Shares of Lyft Inc (LYFT) are down more than 20% this morning even though the ride-hailing company reported market-beating results for its first financial quarter.

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Lyft stock down on disappointing guidance

The tech stock is being punished for the guidance that came in shy of Street estimates. Lyft now expects $20 million to $30 million of adjusted EBITDA on up to $1.02 billion in revenue in its current quarter.

In comparison, analysts were at $51 million and $1.08 billion, respectively – that made Michael Morton – an SVB MoffettNathanson analyst reiterated his market-perform rating on the Lyft stock.

 

There’s no getting around it. The problems Lyft faces are challenging if not daunting: simultaneously reverse market-share losses while improving unit economics.

Are Lyft shares worth buying on the dip?

On the plus side, Lyft reported $51.17 in revenue per active rider that topped the consensus by 77 cents. It also increased its market share by 3.0% between February and mid-April.

The ride-sharing company ended the quarter with the highest number of drivers in three years, as per its earnings press release. Still, Morton added:

 

It remains to be seen if Lyft will be able to continue this progress and ultimately achieve consistent GAAP profitability.

His $8.0 price target suggests Lyft shares have still not bottomed and could lose another 5.0% from here. In late March, cofounder Logan Green stepped down as the CEO of Lyft Inc (read more).

Notable figures in Lyft’s Q1 earnings report

• Lost $187.6 million versus the year-ago $196.9 million
• Per-share loss also narrowed a bit from 53 cents to 50 cents
• Adjusted EPS came in at 7 cents as per the press release
• Revenue jumped 14% on a year-over-year basis to $1 billion
• Consensus was 10 cents of loss on $981.7 million revenue
• Number of riders was roughly in line with estimates at 19.55 million

Versus its year-to-date high, Lyft stock is down more than 50% at writing.

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