Lyft’s shares fell over 10% in premarket trading on Wednesday after the company issued a cautious forecast for the current quarter.
Despite strong second-quarter results, Lyft projected gross bookings between $4.0 billion and $4.1 billion, falling short of analysts’ expectations of $4.13 billion. Adjusted core earnings guidance also missed forecasts.
The company, which competes with Uber in the ride-share market, reported a 41% revenue increase to $1.44 billion for Q2, surpassing estimates.
Lyft also achieved a net profit of $5.0 million, a turnaround from a $114.3 million loss a year earlier.
CEO David Risher’s cost-cutting measures and strategic focus on advertising contributed to a 36% rise in Lyft’s stock this year.
Uber’s strong quarter on Tuesday also saw a slight miss in its gross bookings guidance for the peak tourist period.
While Uber benefits from a diverse business model including food delivery, Lyft remains focused on ride-hailing in the U.S. and Canada.