Lyft posts Q3 loss as reserves weigh on revenue despite strong bookings and EBITDA

Why it matters

The reserve-related revenue reduction and earnings shortfall pressured the shares, while the bookings and EBITDA performance provided evidence of continued operating growth. Evercore ISI reiterated an In Line rating, while BMO Capital and Raymond James retained Market Perform ratings, showing mixed analyst views after the print.

Key facts

• 1Legal, tax and regulatory reserve changes and settlements totaled $117.9 million, reduced quarterly revenue by $69.1 million and contributed to a $9.7 million net loss. financialcontent.com
• 2Lyft reported revenue growth of 8.1% year over year to $1.82 billion and a GAAP loss of $0.03 per share against an expected $0.20 profit. financialcontent.com
• 3Gross bookings increased 17% year over year to $5.62 billion, while EBITDA reached $204 million, approximately 6% above Evercore ISI and Street estimates. investing.com
• 4Fourth-quarter guidance calls for gross bookings of $5.74 billion to $5.94 billion and EBITDA of $188 million to $213 million. investing.com
• 5Lyft repurchased approximately $50 million of shares in the third quarter and expects that to be about $500 million for the full year. finance.yahoo.com

Open questions

• The materials conflict on the quarter's per-share result: one report gives adjusted earnings of 43 cents per share, while others report a $0.03 loss as adjusted or GAAP EPS, without resolving the basis difference.
• Reported gross-bookings growth is stated as 17% in some materials and 17.5% in another on an apparently similar basis.