whitebalance.oatt/E+ via Getty Images For the first time in what feels like over a year, fear is back in the markets, and back with it is irrationality. Investors have reacted sharply to earnings news this quar sending shares of high-quality companies down dramatically on the first hint that they aren't operating at perfection. Lyft (NASDAQ:LYFT) has been one of the big victims of this short-sightedness. Despite posting strong Q2 results, investors had an extremely negative view of the company's Q3 outlook ...

Lyft's shares tanked 17% on Wednesday after a soft forecast for the key summer quarter stirred worries that it may be losing ground to rival Uber. Uber, which reported strong results on Tuesday, and Lyft are locked in a tussle for market share in the North American ride-hailing sector. Benefiting from a global footprint and wider array of services, Uber has been wooing customers with subscription offerings while Lyft doubled down on competitive fares as well as company-wide cost cuts to boost its business. ...

Lyft's guidance disappointed even as it reported its first-ever GAAP profit. Shares of Lyft (LYFT -17.23%) were taking a dive today after the No. 2 ride-sharing company posted disappointing results in its second-quarter earnings report last night. As a result, the stock closed the day down 17.2%. Q2 results were strong Lyft's second-quarter results were strong, but weaker third-quarter guidance seemed to spook investors. Second-quarter revenue jumped 41% year over year to $1.44 billion, beating the consensu ...

Ride-hailing platform Lyft on Wednesday (Aug. 7) announced performance benchmarks in the second quarter, reflecting strong engagement from both riders and drivers. The company reported a record 23.7 million active riders, representing a 10% increase from the previous year. Total rides hit a new high of 205 million, up 15% year over year. Lyft's driver engagement saw significant improvements, with driver hours and recruitment reaching new highs. The company also introduced the Driver Earnings Commitment nati ...

