Lyft stock slumps on weaker-than-expected forecast, reports Q2 profit
Shares in Lyft (NASDAQ: LYFT) fell more than 13% on Wednesday after the ride-hailing firm issued a soft forecast for the fiscal Q3.
For Q2, the company posted earnings per share (EPS) of $0.01, surpassing the expectations of a loss per share of $0.04. Revenue for the quarter reached $1.44 billion, exceeding the consensus estimate of $1.39 billion.
The company reported gross bookings of $4.02 billion, slightly below the estimate of $4.07 billion. Adjusted EBITDA came in at $102.9 million, compared to $41 million year-over-year, and above the expectations of $99.1 million.
For Q3, Lyft forecasts gross bookings in the range of $4 billion to $4.1 billion, below the consensus projection of $4.14 billion. Adjusted EBITDA is expected to be between $90 million and $95 million, below the estimate of $104 million.
The company forecasts a Q3 2024 adjusted EBITDA margin of approximately 2.3% as a percentage of gross bookings.
For FY24, Lyft anticipates rides growth in the mid-teens year-over-year and an adjusted EBITDA margin of about 2.1% as a percentage of gross bookings.
It said it remains on track to generate positive free cash flow for the full year and expects to achieve more than 90% of its long-term conversion target for the full-year 2024, ahead of schedule.
“For over a year you've heard us say that customer obsession drives profitable growth," said CEO David Risher. “In Q2 we delivered, and drivers and riders are choosing Lyft in record numbers.”
By Vahid Karaahmetovic