All eyes on Lyft's new CEO as Wall Street awaits turnaround plan
FILE PHOTO: The Lyft Driver Hub is seen in Los Angeles, California, U.S., March 20, 2019. REUTERS/Lucy Nicholson/File Photo/File Photo
Lyft's revenue growth is likely to lag bigger rival Uber Technologies for the sixth straight quarter, with Wall Street eagerly looking forward to a turnaround plan from its new CEO David Risher.
He took charge last month and has already moved to cut more than 1,000 jobs to kick-start a company that has struggled to rebound from pandemic lows and fallen behind its more global and diversified rival.
Lyft is expected to share more details on its growth plan at the first-quarter earnings call on Thursday. Uber will report results on Tuesday.
"The latest round of layoffs and change in leadership have been taken positively, with checks also pointing to Lyft regaining some market share," JP Morgan analysts said in their pre-earnings note.
"What's less clear for Lyft is its path forward from here and what the long-term goals are for the new management team, which we expect to be focal points among investors."
Lyft's revenue is expected to rise just 12.1 per cent for the first quarter, compared with projections of a 27.3 per cent surge for Uber, according to analysts polled by Refinitiv.
Lyft had cut prices in January after Uber dropped its fuel surcharge, and analysts have said the company's larger presence on the US West Coast is a drag as many technology companies in the region have not returned to office.
Uber, whose US$62 billion market valuation is nearly 20 times that of Lyft, has fared better, thanks to its international heft and a sprawling food delivery business.
Revenue growth at its delivery business is expected to come in at 21.3 per cent, while ride-sharing revenue is set to jump nearly 62 per cent.
The company, which has promised profitability by 2023 end, is expected to report adjusted earnings before interest, taxes, depreciation, and amortization of about US$676 million - the highest on record.
Lyft, meanwhile, is expected to report an adjusted net loss of US$29.1 million, compared with an adjusted profit of US$24.6 million, a year earlier.