Revenue Growth - Revenue for Q2 2024 increased by 41% to $1.4358 billion compared to $1.0209 billion in Q2 2023[134] - Revenue increased by 41% to $1,435.8 million in Q2 2024 compared to Q2 2023, driven by a 15% increase in Rides and 10% growth in Active Riders[155] - Revenue for the first six months of 2024 increased by 34% to $2,713.0 million compared to the same period in 2023[155] - Revenue increased by $414.9 million, or 41%, in the three months ended June 30, 2024 compared to the same period in 2023[166] Net Income and Profitability - Net income for Q2 2024 was $5.0 million, a significant improvement from a net loss of $114.3 million in Q2 2023[134] - The company achieved net income for the first time in its operating history in Q2 2024[130] - Net income improved to $5.0 million in Q2 2024 from a net loss of $114.3 million in Q2 2023[152] - Net loss for the first six months of 2024 narrowed to $26.5 million from a net loss of $301.9 million in the same period in 2023[152] - Net income for Q2 2024 was $5.0 million, compared to a net loss of $114.3 million in Q2 2023[173] - Company achieved net income for the first time in its operating history and reported a third consecutive quarter of positive free cash flow in the quarter ended June 30, 2024[184] User and Ride Growth - Active Riders grew by 10% to 23.7 million in Q2 2024 from 21.5 million in Q2 2023[134] - Rides increased by 15% to 205.3 million in Q2 2024 from 177.9 million in Q2 2023[134] Gross Bookings - Gross Bookings rose by 17% to $4.0189 billion in Q2 2024 from $3.4460 billion in Q2 2023[134] - Gross Bookings increased by $572.9 million, or 17%, in the three months ended June 30, 2024 compared to the same period in 2023[166] - Gross Bookings for Q2 2024 reached $4,018.9 million, a 16.6% increase from $3,446.0 million in Q2 2023[173] Adjusted EBITDA - Adjusted EBITDA surged by 151% to $102.9 million in Q2 2024 from $41.0 million in Q2 2023[134] - Adjusted EBITDA increased by $61.9 million, or 151%, in the three months ended June 30, 2024 compared to the same period in 2023[166] - Adjusted EBITDA for Q2 2024 was $102.9 million, up from $41.0 million in Q2 2023[173] Free Cash Flow - Free cash flow improved to $256.4 million in Q2 2024 from a negative $112.2 million in Q2 2023[134] - Free cash flow increased by $368.6 million, or 329%, in the three months ended June 30, 2024 compared to the same period in 2023[166] - Free cash flow for Q2 2024 was $256.4 million, compared to negative $112.2 million in Q2 2023[176] Cost of Revenue - Cost of revenue rose by 35% to $819.5 million in Q2 2024, primarily due to a $189.9 million increase in insurance costs[156] - Cost of revenue for the first six months of 2024 increased by 36% to $1,574.9 million, primarily due to a $384.4 million rise in insurance costs[157] Operations and Support Expenses - Operations and support expenses increased by 8% to $115.7 million in Q2 2024, mainly due to higher Light Vehicle fleet operations and driver onboarding costs[157] - Operations and support expenses for the first six months of 2024 increased by 6% to $218.8 million, driven by higher Light Vehicle fleet operations and driver onboarding costs[157] Research and Development Expenses - Research and development expenses decreased by 36% to $98.8 million in Q2 2024, driven by reduced personnel-related costs and stock-based compensation[158] - Research and development expenses for the first six months of 2024 decreased by 43% to $198.8 million, primarily due to reduced personnel-related costs and stock-based compensation[158] - Research and development expenses decreased by $152.7 million, or 43%, in the six months ended June 30, 2024 compared to the same period in 2023[159] Sales and Marketing Expenses - Sales and marketing expenses increased by $67.2 million, or 62%, in the three months ended June 30, 2024 compared to the same period in 2023[159] - Sales and marketing expenses increased by $96.7 million, or 43%, in the six months ended June 30, 2024 compared to the same period in 2023[161] General and Administrative Expenses - General and administrative expenses increased by $51.2 million, or 25%, in the three months ended June 30, 2024 compared to the same period in 2023[162] Interest Expense - Interest expense increased by $1.7 million, or 28%, in the three months ended June 30, 2024 compared to the same period in 2023[163] Other Income (Expense) - Other income (expense), net decreased by $11.1 million, or 21%, in the three months ended June 30, 2024 compared to the same period in 2023[164] Cash Flow and Liquidity - Net cash provided by operating activities for H1 2024 was $432.4 million, a significant improvement from negative $144.0 million in H1 2023[177] - Cash used in investing activities for H1 2024 was $317.2 million, primarily due to $2.1 billion in purchases of marketable securities[180] - Cash used in financing activities for H1 2024 was $66.9 million, including $41.0 million in loan repayments[181] - Company's principal sources of liquidity as of June 30, 2024 include cash and cash equivalents of $604.4 million and short-term investments of $1.2 billion, excluding restricted cash, cash equivalents, and investments of $1.3 billion[182] - Company has a revolving credit facility with an aggregate principal amount of $420 million, with a sublimit of $168 million for the issuance of letters of credit[182] - Restricted reinsurance trust investments as of June 30, 2024 were $1.1 billion, compared to $837.3 million as of December 31, 2023[184] - Company has $1.8 billion in unrestricted cash and cash equivalents and short-term investments as of June 30, 2024[184] Stock-Based Compensation and Depreciation - Stock-based compensation expense for H1 2024 was $165.8 million, down from $294.3 million in H1 2023[179] - Depreciation and amortization expense for H1 2024 was $70.1 million, up from $55.8 million in H1 2023[179] Restructuring Charges - Restructuring charges in Q2 2023 totaled $52.3 million, including $46.6 million in severance and other employee costs[173] Long-Term Debt and Interest Rate Sensitivity - Company had long-term debt of $1.0 billion as of June 30, 2024, with 39% consisting of fixed-rate 2025 Notes and 45% consisting of fixed-rate 2029 Notes[187] - A hypothetical 100 basis points change in interest rates would not have a material impact on the company's financial condition or results of operations[187] Strategic Initiatives - The company launched Women+ Connect in September 2023, offering women and nonbinary drivers the option to prioritize matches with nearby women and nonbinary riders[130] - The company committed to ensuring drivers receive 70% or more of rider payments after external fees are subtracted, starting February 2024[130] - Company plans to invest further in EVs to comply with various state and city regulations, including California's target of 90% of rideshare miles in EVs by 2030[184]

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: A Lyft sign is displayed on a car in Chicago, March 11, 2024. Credit: AP Photo/Nam Y. Huh, File Lyft shares tumbled to their biggest loss in more than a year on Wednesday after the ride-hailing app reported gross bookings that spooked investors. Shares of Lyft were down close to 13% in midday trading to $9.54 per share, even as t ...

Lyft NASDAQ: LYFT released its second quarter 2024 earnings report, revealing a remarkable milestone. Lyft's financial release shows that the company achieved GAAP profitability for the first time in the company's history. However, this triumph was met with a wave of investor caution as Lyft simultaneously issued a lessthan-optimistic outlook for the coming quarters, sparking a decline in Lyft's stock price. Get Lyft alerts: Lyft's Robust Quarter Fuels Optimism Lyft Today LYFT Lyft $9.65 -1.32 (-12.03%) 52- ...

