LYFT Q2 2024 Earnings

Call Details

• Call Title: Lyft, Inc. Q2 2024 Earnings Call
• Date: August 7, 2024 at 12:15 PM UTC
• Management Team:
  • David Risher (Chief Executive Officer)
  • Erin Brewer (Chief Financial Officer)
  • Aurélien North (VP of P&A and Investor Relations)

Call Summary

Financial Performance

• Lyft supported 205M rides in Q2 2024, which was reported as up 15% year over year.
• Lyft reported 23.7M quarterly active riders in Q2 2024, which was reported as up 10% year over year.
• Gross bookings exceeded $4B in Q2 2024, which was reported as up 17% year over year.
• Revenue exceeded $1.4B in Q2 2024, which was reported as up more than 40% year over year (non-GAAP unless otherwise noted).
• Cost of revenue was $812M in Q2 2024, which was reported as up 37% year over year and was attributed to higher insurance costs and higher ride volume.
• Operating expenses were $556M in Q2 2024, equal to 13.8% of gross bookings, and were described as slightly higher than Q1 driven by sales and marketing incentives.
• Adjusted EBITDA was $103M in Q2 2024, representing 2.6% of gross bookings, up from 1.2% in the year-ago quarter.
• GAAP net income was $5M in Q2 2024, reported as the company's first GAAP profitable quarter.

Guidance

• For Q3 2024, Lyft expects gross bookings of approximately $4B to $4.1B, which was reiterated as up 13% to 15% year over year.
• For Q3 2024, Lyft expects adjusted EBITDA of approximately $90M to $95M and an adjusted EBITDA margin of approximately 2.3% of gross bookings.
• Lyft reiterated full year 2024 expectations for total rides growth in the mid-teens year over year with gross bookings growing slightly faster than rides.
• Lyft expects an adjusted EBITDA margin as a percentage of gross bookings of approximately 2.1% for full year 2024.
• The current outlook includes Lyft's estimate of the impact of third-party insurance contract renewals, which are expected to mostly take effect in Q4 2024 and are described as in the final stages of negotiation.
• Lyft now expects that more than 90% of adjusted EBITDA will convert to free cash flow for full year 2024, and the company expects positive free cash flow for the full year.