Earnings Roundup: PayPal, Grubhub miss, AB InBev fizzles, LYFT gets a lift
Yahoo Finance’s On The Move panel recap the latest earnings from PayPal, Grubhub, Anheuser-Busch Inbev and Lyft.
Video Transcript
- So we're still getting more information from individual companies about how they're dealing with all of this. To run through some of the numbers, we got PayPall numbers after the close yesterday. And it was a bit of a messy quarter in terms of earnings, because it had some one time items. What's important, though, is that the company had $191 billion in payment volume in the first quarter. It was a little short of the $195 billion that analysts had been estimating, but it also said that April and May trends have been improving. And Dan Schulman, the CEO, said that April was the strongest month that PayPal has had as a public company, and that May 1st was the single largest transaction day ever for PayPal.
Adam I know you're digging into those Grubhub earnings.
- Yeah. In the first quarter, they had a net loss of $33.4 million. Revenue rose about 12% year over year to $363 million from $323.8 million. But take a look at the loss-- the adjusted EBITDA $21 million was a 59% increase year over year-- decrease, rather, from $50.9 million in the first quarter of 2019. So some of the metrics they're looking at-- gross food sales grew 8% year over year to $1.6 billion. That was up from $1.5 billion. But Matt Maloney, Grubhub founder and CEO, is saying that they're going to use nearly all of the money they've got, or their profits, in the second quarter to generate as many additional orders as they can for restaurant partners as possible. One thing, because of COVID-19, as they see restaurants kind of consolidate to just those who are doing takeout is that the number of active diners grew to 23.9 million, a 24% year over year increase from 19.3 million.
Julie?
- Also seeing an increase, but not everywhere, is people consuming alcohol. Anheuser-Busch InBev with its numbers. Those shares up about 1.2% right now. Global volumes in the quarter were down 32%. A lot of that attributable to what was going on in China. China plunging 46.5% in terms of the volumes in the first quarter. But that rate of decline really slowed in April, was down by only 17%. And it did see an increase in volumes in the United States. So that is one of the things that's helping bouy the shares today.
Adam, that's really a common theme that we're seeing among companies where even though things in the first quarter were terrible, if there is any sort of sign of improvement as we head into April or May, the shares have tended to perform better.
- And you saw that with Lyft, by the way. Lyft shares are also trading higher right now, up almost 23-24%. So here's what they reported-- they had losses of $398.1 million, but active writer usage increased 3% year over year. And that's despite COVID-19. And they now have 21.2 million active riders. But remember, the worst of COVID-19 coronavirus hit at the end of the quarter.
So revenue, $955.7 million-- that was a 23% year over year increase before the worst of COVID-19. Their CEO and co-founder, Logan Green, says that April-- this is kind of shocking, but not unexpected-- rides were down around 75%. And as of last week, they were still down about 70%. What have they done to prepare for the future? They've laid off about 70% of their full time workforce. They have slashed pay for remaining employees anywhere from 10% to 30%. They are not recruiting new drivers just yet. And they've turned off-- if you use Lyft, you used to get a discount every now and then when you would try to take ride. They've turned those discounts off.
The other issue, not just Lyft but Uber, all of the ride shares, they face those lawsuits in California over how they classify the employee.
