Lyft (LYFT 2.17%), a prominent player in the transportation-as-a-service (TaaS) sector, released its first-quarter results on May 7, showcasing a robust performance. The company reported a 28% year-over-year jump in revenue to $1.3 billion. A significant reduction in net loss, alongside a strong uptick in active riders and number of rides, spotlighted the quarter's accomplishments.
| Metric | Q1 2024 | Q1 2023 | Change (YOY) |
|---|---|---|---|
| Gross bookings | $3.7 billion | $3.1 billion | 21% |
| Revenue | $1.3 billion | $1.0 billion | 28% |
| Net loss | $31.5 million | $187.6 million | Improvement |
| Active riders | 21.9 million | 19.6 million | 12% |
| Rides | 188 million | 153 million | 23% |
Data sources: Company results from company.
Understanding Lyft's business
Lyft's core lies in connecting passengers with drivers through its mobile app, offering ridesharing options across towns and cities. Strategically, it aims to expand its service offerings, capture more significant market share, and enhance driver and user experience.
Recent initiatives, such as rolling out Women+ Connect -- which helps women and nonbinary riders ride together -- and its "earnings commitment" policy -- which guarantees drivers' weekly earnings will be at least 70% of passenger payments after external fees -- underline Lyft's focus on safety, community building, and supporting their drivers, essential tenets for its growth and market positioning.
Quarterly highlights
The quarter saw Lyft advancing significantly in its growth trajectory, evidenced by the 21% increase in gross bookings. The company noted strength in early morning, commute, and weekend evening rides.
The company said women and non-binary driver activations increased by nearly 24% in the quarter.
Lyft's reported positive adjusted EBITDA of $59.4 million, up from $22.7 million in the year-ago quarter. Adjusted EBITDA margin as a percentage of gross bookings improved from 0.7% to 1.6%. These developments reflect a potential path to sustained profitability.
Looking forward
For the current quarter, Lyft projects gross bookings between $4.0 billion and $4.1 billion, adjusted EBITDA of $95 million to $100 million, and an adjusted EBITDA margin of roughly 2.4%.
Lyft's first quarter of 2024 sets a promising tone for the year. As Lyft prepares for its upcoming investor day on June 6, stakeholders have much to anticipate regarding the company's strategic directions and growth outlook.
