Lyft, the ride-hailing company, reported better-than-expected earnings and revenue growth for the fourth quarter of 2023, despite the challenges posed by the Covid-19 pandemic. The company also said that it expects to achieve profitability by the third quarter of 2024, ahead of its previous target.
Lyft reports EPS of $0.17 and revenue of $1.22B
Lyft (NASDAQ: LYFT) reported earnings per share (EPS) of $0.17 for the fourth quarter of 2023, beating the analyst estimate of $0.08 by $0.09. This was a significant improvement from the EPS of -$0.74 in the same quarter of 2022. The company attributed the positive earnings to its cost-cutting measures and operational efficiency.
Lyft also reported revenue of $1.22 billion for the fourth quarter of 2023, in line with the analyst estimate of $1.22 billion. This was a 4.2% increase from the revenue of $1.17 billion in the same quarter of 2022. The company said that the revenue growth was driven by the recovery of its core ride-hailing business, as well as the expansion of its delivery and enterprise segments.
Lyft sees growth in active riders and revenue per rider
Lyft also reported growth in its key performance metrics, such as active riders and revenue per rider. Active riders are the number of unique riders who take at least one ride on the Lyft platform during a quarter. Revenue per rider is the average revenue generated from each active rider during a quarter.
Lyft said that it had 22.4 million active riders in the fourth quarter of 2023, a 10% increase from 20.4 million in the same quarter of 2022. The company said that the growth in active riders was driven by the easing of Covid-19 restrictions, the availability of vaccines, and the return of travel and social activities.
Lyft also said that it had $54.51 in revenue per rider in the fourth quarter of 2023, a 3.8% increase from $52.50 in the same quarter of 2022. The company said that the growth in revenue per rider was driven by the increase in ride frequency and ride length, as well as the higher prices and incentives.
Lyft expects to achieve profitability by Q3 2024
Lyft also provided guidance for the first quarter and the full year of 2024, as well as its profitability outlook. The company said that it expects to have revenue of $1.05 billion to $1.08 billion in the first quarter of 2024, representing a 2% to 4% growth from the first quarter of 2023. The company also said that it expects to have an adjusted EBITDA loss of $35 million to $45 million in the first quarter of 2024, representing a 70% to 75% improvement from the first quarter of 2023.
For the full year of 2024, the company said that it expects to have revenue of $5.1 billion to $5.3 billion, representing a 15% to 19% growth from the full year of 2023. The company also said that it expects to have an adjusted EBITDA profit of $300 million to $400 million for the full year of 2024, representing a significant improvement from the adjusted EBITDA loss of $450 million for the full year of 2023.
The company also said that it expects to achieve profitability on an adjusted EBITDA basis by the third quarter of 2024, ahead of its previous target of the fourth quarter of 2024. The company said that it is confident that it can reach this milestone, as it continues to grow its revenue, reduce its costs, and leverage its scale and technology.
