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Wall Street watches Lyft’s new CEO for rescue strategy.

PARK CITY, UTAH - JANUARY 23: General view of Lyft signage during the Sundance Film Festival on January 23, 2023 in Park City, Utah. (Photo by Mat Hayward/Getty Images)

Wall Street awaits new CEO David Risher’s turnaround strategy as Lyft Inc. (LYFT.O) revenue growth is expected to trail Uber Technologies Inc. (UBER.N) for the sixth straight quarter. Last month, he slashed over 1,000 workers to revive a corporation that has struggled to recover from epidemic lows and slipped behind its more global and diverse opponent.

Thursday’s first-quarter earnings call will reveal Lyft’s expansion strategy. Uber reports Tuesday. “The latest round of layoffs and change in leadership have been taken positively, with checks also pointing to Lyft regaining some market share,” J.P. Morgan analysts wrote 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.”

Refinitiv analysts predict Lyft’s first-quarter revenue to climb 12.1%, compared to Uber’s 27.3%. After Uber dropped its fuel surcharge in January, Lyft cut prices. Still, analysts say its larger presence on the U.S. West Coast is a drag since many technology companies in the region have not returned to office.

With a $62 billion market capitalization and massive food delivery operation, Uber has done better. As a result, delivery revenue is predicted to climb by 21.3% and ride-sharing income by over 62%.

The firm, which promises profitability by 2023, is projected to generate adjusted earnings before interest, taxes, depreciation, and amortization of $676 million, a record.
Lyft is projected to disclose an adjusted net loss of $29.1 million, compared to a $24.6 million profit a year earlier.

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