Financial Data and Key Metrics - Lyft achieved GAAP profitability for the first time in Q2 2024, marking a significant milestone [4] - Revenue exceeded $1.4 billion, up more than 40% year-over-year [17] - Gross bookings exceeded $4 billion, up 17% year-over-year [17] - Adjusted EBITDA was $103 million, representing 2.6% of gross bookings, up from 1.2% a year ago [19] - Free cash flow for Q2 was $256 million, with a total of $368 million over the last four quarters [20] Business Line Data and Key Metrics - Lyft Media revenue grew more than 70% year-over-year, with in-app media revenue growing more than 10 times year-on-year [8][9] - The company signed deals with 44 new brands in Q2, including T-Mobile and Activision, and re-signed deals with Amazon, Fidelity, and NBCUniversal [8] - Autonomous vehicle (AV) rides facilitated in markets like Las Vegas reached over 130,000, with Lyft positioning itself as a key player in AV commercialization [12] Market Data and Key Metrics - Lyft had a record 23.7 million quarterly active riders, up over 10% year-over-year [6] - Driver hours hit an all-time high, with a 34% increase in women and nonbinary drivers compared to Q2 2023 [4] - Average pickup times were more than 10% faster than a year ago, the fastest in four years [15] - Primetime surcharges declined by more than 25% quarter-over-quarter, improving rider conversion rates [7][15] Company Strategy and Industry Competition - Lyft's strategy focuses on customer obsession, operational excellence, and product innovation, driving profitable growth [4][13] - The company is piloting a new feature called Price Lock, aimed at reducing price variability for commuters [7][26] - Lyft is leveraging its network and partnerships to commercialize autonomous vehicles, with a focus on fleet management and integration [10][12] - The company is investing in partnerships and media to drive growth, with a strong emphasis on in-app video ads and brand collaborations [8][9] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of operational excellence in driving growth through increased driver hours, rider retention, and frequency [14] - The company expects gross bookings to grow slightly faster than rides in Q3, with adjusted EBITDA of $90 million to $95 million [20] - Lyft reiterated its full-year 2024 guidance, expecting mid-teens year-over-year growth in total rides and gross bookings [21] - The company is confident in achieving sustainable GAAP profitability by 2025-2027, with progress expected to be non-linear but on an upward trajectory [19] Other Important Information - Lyft's cash position at the end of Q2 was approximately $1.8 billion in unrestricted cash, cash equivalents, and short-term investments [20] - The company is working on reducing insurance costs through product and safety initiatives, with slower premium increases expected in 2024 [21] - Lyft's focus on reducing Primetime surcharges and improving marketplace health is expected to continue into Q3 [36] Q&A Session Summary Question: Economics of Price Lock and Marketplace Balance [23] - Price Lock is a subscription-based feature aimed at providing predictable pricing for commuters, with a focus on reducing price variability [26] - The company is shifting incentives from drivers to riders, with a focus on improving rider retention and frequency [24] Question: Insurance Costs and Consumer Sentiment [29] - Insurance cost increases are expected to moderate compared to the previous year, with ongoing efforts to reduce accident frequency and improve settlement outcomes [30][31] - Consumer sentiment remains strong, with growth across various ride segments, including party rides and airport rides [32][34] Question: Impact of Price Lock on Wait & Save Mix [38] - Price Lock and Wait & Save are complementary products, with Price Lock targeting commuters seeking predictable pricing and Wait & Save appealing to cost-conscious riders [39] Question: Long-Term Growth Drivers and Insurance Strategy [78] - Lyft is focused on geographical expansion, new segments, and partnerships to sustain mid-teens growth, with a slight shift towards self-insurance in the latest renewal cycle [79][80] Question: Pricing Strategy and Volume Growth [86] - Lyft is focused on reducing price variability and leveraging partnerships to offset costs, with early markets showing positive volume growth in response to pricing innovations [87][90] Question: Advertising Revenue Growth [67] - In-app media revenue grew more than 10 times year-over-year, driven by targeted advertising and high engagement rates [69][71] Question: Canada Market Growth and U.S. Market Share [73] - Lyft is seeing strong growth in Canada, with Toronto becoming its eighth-largest market, but no significant changes in U.S. market share [75] Question: Capital Allocation and Stock-Based Compensation [56] - Lyft remains on track with its 2024 target of $340 million in stock-based compensation and is focused on investing in profitable growth while managing its balance sheet prudently [57]

Key Takeaways Lyft swung to its first quarterly profit, driven by record rides. Current-quarter bookings and adjusted EBITDA guidance both came up short of analysts' expectations. Lyft shares plunged 13% in intraday trading Wednesday. Lyft (LYFT) shares plunged 13% intraday Wednesday as disappointing guidance outweighed the ridesharing company's first quarterly profit and record ridership numbers. The company expects current-quarter bookings of $4 billion to $4.1 billion and adjusted EBITDA of $90 million t ...

About this content About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output a ...