Lyft Q2 Earnings: Active Riders Increase 10%, Gross Bookings Surge 17%, Introduces Price Lock Feature

Author: Anusuya Lahiri | August 07, 2024 09:32am

Lyft, Inc (NASDAQ:LYFT) reported its second-quarter financial results on Wednesday. It reported adjusted EPS of $0.24, which beat the analyst consensus estimate of $0.19.

Quarterly sales were $1.44 billion, beating the analyst consensus estimate of $1.39 billion and representing a 41% increase year over year.

Rival Uber Technologies, Inc (NYSE:UBER) reported fiscal second-quarter 2024 revenue growth of 16% year-on-year to $10.70 billion, beating the analyst estimate of $10.57 billion. Uber operates globally with a diverse business portfolio, including food delivery and parcel services, whereas Lyft offers ride-hailing services in the U.S. and Canada.

Lyft’s gross bookings for the quarter were $4.0 billion, up 17% year over year. The company reported a 10% year-over-year growth in active riders to 23.7 million, which is an all-time high.

Total rides grew by 15% year over year to 205 million, and Uber’s trips grew 21% year over year to 2.8 billion, or 30 million per day.

Lyft generated $256.4 million in free cash flow for the quarter versus ($112.2) million Y/Y.

Lyst says its Canada rides doubled in Q2 compared to last year, and Toronto grew to become its 8th largest market.

On the conference call, Lyft’s CEO announced the launch of the price lock feature, allowing users to cap fares with subscriptions.

Outlook: Lyft saw third-quarter gross bookings of approximately $4.0 billion-$4.1 billion, adjusted EBITDA of $90 million-$95 million and an adjusted EBITDA margin of approximately 2.3%.

The company said it remains on track to generate positive free cash flow for the full year.

On the conference call, Lyft’s CEO said that prime time bookings decreased in Q2 and are expected to decline further in Q3.

LYFT Price Action: Lyft shares are down 17.90% at $9.01 premarket at the last check on Wednesday.

Photo via Shutterstock

Posted In: LYFT UBER