SAN FRANCISCO - Lyft Inc. (NASDAQ:LYFT) reported a significant revenue beat for the first quarter of 2024, with figures surpassing analyst expectations.
The rideshare company's revenue reached $1.3 billion, a notable increase from the $1.16 billion consensus estimate. However, the company posted an adjusted EPS of -$0.08, missing the analyst projection of $0.08.
LYFT shares were down 3% in after-hours trading.
Lyft's financial performance reflects a 28% increase in revenue compared to the same quarter last year, indicating robust growth for the company. Gross bookings also saw a substantial year-over-year (YoY) rise of 21%, reaching $3.7 billion.
CEO David Risher attributed the strong results to Lyft's commitment to innovation and customer satisfaction, which has led to increased preference among drivers and riders. CFO Erin Brewer highlighted that this demand surge contributed to Lyft's top-line growth and its second consecutive quarter of positive free cash flow.
For the second quarter of 2024, Lyft forecasts gross bookings between $4.0 billion and $4.1 billion with an adjusted EBITDA between $95 million and $100 million, translating to an approximate margin of 2.4% as a percentage of gross bookings.
The company remains optimistic about its full-year financial goals and has updated its free cash flow conversion outlook for FY24, expecting at least 70% of adjusted EBITDA to convert into free cash flow.
Operational highlights from the first quarter include a 23% YoY increase in rides and a 12% YoY rise in active riders, reflecting improvements in rider retention and new user acquisition. The introduction of Lyft's Driver Earnings Commitment has also positively impacted driver recruitment and retention efforts.
Additionally, initiatives like Women+ Connect have been well-received nationwide, leading to nearly a 24% YoY increase in women and non-binary driver activations in Q1.
As Lyft continues its expansion into Canada, it has experienced doubled rides and more than doubled new rider activations and driver hours compared to last year's first quarter.
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