expectation of 4.6% growth, according to Reuters calculations.
Revenue grew 10% to $1.16 billion in the quarter ended Sept. 30, surpassing analysts’ average estimate of $1.14 billion, according to LSEG data.
Lyft’s adjusted core earnings of $92 million in the third quarter topped expectations of $82.6 million.
