Lyft Inc. (LYFT) reported second-quarter 2024 earnings of 24 cents per share, which beat the Zacks Consensus Estimate of 19 cents and improved year over year. Revenues of $1.435 billion also outpaced the Zacks Consensus Estimate of $1.386 billion and improved 40.6% year over year, reflecting growth in the rideshare market. Active riders increased 10.2% year over year to 23.7 million. Gross bookings reported for the quarter were $4.018 billion, marking a year-over-year increase of 17%. Lyft's adjusted EBITDA ...

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 ...