In the third quarter, the ride-sharing company lost $137 million due to the shutdown of a company that had a small stake.
Ford and Volkswagen pulled their investments in order to focus on more near-term goals like advanced driver assistance systems in passenger vehicles.
The two companies were working together to use Argo's technology on the platform. In September and December of last year, the two companies launched their services in Austin and Miami. The services have been discontinued according to a company spokesman.
The company did not say how it will change its strategy in the future, but it did say that it was partnering with Motional to launch robotaxis in Las Vegas.
About a third of the company's losses for the quarter were caused by the shutdown of the Argo app. The company lost $422.2 million in the second quarter of this year, which is more than the $99.7 million in the same period of 2021.
The stock-based compensation and related payroll expenses increased in the second quarter. The increase is related to the top-up that was given to employees when the company's stock price fell.
The increase isn't related to the layoffs from the company, the first of which happened in July and the second just last week.
There will be a stock-based compensation charge and payroll tax expense related to affected team members as well as restructuring charges related to a decision to exit in the fourth quarter. We can't estimate these charges at the moment because they depend on our stock price.
There is a different compensation model for international markets like Canada and Eastern Europe where there is less stock based compensation.
The company reported revenue of $1.05 billion, which is slightly less than Wall Street's expectations. The company's earnings per share was lower than anticipated. The Street had hoped for more than 20 million active riders, but only 20.3 million came through. Revenue per active rider was higher than expected.
The stock of Lyft fell in after-hours trading after it had started to rise. Since the beginning of the year, the company's shares have fallen.
The company had 141 million dollars in cash at the end of the period.
Revenue is expected to be between $1.145 billion and $1.165 billion in the fourth quarter, with growth between 9% and 11% quarter over quarter and 18% to 20% year over year. Increased revenue per rider is one of the reasons for the growth. The reduction in force will lead to a $20 million cut in operating expenses for the fourth quarter.
The president of the company said he was confident that they would be able to achieve their goals in the fourth quarter.
Two main cases have been used inside. The growth case assumes that the labor market stays as tight as it currently is and that market bookings grow in the low to mid 20% range. In both cases, we have a very confident path to the billion dollars, a nd in both cases, we will continue.
Lyft rides post-COVID recovery to record earnings, but faces inflationary headwinds
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