Shares in Lyft Inc. dropped in late trading after the ride-hailing company reported lower-than-expected revenue per active user despite otherwise solid figures.

For its second quarter that ended June 30, Lyft reported adjusted earnings per share of 16 cents on revenue of $1.02 billion, up 3% year-over-year. Revenue was in line with analyst expectations, but earnings were 17 cents higher than an expected loss of a penny per share.

Lyft reported a net loss in the quarter of $114.3 million, compared with a loss of $187.6 million in the previous quarter and $377.2 million in the same quarter of last year. The net loss figure included $116.6 million in stock-based compensation and related payroll expenses.

Adjusted earnings, at $41 million, was up from $22.7 million in the previous quarter and a loss of $196.3 million in the second quarter of 2022. The company’s adjusted margin hit 4%, up from 2.3% and negative 19.8%, respectively.

All those figures indicate that Lyft is a company that’s cutting costs, but in doing so, it’s also making less money per ride. Lyft saw active riders hit 21.6 million in the quarter, its highest figure since the first quarter of 2020, but revenue per active ride was $47.51, the lowest figure since the third quarter of 2021. Analysts were expecting $48.38.

Addressing the reduction of returns per rider, Chief Executive David Risher said in a separate interview that the company really wants to “price competitively” and noted that rides receiving a prime-time charge, or surge pricing, fell 35% sequentially in the second quarter, while the average per-mile fare was 10% lower from a year ago. The competitive pricing, Rischer noted, was also directly related to its increase in active riders.

For its fiscal third quarter, Lyft expects revenue of $1.13 billion to $1.15 billion, up 7% to 9% year-over-year. Analysts had expected a forecast of $1.09 billion, indicating that the price-cutting strategy is bringing in additional business.

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