Uber Technologies Inc reported lower-than-expected revenue for the second quarter on Thursday, sending shares down 12% as the largest us ride-hailing company failed to show expected benefits of easing price competition.
"We believe these price adjustments are an industry trend", Chief Financial Officer Brian Roberts said on a call with analysts.
Green said because of that positive momentum, the company expects 2019 losses to be better than previously expected.
A loss of $2.23 per share in the quarter was worse than the $1.74 per-share loss expected, on average, by analysts, according to IBES data from Refinitiv.
Its adjusted net loss, after accounting for the stock compensation, insurance change and other expenses, widened to $197.3 million, from the $176.5 million adjusted net loss it posted during the same quarter past year. It raised its revenue outlook on Wednesday.
Lyft's 72% jump in revenue was fueled by more active riders, who spent about a quarter more than they had a year ago.
Uber's costs rose 147% to $8.65 billion in the quarter, including a sharp rise in spending for research and development. But while Uber is offering fewer discounts, its staggering loss showed it is still having trouble finding a path to profitability for its array of businesses - including ride-hailing, food delivery, scooters and freight.
Uber, which is Lyft's main and much larger rival, is set to report earnings Thursday. Lyft's revenue per active rider was $39.77, up 22% compared to the same time past year. Both ride hailing companies had seen share rise during regular trade.
The company, which has not yet made clear whether it will make a profit, is trying to convince investors that growth will come not only from its ride services, but also from other logistics and food delivery services.
The San Francisco-based company is projecting revenue between $900 and $915 million in the third quarter, with year-over-year revenue growth of 54-56%.
The company revised its fiscal 2020 sales guidance from a range of $3.275-$3.3 billion to a range of $3.47-$3.5 billion.
Lyft, which beat Uber to go public first, operates in over 300 cities in the United States and Canada. Lyft now predicts it will lose between $850 million and $875 million after expenses such as interest, taxes, depreciation and amortization in 2019, an improvement from the previous predicted loss of $1.15 billion to $1.175 billion.