Analyst Note| Ali Mogharabi |
Lyft’s first-quarter top- and bottom-line results came in better than the FactSet consensus estimates as demand for its ridehailing service continues to improve, indicated by a strong sequential increase in and steady monetization of riders. Combined with a slower recovery in supply, the increase in demand pushed prices much higher, further contributing to better-than-expected first-quarter net revenue. We think as supply increases prices likely will stabilize and come down in the second half of this year. Until then, Lyft and likely its peer, Uber, will continue to benefit from higher prices. Lyft management’s second-quarter net revenue guidance was higher than our internal projections. The firm also guided for adjusted EBITDA profitability beginning in the third quarter. We still expect full-year adjusted EBITDA profit in 2022 and GAAP profitability in 2024.